The Truth About Leasing .. The Money Factor

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Information The Truth About Leasing .. The Money Factor

Title	:	The Truth About Leasing .. The Money Factor
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Honda/Acura is one of the few brands that does NOT allow the money factor to be marked up, for what its worth Other brands allow it to be marked up, which is why some dealers try to hide the money factor on worksheets (I am in the car business)
Comment from : @kevinbrown8603

to the point, thanks for the info sub/liked
Comment from : @ianchernencoff7968

I like your idea about this
Comment from : @KeithWilmo

I guess I'm not leasing I'll just buy an older, yet reliable car and pay cash No need to give the banks and dealers more money
Comment from : @savagemonkey123

Sounds like a lot of fuckery
Comment from : @AR-me9jy

Is the mf based of ur credit and tier approval or what the dealer wants to set
Comment from : @mikerose9330

Hey Ari, quick question A dealer told me they use “base money factor” for their lease on a vehicle I’m interested in Is that the same as saying they use the “buy rate money factor”? Thanks!
Comment from : @youngj7

oh surprised we need to pay interest on selling price plus residue this is very very weird anyone knows what is the rationale behind that?
Comment from : @user-qx4sc5ku2w

Why does the money factor matter so much when you are agreeing upon a monthly lease amount either it’s around 1 or it’s not why should you dive further?
Comment from : @babiblu292

So with that being said, would you actually not want the car to have a high residual value in order to get a lower monthly interest payment?
Comment from : @jacobpeterson222

I just got a 2021 Acura ILX A-spec for $2500 down $349 a month Did I get robbed?
Comment from : @jonathanyousif6795

It's made confusing on purpose so they can maximize profits with buyers who don't know better
Comment from : @FlyingTigersKMT

If you don’t stop moving your hands, I am going scream!!!
Comment from : @jackies35

Why $2400?
Comment from : @oBlvd

Hey Ari, great video Who will determine the APR for my lease? Can I get this before I go in to the dealership?
Comment from : @davem9484

Hey ari I’m in the market to buy a 2020 4 runner off rd premium with a market value of $44,702 Selling price $42,225 Called dealer with a estimate on leasing if I put down 13k as a down payment and this I what came out of it : brbr36 months:10,000 miles $12834 per month residual $29,503 brbrAny thoughts on this ??
Comment from : @lydellleopold5884

Clear as mud
Comment from : @tracyhawley8829

Ari, would you help me with a lease?
Comment from : @RecruitingJunkie

All this video did for me was to confuse even more! Sorry
Comment from : @chichi41

Блестящий’
Comment from : @ZestyLemonBoi

ARI!!! You didn’t answer the most important question, CAN A CUSTOMER NEGOTIATE THE MONEY FACTOR with dealership??? Acura has it at 00215 which is about 516 🙀 on leases
Comment from : @CarolineBeautyInc

Hi, is this a good deal for an Audi Q3 2019brMSRP: $44,900brDiscount: $2,700 plus Audi Carebr$0 downbr$619 for 42 months brResidual is around $24,440brMoney factor: 00132brbrThanks in advance sir
Comment from : @gmartmataro8154

Ari can I email u a copy of my lease contract? I don’t know what the money factor is but I think I got a fair deal
Comment from : @terrycrusin6191

Can the starting price (MSRP) be negotiated?
Comment from : @setofirons

The fact that u pay money for The satisfaction of driving a car u can’t keep isstupid
Comment from : @KrossKountry595

could u please do a follow up video with sample numbers, its kinda of hard to quantify all this jargon? thanks 😅
Comment from : @sanjans1552

When you lease you pay around the same interest as you would with a purchase On a $30,000 vehicle with an interest rate of 399 percent which is a money factor of 001663 on a 36 month lease you will pay around $2,750 in interest On a 60 month loan at 399 percent you will pay interest of around $2,600 during the first 36 months brbrbrThe main reason for this difference is during the lease you will pay less of the $30,000 than you will with a purchase during the same period For example, on a lease you pay the difference between the price (capitalized cost) and the residual value This amount is usually less than the amount of the $30,000 you will pay on a purchase So, essentially, the interest rate (money factor) on a lease is applicable each month to a higher loan amount This results in a bit more interest being paidbrbrbrThis extra interest is usually offset by a lower monthly payment which, again, results from the fact you are paying less of the $30,000brbrbrCar dealers are legally allowed to mark up both the interest rate and the money factor This is called dealer reserve A dealer will shop your credit profile to different sources for an interest rate The financial sources will provide the dealer the rate at which they will finance the buyer This is called the buy rate The dealer can bump this buy rate, by 2 percent in many states So, the financial institution offers a rate of 3 percent The dealer will tell the buyer the rate is 5 percent Guess who gets most of the extra interest? Of course, the dealerbrbrbrDealers can essentially do the same with a money factor The buy rate may be 001663 which is a 399 percent interest rate The dealer can try to convince the buyer the money factor is 002496, which is a 599 percent interest rate brbrbrThis is a scam virtually every car dealer counts on to boost profitbrbrbrWhether you buy or lease always insist the dealer F&I person show you the buy rate If they refuse you can be certain they are pulling the dealer reserve scam In such a situation, walk away If, as has happened to me, the F&I person relents and offers the actual buy rate, fine If not leave as fast as your feet can movebrbrbrOne real scam on a lease is that acquisition fee, usually around $900 This is pure profit for the leasing company This fake fee does not exist on a purchase Leasing companies charge this fee because they know they can hide it in the lower monthly payment
Comment from : @jerrylundegaard2592

