General getting started questions: residual


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

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

  • 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.

Set by the bank, not manufacturer.

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

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

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

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.

1 Like