“APR” ANNUAL PERCENTAGE RATE IS THE INTEREST RATE ON A FINANCE LOAN
MONEY FACTOR IS THE INTEREST RATE ON A LEASE
DEALERS CAN LEGALLY MARK-UP THE A.P.R. OR MONEY FACTOR WHICH INCREASES THE INTEREST TO YOU AND RAISES THE PROFIT FOR THEM.
Car Dealerships can legally mark-up the A.P.R. to their customer because dealers are licensed brokers for the banks and leasing companies.
The dealership buys the money from the bank or leasing at what is called the “BUY RATE”.
That is if the bank or leasing company is selling the money to the car dealership for 2.4% APR and they want to mark it up they can add up to 300 basis points or a FULL 3% APR and create a very large profit for themselves.
The “BUY RATE” of 2.4% + 3.0% Mark-Up = 5.4% APR. Exactly 3% over the “buy rate”.
If the vehicle is a $50,000 vehicle and the Lease is 3 years, then the additional interest charge would be approximately $3,600 or about $100 extra per month WHICH IS PURE PROFIT, AND GOES DIRECTLY TO THE CAR DEALERSHIP…..
The extra $100 a month is paid directly to the dealership UPFRONT from the bank or leasing company in the form of a check for approximately $3,600.00
This is called a “FINANCE RESERVE OR LEASE RESERVE”
Do you understand everything we have been talking about in the above paragraph?
If you do NOT understand everything, and I mean everything,
YOU NEED A PROFESSIONAL AUTOMOBILE SALES MANAGER TO REPRESENT YOU AND YOUR BEST INTERESTS
IN NEGOTIATING A NEW CAR LEASE WITH A CAR DEALER. IT IS CHEAPER THAN YOU MIGHT THINK.
There are many more ways of increasing the profit on a FINANCE deal then you can imagine.
Double Charging Fees is very common place in the car business. It is done so eloquently that you will never know it happened. The only way to know for sure is to understand the capitalized cost of the vehicle and match it up with the selling price.
If you do not understand EACH DOLLAR AMOUNT on the Lease contract you will NEVER BE ABLE TO KNOW!
This is exactly why the Consumer is overcharged when buying or leasing a new or used vehicle.
The Consumer does not understand the contract BUT SIGNS IT ANYWAY, NOT A SMART MOVE!
You need a professional automobile sales manager with 33 years experience, protecting your interests, to read and understand every dollar amount on the contract. I will explain to you each number on the contract. You will absolutely know exactly what you are paying to buy or lease the automobile.
FULL DISCLOSURE of the Lease or Finance Contract by YOUR VERY OWN PROFESSIONAL NEGOTIATOR who explains everything to you in great detail.
TRUST ME WHEN I SAY:
“WHEN DEALING WITH AUTOMOBILE DEALERSHIPS AND NEGOTIATING NEW VEHICLES, FINANCE OR LEASE, WHAT YOU DO NOT KNOW DOES COST YOU MONEY, THOUSANDS OF DOLLARS!