Wondering which manufacturers “inflate” the numbers most? Just out of curiosity. Thinking about RV and MF. I’ve read that MF gets bumped but no clue on if RV can or does.
Also wondering (if this matters) for zip 02138 and (again if this matters) for SUVs.
Thank you!
Matt
Residual is set by the manufactures and cant be changed. Dealerships can bump the MF to add profit.
You are mixing up two separate scenarios… Residual value is set by the captive and can be inflated to increase sales even knowing the car will be worth less at the end of 3 years. This cannot be altered by the dealer.
MF is typically inflated by the dealer as a different source of profit, which is the same as a higher sale price.
Captives certainly adjust RV and MF together to get what they believe is the best mix to maximize sales & profits plus leveraging lease incentives. For example, Mercedes have lower RVs than BMW but typically have a lower MF too.
Because there are technically 3 variables impacting a lease rate, there is no simple approach to decide what is good or bad (besides ridiculous MFs like Range Rover offers).
No! RV is set by the captive.
This question seriously doesn’t matter at all and it has no answer. A vehicle could have an awful RV but massive incentives or vice versa. You can do research on vehicles that you’re interested in and compare their RV to the trade in value of similar 3 year old used vehicles.