Hello, New here. I am in the market for an F Pace and I am trying to figure out the lease formula with the residual and money factor
Can you please state the MF/RV for a 3.5 F pace- Premium with a agreed upon price of $52,000 before tax of .07 for 10K miles a year for 39 months, in Illinois. Can you also go through the actual math to come up with an approx figure? I thought it was agreed upon price minus residual divided by 39months. That gives you X. Then you add the agreed upon price + residual multiple by the MF to equal Y. Then its X+Y multiple by the tax to equal Z. Final monthly price is X+Y+Z= monthly lease price. is this accurate?
Hello, New here. I am in the market for an F Pace and I am trying to figure out the lease formula with the residual and money factor
Can you please state the MF/RV for a 3.5 F pace- Premium with a agreed upon price of $52,000 before tax of .07 for 10K miles a year for 39 months, in Illinois. Can you also go through the actual math to come up with an approx figure? I thought it was agreed upon price minus residual divided by 39months. That gives you X. Then you add the agreed upon price + residual multiple by the MF to equal Y. Then its X+Y multiple by the tax to equal Z. Final monthly price is X+Y+Z= monthly lease price. is this accurate?
Thanks
Alex
.00026 MF and 50% residual for 39/10 Your formula is basically accurate. But, you'll need the MSRP to calculate the residual (always a percentage of full MSRP) Also, Illinois calculates tax a little differently (they tax the sum of payments and collect that amount upfront), but doing it your way, won't be far off.
Hi again! Still car shopping. Wondering about March MF and Residual for 2018 F-Pace S in Texas (SADCM2FV8JA292304) for 33/36/39 at 12k per year? Also, any incentive cash from Jaguar? TIA!
Hi again! Still car shopping. Wondering about March MF and Residual for 2018 F-Pace S in Texas (SADCM2FV8JA292304) for 33/36/39 at 12k per year? Also, any incentive cash from Jaguar? TIA!
.00001 MF and 51% residual for either 33 or 36 months .00016 MF and 49% residual for 39 months
Here are two quotes on demos f paces. I think they are off by $100 per month.. they used a MF of .00112 on the prestige and .00126 on the premium. Do you think they are even close?
Thanks. They used a 48% residual on the premium. Which basically takes care of the milage. But they are holding firm on the prices even though they have 63 f paces on the lot
Thanks. They used a 48% residual on the premium. Which basically takes care of the milage. But they are holding firm on the prices even though they have 63 f paces on the lot
Well.. those are big discounts, but pretty low residuals, too. But, an extra $90/mo for financing pretty much kills a lot of that discount.
What is the rv and mf for a 3 year, 12k a year jaguar f pace prestige 25t lease ( also should I Consuder different term or miles that are better than what I’m asking)?
What is the rv and mf for a 3 year, 12k a year jaguar f pace prestige 25t lease ( also should I Consuder different term or miles that are better than what I’m asking)?
Hi, can you tell me the RValue and MF for 3yr/36k and 2yr/24k leases for Jaguar F-Pace S?
Thank you.
.00076 MF and 58% residual .00001 MF and 51% residual
Thank you. Am I correct in thinking the 58% RV is for 2-yr lease? Also, can you confirm the MFs because 0.00001 converts to 0.025% interest; and 0.00076 MF converts to 1.8% interest. Both are super low.
Hi, can you tell me the RValue and MF for 3yr/36k and 2yr/24k leases for Jaguar F-Pace S?
Thank you.
.00076 MF and 58% residual .00001 MF and 51% residual
Thank you. Am I correct in thinking the 58% RV is for 2-yr lease? Also, can you confirm the MFs because 0.00001 converts to 0.025% interest; and 0.00076 MF converts to 1.8% interest. Both are super low.
Just to finish the story from my posts above with the dealer breakdown. I was able to lease a demo F-Pace premium 35t for 39 months, 10K miles per year, zero down at $625.00 a month plus a $2,000 check towards the remaining balance of my current infinti lease, which was $2900. The demo had 4,500 miles. The eventual out the door price was just over $50,000 from an MSRP of $57,200. I was very happy with it. And i get to keep my current infiniti until August with 80% of it paid from the jag dealer. I did threaten to walk out when he stopped at $650.00 a month but he eventually agreed to $625.
i still owe $925 on my remaining infiniti lease, but i will use it for work mileage reimbursement. The V6 supercharger is amazing on the Fpace.
