RX350 Money Factor

steve75068

Please confirm MF I was quoted from the Dealer Lease Retention Manager is a good offer. If not, what would be the best MF number I should expect for this lease deal:

2018 RX350, FWD, NAV PKG, PREMIUM PKG etc.
List Price= $53,679
ACC = $49,600
RV= 57%($30,597)
MF= .00041

Lease Terms: Single Pay, 36 Months, 7,500 miles, Zip Code 75068

For Your Information, here is the deal I received in 2015 from the same dealer

2015 RX350, FWD, NAV PKG, PREMIUM PKG etc.
List Price= $50,128
ACC = $46,800
RV= 62%($31,079)
MF= .00001
Lease Terms: Single Pay, 36 Months, 7,500 miles, Zip Code 75068

I am well aware the Fed Funds Rate in 2015 averaged 0.13% and is now 2.0 % and will be steadily rising.
Looking forward to receiving your input and opinion.

kyfdx

steve75068 said:

kyfdx,Thanks for the rapid response.

First, I assume the .00055/57/2K numbers you indicate would be a fair offer for a multi- pay 36 mo. lease for this vehicle. Please confirm.
Second, not understanding your opening sentence:
"The single-pay discount is .00100, taking your rate down to .00001." Can you explain the math here and how one gets from .00055 down to .00001 MF?
Lastly, you state that the dealer can markup the single pay MF to a max. of .00040. It appears my guy is currently
a bit over this max.
What would you consider a fair markup on the .00001 MF and where my counter offer target MF should start and or end up?
Your further information and guidance here will greatly assist my further negotiation on this 2018 RX350.

.00055 minus .00100 = less than ZERO. The minimum MF is .00001.

.00001 MF + .00040 markup = .00041.

The only "fair" markup is NO markup.

kyfdx

steve75068 said:

Please confirm MF I was quoted from the Dealer Lease Retention Manager is a good offer. If not, what would be the best MF number I should expect for this lease deal:

2018 RX350, FWD, NAV PKG, PREMIUM PKG etc.
List Price= $53,679
ACC = $49,600
RV= 57%($30,597)
MF= .00041

Lease Terms: Single Pay, 36 Months, 7,500 miles, Zip Code 75068

For Your Information, here is the deal I received in 2015 from the same dealer

2015 RX350, FWD, NAV PKG, PREMIUM PKG etc.
List Price= $50,128
ACC = $46,800
RV= 62%($31,079)
MF= .00001
Lease Terms: Single Pay, 36 Months, 7,500 miles, Zip Code 75068

I am well aware the Fed Funds Rate in 2015 averaged 0.13% and is now 2.0 % and will be steadily rising.
Looking forward to receiving your input and opinion.

.00055 MF and 57% residual
$2000 lease cash

The single-pay discount is .00100, taking your rate down to .00001.
Dealers are allowed to markup the rate, even on single-pay. The maximum markup on a single-pay lease is .00040, and it appears your dealer is taking the full increase.

Maybe, that should be the Dealer Lease NON-Retention Manager..

steve75068

kyfdx,Thanks for the rapid response.

First, I assume the .00055/57/2K numbers you indicate would be a fair offer for a multi- pay 36 mo. lease for this vehicle. Please confirm.
Second, not understanding your opening sentence:
"The single-pay discount is .00100, taking your rate down to .00001." Can you explain the math here and how one gets from .00055 down to .00001 MF?
Lastly, you state that the dealer can markup the single pay MF to a max. of .00040. It appears my guy is currently
a bit over this max.
What would you consider a fair markup on the .00001 MF and where my counter offer target MF should start and or end up?
Your further information and guidance here will greatly assist my further negotiation on this 2018 RX350.

steve75068

Great stuff. Thanks to you, I now have a full understanding of how it all works.I will be able to go in and negotiate from a position of knowledge.Should I not get the right number, I shall walk away.