Quote:
Originally Posted by Presplan
On leases, what do most dealerships do with the money factor? Do they use the base rate or mark it up? I found 2 dealers in the PA area that are adding to the base - one was adding .0003 and the other .0004. They both tried to deny they were marking up the base and it wasn't until I showed them on my lease calculator that their monthly numbers didn't make sense. Once challenged, they then fessed up that they are giving a better discount on the sale so they need to make up for it on the rate. A 0.0004 increase equates to a 1% price increase. Is it tough to find an honest dealership or just the two I stumbled across? Oh, I did get one of them to discount by 7% but when you minus the increase in the MF, don't think it's the best deal. Still continuing to shop.
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Money factor markup is common. Dealership is a business after all. If they give you a below invoice kind of discount, they have to make money elsewhere.