adamsocb
Posts: 29
Joined: Tue Nov 29, 2016 3:38 pm

What's Up With the APR/Money Factor?

Sun Jan 15, 2017 3:58 am

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.
EV's:
2011 Volt (turned in Feb 2014)
2014 Spark EV (Lease Up Feb 2017)
2017 Bolt EV Premier, all options
Gas Cars:
2014 Corvette Stingray
2013 Fiat 500 Abarth
2000 ASA Stock Car

wwhitney
Posts: 135
Joined: Thu Sep 01, 2016 4:05 pm

Re: What's Up With the APR/Money Factor?

Sun Jan 15, 2017 4:43 am

adamsocb wrote: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?

adamsocb wrote: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
Posts: 29
Joined: Tue Nov 29, 2016 3:38 pm

Re: What's Up With the APR/Money Factor?

Sun Jan 15, 2017 2:59 pm

wwhitney wrote: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?
EV's:
2011 Volt (turned in Feb 2014)
2014 Spark EV (Lease Up Feb 2017)
2017 Bolt EV Premier, all options
Gas Cars:
2014 Corvette Stingray
2013 Fiat 500 Abarth
2000 ASA Stock Car

wwhitney
Posts: 135
Joined: Thu Sep 01, 2016 4:05 pm

Re: What's Up With the APR/Money Factor?

Sun Jan 15, 2017 3:32 pm

adamsocb wrote: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
Posts: 29
Joined: Tue Nov 29, 2016 3:38 pm

Re: What's Up With the APR/Money Factor?

Mon Jan 16, 2017 12:01 am

wwhitney wrote:
adamsocb wrote: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.
EV's:
2011 Volt (turned in Feb 2014)
2014 Spark EV (Lease Up Feb 2017)
2017 Bolt EV Premier, all options
Gas Cars:
2014 Corvette Stingray
2013 Fiat 500 Abarth
2000 ASA Stock Car

JupiterMoon
Posts: 245
Joined: Mon Dec 12, 2016 2:16 am

Re: What's Up With the APR/Money Factor?

Fri Jan 27, 2017 8:32 pm

adamsocb wrote: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
Posts: 29
Joined: Tue Nov 29, 2016 3:38 pm

Re: What's Up With the APR/Money Factor?

Sat Jan 28, 2017 2:00 am

JupiterMoon wrote: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:
EV's:
2011 Volt (turned in Feb 2014)
2014 Spark EV (Lease Up Feb 2017)
2017 Bolt EV Premier, all options
Gas Cars:
2014 Corvette Stingray
2013 Fiat 500 Abarth
2000 ASA Stock Car

stevewa
Posts: 81
Joined: Thu Dec 15, 2016 9:01 pm

Re: What's Up With the APR/Money Factor?

Sun Jan 29, 2017 6:26 am

wwhitney wrote:
adamsocb wrote: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?

adamsocb wrote: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
Posts: 8
Joined: Thu Jan 07, 2016 8:07 pm

Re: What's Up With the APR/Money Factor?

Tue Jan 31, 2017 2:44 am

adamsocb wrote:
JupiterMoon wrote: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.
______________EV History_________
2008 Mini-E
2011 BMW Active-E
2011 Nissan Leaf SL
2013 Toyota RAV4EV
2014 Tesla Model S
2016 Kia Soul EV+
2017 Chevy Bolt Premier, Arctic Blue/Dark Gray, +Pkgs, DCFC

sgt1372
Posts: 533
Joined: Mon Feb 06, 2017 4:21 pm
Location: SF Bay Area

Re: What's Up With the APR/Money Factor?

Wed Feb 08, 2017 5:52 pm

stevewa wrote:
wwhitney wrote:
adamsocb wrote: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?

adamsocb wrote: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.
My vehicles:

2012 Mercedes ML350 4Matic
2008 BMW 335i
2002 Toyota MR2 Spyder
2002 Ford F250 7.3L 4x4 Longbed Turbodiesel
2000 Porsche 911 Carrera 4 Cabriolet

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