Are the money factors set by the manufacturers or can dealers adjust them with each new lease?

Taylorgirl92

I’m looking to lease the 2018 Kia Niro Plug In Hybrid. The dealer stated the money factor is not adjustable for the dealership, that the manufacturer sets the rate. Is that true? Currently the dealer is offering .00235 as the money factor for a $23,000 cap cost, $15,700 residual, and for 36 month lease.

kyfdx

Taylorgirl92 said:

I’m looking to lease the 2018 Kia Niro Plug In Hybrid.
The dealer stated the money factor is not adjustable for the dealership, that the manufacturer sets the rate. Is that true?

Currently the dealer is offering .00235 as the money factor for a $23,000 cap cost, $15,700 residual, and for 36 month lease.

The base money factor is set by Kia and the bank. Dealers can't go lower than that. In some cases, they can mark it up for extra profit.

For some reason, Kia has decided to set their money factors at market level, and make it up with incentives. It's weird, in comparison to their competitors, but it's the monthly payment that matters in the end.