- Dec 4, 2019
- Reaction score
- 2021 Mustang Mach-E Premium 4X, 2020 Explorer ST
Because when subsidized retail APR programs are announced the dealer can’t mark them up. If you see an ad on TV or online for 0% for 72 months then you would not sign a contract at 3%. Standard rates on the other hand are not made public so the dealers can mark them up.Why is it that the lease buy rates are somewhat secretive while the finance buy rates are openly published...the dealer can mark up either rate.
Lease customers tend to care more about the monthly payment than the money factors. This gives dealers a chance to cut the sales price of the vehicle and make up the difference by marking up the rate, all the while the customer see’s the same monthly payment. Only savvy customers think about converting money factors to an APR to help make comparisons. How many lease customers ask to see the lease worksheet and study the money factors? Just me?
Within the dealership it can be an internal game between the sales team and the finance manager. This is why when negotiating for a new car your salesperson will ask what monthly payment you are looking for. Then they figure out how much they can mark up the vehicle price and mark up the rates to get you that payment. Savvy customers will negotiate the vehicle price and financing separately. Get the best vehicle sales price first, then talk about rates/payments.