I just signed a lease for a Volvo S90 T5. Haven’t taken delivery yet so I guess I still have time to ask lease questions. I was reviewing the lease and see that the “Rent Charge” (aka the interest portion of the payment) is $1078.83 over the lifetime of the 3-year lease.
$1078.83/36 = $29.97 per month
The salesperson showed me the official Volvo financing sheet that showed that the Money Factor is .00023.
The lease clearly shows:
Adjusted Capitalized Cost (item 9): $43,578.31
Residual Value (item 10): $26,112.10
So, following the calculation I learned here on LeaseHackr, I calculated the finance charge be:
The .00001 was at a different dealership. Unfortunately that dealership didn’t have a car with the options I wanted.
I don’t know why one dealer had .00001 and another had .00023 when the are just a few cities apart and it’s the same model and trim of car. But I did see the Volvo sheet that said the MF for that trim is supposed to be .00023.
It is called packing the payment. He showed you the rate sheet and made you believe you are getting the rate listed but, since your contract does not explicitly list the money factor on the contract as a percentage they just assume you would not be the wiser and check. Since you haven’t taken delivery (or even if you had) you just show them your calc. and they should adjust the rate down. If they don’t, then just leave the car there. When they imply that you are paying one rate and then contract you at another, it is called bad faith negotiations and it is illegal. Just call em on it.
