Off Topic Landfill 3

Just pm’d you for 330xi

I pm’d you for m340xi

is your Mercedes-Benz spreadsheet updated?

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Hi! Do you have current Porsche deals yet:)? Thanks !

Hey, I am in ny. How is the pricing and inventory on the Nissan SUVs? I am hunting for an SUV by end of next month the latest. Thnx, Mike

Japanese counterparts offer massage seats, with happy ending.

@nyclife, I have PM’d on a lease request for M340i xdrive. Thanks

Hello. I would like to have a deal with you. Did you use something like that Vehicle Inspection Report for example from auctionstreaming?

Would like to see the best lease we could get on a 2020 Jeep trackhawk

Don’t have any in stock. I do have a V8 Overland. Generally, the Trackhawk doesn’t lease well.

We keep review thread for reviews

Sounds like a great deal! Can you share dealership?

Need a 4x4 crew cab tundra for a buddy. He just totaled his F250. Insurance totaled it he is ready to go. What’s available right now ? Please text me 941-720-2969

Here’s how I understand Leasing (Of course many people will probably say I’m wrong)

Leasing is basically Renting a Car and giving it back at the end of the term.

  • The manufacturer gets the full agreed upon price as if you bought the car (paid in full by the bank)
  • The Bank (Which can be related to the manufacturer) gets the Rent Fee from you (Comes from the MF)
  • The bank charges a ‘depreciation’ fee based on how much value the car will lose in the lease period (they get this from your payment as well) (This leaves the Residual Value of the car)
  • At the end of the lease the Bank will then sell the rented car via various ways (such as Auction) and hopes that it will sell for at least the Residual Value.
  • You will also pay for an Acquisition and Disposition Fee which is basically the costs to start the rental and to end the rental.
  • You never own the car during the period.
  • You are borrowing the car from the Bank.

0% Financing?

  • The Manufacturer gives the Bank (Because 0% is always from the Captive Lender), some money for helping finance the car.
  • The Finance Arm of a Manufacturer is usually a separate entity that has it’s own books and bills that are different than the Manufacturer.

Thanks, yes that is exactly what I was trying to clarify; whether it is a rental or more of a short term finance.

So the Bank is the one buying the car? Is the price they buy it the selling price you negotiate at the dealer? Or they have some prenegotiated price that they get the car from the manufacturer, and anything above that is fully/partially for the dealer?

So technically you aren’t taking a loan, and neither is anyone ?

It’s a rental. you do not own the car in any way.
The price you agree upon the ‘Capitalization Cost’ is what the bank pays the Manufacturer.
So whatever you negotiate is what the bank pays.

You aren’t taking a loan, you are basically going to Enterprise Rent A Car, pointing at a new car and saying ‘I wanna rent that for 3 years’.

They still will run your credit and list it on your Report as a major expenditure (or whatever it’s classed at) So it ‘looks’ like a fixed loan on your report, if that matters to you.

Thanks

May not something you may have the answer to, but:
Why even call it a money factor? Why not just call it a rent charge?

How does the dealer profits play into the cap cost? They must get some piece of the pie (ie. % of the cap cost above a certain price)?

And they get % of any MF markup? Or just a flat rate at base MF to cover their costs of the finance office

Cap Cost is the price YOU negotiate with the Dealer, of course they are going to make a profit, it’s not a fixed number after all.

Why call it a Money Factor? So it’s harder for you to know the true interest rate. (Or at least that’s what it was told to me).

And they get some of the MF markup if it is marked up, that’s why you have to know the MF before you start dealing. How much? I have no idea, but there is a kick back in there if they mark it up.

Oh and rent charge and MF are 2 different things. MF is added to the Rent Charge to make the total Payment. It’s a nice little formula.

But why even have a separate MF? Why not just have only the rent charge which gets manipulated on a monthly basis

Perhaps just one of those things without a particular reason ?

The question was for @RVguy, who’s an expert, and you are not.