Jeep Grand Cherokee Money Factor Negotiation

Hey Guys,

I had tried to avoid the game of leasing this time around but situations change. I’m on a deadline needing a car by tomorrow and have a car I’m good with leasing at an ok price.

But when I look at the deal, I’m getting a Money Factor of 0.00155 on a jeep when edmunds tells me base is 0.0008. also I’ve tried making the math work it even with their numbers/MF/rebates/fees, the number quoted is $15 a month more than the calculated number on the lease hacker calculator. The dealer is supposed to be a friend of the family giving us a “good deal” too.

My question is. How upset should I be at a mark up of the MF? Is this a dirty trick I should complain about and try and get down or is this normal/usual/accepted behavior? It seems like their double dipping and I should have a cheaper payment. Again my final payment is acceptable in the circumstances and squeezes in the 1% rule, but want to know how hard to push?

Any advice appreciated. Thanks!

They have the right to mark up the MF if they want

You have the right to negotiate it

You both have the right to accept or deny the deal

Also-Jeep uses so many banks.

You sure you’re both talking the same one?

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Edmunds only provides numbers for captive banks. Are you sure the dealer is using the captive for your deal?

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What does the price difference equate to with the markup money factor over the entire deal ? Maybe be negotiate that amount towards a deeper discount.

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It’s business. What is there to be upset about?


Which specific Jeep? I can tell you whether or not it’s likely leasing thru CCAP or another different bank.

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2021 jeep grand cherokee 4x4 high altitude.

Also by upset, I mean how much I should push back on the MF or if it’s a reasonable offer. It’s absolutely business but I don’t want to insult or be naive or confidently claim the MF is bad when it’s not really. It’s all a learning process

  1. We don’t know if they are the same bank so it could be apples to oranges.

  2. An MF markup hardly ever goes away directly. If they are willing to bring the payment down, it’s usually through more discount. That’s because the finance guy could be compensated based on financial revenue rather than gross profit on the vehicle.

There’s nothing wrong with a marked up mf as long as the discount is increased an appropriate amount to compensate and you normalize to buy rate for deal comparison.

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A Grand Cherokee right now is likely to be leasing thru CCAP unless its a low mileage lease. It seems like the main car’s going thru Ally or others now are Wranglers and Compass’s. My dealer hasn’t quoted me one GC thru Ally or others, and he always quotes with whoever has the best program.

.0008 is the right MF for CCAP.

I can confirm incentives if you give me the ZIP, otherwise any other advice I would give is irrelevant as incentives are region-dependent.

To answer your question about how you should feel:

Some would argue this, but at the end of the day if you get $300/mo with a huge discount and a marked up MF or $300/mo with a base MF and decent discount doesn’t matter as long as $300/mo was a great deal for that car.

Marking up the MF is a way for a dealer to “show” a huge discount, but really, unless you know how to calculate, it is usually not all that great.

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Ok good to know. Looks like it’s worth negotiating a little more at the table to see but I’m kinda stuck regardless as my car has to go back tomorrow! Fun times!l

MF is meaningless if the overall discount and deal makes sense. It shouldn’t matter how the desk got you to a certain deal, as long as it is good it doesn’t matter.

Would you rather have a car for $100 / month with maxed out rate or $165 a month at base?

Also, you likely have the wrong MF. I don’t know of any lenders that allow markup over .001

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He has the right MF if it’s CCAP. He could easily confirm if this is a CCAP lease based on the incentive number if he knows it.

  1. All of this makes sense, I’ve followed this forum for a while and so I think I was taking the MF at face value. I’d say the final lease payment is adequate but could be better given others and perhaps the MF is to blame.

Only caveat I see here that might explain the MF discrepancy is this is a 39 month 12k lease with a residual of 58% vs 36m/12k with a residual of 56% that edmunds quoted me. Maybe that’s how they’re doing it

If it’s a non captive bank, Edmunds numbers aren’t relevant.

I don’t think CCAP does 39/mo leases.

Maybe it is another bank. I’d find that odd though. Right now CCAP seems to be the best for Grand Cherokee’s.

You should just post the deal sheet if you have it. We could give much more meaningful feedback.

Lol ok. Let me get the extra details I was given.

MRSP: 55,875
Discount: 4803
Rebates: 4670
RV: 32407.50
Fees: 230

39m/12k with MF quoted as 0.00155

$1750 at signing (first month, fees etc). Then $530ish a month

You guys are awesome. Thanks for all the advice

wow nice set of discounts there.
Though that 39m means you will have to pay for 1 more year of registration. Hope you can get it prorated (Cannot in CA)