Hi guys,
Just a quick question regarding money factor.
Why is it that different manufacturers have such varying rates. I understand it for varying credit scores, but apart from that, I just don’t understand it.
I mean if you have a earned a 750 score, then I dont get why the rates would or should vary soooo much between say MB, BMW, FORD, or even Hyundai. Why isn’t it based purely on your ability to pay a appropriate rate based on the credit score you have earned, rather than some bumped up number each manufacturers credit arm comes up with. Surely they must KNOW that in many cases its a huge factor in turning customers to another manufacturer.
Just my novice 2 cents worth.
Alan
BMWFS is the only leasing company that keeps a consistent MF on all models. For all others, the MF will vary. It’s similar to incentives. If they want to push a certain model, they offer a lower MF to help keep the payments lower. If a model is a hot seller, there’s no reason to offer a lower MF since people are willing to pay to get that vehicle.
It’s the same when purchasing. Some models will have 0%-2.9% special APRs to push those models.
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