Just to finish the story from my posts above with the dealer breakdown. I was able to lease a demo F-Pace premium 35t for 39 months, 10K miles per year, zero down at $625.00 a month plus a $2,000 check towards the remaining balance of my current infinti lease, which was $2900. The demo had 4,500 miles. The eventual out the door price was just over $50,000 from an MSRP of $57,200. I was very happy with it. And i get to keep my current infiniti until August with 80% of it paid from the jag dealer. I did threaten to walk out when he stopped at $650.00 a month but he eventually agreed to $625.
i still owe $925 on my remaining infiniti lease, but i will use it for work mileage reimbursement. The V6 supercharger is amazing on the Fpace.
Hey everyone, helping my mom with a lease. These are the numbers now. Can you tell me the normal MF and Residual for this vehicle and any tips? In Minnesota.
Hey everyone, helping my mom with a lease. These are the numbers now. Can you tell me the normal MF and Residual for this vehicle and any tips? In Minnesota.
F-Pace S
3/15,000 mile lease term
MSRP $79,388.00
Discount $4,200
Price: $75,188.00
Residual $38,900.12 (49%)
MF 1.5% or 0.000625
Thanks for any help!
49% and .00001 are the numbers, this month.
MF is marked way up. Tell the dealer you won't sign a deal with the inflated MF.
This is my first time considering a lease and was offered the following deal (not negotiated yet) on a 25t Premium. Can you please let me know if this is a good deal or not? The cash incentive is gone by the end of Monday and I was told by the sales manager that because of a recall (I verified that there's a recall on the vehicle based on VIN), that they'd need a decision by Monday morning in order for their service department to fix the issue, otherwise they won't be able to sell me the vehicle if that fix is not done in time by the end of the business day.
This is my first time considering a lease and was offered the following deal (not negotiated yet) on a 25t Premium. Can you please let me know if this is a good deal or not? The cash incentive is gone by the end of Monday and I was told by the sales manager that because of a recall (I verified that there's a recall on the vehicle based on VIN), that they'd need a decision by Monday morning in order for their service department to fix the issue, otherwise they won't be able to sell me the vehicle if that fix is not done in time by the end of the business day.
This is my first time considering a lease and was offered the following deal (not negotiated yet) on a 25t Premium. Can you please let me know if this is a good deal or not? The cash incentive is gone by the end of Monday and I was told by the sales manager that because of a recall (I verified that there's a recall on the vehicle based on VIN), that they'd need a decision by Monday morning in order for their service department to fix the issue, otherwise they won't be able to sell me the vehicle if that fix is not done in time by the end of the business day.
That's a very large markup to the money factor. That will add $55/mo. to the payment.
@kyfdx Wow, okay. So is .00018 something that I can definitely get them down to or should I be negotiating to just get it lower to something near that number? Also, the manager said it pretty quickly to me without writing it down. She said it was basically a 2% APR, so am I correct in my calculation that she said ".0009" or did she say ".00009"? Thanks again.
This is my first time considering a lease and was offered the following deal (not negotiated yet) on a 25t Premium. Can you please let me know if this is a good deal or not? The cash incentive is gone by the end of Monday and I was told by the sales manager that because of a recall (I verified that there's a recall on the vehicle based on VIN), that they'd need a decision by Monday morning in order for their service department to fix the issue, otherwise they won't be able to sell me the vehicle if that fix is not done in time by the end of the business day.
That's a very large markup to the money factor. That will add $55/mo. to the payment.
@kyfdx Wow, okay. So is .00018 something that I can definitely get them down to or should I be negotiating to just get it lower to something near that number? Also, the manager said it pretty quickly to me without writing it down. She said it was basically a 2% APR, so am I correct in my calculation that she said ".0009" or did she say ".00009"? Thanks again.
Tell them you won't sign any deal unless the base MF is used; they know what that rate is.
This is my first time considering a lease and was offered the following deal (not negotiated yet) on a 25t Premium. Can you please let me know if this is a good deal or not? The cash incentive is gone by the end of Monday and I was told by the sales manager that because of a recall (I verified that there's a recall on the vehicle based on VIN), that they'd need a decision by Monday morning in order for their service department to fix the issue, otherwise they won't be able to sell me the vehicle if that fix is not done in time by the end of the business day.
That's a very large markup to the money factor. That will add $55/mo. to the payment.
@kyfdx Wow, okay. So is .00018 something that I can definitely get them down to or should I be negotiating to just get it lower to something near that number? Also, the manager said it pretty quickly to me without writing it down. She said it was basically a 2% APR, so am I correct in my calculation that she said ".0009" or did she say ".00009"? Thanks again.
