Lease Money factors and residuals
01-04-2003, 01:41 AM
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Lease Money factors and residuals
Am taking delivery of my car Monday and have this feeling the dealership is trying to pull a fast one because of the high discount we negotiated on my car.
Anyone know the Tier One money factors for Dec. and/or January? I can still get the Dec. rate since that is when I was approved. Also, the residual for a 15,000 mile lease was 65% for an e500 in December - has it changed?
The help is much appreciated.
Also, does the v.60 handset come from the factory when the phone is factory ordered? The dealer is claiming there is an additional charge above the $1595 telephone price for the phone handset (just when you thought you heard every dealer line possible).
Also, I just found ou that since I am getting the wood wheel and CD player installed by the dealer as oppossed to the factory they can't be counted in the residual calculation by MB Credit for the lease. Boy does that make a huge difference in price.
Anyone know the Tier One money factors for Dec. and/or January? I can still get the Dec. rate since that is when I was approved. Also, the residual for a 15,000 mile lease was 65% for an e500 in December - has it changed?
The help is much appreciated.
Also, does the v.60 handset come from the factory when the phone is factory ordered? The dealer is claiming there is an additional charge above the $1595 telephone price for the phone handset (just when you thought you heard every dealer line possible).
Also, I just found ou that since I am getting the wood wheel and CD player installed by the dealer as oppossed to the factory they can't be counted in the residual calculation by MB Credit for the lease. Boy does that make a huge difference in price.
01-05-2003, 08:30 PM
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Thaks for all the Private message responses. Here's what I found out myself and through the forum responses:
The deal I had cut with the dealer I purchased from was that he would sell me the car at invoice. He added the $500 charge for the phone handset based on the fact that the handset does not come with the car and must be acquired seperately by the dealer based on who provides your cellular service. I verified this fact with another dealer and through other members here. However, I think the dealer cost for the handset is probably no where near $500, it was just his way of making the deal somewhat palatable on his end.
What I found out on the CD player is that only the factory price($400), not the accesory price ($800) can be counted for residual calculation. The wood wheel installed as an accessory cannot be counted at all for residual.
The Tier 1 money factor for now remains at .285, where it has been since November.
I am buying the car from this dealer - the effective discount after the highly questionable handset charge was $3718 - nothing for me to whine about. ($4218 was the difference between MSRP and Invoice, and each dealer has a $400 advertising charge on the invoice).
Thanks everyone for the help.
The deal I had cut with the dealer I purchased from was that he would sell me the car at invoice. He added the $500 charge for the phone handset based on the fact that the handset does not come with the car and must be acquired seperately by the dealer based on who provides your cellular service. I verified this fact with another dealer and through other members here. However, I think the dealer cost for the handset is probably no where near $500, it was just his way of making the deal somewhat palatable on his end.
What I found out on the CD player is that only the factory price($400), not the accesory price ($800) can be counted for residual calculation. The wood wheel installed as an accessory cannot be counted at all for residual.
The Tier 1 money factor for now remains at .285, where it has been since November.
I am buying the car from this dealer - the effective discount after the highly questionable handset charge was $3718 - nothing for me to whine about. ($4218 was the difference between MSRP and Invoice, and each dealer has a $400 advertising charge on the invoice).
Thanks everyone for the help.
01-05-2003, 10:20 PM
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'03 E320
money factors for Dec. and/or January?
I'd suggest that you check out the following site for current lease money factors;
www.leasecompare.com
Depending on the financing commitment you have made with the dealer/others, using this service may help you lower the cost of money. Based on previous due diligence on my part, I found these people credible. As a minimum, you may want to use this as leverage for better financing.
This money factor is around .0023, depending on credit rating, etc.
When I bought from my dealer I told them that I was going to use this service. Within 24 hours the dealer was able to find a local bank with same money factor. Keep in mind that the lower the money factor, the residual % will be somewhat lower, so small effect on monthly, but big effect on end of lease liability, which meant a lot to me.
My experience in calculating market value basis, from which the residual is calculated - the market value is based upon published data from the manufacturer. Some variation allowed depending on financial institute.
Good luck and wish you the best - hope this information is helpful.
www.leasecompare.com
Depending on the financing commitment you have made with the dealer/others, using this service may help you lower the cost of money. Based on previous due diligence on my part, I found these people credible. As a minimum, you may want to use this as leverage for better financing.
This money factor is around .0023, depending on credit rating, etc.
When I bought from my dealer I told them that I was going to use this service. Within 24 hours the dealer was able to find a local bank with same money factor. Keep in mind that the lower the money factor, the residual % will be somewhat lower, so small effect on monthly, but big effect on end of lease liability, which meant a lot to me.
My experience in calculating market value basis, from which the residual is calculated - the market value is based upon published data from the manufacturer. Some variation allowed depending on financial institute.
Good luck and wish you the best - hope this information is helpful.
