General getting started questions: residual

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1

I have leased a few cars, and I want to up my game.

In general, do the dealers have any wiggle room on residual value? I always focus on purchase price, but always wondered about the other side of the equation. I know they are supposedly set by the manufacturer, but wanted to confirm that

2

No, dealers cannot change/modify/edit the RV.

3

  • The only thing you can negotiate is the dealer discount.

  • MF is set by manufacturer. Some dealers will mark -up to make more profit but you can essentially negotiate it to base, whatever it maybe.

  • Incentives are set by manufacturer. You get what you qualify for.

  • Residual are set by bank.

4

Set by the bank, not manufacturer.

5

good catch, fixed, althu in a lot cases bank is… the manufacturer?

6

Manufacturers can have a captive bank, but dealers can offer deals with 3rd party banks as well (which can have different incentives, RV, MF).

7

Thanks! That is what I thought. So basically the ONLY thing you can negotiate is the purchase price, and be aware of incentives, money factor and residual, it sounds like

8

Some dealers may offer financing sources besides the manufacturer’s captive finance company (examples: US Bank, credit unions, etc.).

… So in some cases there may be more than one financing source, and RVs and MFs can vary from option to option on the identical vehicle from the same dealer.

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