I'll admit it's been some time since I was concerned about lease rates. I 'm aware that many dealers and direct "bump" the rates. I have not asked to see current rates here on the forums for awhile, you know it's coming right, however I had some rates from a leasing company today and the rate factors really took me back. Back so far that I can never remember seeing rates like these and I guess I asking all of our members if these rates are the norm now or is what I have anomaly. Here goes.
FMV
2,500 -9,999
24 months .04145
36 months .02872
39 months .0267
48 months .02328
60 months .01931
FMV
10,000 - 199,999
24 months .04143
36 months .0287
39 months .02667
48 months .02221
60 months .01817
Should I even dare to show the dollar out rates!! Would like to hear from everyone else.
So, I need to continue my rant, as many of your know I'm in a major market area and we have pressure from every direct branch, many small dealers and a few mega dealers. Making decent GP has been much more difficult since the great recession and even existing accounts are stating "we like the price, the service, the support, however we need to get some additional quotes". It's not all the time however this is a scenario that is playing out more now than it did 5 years ago.
I have seen rates not from me that are "bumped" to sales people that are almost $2.00 for every thousand dollars that are leased. Take a $20K lease and that means the direct branch or the dealer is pocketing almost $40 x 60 months which equals almost $2,400 pay day when the deal is booked. Imagine if the direct branch or the dealer booked 300K per month with this type of "bump", the payday is more than $34K per month.
Thoughts....