Tell them you won't sign any deal unless the base MF is used; they know what that rate is.
2% equates to .00083 MF
.00083 is a long way away from .000183 that @kyfdx stated. I certainly appreciate all the help, I'm just trying to understand so I'm not going into the negotiations blind. Were you simply saying 2% equates to .00083 to show me that the MF they verbally stated is not equivalent to .0009?
On another note, wouldn't 2% (or .00083) be a good rate in the current state of the economy or do those numbers somewhat go out the window for car leases? I'm only asking because doing a quick search seemed to show that a 4-5% APR was pretty common for auto leases. By the way, I'm in Northern California (Bay Area) if that makes any difference.
This is my first time considering a lease and was offered the following deal (not negotiated yet) on a 25t Premium. Can you please let me know if this is a good deal or not? The cash incentive is gone by the end of Monday and I was told by the sales manager that because of a recall (I verified that there's a recall on the vehicle based on VIN), that they'd need a decision by Monday morning in order for their service department to fix the issue, otherwise they won't be able to sell me the vehicle if that fix is not done in time by the end of the business day.
That's a very large markup to the money factor. That will add $55/mo. to the payment.
@kyfdx Wow, okay. So is .00018 something that I can definitely get them down to or should I be negotiating to just get it lower to something near that number? Also, the manager said it pretty quickly to me without writing it down. She said it was basically a 2% APR, so am I correct in my calculation that she said ".0009" or did she say ".00009"? Thanks again.
Tell them you won't sign any deal unless the base MF is used; they know what that rate is.
2% equates to .00083 MF
.00083 is a long way away from .000183 that @kyfdx stated. I certainly appreciate all the help, I'm just trying to understand so I'm not going into the negotiations blind. Were you simply saying 2% equates to .00083 to show me that the MF they verbally stated is not equivalent to .0009?
On another note, wouldn't 2% (or .00083) be a good rate in the current state of the economy or do those numbers somewhat go out the window for car leases? I'm only asking because doing a quick search seemed to show that a 4-5% APR was pretty common for auto leases. By the way, I'm in Northern California (Bay Area) if that makes any difference.
Thanks again.
The dealer is just trying to confuse you by using % instead of MF decimals.
The base MF of .00018 is equivalent to .43%, by comparison.
That is the number you want your deal to be written with. Anything higher is just profit for the dealer.
Lots of cars have a MF of .00001, which is .024%. Don't compare them to auto loan interest rates.
This is my first time considering a lease and was offered the following deal (not negotiated yet) on a 25t Premium. Can you please let me know if this is a good deal or not? The cash incentive is gone by the end of Monday and I was told by the sales manager that because of a recall (I verified that there's a recall on the vehicle based on VIN), that they'd need a decision by Monday morning in order for their service department to fix the issue, otherwise they won't be able to sell me the vehicle if that fix is not done in time by the end of the business day.
That's a very large markup to the money factor. That will add $55/mo. to the payment.
@kyfdx Wow, okay. So is .00018 something that I can definitely get them down to or should I be negotiating to just get it lower to something near that number? Also, the manager said it pretty quickly to me without writing it down. She said it was basically a 2% APR, so am I correct in my calculation that she said ".0009" or did she say ".00009"? Thanks again.
Tell them you won't sign any deal unless the base MF is used; they know what that rate is.
2% equates to .00083 MF
.00083 is a long way away from .000183 that @kyfdx stated. I certainly appreciate all the help, I'm just trying to understand so I'm not going into the negotiations blind. Were you simply saying 2% equates to .00083 to show me that the MF they verbally stated is not equivalent to .0009?
On another note, wouldn't 2% (or .00083) be a good rate in the current state of the economy or do those numbers somewhat go out the window for car leases? I'm only asking because doing a quick search seemed to show that a 4-5% APR was pretty common for auto leases. By the way, I'm in Northern California (Bay Area) if that makes any difference.
Thanks again.
The state of the economy, or equating it to an APR means nothing. The manufacturer/finance company provide a rate to the dealer, that along with the residual value and incentives, results in a payment that will hopefully sell cars and still provide a reasonable profit to the dealer. It really doesn't matter what an independent bank would charge you for a loan.
You want them to use that rate.
Yes.. .00083 is approx equivalent to 2% APR (so, the manager is more or less correct, when she said that .00090 was "about" 2% APR, but that is a big markup from the base rate.
