How to get my dealer to lower the Money Factor in the lease
#1
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How to get my dealer to lower the Money Factor in the lease
So originally, I was planning to finance my 3IS outright, but now i may go via lease since Lexus has been changing their direction and may have something worth changing for in 2-3 years.
this is my terms below. everything looks good except for the Money factor which is pretty high. Because my dealer said they gave me a good deal, they MF has to be somewhat high for the owner to make some money. I understand the sales price we determined is great. It's 1700 below invoice, but the MF is pretty high at .002 (4.8%). How can i go about lowering the MF with them?
I've already ordered the 3IS UW/RR and its coming in a week or so with this dealer, so its not like i want to "walk away" from this dealer.
They seem pretty stern about .002 MF, but I told them many others have been getting .0013 for Tier 1. my FICO is like in low 800s.
Obviously if i put like $1-$2k down, that will affect my payment like $70-$100 less per month, but I don't want to put any add'l money down.
Thoughts?
MSRP = 48462
sales price = 43883
fees that increase cap cost = 450
residual = 72%
term = 27 month
money factor = .002 (they said they had to increase this because of the good price they gave me of $1700 below invoice)
drive off = $1500 (drive off is paid up front and not in loan incl first month payment, title, some other fees)
$0 additional down payment
$509 + tax (tax is calculated into each payment of the loan and only against the term lease amount, not entire cost of the car)
- or this -
MSRP = 48462
sales price = 43883
fees to increase cap cost = 450
residual = 64%
term = 36 month
money factor = .002
drive off = $1500
$0 additional down payment
$521 + tax (tax is calculated into each payment of the loan and only against the term lease amount, not entire cost of the car)
GAP insurance is automatically included in the Lexus Lease.
this is my terms below. everything looks good except for the Money factor which is pretty high. Because my dealer said they gave me a good deal, they MF has to be somewhat high for the owner to make some money. I understand the sales price we determined is great. It's 1700 below invoice, but the MF is pretty high at .002 (4.8%). How can i go about lowering the MF with them?
I've already ordered the 3IS UW/RR and its coming in a week or so with this dealer, so its not like i want to "walk away" from this dealer.
They seem pretty stern about .002 MF, but I told them many others have been getting .0013 for Tier 1. my FICO is like in low 800s.
Obviously if i put like $1-$2k down, that will affect my payment like $70-$100 less per month, but I don't want to put any add'l money down.
Thoughts?
MSRP = 48462
sales price = 43883
fees that increase cap cost = 450
residual = 72%
term = 27 month
money factor = .002 (they said they had to increase this because of the good price they gave me of $1700 below invoice)
drive off = $1500 (drive off is paid up front and not in loan incl first month payment, title, some other fees)
$0 additional down payment
$509 + tax (tax is calculated into each payment of the loan and only against the term lease amount, not entire cost of the car)
- or this -
MSRP = 48462
sales price = 43883
fees to increase cap cost = 450
residual = 64%
term = 36 month
money factor = .002
drive off = $1500
$0 additional down payment
$521 + tax (tax is calculated into each payment of the loan and only against the term lease amount, not entire cost of the car)
GAP insurance is automatically included in the Lexus Lease.
#2
Have you tried another leasing company or bank? Competition does wonders to bring down the price. You've already negotiated the price; now take that price to a competitor and ask them for a better rate. Then take that rate back to the dealer and ask them to match or beat it.
#3
Lexus Test Driver
So originally, I was planning to finance my 3IS outright, but now i may go via lease since Lexus has been changing their direction and may have something worth changing for in 2-3 years.
this is my terms below. everything looks good except for the Money factor which is pretty high. Because my dealer said they gave me a good deal, they MF has to be somewhat high for the owner to make some money. I understand the sales price we determined is great. It's 1700 below invoice, but the MF is pretty high at .002 (4.8%). How can i go about lowering the MF with them?
I've already ordered the 3IS UW/RR and its coming in a week or so with this dealer, so its not like i want to "walk away" from this dealer.
They seem pretty stern about .002 MF, but I told them many others have been getting .0013 for Tier 1. my FICO is like in low 800s.
Obviously if i put like $1-$2k down, that will affect my payment like $70-$100 less per month, but I don't want to put any add'l money down.
Thoughts?
