This is obviously a newbie question and I’m still learning, so your patience is much appreciated!
I have a couple of questions about using the lease calculator, specifically regarding how it populates lease terms like Residual Value and Money Factor for different manufacturers.
Here’s my situation: As a paid supporter, when I use the calculator and select a manufacturer, it automatically fills in details like the Residual and Money Factor. I’m curious about where these numbers come from and how reliable they are for use in negotiations.
For instance, the calculator indicates a money factor of 0.00053 for a 2023 Audi A6 Premium Select, but the dealer quotes me a money factor of 0.00093. That’s almost double and seems inflated. They also quote the residual as 48% when the calculator shows 51%. Should I confront (say something, mention something) the dealership about this discrepancy? Is it common for dealers to inflate these numbers, and how should I approach this in my negotiation?
I believe the LH calculator provides the buy rate MF. That means there is no profit built in for the dealer AKA reserves. It appears that the dealer did mark up the money factor.
As far as confronting the dealer on the MF, I would request the buy rate if your credit is good (720+). This leads me to say that before you do…
Do yourself a big favor… educate yourself about the nuances of leasing. Lots of great info on this website (probably the best) and others. Next, create a target deal and, create a one-page comprehensive, professional-looking, flawless lease proposal similar to the one below.
Submit it to the dealer ((internet sales) and it will likely grab the attention of the SM… a decision maker, which is want you want. Negotiate via email or phone. Never negotiate at the dealership… it’s a waste of time. If you reach an agreement, ask them to email you the completed lease agreement for your review to ensure there are no mistakes… all numbers should match your approved proposal.
The bank / lessor assigned different rv’s based on terms. 36 months / 10,000 miles will have an rv of x, 12,000 miles per year is typically x - 1 and 15000 miles per year would be X -3 percent from MSRP. The more miles you sign up for, the more the lease costs.
How many miles did you ask for? When a 3% difference exists as it does in your OP, it typically indicates a difference between 10,000 and 15,000 Mike per year.
That’s why you make sure you and the dealer both talking about the same terms.
The residual value may change depending on the bank the dealer is using for the lease, but for a given bank the dealer can’t change the residual for a given lease term/miles. Residual is set by the bank. Dealer profits of marking up MF.
Well I can’t say if the dealer is right or RateFindr is right, just that whatever it is on the contract must be correct for the given mileage, or the deal won’t fund. It seems like RateFindr has a pretty good track record, are you sure they’re using the same bank?
I have no idea to be honest. I’m dealing with one of these “one price” dealers which is a pain TBH. They’re telling me my numbers are off even though I’ve shared everything in great detail (not like the above example but I will) and they can’t do the deal. The money factor is off. Taxes are off. Residual is off.
Problem is there’s one Audi chain in the Twin Cities so they’re a monopoly. I don’t have the expertise to argue with them anymore so I think I have to move onto other vehicles even though I want this one.
