Car Buying Advice--Ford Explorer XLT w/ Leather in NJ

callybistro

Little Help? 2017 XLT for $39,500 with a $2k trade in and $1,000 down. Deprec of 53.4% and MF of .0025. 3 year/12K. My numbers are showing $538/momth. Dealer offered $448/month. What am I missing?

kyfdx

callybistro said:

Little Help? 2017 XLT for $39,500 with a $2k trade in and $1,000 down. Deprec of 53.4% and MF of .0025. 3 year/12K. My numbers are showing $538/momth. Dealer offered $448/month. What am I missing?

What is the MSRP?
FWD or AWD?
Adjusted CAP cost?
Residual is always a full percentage of MSRP, not fractional.
It's not a money factor of .0025, it's 0.25% APR (that's very different)

callybistro

MSRP: $44835
AWD
Adjusted Cap Cost: $36,835
Residual: 53%
APR is 6% 6 divided by 2400 is .0025 (is how I understood it at least).

Thanks so much for your help.

kyfdx

callybistro said:

MSRP: $44835
AWD
Adjusted Cap Cost: $36,835
Residual: 53%
APR is 6% 6 divided by 2400 is .0025 (is how I understood it at least).

Thanks so much for your help.

That's where the disconnect is, and why your calculation is so high.

The APR is not 6%, it's 0.25%.
Divide by 2400, and you'll get a money factor of .00010 or .00011.

Re-do your calculations with the correct money factor, and it should match up (or, at least be close)

callybistro

that makes more sense. thanks so much for your explanation.