Honda/Acura is one of the few brands that does NOT allow the money factor to be marked up, for what its worth. Other brands allow it to be marked up, which is why some dealers try to hide the money factor on worksheets. (I am in the car business).
Here is something crazy. The 2019 Jaguar F-Type has the single best lease program right now. .00001 MF🤑 and up to 60% residuals for 36 months. Combined with some pretty heavy discounts because the 2020 models are out now. It looks like you might be able to get into a $75k car for about $600 a month with absolutely nothing down.
Thanks but what I don’t understand is why the lease is calculated in a way that the interest is applied to the whole principal and you pay for it every month making it much more expensive than a loan when the interest is payed only on the part that is left on each month. Let’s say a car costs 27,000, the residual value is 16,000, the APR for the lease is 6% and you lease it for 36 months. My first impression was that it’s the same as taking an 11,000 loan for 36 months with APR 6%. But if you take two calculators and go through these numbers, the loan monthly payment will be 334.64 and total interest is 1,047.04. Whereas if you lease it, the monthly payment is gonna be 413.06 and total interest is 3,870… The cost of leasing is 3 times more expensive 🤯I understand, that’s the whole point to make things so complicated that they could get more money from you but still, so frustrating
Ari, I understand most of your explanation. However, I didn't hear how "2400" is derived at in figuring out the money factor in the equation. Where does it come from? Why that number?
Thank you so much. (Cap cost+residual) X MF.. this is the exact part i was confused about. Bmw kept saying MF is 0.00066. then i kept getting almost double as i thought it went only for the depreciation. But after this now the calculation added up good. Thank you so much
I believe Dave Ramsey said it best, leasing is the most expensive way to finance a car. Unless there is a bunch of lease cash offered by the manufacturer.
Is there a way to get the MF at any point in time. Let’s say I call 2 different dealer ships and ask for the MF on the same model car and trim. Am I likely to get the same answer? And how to I know I’m getting the best rate possible? Sorry for all the questions , just interested in how brokers get their residuals and MF on vehicles as I know it varies from location to location as well
Christian, the best way to find out is to make sure you shop around the deal a few different places. Edmunds does a good job of giving the information out on their forums as well
Why does the money factor matter so much when you are agreeing upon a monthly lease amount .. either it’s around 1% or it’s not.. why should you dive further?
Hey ari I’m in the market to buy a 2020 4 runner off rd premium with a market value of $44,702. Selling price $42,225 Called dealer with a estimate on leasing if I put down 13k as a down payment and this I what came out of it : 36 months:10,000 miles $128.34 per month residual $29,503 Any thoughts on this ??
ARI!!! You didn’t answer the most important question, CAN A CUSTOMER NEGOTIATE THE MONEY FACTOR with dealership??? Acura has it at .00215 which is about 5.16% 🙀 on leases.
Caroline, the customer can if the money factor has been marked up. Acura dealers can’t mark up the money factor. Typically luxury brands like BMW and Mercedes etc have the ability to do so.
Ari Janessian the RDX has only $2525 incentives. I leased my 2017 RDX for $354 a month sign & drive. They said I will not get even close to that payment on 2020 RDX, bastards!
My research states that you should never put down a downpayment on lease because if you total the car, you lose that money. Plus the downpayment, on average, only reduces your monthly by $10.
I’m looking to get into a c300 lease within the next few months, any way you could possibly do a video to help get the best deal possible on a lease from like May-June of this year is
I asked a dealership for a price on a grand touring reserve cx-5 and they told me with 0 down it was 588 a month for 39 months for a 12000 mile lease. I laughed and moved on.....
JayDuke was looking at a grand touring reserve cx5 after helping my coworker get a grand touring for him. He got his for 550 no down finance . When i asked about the grand touring reserve because i want the turbo engine. It cost $6.5k more. I will wait for these turbos to be standard in a few years rather than an expensive option
Hey Ari, quick question. A dealer told me they use “base money factor” for their lease on a vehicle I’m interested in. Is that the same as saying they use the “buy rate money factor”? Thanks!
