gocats

^^^ google lease calculators or go to leaseguide.com.


When you plug in the MF it converts it to a % rate. For example the MF i'm using on a sedan is .00100 and it converts to around 2.4%

jmward21

Calculators are great, but I want to know the math... I guess the engineer in me is coming out. I went to leaseguide and reviewed the formulas. It states the rate is mf*2400 regardless of term.

So based on that a mf of .00147 would result in a rate of 3.5%.

The print out from the dealer lists a rate of 1.72. Now that makes no sense because it doesn't add up. I have to apply an interest rate of 4.19% (or mf of .001755) to get the rent payment they show.

I think I'm understanding now why it is so easy for dealers to hide costs on you. Thank goodness for this website educating me.

gocats

They prob are giving u a MF rate of .00172 instead of .00147. 00.147 must be the base rate and they are marking it up. One of the many ways they try to make $ on you.

RIDEwithG

The 1.72 rate is technically 0.00172. I personally think they do that for "marketing" purposes. They make it seem like you are getting such a low interest rate that it "seems" like you are getting a good deal. The average person doesn't know how to calculate a lease, so they wouldn't exactly question it either.

BruinG37

a Dealership just quoted me a price for 39mo lease and I asked for the money factor and he said he doesn't feel comfortable sharing that information?! Am I missing something here?

Chico

It's common practice. It prevents you from analyzing the deal. Look somewhere else.