If you saw an ad that Jaguar was offering 0.9% financing, but when you went in, the dealer would only offer you 2.9%, you would be unhappy. Rightfully so.
The low money factor is an incentive from the manufacturer. Don't let the dealer take it back from you, by allowing a markup.
This is my first time considering a lease and was offered the following deal (not negotiated yet) on a 25t Premium. Can you please let me know if this is a good deal or not? The cash incentive is gone by the end of Monday and I was told by the sales manager that because of a recall (I verified that there's a recall on the vehicle based on VIN), that they'd need a decision by Monday morning in order for their service department to fix the issue, otherwise they won't be able to sell me the vehicle if that fix is not done in time by the end of the business day.
That's a very large markup to the money factor. That will add $55/mo. to the payment.
@kyfdx Wow, okay. So is .00018 something that I can definitely get them down to or should I be negotiating to just get it lower to something near that number? Also, the manager said it pretty quickly to me without writing it down. She said it was basically a 2% APR, so am I correct in my calculation that she said ".0009" or did she say ".00009"? Thanks again.
Tell them you won't sign any deal unless the base MF is used; they know what that rate is.
2% equates to .00083 MF
.00083 is a long way away from .000183 that @kyfdx stated. I certainly appreciate all the help, I'm just trying to understand so I'm not going into the negotiations blind. Were you simply saying 2% equates to .00083 to show me that the MF they verbally stated is not equivalent to .0009?
On another note, wouldn't 2% (or .00083) be a good rate in the current state of the economy or do those numbers somewhat go out the window for car leases? I'm only asking because doing a quick search seemed to show that a 4-5% APR was pretty common for auto leases. By the way, I'm in Northern California (Bay Area) if that makes any difference.
Thanks again.
The state of the economy, or equating it to an APR means nothing. The manufacturer/finance company provide a rate to the dealer, that along with the residual value and incentives, results in a payment that will hopefully sell cars and still provide a reasonable profit to the dealer. It really doesn't matter what an independent bank would charge you for a loan.
You want them to use that rate.
Yes.. .00083 is approx equivalent to 2% APR (so, the manager is more or less correct, when she said that .00090 was "about" 2% APR, but that is a big markup from the base rate.
If you saw an ad that Jaguar was offering 0.9% financing, but when you went in, the dealer would only offer you 2.9%, you would be unhappy. Rightfully so.
The low money factor is an incentive from the manufacturer. Don't let the dealer take it back from you, by allowing a markup.
Thank you both for all your help on this Easter day. I feel much more confident now knowing exactly how much they're trying to make from me. Would it be wise to tell them that I won't do a deal unless they give me the base rate of .000183 and show them that I know what the base MF is or is there a reason to avoid pointing out that I know the specific base rate?
This is my first time considering a lease and was offered the following deal (not negotiated yet) on a 25t Premium. Can you please let me know if this is a good deal or not? The cash incentive is gone by the end of Monday and I was told by the sales manager that because of a recall (I verified that there's a recall on the vehicle based on VIN), that they'd need a decision by Monday morning in order for their service department to fix the issue, otherwise they won't be able to sell me the vehicle if that fix is not done in time by the end of the business day.
That's a very large markup to the money factor. That will add $55/mo. to the payment.
@kyfdx Wow, okay. So is .00018 something that I can definitely get them down to or should I be negotiating to just get it lower to something near that number? Also, the manager said it pretty quickly to me without writing it down. She said it was basically a 2% APR, so am I correct in my calculation that she said ".0009" or did she say ".00009"? Thanks again.
Tell them you won't sign any deal unless the base MF is used; they know what that rate is.
2% equates to .00083 MF
.00083 is a long way away from .000183 that @kyfdx stated. I certainly appreciate all the help, I'm just trying to understand so I'm not going into the negotiations blind. Were you simply saying 2% equates to .00083 to show me that the MF they verbally stated is not equivalent to .0009?
On another note, wouldn't 2% (or .00083) be a good rate in the current state of the economy or do those numbers somewhat go out the window for car leases? I'm only asking because doing a quick search seemed to show that a 4-5% APR was pretty common for auto leases. By the way, I'm in Northern California (Bay Area) if that makes any difference.
Thanks again.
The state of the economy, or equating it to an APR means nothing. The manufacturer/finance company provide a rate to the dealer, that along with the residual value and incentives, results in a payment that will hopefully sell cars and still provide a reasonable profit to the dealer. It really doesn't matter what an independent bank would charge you for a loan.
