I agree with that. It’s the way I have always done it.\
You may be correct but either way I don't understand the advice/strategy. The residual value is fixed so not even worth mentioning. The goal in the negotiations is to get the lowest price for the vehicle since that is used for the cap cost/financing. Whether you go about that by working down from MSRP or up from invoice price it makes no difference. Many people recommend working from invoice as it gives some idea of the possible discount amount.