What’s a good lease?

A good lease is one that combine several “factors”: (Note it can get complicated and this is exactly why we created this site – feel free to skip the below and just shoot us an email with your questions / quotes and we will tell you what to look for)

Low Selling Price

  • This looks trivial on the surface but many overlook this. At the end of the day, leasing a vehicle is just like purchasing where you want to negotiate the lowest selling price.

Low Money Factor(i.e. Interest rate)

  • The base Money Factor(MF)is set by the bank(canbe any retail bank like Chase or BofA but most of the time the lowest MF is offered by the one that is affiliated with the auto manufacturer such as Honda Financial Services or BMW Financial Services as they subsidize it to“help”you lease their own cars)
  • Dealer can markup the base MF to increase profit, usually with a cap.

High Residual value

  • A predetermined percentage of the vehicle’s MSRP that dictates how much the vehicle is worth in certain time frame
  • MSRP = Residual value at end of lease + Depreciation
  • In a lease, depreciation value is what you(theconsumer) pay for – the lower the depreciation value, the cheaper payment you have.

High Manufacturer to Consumer Rebates

  • Manufacturer provide rebates directly to consumer to move inventory at times
  • Can be found from manufacturers websites or auto consumer sites such as Edmunds.com

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