cpayne

What does that mean to the dealer when he "leases" a car at that rate? Does he not make any money on the lease then? As my dealer is quoting me .00370...on a 2001 S4 HELP

Mark Collett

I think that translates into a 8.16% interest rate. As for the dealer not making money off of a lease, they always make money when you go through them for the financial side of things. They get some type of a 'kickback' from the institutions they go through. Try elsewhere, I've usually found the dealer is higher then other places (imagine that). Although ~8% doesn't sound too bad, my loan is 7.75% through a credit union.

Mark Collett

RKA

See Edmunds.com for a breakdown of how a lease is calculated.

Basically, the lease is still based on a purchase price for the vehicle. I believe the dealer can still make money if the purchase price is higher...as well as manipulating the interest rate (or money factor). From the money factor numbers you have posted, the dealer is charging you almost a half a percent more on the higher money factor.

There isn't enough information in your post to determine what's going on, but if you use edmunds, you'll be able to get a handle on this.

I used my credit union (instead of AFS) because they were able to give me 6.75%, and I negotiated with a dealer for $900 over invoice on the price of the car.