Thank you. So then the dealer would cut the agency a check? Interesting, I was for some reason under the impression that’s not allowed, or maybe a gray area? Maybe that’s why it’s such a hush-hush.
2018 BMW 540i M Sport RWD Lease.
12k miles a year/36 months.
MF, Residual? Thanks.
This is not the thread for MF/RV info. That info is already posted by @BMW_Dave. Check Edmunds for any other brand/vehicle.
2 Likes
@RVguy I am starting the process to try to lease a 2018 Tacoma. I sent Telhio an email asking for the MF for the 2018 Tacoma TRD Sport and they responded I would need to see the dealer. Is there no way to have a ballpark MF before I have to go to the dealer? Was really hoping I could get the MF so that I can determine a selling price that I need to target.
Any help would be appreciated. Was really hoping to lease through CULA.
Do dealerships really loose money? Example, We went to talk to a dealership and the guy said I can’t give you x amount because then he loses money? How true is this? Also, dealerships would never give a car for free so I don’t get it.
Dealers often “lose” money on the cars they sell. They make it up in the finance office selling add-ons, as well as bonus money for selling a specified target per month. With that said, they won’t give the car away, and discount it more than they need to in order to move it. The service dept is a big profit center as well.
They might “lose” money on the cars they sell, but they wouldn’t be in business if not profitable.
@RVguy What do you think the leasing companies will do once the EV fed credit starts phasing out? Will they introduce new incentives to effectively replace the disappearing fed credit, or will leases for EVs simply get more expensive as the tax credits fades away?
Or are manufacturers such as GM betting on the EV tax credit program getting revamped/extended?
Hi @RVguy - unsure if you are still moderating this thread but am learning the basics of leasing and am interested in a '18 Porsche 917 Boxster here in Austin, TX. I feel the MF is high but maybe there are other things out of whack!
Thanks!
Tanky
He needs to rename the thread to ask him about the leasing industry. Not particular lease deals.
Best bet is making your own topic.
3 Likes
The industry is still assuming they will be required to hit certain OEM-specific CAFE requirements in the coming years and to do so requires certain levels of EV and PHEV volumes to eliminate the need for paying for the credits. Trump hasn’t officially changed the government’s stance but has hinted that he will loosen up the fuel economy requirements at some point. If he does, the pressure to sell goes down so the lease deals will get worse but still aggressive. The OEMs will need to maintain some elevated incentive level if the tax credits aren’t renewed. Gas prices aren’t expected to go up and that is the real driver for increased natural demand for these vehicles. I think it is a safe bet that the lease deals on most EVs won’t be getting better down the road.
1 Like
Welcome to Porsche leasing! Porsche Financial Services rarely subvene a the rates because they don’t need to. There are enough people that are willing to spend high dollars to lease the volume of vehicles they are producing. The Macan has a better rate though.
@RVguy How much is a reasonable dealer discount on a Cadillac CT6 demo car with 4500 miles? I would think that at least 10% should be a reasonable amount before any incentives or GMS.
This question would be better suited in the “Ask the hackers” section.
Do dealers make money on leasing if they agree to base money factor?
I am preparing my argument for base money factor, and I am wondering if telling them I will just pay cash instead of marked up MF will help at all. At that point, is it the same for them? Or do they still get some money out of the base MF?
They get a fee from GM Financial for the finance office work. Any additional MF is extra profit for finance.
You should really start a new thread about this. I don’t have data on demo pricing to comment on what is reasonable.
Some lenders pay flat fees if the dealer writes the deal at the buy rate. Those flats are usually small which is why dealers are inclined to mark the rate up if they can.
If you are shopping multiple dealers against one another on the exact same vehicle, one that marks the rate up might have dropped the selling price more so your monthly payment is the real cost factor you should use for your decision.
@RVguy, Would a dealer get additional kickback if they mark the MF up in lieu of acquisition fee? In other words, if I buy a BMW with buy rate of .00156, bump .0005 to waive acquisition fee (because it’s advantageous to me), would a dealer get an additional kickback for this, or would this be treated as a flat fee buy rate deal to the dealer? I guess what I’m getting at is, let’s say I ask for a bigger discount, and offer to bump the MF with the acq. waiver. Would F+I get a bigger cut due to the higher MF, or would it be treated as a regular buy rate deal in F+I?
1 Like
This is for a 2018 range rover I ordered that I would be paying msrp for. I am fine with paying msrp for it, that is currently pretty typical for this car. But the dealer is taking the MF from .00245 to .00345, over the 36 months, that equates to about an $8k difference.
I would rather pay cash or even get outside financing over paying that markup. But I am curious if they lose anything if I pay cash instead of them leasing at the base rate.
I am going to assume the dealer gets no additional profit for bumping the mf in exchange for waiving the acquisition fee because the lease company requires it and you are still at the minimum buy rate.