What's Up With the APR/Money Factor?

[adamsocb]

I just got a lease quote on a loaded Premier (MSRP $43,905). Everything matched with what has been posted here (pricing, CCR, and residual) but the APR is at 2.73% instead of 1.2%. It's not my credit, I am top tier.

Is the 1.2% APR/ 0.0005 MF published by GM a myth?

I am checking other dealers to see what gives.

 

[wwhitney]

I just got a lease quote on a loaded Premier (MSRP $43,905). Everything matched with what has been posted here (pricing, CCR, and residual) but the APR is at 2.73% instead of 1.2%. It's not my credit, I am top tier.

Dealer markup?

Is the 1.2% APR/ 0.0005 MF published by GM a myth?

FWIW, the imputed money factor on the lease deals on chevrolet.com (Build and Price, then Adjust Payments) is 0.00073, or 1.75% APR.

Cheers, Wayne

 

[adamsocb]

Dealer markup?

Hmmm, that's what I am starting to think. I thought the rent payment calculated from the money factor all went to the bank (ally), apparently the dealer can get some of it back if they mark up the rate?

 

[wwhitney]

Hmmm, that's what I am starting to think. I thought the rent payment calculated from the money factor all went to the bank (ally), apparently the dealer can get some of it back if they mark up the rate?

Yes, absolutely. The dealer gets a rate from the financing company, and has the option to quote a higher rate to you. If you accept, the dealer pockets the difference.

Cheers, Wayne

 

[adamsocb]

Hmmm, that's what I am starting to think. I thought the rent payment calculated from the money factor all went to the bank (ally), apparently the dealer can get some of it back if they mark up the rate?

Yes, absolutely. The dealer gets a rate from the financing company, and has the option to quote a higher rate to you. If you accept, the dealer pockets the difference.

Cheers, Wayne

Yep, I found it. The GMF Dealer Workbook says dealer can markup APR up to 2.4% It also still says the CA and OR APR is 1.2% for the Bolt thru 1/31/17. I guess I just need to find a dealer willing to make the right deal.

 

[JupiterMoon]

I just got a lease quote on a loaded Premier (MSRP $43,905). Everything matched with what has been posted here (pricing, CCR, and residual) but the APR is at 2.73% instead of 1.2%. It's not my credit, I am top tier.

Is the 1.2% APR/ 0.0005 MF published by GM a myth?

I am checking other dealers to see what gives.

Walk away unless they give you the MF you want. Period. You're not desperate for a car are you?

 

[adamsocb]

Walk away unless they give you the MF you want. Period. You're not desperate for a car are you?

That was the first quote i got and I did walk away from it. I got the wholesale MF when I found the right dealer. :mrgreen:

 

[stevewa]

I just got a lease quote on a loaded Premier (MSRP $43,905). Everything matched with what has been posted here (pricing, CCR, and residual) but the APR is at 2.73% instead of 1.2%. It's not my credit, I am top tier.

Dealer markup?

Is the 1.2% APR/ 0.0005 MF published by GM a myth?

FWIW, the imputed money factor on the lease deals on chevrolet.com (Build and Price, then Adjust Payments) is 0.00073, or 1.75% APR.

Cheers, Wayne

Agreed we got 0.00072 on a LT.

 

[wq2345]

Walk away unless they give you the MF you want. Period. You're not desperate for a car are you?

That was the first quote i got and I did walk away from it. I got the wholesale MF when I found the right dealer. :mrgreen:

Thanks for starting this thread and posting your experience.

Question - what dealer gave the wholesale money factor? 1.2% APR (.0005)?

I'm in the market for essentially the same thing and I'm also getting the higher MF's from dealerships recommended here (Rydell, etc).

Thanks.

 

[sgt1372]

I just got a lease quote on a loaded Premier (MSRP $43,905). Everything matched with what has been posted here (pricing, CCR, and residual) but the APR is at 2.73% instead of 1.2%. It's not my credit, I am top tier.

Dealer markup?

Is the 1.2% APR/ 0.0005 MF published by GM a myth?

FWIW, the imputed money factor on the lease deals on chevrolet.com (Build and Price, then Adjust Payments) is 0.00073, or 1.75% APR.

Cheers, Wayne

Agreed we got 0.00072 on a LT.

I got an LT on 2/4/17 w/a 0.00072 money factor which equals 1.728% according to the following calculator:

http://sharplease.com/MoneyFactor

If the dealer is making money on the 0.00022 differential over 0.00050 (or 0.528%), so be it. I got a good deal anyway and the dealership is entitled to make a reasonable profit anyway it can.