Will BMW mf go down with fed rate reduction?

[jeisensc]

Discussed last week

Upcoming Rate Cuts - Effect on Leases / MFs?

The Federal Reserve sets the overnight rate, which affects retail banks. Most of the captive lenders aren’t retail banks, they (generally) “raise” money to purchase the vehicles they’re to lease to retail customers. That could be direct investment from the OEM (for which they expect a return), an inter-company loan, bonds they sell, private capital they raise, or loans. There aren’t many captives (certainly not stand alones) small enough to take it a month at a time. So expect whatever funding …