You want them to use that rate.
Yes.. .00083 is approx equivalent to 2% APR (so, the manager is more or less correct, when she said that .00090 was "about" 2% APR, but that is a big markup from the base rate.
If you saw an ad that Jaguar was offering 0.9% financing, but when you went in, the dealer would only offer you 2.9%, you would be unhappy. Rightfully so.
The low money factor is an incentive from the manufacturer. Don't let the dealer take it back from you, by allowing a markup.
Thank you both for all your help on this Easter day. I feel much more confident now knowing exactly how much they're trying to make from me. Would it be wise to tell them that I won't do a deal unless they give me the base rate of .000183 and show them that I know what the base MF is or is there a reason to avoid pointing out that I know the specific base rate?
Just tell them you won't sign unless you get the base MF (and, don't disclose you know what that rate is). They know what the base rate is.
This is my first time considering a lease and was offered the following deal (not negotiated yet) on a 25t Premium. Can you please let me know if this is a good deal or not? The cash incentive is gone by the end of Monday and I was told by the sales manager that because of a recall (I verified that there's a recall on the vehicle based on VIN), that they'd need a decision by Monday morning in order for their service department to fix the issue, otherwise they won't be able to sell me the vehicle if that fix is not done in time by the end of the business day.
That's a very large markup to the money factor. That will add $55/mo. to the payment.
@kyfdx Wow, okay. So is .00018 something that I can definitely get them down to or should I be negotiating to just get it lower to something near that number? Also, the manager said it pretty quickly to me without writing it down. She said it was basically a 2% APR, so am I correct in my calculation that she said ".0009" or did she say ".00009"? Thanks again.
Tell them you won't sign any deal unless the base MF is used; they know what that rate is.
2% equates to .00083 MF
.00083 is a long way away from .000183 that @kyfdx stated. I certainly appreciate all the help, I'm just trying to understand so I'm not going into the negotiations blind. Were you simply saying 2% equates to .00083 to show me that the MF they verbally stated is not equivalent to .0009?
On another note, wouldn't 2% (or .00083) be a good rate in the current state of the economy or do those numbers somewhat go out the window for car leases? I'm only asking because doing a quick search seemed to show that a 4-5% APR was pretty common for auto leases. By the way, I'm in Northern California (Bay Area) if that makes any difference.
Thanks again.
The state of the economy, or equating it to an APR means nothing. The manufacturer/finance company provide a rate to the dealer, that along with the residual value and incentives, results in a payment that will hopefully sell cars and still provide a reasonable profit to the dealer. It really doesn't matter what an independent bank would charge you for a loan.
You want them to use that rate.
Yes.. .00083 is approx equivalent to 2% APR (so, the manager is more or less correct, when she said that .00090 was "about" 2% APR, but that is a big markup from the base rate.
If you saw an ad that Jaguar was offering 0.9% financing, but when you went in, the dealer would only offer you 2.9%, you would be unhappy. Rightfully so.
The low money factor is an incentive from the manufacturer. Don't let the dealer take it back from you, by allowing a markup.
Thank you both for all your help on this Easter day. I feel much more confident now knowing exactly how much they're trying to make from me. Would it be wise to tell them that I won't do a deal unless they give me the base rate of .000183 and show them that I know what the base MF is or is there a reason to avoid pointing out that I know the specific base rate?
Just tell them you won't sign unless you get the base MF (and, don't disclose you know what that rate is). They know what the base rate is.
Thanks again. Two more questions if you don't mind. Should I tell the sales manager that I'm only interested in the deal using the base MF or should I save that until I'm in the F&I office?
Also, can you tell me what the base MF and residual would be if it were a 36/12 deal versus the 36/10 numbers?
This is my first time considering a lease and was offered the following deal (not negotiated yet) on a 25t Premium. Can you please let me know if this is a good deal or not? The cash incentive is gone by the end of Monday and I was told by the sales manager that because of a recall (I verified that there's a recall on the vehicle based on VIN), that they'd need a decision by Monday morning in order for their service department to fix the issue, otherwise they won't be able to sell me the vehicle if that fix is not done in time by the end of the business day.
That's a very large markup to the money factor. That will add $55/mo. to the payment.
@kyfdx Wow, okay. So is .00018 something that I can definitely get them down to or should I be negotiating to just get it lower to something near that number? Also, the manager said it pretty quickly to me without writing it down. She said it was basically a 2% APR, so am I correct in my calculation that she said ".0009" or did she say ".00009"? Thanks again.
