MF and residual

who decides MF and residual? The dealership or car company?

The company

The banks list RV and MF and the dealer is allowed to ‘add to’ the MF.

To clarify a bit more, the rv is set entirely by the bank. The dealer has absolutely no say.

The bank sets a base mf, referred to as “buy rate”. The dealership can mark up the mf above what the bank sets. Different banks allow for a different maximum amount of mf mark up.

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thank you…