Haven’t bought a new car in a while...is my dealer scammy? Lease price doesn’t equal purchase price?

[Andtros]

What's the money factor? it seems that they are just setting the price at this point and not the actual lease

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[blackeye]

Can you actually negotiate the money factor? Isn't that from the bank and based on your credit?

You can’t negotiate it down, but a lot of dealers will increase it as a way to make more money on the deal and hide some profit taking.

Depending on the dealer, some are able to use multiple lenders for financing and those will sometimes have different MFs. If you ask in the Edmonds forum, they’re able to provide those.

There were some amazing deals on Toyota Tacoma leases a few months ago because of great residuals and low MF from dealers that work with US Bank. Some people are actually selling those leased vehicles to Carvana now and pocketing $2-$3k.

 

[blackeye]

What's the money factor? it seems that they are just setting the price at this point and not the actual lease

If they’re telling you that the lease price and purchase price are going to be different, you need to check the incentives available for purchasing versus leasing in your ZIP code.

That will usually account for the difference if you’re dealing with an honest salesperson.

Often, when you start to talk leasing they will want to change the conversation and just ask how much you want to pay a month and they’ll find a way to get you that number but mess around with the MF, price, fees, down payment, and trade-in to get you there while actually increasing the price.

 

[blackeye]

Can you actually negotiate the money factor? Isn't that from the bank and based on your credit?

I forgot to mention that some banks and dealers let you put down multiple security deposits (MSDs) to lower your money factor.

Not sure if Chrysler Capital allows this or not, or the other lenders used by CDJR dealers.

 

[Andtros]

Can you actually negotiate the money factor? Isn't that from the bank and based on your credit?

Yes- For my past leases, I asked around and research what the best money factor is at the time. I have done this twice, once they give me the numbers I show them mine. I haven't been turned away. It's on a sheet - knowing that I have excellent credit helped the process cause they couldn't use that excuse.

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