Well done! My favorite part of your videos, aside from the great information, is when you bury the "please consider subscribing" in the middle of the videos. It's awesome! Keep them coming! Mind doing a BMW X3 M40i?
I leased my 2018 Lexus RC-F last year in Canada. $5000 CAD down payment, and my monthly payment is around $927 CAD for 39 months. My interest rate for the lease is 0.2% (my dad works for Lexus/Toyota financial services). My dealer has a 1 year return/buyback pokicy, what do you think? is this a good deal?
I just try to get a lease on a lexus they said $4k down smh im gonna try to see Volvo im trying to stay on the $400 mark. You think a Volvo XC40 is possible?
Thanks for the awesome video. Very informative on "what" goes on with price. Do you know "why" the APR is divided by 2400 to get mf? What's special about 2400? Also, do you know "why" dealers add residual value and net cap cost to calculate interest payments? Is it because they can or is there some financially sound reason on their end?
Could you do a video about buying a car at lease end? I’m sure that in the long run you would pay more, but how much more? As a suggestion, maybe use the lexus NX as an example.
Hey Ari can you do a video about purchase/lease on Jeep Grand Cherokee SRT? I think it doesn't have good residual value but I still hear many people leasing them. Wonder if Chrysler has lease rebate or something like that on this car?
I lease a 2019 Toyota Highlander XLE with a monthly payment of $429.00 for 36 months with only first months payment. Ari based on this you think I got a good deal. Thank You
Hi, is this a good deal for an Audi Q3 2019 MSRP: $44,900 Discount: $2,700 plus Audi Care $0 down $619 for 42 months Residual is around $24,440 Money factor: .00132 Thanks in advance sir.
No! Do not lease anything over 39months. They’re dragging out your payments in order to make it look more attractive and $619 shouldn’t be appealing for a Q3....
Yes I did,I watched it 4 times LMAO, I hope to see something specifically with the scatpack charger ,with a $46k msrp, Lol,that's about what the particular car I want msrps at after options.I dont think they are leasing all that great tho.Now u were on point with the Hellcats,with patients ,and a dealer looking to get rid of one ,they are obtainable for about $500 10,000 mile 3yr/30k miles with about 3700-$4k down .
Honda/Acura is one of the few brands that does NOT allow the money factor to be marked up, for what its worth. Other brands allow it to be marked up, which is why some dealers try to hide the money factor on worksheets. (I am in the car business).
Thank you for your insight Kevin
Here is something crazy. The 2019 Jaguar F-Type has the single best lease program right now. .00001 MF🤑 and up to 60% residuals for 36 months. Combined with some pretty heavy discounts because the 2020 models are out now. It looks like you might be able to get into a $75k car for about $600 a month with absolutely nothing down.
Thanks but what I don’t understand is why the lease is calculated in a way that the interest is applied to the whole principal and you pay for it every month making it much more expensive than a loan when the interest is payed only on the part that is left on each month. Let’s say a car costs 27,000, the residual value is 16,000, the APR for the lease is 6% and you lease it for 36 months. My first impression was that it’s the same as taking an 11,000 loan for 36 months with APR 6%. But if you take two calculators and go through these numbers, the loan monthly payment will be 334.64 and total interest is 1,047.04. Whereas if you lease it, the monthly payment is gonna be 413.06 and total interest is 3,870… The cost of leasing is 3 times more expensive 🤯I understand, that’s the whole point to make things so complicated that they could get more money from you but still, so frustrating
oh surprised we need to pay interest on selling price plus residue... this is very very weird... anyone knows what is the rationale behind that?
Ari, I understand most of your explanation. However, I didn't hear how "2400" is derived at in figuring out the money factor in the equation. Where does it come from? Why that number?
It's made confusing on purpose so they can maximize profits with buyers who don't know better.
Thank you so much. (Cap cost+residual) X MF.. this is the exact part i was confused about. Bmw kept saying MF is 0.00066. then i kept getting almost double as i thought it went only for the depreciation. But after this now the calculation added up good. Thank you so much
I believe Dave Ramsey said it best, leasing is the most expensive way to finance a car. Unless there is a bunch of lease cash offered by the manufacturer.
