Money Factor Markup?

Would you say it’s common practice for dealers to markup the money factor on a lease? The Mazda CX9 Touring Plus should be 0.00005 for a money factor (2022 Mazda CX-9 Lease Deals and Prices - Page 2 — Car Forums at, but dealers around me are quoting a “Lease Charge” of around $1200 for a 36mo lease, with excellent credit. This is roughly a 10x markup.

When I push back, the dealers pivot, try to focus on monthly price, tell me I’m unreasonable, or say they don’t know what Money Factor is and say the charge is fixed.

What can I do?

Yes, dealers often will.

It also really doesn’t matter. Structure your target deal based on discount and buy rate mf, and if they would rather give a larger discount and a marked up MF, let them.

If they don’t give a commensurate discount for the marked up MF, they aren’t hitting your target deal, so move on.

Definitely not giving a great deal. But unfortunately all dealers around here are doing the same MF mark up. If I could get them to lower that, it’d be a good deal.

I would simply treat this exactly the same as if the dealer was charging $1200 more on the selling price and evaluate the deal accordingly.

If they want to focus on monthly price, that’s fine, let them. Work out what the monthly price/das should be, tell them you’ll pay that, and if they won’t, move on.

People often get hung up on the mf mark up, but it’s no different than any other mark up.

An offer with a sales price $1200 over MSRP and no mf mark up and an offer with a sales price at MSPR with a $1200 mf mark up are essentially the same deal.

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Gotcha. They are offering roughly a $1200 discount. So it’s essentially a lease at MSRP. Which is a bummer.

Yup, but at least you can compare the offer on an even playing field now.

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