Lease Review Reveals Marked-Up Money Factor
The Situation
A client came to us with a lease offer from a North Shore dealership. The monthly payment looked reasonable, but they wanted a second opinion before signing.
What We Found
The money factor presented by the dealer was marked up significantly above the manufacturer's published buy rate — the equivalent of approximately 2.4% in additional APR. The capitalized cost also included a $495 "acquisition processing fee" that was not a manufacturer charge.
The Outcome
After our review, the client returned to the dealer with specific data. The money factor was corrected to the buy rate and the processing fee was removed. The result was a materially lower monthly payment over the 36-month term.
Details anonymized. Outcome reflects the specific transaction reviewed.