MSRP = 48462
sales price = 43883
fees that increase cap cost = 450
residual = 72%
term = 27 month
money factor = .002 (they said they had to increase this because of the good price they gave me of $1700 below invoice)
drive off = $1500 (drive off is paid up front and not in loan incl first month payment, title, some other fees)
$0 additional down payment
$509 + tax (tax is calculated into each payment of the loan and only against the term lease amount, not entire cost of the car)
- or this -
MSRP = 48462
sales price = 43883
fees to increase cap cost = 450
residual = 64%
term = 36 month
money factor = .002
drive off = $1500
$0 additional down payment
$521 + tax (tax is calculated into each payment of the loan and only against the term lease amount, not entire cost of the car)
GAP insurance is automatically included in the Lexus Lease.
this is my terms below. everything looks good except for the Money factor which is pretty high. Because my dealer said they gave me a good deal, they MF has to be somewhat high for the owner to make some money. I understand the sales price we determined is great. It's 1700 below invoice, but the MF is pretty high at .002 (4.8%). How can i go about lowering the MF with them?
I've already ordered the 3IS UW/RR and its coming in a week or so with this dealer, so its not like i want to "walk away" from this dealer.
They seem pretty stern about .002 MF, but I told them many others have been getting .0013 for Tier 1. my FICO is like in low 800s.
Obviously if i put like $1-$2k down, that will affect my payment like $70-$100 less per month, but I don't want to put any add'l money down.
Thoughts?
MSRP = 48462
sales price = 43883
fees that increase cap cost = 450
residual = 72%
term = 27 month
money factor = .002 (they said they had to increase this because of the good price they gave me of $1700 below invoice)
drive off = $1500 (drive off is paid up front and not in loan incl first month payment, title, some other fees)
$0 additional down payment
$509 + tax (tax is calculated into each payment of the loan and only against the term lease amount, not entire cost of the car)
- or this -
MSRP = 48462
sales price = 43883
fees to increase cap cost = 450
residual = 64%
term = 36 month
money factor = .002
drive off = $1500
$0 additional down payment
$521 + tax (tax is calculated into each payment of the loan and only against the term lease amount, not entire cost of the car)
GAP insurance is automatically included in the Lexus Lease.
#4
Lead Lap
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On the other hand, you can also call Longo Lexus in Long beach and they are readily giving 1k below invoice which is about 4k off Sticker. Ask for George Kantanto, internet sales manager. I dont know him personally and you can get that price from him anytime.
#5
Either find another leasing company or be prepared to walk. Saying you don't want to walk because you have a specific color combo on order already puts you behind the 8-ball. Just having an order in means they're going to be less tolerant to negotiating with you.
This is why I'm not specific on colors, dealers will always be more willing to work with you if the car you're trying to buy is already on their lot.
This is why I'm not specific on colors, dealers will always be more willing to work with you if the car you're trying to buy is already on their lot.
#7
Most states will prorate on your next renewal, so this shouldn't be a factor in the decision.
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#9
Lexus Test Driver
#10
Lead Lap
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http://www.dmv.ca.gov/pubs/vctop/d03/vc9706.htm
#11
Intermediate
iTrader: (3)
Good point but after some research, looks like you can submit an application 20 days before registration is due to say you only want to pay for 3 months extra vs the entire year.
http://www.dmv.ca.gov/pubs/vctop/d03/vc9706.htm
http://www.dmv.ca.gov/pubs/vctop/d03/vc9706.htm
Also, to lower your payments have you thought about putting down MSD's?
#12
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I was thinking of that and going to inquire my dealer for that option.. i think max of 9 @ 500 each = 4500 total to bring it down .0001 each for a total of .0009.
essentially, so will that bring it down from .002 to .0011 but tie up $4500 that you should get back?
BTW, what are the advantages of a 27 month vs 36 month lease?
essentially, so will that bring it down from .002 to .0011 but tie up $4500 that you should get back?
BTW, what are the advantages of a 27 month vs 36 month lease?
#13
Intermediate
iTrader: (3)
Yes, you should get the MSD's back baring any financial issues on your part.
I think you should sit down with your sales person who you know at a personal level and have him run the numbers for you and don't be afraid to ask question if something doesn't make sense to you.
That's what I did and I have a much better understanding of leases, but every situation different though.
I think you should sit down with your sales person who you know at a personal level and have him run the numbers for you and don't be afraid to ask question if something doesn't make sense to you.
That's what I did and I have a much better understanding of leases, but every situation different though.
#14
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honestly you might be right on the 27 month vs 36 month. Since the monthly payment difference is so miniscule.. i may go with 36 month loan since i wont have to re-lease another vehicle so quickly again and have to pay those drive off fees after just 2.2 years vs 3 full years.
#15
Let me know your final lease deal info. I also ordered mine from Putnam though I didn't get as good a deal as yours. Wonder if I could still negotiate price before my car arrives.