Hello all. I’m sorry if I’m about to ask a newbie question, but here goes…
I last took out a lease in 2018 (bought it out in 2021) and I’m currently doing my homework with a view to taking a lease out again in the next month. I’m running some numbers and I know the market is very different now compared to when I last did it, but the money factor seems to have increased enormously since 2018.
In 2018, my MF was 0.00022 (0.528%) and I would’ve been Tier 2 for Chrysler Capital I think. I’ve found a recent Cap Standard Lease Rate Sheet and the MF for Tier 1 (which I think I am now) is 0.00190 (4.56%)
So if I got a similar Capitalized Cost and Residual now, my monthly finance charge goes from $10 to $90…
Does this look right? Or have I got bad info?
(I’m in the market for a 2022 Jeep Compass (probably a Latitude or Latitude Lux) in the 94608 zip code area)
The mf being charged is one of the knobs the bank can turn to try to incentivize a lease. You cant really look at a bought down rate from years ago and try to extrapolate it to today’s rates. Best you can do is work out what buy rate is and see if things are being marked up.
I’m not comparing them with a view to getting the same numbers today. My question is based on the Money Factor being so wildly different that I was wondering if I’d made a mistake/got the wrong info. All the other numbers have increased, as I was expecting, but not to the same degree as the Money Factor.