Amazing content Ari. Your insight in leasing a car is totally on point. 👍
Thank you :))
@@negotiationguides Do you know someone in your network who does lease brokering in Toronto Area? Any reference that you can provide? Thanks Ari.
Is there a way to get the MF at any point in time. Let’s say I call 2 different dealer ships and ask for the MF on the same model car and trim. Am I likely to get the same answer? And how to I know I’m getting the best rate possible?
Sorry for all the questions , just interested in how brokers get their residuals and MF on vehicles as I know it varies from location to location as well
Christian, the best way to find out is to make sure you shop around the deal a few different places. Edmunds does a good job of giving the information out on their forums as well
could u please do a follow up video with sample numbers, its kinda of hard to quantify all this jargon? thanks 😅
Why does the money factor matter so much when you are agreeing upon a monthly lease amount .. either it’s around 1% or it’s not.. why should you dive further?
So with that being said, would you actually not want the car to have a high residual value in order to get a lower monthly interest payment?
1:30 Ari why is it $2400? Where does this figure come from that it is $2400?
Can you do a video about the 2019 scatpack challenger widebody lease?
King 707 they know you will abuse the car
Can the starting price (MSRP) be negotiated?
Hey ari I’m in the market to buy a 2020 4 runner off rd premium with a market value of $44,702. Selling price $42,225 Called dealer with a estimate on leasing if I put down 13k as a down payment and this I what came out of it :
36 months:10,000 miles $128.34 per month residual $29,503
Any thoughts on this ??
ARI!!! You didn’t answer the most important question, CAN A CUSTOMER NEGOTIATE THE MONEY FACTOR with dealership??? Acura has it at .00215 which is about 5.16% 🙀 on leases.
Caroline, the customer can if the money factor has been marked up. Acura dealers can’t mark up the money factor. Typically luxury brands like BMW and Mercedes etc have the ability to do so.
Acura is giving a very high rebate amount to offset the interest charges on the lease.
Ari Janessian the RDX has only $2525 incentives. I leased my 2017 RDX for $354 a month sign & drive. They said I will not get even close to that payment on 2020 RDX, bastards!
Is the mf based of ur credit and tier approval or what the dealer wants to set
Ari, I went into a Mercedes dealership in LA today, and I got quoted 490 something with 4500 down and 770 credit... what do you think
Ok, can I call you tomorrow morning? Btw it was on a Mercedes c300 with a 51k sticker price
It’s no problem. It sound smoking hot though...
$4,500 down is a little bit much to put down, but in the calculator it equates to about 11% off MSRP.
Ari Janessian text me so I can remember to call you tomorrow
I leased a 2018 Acura MDX last fall. I pay $459 per month. $500 down. Did I get robbed?
If it was the Base, it sounds like you got a pretty good deal!
My research states that you should never put down a downpayment on lease because if you total the car, you lose that money. Plus the downpayment, on average, only reduces your monthly by $10.
Ari , what do you think lease a ram warlock v6 for 319 zero down 10000?l milles 42 months?
Do you think is better to lease 2019 Jeep Grand Cherokee trackawk or buy
Definitely buy! And used...
I’m looking to get into a c300 lease within the next few months, any way you could possibly do a video to help get the best deal possible on a lease from like May-June of this year is
Absolutely. Please remind me after I post in the community section for vehicle requests.
I got a 2019 Mazda CX-5 Grand Touring AWD with 0 down for 319/Mo after paying first month taxes and fees. Did I get robbed?
that sounds pretty good! no worries :)
Ari Janessian thank you!
I asked a dealership for a price on a grand touring reserve cx-5 and they told me with 0 down it was 588 a month for 39 months for a 12000 mile lease. I laughed and moved on.....
JayDuke was looking at a grand touring reserve cx5 after helping my coworker get a grand touring for him. He got his for 550 no down finance . When i asked about the grand touring reserve because i want the turbo engine. It cost $6.5k more. I will wait for these turbos to be standard in a few years rather than an expensive option
Hey Ari, quick question. A dealer told me they use “base money factor” for their lease on a vehicle I’m interested in. Is that the same as saying they use the “buy rate money factor”? Thanks!