Tell them you won't sign any deal unless the base MF is used; they know what that rate is.
2% equates to .00083 MF
.00083 is a long way away from .000183 that @kyfdx stated. I certainly appreciate all the help, I'm just trying to understand so I'm not going into the negotiations blind. Were you simply saying 2% equates to .00083 to show me that the MF they verbally stated is not equivalent to .0009?
On another note, wouldn't 2% (or .00083) be a good rate in the current state of the economy or do those numbers somewhat go out the window for car leases? I'm only asking because doing a quick search seemed to show that a 4-5% APR was pretty common for auto leases. By the way, I'm in Northern California (Bay Area) if that makes any difference.
Thanks again.
The state of the economy, or equating it to an APR means nothing. The manufacturer/finance company provide a rate to the dealer, that along with the residual value and incentives, results in a payment that will hopefully sell cars and still provide a reasonable profit to the dealer. It really doesn't matter what an independent bank would charge you for a loan.
You want them to use that rate.
Yes.. .00083 is approx equivalent to 2% APR (so, the manager is more or less correct, when she said that .00090 was "about" 2% APR, but that is a big markup from the base rate.
If you saw an ad that Jaguar was offering 0.9% financing, but when you went in, the dealer would only offer you 2.9%, you would be unhappy. Rightfully so.
The low money factor is an incentive from the manufacturer. Don't let the dealer take it back from you, by allowing a markup.
Thank you both for all your help on this Easter day. I feel much more confident now knowing exactly how much they're trying to make from me. Would it be wise to tell them that I won't do a deal unless they give me the base rate of .000183 and show them that I know what the base MF is or is there a reason to avoid pointing out that I know the specific base rate?
Just tell them you won't sign unless you get the base MF (and, don't disclose you know what that rate is). They know what the base rate is.
Thanks again. Two more questions if you don't mind. Should I tell the sales manager that I'm only interested in the deal using the base MF or should I save that until I'm in the F&I office?
Also, can you tell me what the base MF and residual would be if it were a 36/12 deal versus the 36/10 numbers?
Same MF, subtract 1% from the residual for 36/10
I haven't really thought about where it's best to negotiate the MF - the F&I guy controls it, but you may ruffle some feathers if you negotiate a strong discount, then negotiate the MF later. Dealer is gonna want to make some money somewhere, in this deal. Be patient, and prepare to walk if you don't get what you want.
The important thing to remember is that a successful negotiation means that both parties walk away somewhat unhappy.
This is my first time considering a lease and was offered the following deal (not negotiated yet) on a 25t Premium. Can you please let me know if this is a good deal or not? The cash incentive is gone by the end of Monday and I was told by the sales manager that because of a recall (I verified that there's a recall on the vehicle based on VIN), that they'd need a decision by Monday morning in order for their service department to fix the issue, otherwise they won't be able to sell me the vehicle if that fix is not done in time by the end of the business day.
That's a very large markup to the money factor. That will add $55/mo. to the payment.
@kyfdx Wow, okay. So is .00018 something that I can definitely get them down to or should I be negotiating to just get it lower to something near that number? Also, the manager said it pretty quickly to me without writing it down. She said it was basically a 2% APR, so am I correct in my calculation that she said ".0009" or did she say ".00009"? Thanks again.
Tell them you won't sign any deal unless the base MF is used; they know what that rate is.
2% equates to .00083 MF
.00083 is a long way away from .000183 that @kyfdx stated. I certainly appreciate all the help, I'm just trying to understand so I'm not going into the negotiations blind. Were you simply saying 2% equates to .00083 to show me that the MF they verbally stated is not equivalent to .0009?
On another note, wouldn't 2% (or .00083) be a good rate in the current state of the economy or do those numbers somewhat go out the window for car leases? I'm only asking because doing a quick search seemed to show that a 4-5% APR was pretty common for auto leases. By the way, I'm in Northern California (Bay Area) if that makes any difference.
Thanks again.
The state of the economy, or equating it to an APR means nothing. The manufacturer/finance company provide a rate to the dealer, that along with the residual value and incentives, results in a payment that will hopefully sell cars and still provide a reasonable profit to the dealer. It really doesn't matter what an independent bank would charge you for a loan.
You want them to use that rate.
Yes.. .00083 is approx equivalent to 2% APR (so, the manager is more or less correct, when she said that .00090 was "about" 2% APR, but that is a big markup from the base rate.
