What is the December 2016 money factor for a 36 month / 15k miles/year lease on a 2017 Lexus RX 350 with 9 multiple security deposits?
With no security deposit the MF is 0.00155. My dealer only lowered the MF to 0.00105 after my 9 multiple security deposits.
To me this seems too little decrease in MF. What should it be? Is the MF on multiple security deposits set in stone by Lexus Financial or can dealer increase it or decrease as they wish? If they did not lower MF enough what are my options on lease started 12/3016?
Looks like you got your answer over at Edmunds already. It also looks like you signed the contract which is not good for you. They are inflating the MF before your MSD’s. Just tell them you want to keep the discount and you want the MF to be .00083 after the MSD if you haven’t already completed the transaction.
.00155 MF and 61% residual
$500 lease cash + complimentary 1st payment
9 MSDs takes the MF down to .00083.
Thanks evil0ne - I already completed the transaction. I have no problem going back to dealer requesting they cut me a check for the difference. Is there any documentation available which I can point to that states the MF should have been .00083 after 9 multiple security deposits or a formula you could provide? I was also planning to call Lexus Financial Services to see if they would provide me with the correct MF after the 9 security deposits which I could go back to dealer with.
I dont think they will sign you a check. Dealer is allowed to mark up. Lexus financial will tell you to talk to the dealer but that is the rate you signed up for. Unless it was bait and switch you stuck with it.
I agree wth @NY13. I think you will have a tough time getting them to cut you a check, but give it a try. I always check the MF on every quote to make sure there is no markup. It’s a easy thing for them to sneak by you. It’s best to do the negotiations over email only and never talk to them. You will then have plenty of time to research MF and validate all the numbers. I just ask for screen prints from their computer showing the lease deal, and have them send it to me via email. When I finally go in to sign and pick up the car, I just make sure the numbers match including MF.
I wish you luck with this request. If you look at it objectively you have no recourse since you signed the deal agreeing to a certain monthly payment. However, luxury dealers do care about their customer satisfaction rankings so it’s worth a shot.
When I leased a QX60 a few months back the finance manager had no problem showing me the base MF and the MF after MSD. It also helped to have the calculator filled out on the phone already and they payment was within $5 of the estimate.
When i got a 2014 Grand Cherokee i knew the base mf for jeep and also how much they could mark it up. I think it was so small onky about 50bps that i told the manager there to go ahead mark it up to .00042 maximum allowed by chrysler. He laughed and asked if i worked for chrysler and was impressed that i knew so much that he just gave me the price on the sales price i wanted. Sometimes doing full research can work in your favor depending who you run accross. I mean really how much did they really mark it up by? Is it worth your time and back and forth. I would enjoy the car and let it be a lesson for next time.
NY13 - It’s worth $629 over the 36 month lease which is better in my pocket than the dealer. I feel is worth my time. It’s also a matter of principle to me as well - I feel I was taken advantage of.
Good luck with it. Keep us posted but the dealer is in this to make money, like any other business. But should be interesting to see how it goes so it can give a precedent for future potential issues like this.
Good news! Went to the dealer today - had to speak to the Sales Manager and General Manager. They agreed to give me the lower MF of 0,00083 when I complained about lack of transparency of the pricing with multiple security deposits because I specifically questioned the original high MF. Will have to sign new leasing agreement tomorrow.
This dealership is known for wanting to receive high customer satisfaction ratings and up to this point I had not been satisfied - now I am.