Well done! My favorite part of your videos, aside from the great information, is when you bury the "please consider subscribing" in the middle of the videos. It's awesome! Keep them coming! Mind doing a BMW X3 M40i?
LOL.. yes!!! the X3 is definitely on my to do list for sure
I leased my 2018 Lexus RC-F last year in Canada. $5000 CAD down payment, and my monthly payment is around $927 CAD for 39 months. My interest rate for the lease is 0.2% (my dad works for Lexus/Toyota financial services). My dealer has a 1 year return/buyback pokicy, what do you think? is this a good deal?
Would like to have a lease review video on a Cherokee Trailhawk if possible. Explaining the money factor was extremely helpful, thank you.
Thank you very much Neil! Yes, I will definitely do it
I just try to get a lease on a lexus they said $4k down smh im gonna try to see Volvo im trying to stay on the $400 mark. You think a Volvo XC40 is possible?
Possible around $450 i think... the rates aren't attractive...
to the point, thanks for the info. sub/liked
Thanks for the awesome video. Very informative on "what" goes on with price. Do you know "why" the APR is divided by 2400 to get mf? What's special about 2400? Also, do you know "why" dealers add residual value and net cap cost to calculate interest payments? Is it because they can or is there some financially sound reason on their end?
Could you do a video about buying a car at lease end? I’m sure that in the long run you would pay more, but how much more? As a suggestion, maybe use the lexus NX as an example.
Absolutely! great video idea!
Hey Ari can you do a video about purchase/lease on Jeep Grand Cherokee SRT? I think it doesn't have good residual value but I still hear many people leasing them. Wonder if Chrysler has lease rebate or something like that on this car?
Yes Kyle.. I may have you ask me again via a list I'm going to have going on the Community tab. Keep your eyes peeled for it.
Hey Ari, great video. Who will determine the APR for my lease? Can I get this before I go in to the dealership?
I like your idea about this
Hey Ari when are you doing a video on the new BMW 3 series!?
LOL when the numbers aren't so hideous!!! I did one a month back on it, have you seen it?
@@negotiationguides lol I just did! Your right hideous numbers. Keeping my options open. Thanks.
Why $2400?
Ari, would you help me with a lease?
Video on jaguar XE S AWD
Interesting video. Some written examples of lease vs financing might make your points more effective. Still, very interesting.
I lease a 2019 Toyota Highlander XLE with a monthly payment of $429.00 for 36 months with only first months payment. Ari based on this you think I got a good deal. Thank You
Sounds really good Jose!!!! Especially just first payment DAS.
Ari can I email u a copy of my lease contract? I don’t know what the money factor is but I think I got a fair deal
Hi, is this a good deal for an Audi Q3 2019
MSRP: $44,900
Discount: $2,700 plus Audi Care
$0 down
$619 for 42 months
Residual is around $24,440
Money factor: .00132
Thanks in advance sir.
No! Do not lease anything over 39months. They’re dragging out your payments in order to make it look more attractive and $619 shouldn’t be appealing for a Q3....
I guess I'm not leasing. I'll just buy an older, yet reliable car and pay cash. No need to give the banks and dealers more money.
I'm a new subscriber(about a week) I love your channel.I have never leased a car and been thinking about going this direction,on a scatpack charger.
Frankie welcome :)) .. I gave a quick tidbit on the Charger a few weeks back on a Hellcat video. Did you catch that one yet?
Yes I did,I watched it 4 times LMAO, I hope to see something specifically with the scatpack charger ,with a $46k msrp, Lol,that's about what the particular car I want msrps at after options.I dont think they are leasing all that great tho.Now u were on point with the Hellcats,with patients ,and a dealer looking to get rid of one ,they are obtainable for about $500 10,000 mile 3yr/30k miles with about 3700-$4k down .
Clear as mud
The fact that u pay money for The satisfaction of driving a car u can’t keep is.....stupid
All this video did for me was to confuse even more! Sorry.......
Блестящий’
If you don’t stop moving your hands, I am going scream!!!
LOL
Sounds like a lot of fuckery
I just got a 2021 Acura ILX A-spec for $2500 down $349 a month. Did I get robbed?
😨u got robbed my guy