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LEASE VS PURCHASE


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29 replies to this topic

#26 MarvBear

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Posted 05 May 2004 - 07:47 PM

Does a dealer receive any "hidden" incentive from selling a captive lease over a cash sale? I get the feeling the dealer would prefer I lease instead of purchase. In other words, disregarding the "end of lease" transaction, does leasing offer a financial advantage to the dealer?



Nope, there are no hidden incentives. Depending on the leasing company you may not be able to get your payoff except thru the dealer though.

Dealer can/do mark lease payoff's up.



#27 BnkRptLsr

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Posted 03 June 2004 - 08:49 PM

Marv,

In general, what approximately would be an average 'Money Factor'? for someone with poor, fair, and good credit?

an example for a purchase interest rates would be approximately: 2.9% is good, 9.9% is fair, and 19% is poor.


Also, are there leasing companies that will lease you a car regardless of the make/model? for example, if I lease a honda, am I required to lease it through honda?


Thanks, the primer really helps

#28 MarvBear

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Posted 03 June 2004 - 08:53 PM

Marv,

In general, what approximately would be an average 'Money Factor'? for someone with poor, fair, and good credit?

an example for a purchase interest rates would be approximately: 2.9% is good, 9.9% is fair, and 19% is poor.


Also, are there leasing companies that will lease you a car regardless of the make/model? for example, if I lease a honda, am I required to lease it through honda?


Thanks, the primer really helps


There is no average money factor. I have seen rates as low as .00010 and as high as .000650 dependendent upon the particular vehicle make model and leasing company.

There are many companies that will lease any make model. You can even lease used vehicles.

#29 BnkRptLsr

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Posted 03 June 2004 - 08:54 PM

What then determines the money factor?

am I misunderstanding what the money factor is? I'm thinking that it is similar to the interest rate on a purchase...

#30 MarvBear

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Posted 03 June 2004 - 09:03 PM

What then determines the money factor?

am I misunderstanding what the money factor is? I'm thinking that it is similar to the interest rate on a purchase...


The money factor is determined by creditworthiness, vehicle make, model, lender, term, and dealer, just like the apr may also vary by these factors.




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