Thanks for all the knowledge shared here. I’ve browsed and searched but not been able to find quite the precise answers I’m seeking to these questions.
When the folks over at the Edmunds forums provide money factor and residual values, am I correct to assume that those are the “base” values set by the manufacturer-brand finance company, e.g. Ford Financial?
If so, why are there differences in MFs between zip codes if the finance company is nation-wide?
Is part of the reason that brokers are able to find better deals is that those deals involve banks offering lower MFs/APRs?
When using the Leasehackr calculator, it seems that the personal property taxes are not included (as you know, not all states have these; they are calculated something like mill rate * fair market value * 0.70 – in CT most of the not-rich smaller cities have very high mill rates and the personal property taxes are terrible). Edmunds says that it estimates taxes based on zip codes (when calculating competitive payments on leases) – does that also estimate personal property tax?
What is your general guidance for the % off MSRP that should be obtainable for various desirability classes for vehicles? E.g. for the C8 Corvette I would expect it to be negative (marked up above MSRP) and for a common sedan I would expect it to be substantial, e.g. 15-20% or more. Does this vary too much by specific vehicle MY and trim to have a rule of thumb?
These are the base values set by the captive lender.
Finance companies set different rates geographically in order to move units. How they determine these rates by zip code is a mystery to everyone outside of the captive lender.
Brokers sometimes use outside banks to get great deals. These programs are open to everyone. brokers just understand them much better than the average person (who doesn’t even know they exist). However, often times brokers rely more on volume and relationships with dealers than good financing.
Edmunds does not estimate PPT. I believe generally they are your responsibility but check with your lender.
Each model year & trim will have a different ‘good’ price. In addition to these: time of year, time in the month, dealer location and car color can all affect the sales price. Hellcat in February in Massachusetts? You are going to come out with an amazing deal. Convertible anything in July in South Florida? Good luck. Ask around here for what is a good discount when you have it narrowed down to a year and trim. True Car is helpful for this too.