If you saw an ad that Jaguar was offering 0.9% financing, but when you went in, the dealer would only offer you 2.9%, you would be unhappy. Rightfully so.
The low money factor is an incentive from the manufacturer. Don't let the dealer take it back from you, by allowing a markup.
Thank you both for all your help on this Easter day. I feel much more confident now knowing exactly how much they're trying to make from me. Would it be wise to tell them that I won't do a deal unless they give me the base rate of .000183 and show them that I know what the base MF is or is there a reason to avoid pointing out that I know the specific base rate?
This is my first time considering a lease and was offered the following deal (not negotiated yet) on a 25t Premium. Can you please let me know if this is a good deal or not? The cash incentive is gone by the end of Monday and I was told by the sales manager that because of a recall (I verified that there's a recall on the vehicle based on VIN), that they'd need a decision by Monday morning in order for their service department to fix the issue, otherwise they won't be able to sell me the vehicle if that fix is not done in time by the end of the business day.
That's a very large markup to the money factor. That will add $55/mo. to the payment.
@kyfdx Wow, okay. So is .00018 something that I can definitely get them down to or should I be negotiating to just get it lower to something near that number? Also, the manager said it pretty quickly to me without writing it down. She said it was basically a 2% APR, so am I correct in my calculation that she said ".0009" or did she say ".00009"? Thanks again.
Tell them you won't sign any deal unless the base MF is used; they know what that rate is.
2% equates to .00083 MF
.00083 is a long way away from .000183 that @kyfdx stated. I certainly appreciate all the help, I'm just trying to understand so I'm not going into the negotiations blind. Were you simply saying 2% equates to .00083 to show me that the MF they verbally stated is not equivalent to .0009?
On another note, wouldn't 2% (or .00083) be a good rate in the current state of the economy or do those numbers somewhat go out the window for car leases? I'm only asking because doing a quick search seemed to show that a 4-5% APR was pretty common for auto leases. By the way, I'm in Northern California (Bay Area) if that makes any difference.
Thanks again.
The state of the economy, or equating it to an APR means nothing. The manufacturer/finance company provide a rate to the dealer, that along with the residual value and incentives, results in a payment that will hopefully sell cars and still provide a reasonable profit to the dealer. It really doesn't matter what an independent bank would charge you for a loan.
You want them to use that rate.
Yes.. .00083 is approx equivalent to 2% APR (so, the manager is more or less correct, when she said that .00090 was "about" 2% APR, but that is a big markup from the base rate.
If you saw an ad that Jaguar was offering 0.9% financing, but when you went in, the dealer would only offer you 2.9%, you would be unhappy. Rightfully so.
The low money factor is an incentive from the manufacturer. Don't let the dealer take it back from you, by allowing a markup.
Thank you both for all your help on this Easter day. I feel much more confident now knowing exactly how much they're trying to make from me. Would it be wise to tell them that I won't do a deal unless they give me the base rate of .000183 and show them that I know what the base MF is or is there a reason to avoid pointing out that I know the specific base rate?
.00018
Not, .000183..
Just wanted to provide an update. It took multiple attempts, but I got the dealer to lower the MF down to almost the base rate. I offered to accept .00021, but that was on the condition that they met me at a certain sale price point which they did. I realize that I could have walked (and still can as I haven't signed the deal yet, doing this tomorrow) to get .00018, but when I go into the F&I tomorrow, I'll be sure to remind them that I know they're getting a .07% bump on the rate and that I'd like some rubber car mats and a rubber trunk mat thrown in.
Thanks again for all your help @kyfdx and @Michaell. I was able to secure the price of the vehicle at a 9.6% discount off MSRP. That's with the $1,000 cash incentive factored in, which technically expired today, but they'll honor it and give it to me tomorrow still.
I do have one final question for either of you. They've quoted me a sale price that I am happy with, a money factor that I'm okay with, and a residual value at 52% (based on 10K miles). Are there any numbers that they can fudge to bump my monthly up? Based on a 10K downpayment, in my calculation, I'm getting a monthly cost of just about $335 with taxes included (8.75% tax rate).
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.00016 MF and 51% residual
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New here. I am in the market for an F Pace and I am trying to figure out the lease formula with the residual and money factor
Can you please state the MF/RV for a 3.5 F pace- Premium with a agreed upon price of $52,000 before tax of .07 for 10K miles a year for 39 months, in Illinois. Can you also go through the actual math to come up with an approx figure? I thought it was agreed upon price minus residual divided by 39months. That gives you X. Then you add the agreed upon price + residual multiple by the MF to equal Y. Then its X+Y multiple by the tax to equal Z. Final monthly price is X+Y+Z= monthly lease price. is this accurate?
