Mercedes Financial vs Mercedes Dealer

[MBZFAN55]

How much latitude does the Mercedes dealer have with the published lease residual percentage values when utilizing MB Financial? Obviously credit ratings affect interest rates and are subject to change, but are residual values ever adjusted by the selling dealer?

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[mac911]

Originally Posted by MBZFAN55

How much latitude does the Mercedes dealer have with the published lease residual percentage values when utilizing MB Financial? Obviously credit ratings affect interest rates and are subject to change, but are residual values ever adjusted by the selling dealer?

I have found that the residual values the dealers tell me for the appropriate amount of miles, line up with what Lease Compare posts on here.

However, the money factor never lines up. They drop their mouth that I know the true money factors, and they say they have to up them some, to make money for the finance department. I'm like "hey, they wouldn't be getting anything if I paid cash either." I've never been able to get a dealer to match the money factor spot on, but fairly close, they are actually more willing to take more money off usually.

I always wonder if you pay off the lease buy it out after say 6 months, if the finance department at a dealership loses the mark up ?

[MBZFAN55]

Originally Posted by mac911

I have found that the residual values the dealers tell me for the appropriate amount of miles, line up with what Lease Compare posts on here.

However, the money factor never lines up. They drop their mouth that I know the true money factors, and they say they have to up them some, to make money for the finance department. I'm like "hey, they wouldn't be getting anything if I paid cash either." I've never been able to get a dealer to match the money factor spot on, but fairly close, they are actually more willing to take more money off usually.

I always wonder if you pay off the lease buy it out after say 6 months, if the finance department at a dealership loses the mark up ?

The money factor tends to be very subjective with variations due to credit score, financial institution, and dealership enhanced profitability. The residual I always thought was a firmer figure until I noticed a dealer being one percent lower than published by Lease Compare in that month. If the car is $100k+, the 1% is a quick extra profit for someone in the deal. Is it the dealer or MB Financial?

Paying off an installment contract early, assuming there isn't a prepayment penalty clause, can certainly cost the selling dealer. In many deals, dealerships make more money on the finance end than on the actual sale of the vehicle.