Money Factor increase question

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)

Thank you!

That’s only a small factor in how much more leases cost now.

RV lower
Discount lower or non existent
Rebates lower or non existent

Most leases probably cost 100% more than they did before June 2020.

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.

Thank you for responding! I was just using my 2018 numbers to see what the differences were compared to what I could expect today.

My buyout price APR was different obvs and I didn’t include any of that info above (if that’s what you meant?) :slightly_smiling_face:

Ugh! Looking forward to trying to get a deal then… :face_with_spiral_eyes:

This is not a useful exercise. Numbers from a 2018 deal is irrelevant to any deal today.

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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.

Nah, .00190 isnt surprising (or that bad) these days. There are lots of vehicles with tier 1 over .003 currently.

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Thank you!

There are almost zero cars that make sense to lease today. Again, not just because MFs are higher across the board but also because:

You should also be wondering which cars make sense to finance these days.

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