Is Dealer Manipulating Money Factor?

Ask the Hackrs
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1

Brand new here, hopefully I don’t get flamed. I tried my best to plug in these numbers to the Lease Calculator, and I am still getting SoCal market, looking to lease a 2024 Kona Electric for 24 months. This is the National Ad:

Offer Disclaimer
EXTREMELY LIMITED INVENTORY AVAILABLE. MODEL SHOWN PRICED HIGHER. Lease a 2024 KONA EV LIMITED AUTOMATIC TRANSMISSION FWD(Q14G2FEZ) for $242 per month for 24 months with $1,999 due at lease signing (lease offer shown includes application of $7,500 EV Lease Bonus). Excludes registration, tax, title and license. Closed end lease for 2024 KONA EV LIMITED AUTOMATIC TRANSMISSION FWD(Q14G2FEZ) available from 4/5/2024 and 4/30/2024, to well-qualified lessees approved by Hyundai Motor Finance. Not all lessees will qualify. Higher lease rates apply for lessees with lower credit ratings. Offer shown based on $1,999 due at lease signing (includes $242 first payment and $1,757 capitalized cost reduction). No security deposit required. MSRP $42,420 (includes destination, excludes tax, license, title, registration, documentation fees, options, insurance and the like). Includes application of $7,500 EV Lease Bonus resulting in a net capitalized cost of of $33,813. Net capitalized cost includes $650 acquisition fee. Dealer contribution may vary and could affect actual lease payment. Total monthly payments $5,808. Option to purchase at lease end $31,815. Lessee is responsible for third-party fees. Third-party fees vary by state or locality. Lessee is also responsible for insurance, maintenance, repairs, $.20 per mile over 12,000 miles/year, excess wear, and a $400 disposition fee.

We went in expecting the $242/mo
plus fees ($1,362 / 42 = $56.75)
plus difference in MSRP from National Ad ($43,035 - $42,420 = $615 / 24 = $25.62/mo)
plus tax (+/- $29/mo)
for somewhere around $353/mo after $2000 down payment. Dealer came back with $376.57.

Question: Maybe the money factor was manipulated to give a higher lease payment? Why is the dealer quote $23/mo higher?

Here is the printout quote:

deal bad
deal bad866×540 138 KB

2

Money factor is right for a 36, not a 24.
The fact that you are getting $0 off MSRP is the real problem.

1 Like
3

Buy why am I coming up with a lower payment?

4

Sorry didn’t notice the 24 there.

That should be 183, not 282, 282 is a 36 rate.

5

Without a calculator post , I cannot tell you as lots of things aren’t easily done on a text math post.

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6

So you are saying that the dealer DID put the wrong money factor in this quote?

7

or they are ripping you off.

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8

What about the rest of the tax? You get to pay tax on all the upfronts, including the rebates.

9

I don’t see that in the dealer quote printout… they show monthly tax of $30.30. Should that be posted somewhere on their printout?

10

Where are you finding the 183 number? Is there somewhere online that tells you what the MF is supposed to be for tier 1 credit and 24/12 lease deal?

11

Edmunds.com

12

A great credit score doesn’t entitle you to the base money factor, it makes you eligible for it. FWIW, the National ad is far more designed to make you think it’s a good deal than it is. That asterisk can hide quite a bit of money.

13

All calculations on the dealer WS appear to be accurate. Here is the accounting…

CCR 7750.11
CCR Tax 678.13
1st pay 376.57
Doc fee 85.00
Doc fee Tax 7.44
License Fee 594.00
Tire Fee ??? 8.75
TOTAL 9500.00
Credits 7500.00
DAS 2000.00

Base Pay = .00282 x (35967.89 + 32276.25) + (35967.89 - 32276.25) / 24
= 346.27
Tax @8.75% = 30.30
Contract Pay = 376.57

Everything checks out.

EDIT: Not sure about the money factor. Check Edmunds.

1 Like
14

Your first mistake was making this your starting point.

Use the Marketplace and Signed Deals & Tips to see real OTD prices