Thanks
Alex
Your formula is basically accurate.
But, you'll need the MSRP to calculate the residual (always a percentage of full MSRP)
Also, Illinois calculates tax a little differently (they tax the sum of payments and collect that amount upfront), but doing it your way, won't be far off.
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.00023 MF and 50% residual
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.00016 MF and 49% residual for 39 months
No info on incentives
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.00012 MF and 49% residual
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Can you provide the MF and residual for 2018 35T prestige in Illinois. 39 month 10K miles.
Thanks
Alex
Here are two quotes on demos f paces. I think they are off by $100 per month.. they used a MF of .00112 on the prestige and .00126 on the premium. Do you think they are even close?
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That doesn't take into account a possible residual reduction due to mileage, though.
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But, an extra $90/mo for financing pretty much kills a lot of that discount.
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Thank you!
.00031 MF and 50% residual
Finance fee? Do you mean the acquisition fee? That's $795
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
Thank you.
.00001 MF and 51% residual
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Those are the correct numbers.
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No information on Jaguar incentives
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
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i still owe $925 on my remaining infiniti lease, but i will use it for work mileage reimbursement. The V6 supercharger is amazing on the Fpace.
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
F-Pace S
3/15,000 mile lease term
MSRP $79,388.00
Discount $4,200
Price: $75,188.00
Residual $38,900.12 (49%)
MF 1.5% or 0.000625
Thanks for any help!
MF is marked way up. Tell the dealer you won't sign a deal with the inflated MF.
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
you.
you.
52% / 50% and .00010
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
This is my first time considering a lease and was offered the following deal (not negotiated yet) on a 25t Premium. Can you please let me know if this is a good deal or not? The cash incentive is gone by the end of Monday and I was told by the sales manager that because of a recall (I verified that there's a recall on the vehicle based on VIN), that they'd need a decision by Monday morning in order for their service department to fix the issue, otherwise they won't be able to sell me the vehicle if that fix is not done in time by the end of the business day.
Model: 25T Premium
MSRP: $51,547
Internet Price: $47,939
Cash incentive: $1,000
36/10
Residual 52%
MF: .0009
That's a very large markup to the money factor.
That will add $55/mo. to the payment.
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2% equates to .00083 MF
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On another note, wouldn't 2% (or .00083) be a good rate in the current state of the economy or do those numbers somewhat go out the window for car leases? I'm only asking because doing a quick search seemed to show that a 4-5% APR was pretty common for auto leases. By the way, I'm in Northern California (Bay Area) if that makes any difference.
Thanks again.
The base MF of .00018 is equivalent to .43%, by comparison.
That is the number you want your deal to be written with. Anything higher is just profit for the dealer.
Lots of cars have a MF of .00001, which is .024%. Don't compare them to auto loan interest rates.
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You want them to use that rate.
Yes.. .00083 is approx equivalent to 2% APR (so, the manager is more or less correct, when she said that .00090 was "about" 2% APR, but that is a big markup from the base rate.
If you saw an ad that Jaguar was offering 0.9% financing, but when you went in, the dealer would only offer you 2.9%, you would be unhappy. Rightfully so.
The low money factor is an incentive from the manufacturer. Don't let the dealer take it back from you, by allowing a markup.
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
Also, can you tell me what the base MF and residual would be if it were a 36/12 deal versus the 36/10 numbers?
I haven't really thought about where it's best to negotiate the MF - the F&I guy controls it, but you may ruffle some feathers if you negotiate a strong discount, then negotiate the MF later. Dealer is gonna want to make some money somewhere, in this deal. Be patient, and prepare to walk if you don't get what you want.
The important thing to remember is that a successful negotiation means that both parties walk away somewhat unhappy.
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Not, .000183..
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Thanks again for all your help @kyfdx and @Michaell. I was able to secure the price of the vehicle at a 9.6% discount off MSRP. That's with the $1,000 cash incentive factored in, which technically expired today, but they'll honor it and give it to me tomorrow still.
I do have one final question for either of you. They've quoted me a sale price that I am happy with, a money factor that I'm okay with, and a residual value at 52% (based on 10K miles). Are there any numbers that they can fudge to bump my monthly up? Based on a 10K downpayment, in my calculation, I'm getting a monthly cost of just about $335 with taxes included (8.75% tax rate).