Interesting video Some written examples of lease vs financing might make your points more effective Still, very interesting
Comment from : @Jorge_Magallon

Thanks for the awesome video Very informative on "what" goes on with price Do you know "why" the APR is divided by 2400 to get mf? What's special about 2400? Also, do you know "why" dealers add residual value and net cap cost to calculate interest payments? Is it because they can or is there some financially sound reason on their end?
Comment from : @ericbauer6595

I lease a 2019 Toyota Highlander XLE with a monthly payment of $42900 for 36 months with only first months payment Ari based on this you think I got a good deal Thank You
Comment from : @JoseGarcia-xt6km

Ari , what do you think lease a ram warlock v6 for 319 zero down 10000?l milles 42 months?
Comment from : @hiddenhightecinc7756

I leased my 2018 Lexus RC-F last year in Canada $5000 CAD down payment, and my monthly payment is around $927 CAD for 39 months My interest rate for the lease is 02 (my dad works for Lexus/Toyota financial services) My dealer has a 1 year return/buyback pokicy, what do you think? is this a good deal?
Comment from : @temigi

Here is something crazy The 2019 Jaguar F-Type has the single best lease program right now 00001 MF🤑 and up to 60 residuals for 36 months Combined with some pretty heavy discounts because the 2020 models are out now It looks like you might be able to get into a $75k car for about $600 a month with absolutely nothing down
Comment from : @LearningFast

Amazing content Ari Your insight in leasing a car is totally on point 👍
Comment from : @atharsami

I’m looking to get into a c300 lease within the next few months, any way you could possibly do a video to help get the best deal possible on a lease from like May-June of this year is
Comment from : @Jararhussain

Hey Ari can you do a video about purchase/lease on Jeep Grand Cherokee SRT? I think it doesn't have good residual value but I still hear many people leasing them Wonder if Chrysler has lease rebate or something like that on this car?
Comment from : @kyleyu4634

I leased a 2018 Acura MDX last fall I pay $459 per month $500 down Did I get robbed?
Comment from : @DGYtown

Can you do a video about the 2019 scatpack challenger widebody lease?
Comment from : @Le-King365

I believe Dave Ramsey said it best, leasing is the most expensive way to finance a car Unless there is a bunch of lease cash offered by the manufacturer
Comment from : @prm5798

Hey Ari when are you doing a video on the new BMW 3 series!?
Comment from : @chrisx6840

Do you think is better to lease 2019 Jeep Grand Cherokee trackawk or buy
Comment from : @stephioakanda

I just try to get a lease on a lexus they said $4k down smh im gonna try to see Volvo im trying to stay on the $400 mark You think a Volvo XC40 is possible?
Comment from : @I2esistanc3

Could you do a video about buying a car at lease end? I’m sure that in the long run you would pay more, but how much more? As a suggestion, maybe use the lexus NX as an example
Comment from : @SkylineR34EvoX

Ari, I went into a Mercedes dealership in LA today, and I got quoted 490 something with 4500 down and 770 credit what do you think
Comment from : @nicolaszaroyan4764

Video on jaguar XE S AWD
Comment from : @arubio0527

I'm a new subscriber(about a week) I love your channelI have never leased a car and been thinking about going this direction,on a scatpack charger
Comment from : @frankie072

Well done! My favorite part of your videos, aside from the great information, is when you bury the "please consider subscribing" in the middle of the videos It's awesome! Keep them coming! Mind doing a BMW X3 M40i?
Comment from : @ejharris3498

Would like to have a lease review video on a Cherokee Trailhawk if possible Explaining the money factor was extremely helpful, thank you
Comment from : @neilwatson9706

I got a 2019 Mazda CX-5 Grand Touring AWD with 0 down for 319/Mo after paying first month taxes and fees Did I get robbed?
Comment from : @FromQnz2King

Is there a way to get the MF at any point in time Let’s say I call 2 different dealer ships and ask for the MF on the same model car and trim Am I likely to get the same answer? And how to I know I’m getting the best rate possible?brbrSorry for all the questions , just interested in how brokers get their residuals and MF on vehicles as I know it varies from location to location as well
Comment from : @RealChunkyMonkey