Question - Money Factor Negotiations

ScienceGuy

How are reported money factor values used during negotiation? When I see manufacturer/dealer hidden MF values reported on here... how do people act on this information?

For example, a dealer quotes an MF of 0.00075 for a car, but Edmunds reports it at 0.00045, would people normally ask for the 0.00045 value?

Or is a middle ground value reached instead, like 0.00060?

I suppose I have no bearings of when an inflated money factor value becomes overly inflated or ridiculous.

Obviously the dealer deserves to make profit, and I am unsure if asking them to match a reported MF value is asking too much.

pensfan83

Don't be swayed by claims they are losing money on a deal, the dealer wouldn't agree to a deal that makes them lose money. The dealer can give you the base money factor, all available incentives, a respectable dealer discount and STILL make a profit on the sale. If you confirm they are marking up the money factor by comparing what they give you to what is provided here simply tell them you want the base rate for the money factor and stick to your guns.

Sometimes though dealers will take more off the sale price to compensate for more profit on the back end via marked up MF and it could end up being a wash. If you demand the base money factor the dealer could take back some of the dealer discount they are providing.

kyfdx

ScienceGuy said:

How are reported money factor values used during negotiation? When I see manufacturer/dealer hidden MF values reported on here... how do people act on this information?

For example, a dealer quotes an MF of 0.00075 for a car, but Edmunds reports it at 0.00045, would people normally ask for the 0.00045 value?

Or is a middle ground value reached instead, like 0.00060?

I suppose I have no bearings of when an inflated money factor value becomes overly inflated or ridiculous.

Obviously the dealer deserves to make profit, and I am unsure if asking them to match a reported MF value is asking too much.

You want the base rate. Period. Then, all of your competitive comparisons are apples to apples.

ScienceGuy

The car in question is a 2019 Lexus ES350 and Edmunds reports the MF at 0.00045 and .56 RV.
I am being offered the .56 RV but MF is at 0.00075

Pensfan83 - Good point, I will pay attention if they adjust the sale price back up after lowering the MF.

Kyfdx- I will request the base rate in that case, thank you.

kyfdx

ScienceGuy said:

The car in question is a 2019 Lexus ES350 and Edmunds reports the MF at 0.00045 and .56 RV.
I am being offered the .56 RV but MF is at 0.00075

Pensfan83 - Good point, I will pay attention if they adjust the sale price back up after lowering the MF.

Kyfdx- I will request the base rate in that case, thank you.

In CA, the base money factor is indeed .00075 on this model.

When you say, "Edmunds", where you are seeing .00045?

If you want actual lease information for that model, ask here:
https://forums.edmunds.com/discussion/52386/lexus/es-350/2019-lexus-es-lease-deals-and-prices#latest

ScienceGuy

Thanks for the reply Kyfdx, actually you had replied to me on that thread coincidentally.

I think my error was looking at the first page of that thread (shows 0.00045) without looking to see the current changes on page 3