I’ve used this forum and others to help gather knowledge about constructing my first lease deal. I was comparing two cars and then after some information I read, I realized I have been shopping the wrong way. I’ve scratched those deals and starting from zero. Before I proceed, I have 2 questions that should probably be insanely obvious but I don’t have the answers:
I have read certain vehicles do not lease well. What are the factors you weigh when taking that into account? Is it based on high residual value alone, or some other information that should be weighed?
If I understand correctly, the money factor is set and some dealers mark them up for profit, but they cannot be negotiated downwards (under what is set by the manufacture). How does credit come into play? When I’m looking at a term sheet a dealer has sent me, how do I know which numbers are credit based?
A vehicle that leases poorly is one that typically has a combination of limited incentives, high mf, and low residual value. There’s really two main criteria… How a vehicle leases compared to comparable vehicles and how a vehicle leases compared to purchasing it.
Opposite! High residual plays into your favor. If you read through leasing 101, it explains what goes into a lease and how it’s calculated.
VERY simply put, you pay depreciation (selling price - residual value), rent charge, and taxes/fees however calculated for your registration location.
Yes, you have the prime rate (base mf, way for bmw 0.00082 for dec). A dealer can add a markup, to make it per example, 0.00092. The hikes, procedure (if they do it or not), and rate increases per tier depends brand to brand and bank to bank, like how Volvo fs will approve or deny versus bmw or chase (JLR financial) working flexibly.
The last part, technically you can make money factor under what the bank sets, with multiple safety deposits under applicable law, but you can’t negotiate it under what the bank sets.
there’s the Kia Telluride and Stinger that seems to be immensely popular haha