When you try to lease a car, is there a guideline on what the Money Factor should be? I’ve heard anywhere from 0.00165 to 0.002. What’s a good MF for reference?
The money factor is whatever the bank/captive decides it should be. Dealers can bump the MF to some degree based on credit score, or for additional profit. It can never be lower than the captive sets it though.
Based on the numbers you provided, this is BMW. Buy rate (base MF) should be .00165. THIS MONTH. Banks can change this monthly, so you will have to check again in July.
I notice that for non-subvented 4-year loans on new car (purchases) the published loan rate this week is 4.68%.
Should that loosely translate into a money-factor(MF) for a non-subsidized lease then that would be .00195. If your deal wants much more than that and you have excellent credit, then the MF has probably been marked up.
The problem though with MF’s is, is that finance arms often offers incentives on the rate making it lower.
You can find out what the MF is for any car make and trim level over on the Edmunds forum.
Thank you! So, each brand of cars has different MF?
Different MFs for each model and for each trim level. If the OEM isn’t selling as many model X in the W trim then they’ll incentivize that MF to move them.
Also different MFs for each lease term (eg. 24 months different than 36 months and so on)
Thank you! Will give Edmunds a try.
BMW is the rare exception where the MF is the same across the board.
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What about BMW?
Sorry…I meant what about Benz
Ask on Edmunds as stated. It’s different for every model/trim/terms.