Yes, you already have a working calculator and seemed to know what the target deal is. I suggest not to discuss money factor with the dealer. If you want a bigger discount, just offer $xxx drive off and $yyy monthly. Don’t tell the dealer how to structure their deal, about half the people here disagree but I would not discuss m.f. with dealers because I find the opposite is true that it turns them off real quick.
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Paging @mllcb42
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Why? A marked up money factor in exchange for a commensurate discount is better for you. Obviously, commensurate is the key word there.
Can you please help me understand why a marked up MF is better? I am still learning…a lot!
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A marked up money factor, accompanied by a commensurate discount, means you spend the entire leease term, until the last payment, with a lower adjusted lease balance. You essentially always have a stronger equity position should you find yourself with a need to sell/buyout/trade in. In some states, taxes only apply to the depreciation portion of your payment as well, so you get the added benefit of lower taxes there.
Basically, best case scenario, you make more money on a buyout. Worst case scenario, its a push. Its all potential upside with no downside.
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