topic Re: I just got royally hosed by a dealer and their money factor. I am an idiot. Help. in Auto Loans

Chrysler Capital Money Factor Tier 1 credit

drewgoldsby2019 — Wed, 26 Apr 2023 03:35:58 GMT

So, I leased a Jeep at a dealership 4 weeks ago and they did not inform me of mandatory add on's for my 2022 Jeep Grand Cherokee 4xe. I was already at the dealership for over two hours with my wife and 1 year old, so signed off and then cancelled the add on's. I found another dealership who told me there would be no add ons and they would take my vehicle with a similar payment. They prepared paperwork in advance, ran my credit which was 4 points higher than a month ago at 721, and away we went. I asked for the money factor and dealer stated 2.47, so i figured he meant APR. Well, after leaving, I realized the rent charge was $8300 compared to my prior lease at $2300!!!! Money factor was .00247 or 5.93% APR. Someone talk me off the ledge. How does Chrysler Capital increase their tier 1 APR so much month over month?

Re: I just got royally hosed by a dealer and their money factor. I am an idiot. Help.

Dadof31978 — Tue, 25 Apr 2023 17:46:38 GMT

it's truly not that bad...here's why...they gave you the $75000 tax credit they got minus the acquisition fee..just go ahead and buy the car out now..refinance it at a lower rate, make the same payment you agreed to and in 36 months you'll probably in better shape.

Re: I just got royally hosed by a dealer and their money factor. I am an idiot. Help.

Horseshoez — Tue, 25 Apr 2023 18:54:32 GMT

@drewgoldsby2019 wrote:
I told the dealer I was happy to find an honest dealership, and low and behold, learned my lesson that no dealership is honest.

I see such words posted all over the internet, but while there are certainly plenty of shady dealerships out there, it is also certainly true there are plenty of solid/ethical dealerships out there. When I shop for cars I do just that, shop; it doesn't take too long to figure out which dealerships are honest and which ones are not.

Re: I just got royally hosed by a dealer and their money factor. I am an idiot. Help.

drewgoldsby2019 — Tue, 25 Apr 2023 21:03:33 GMT

True I guess, except a month ago on the same exact cost my Rent charge was only $3000... higher credit score now and $5000 increase in Rent charge seems insane.

Re: I just got royally hosed by a dealer and their money factor. I am an idiot. Help.

Beefy1212 — Tue, 25 Apr 2023 21:48:43 GMT

@Horseshoez wrote:
@drewgoldsby2019 wrote:
I told the dealer I was happy to find an honest dealership, and low and behold, learned my lesson that no dealership is honest.
I see such words posted all over the internet, but while there are certainly plenty of shady dealerships out there, it is also certainly true there are plenty of solid/ethical dealerships out there. When I shop for cars I do just that, shop; it doesn't take too long to figure out which dealerships are honest and which ones are not.

That has been my experience as well, my last purchase was in 2021, went to a dealer that had the truck I was looking for first thing they did was try to up the price by 6k over the internet listed price, then wanted to add 7k worth of warranties to make a 40.9k truck 58k out the door, 3 hours later and an order to micky D's on Ubereats later walked.

I had every manager in the dealership trying to push these add-ones on me I'd had enough and walked the manager of the maintenance department mocked me asking what are you going to save 1-2k? I told her yes in fact I will, why are you going to take 1-2k off? She seemed offended... well I didn't save 1-2k I bought the same truck same trim same year half the miles on the other side of the county for 42k out of the door turns out I saved 15k.

Never let these dealers control the conversation and if they are adamant you get something you don't want it will never be in your favor to stick around with pushy sales people. Walk away and find a dealer that wants to sell you a vehicle, and not gouge you for whatever they can.

Demand they explain each fee and charge and if you don't want something tell them no one time and then walk.

Also I don't buy a vehicle with the check fuel light on. If I buy a 40-60k vehicle from you, you can put 100 bucks in the tank.

Re: I just got royally hosed by a dealer and their money factor. I am an idiot. Help.

drewgoldsby2019 — Tue, 25 Apr 2023 22:13:24 GMT

So the dealer told me that tier 1 through Chrysler Capital this month jumped to .00247 money factor or 5.93%. I now have my answer. If anyone knows different please respond.

Re: Chrysler Capital Money Factor Tier 1 credit

fury1995 — Wed, 26 Apr 2023 14:37:52 GMT

@drewgoldsby2019 wrote:
So the dealer told me that tier 1 through Chrysler Capital this month jumped to .00247 money factor or 5.93%. I now have my answer. If anyone knows different please respond.

@drewgoldsby2019 what is the EXACT trim level, number of months and annual mileage?

Also, what zip code for specific incentives? State is ok, if you prefer not to share.

Re: Chrysler Capital Money Factor Tier 1 credit

drewgoldsby2019 — Wed, 26 Apr 2023 14:57:45 GMT

@fury1995 It is the 2023 Base Model with the Luxury package... 10K miles per year, 36 months, and zip is 95409 Calilfornia

Re: Chrysler Capital Money Factor Tier 1 credit

fury1995 — Wed, 26 Apr 2023 15:37:09 GMT

@drewgoldsby2019 wrote:
@fury1995 It is the 2023 Base Model with the Luxury package... 10K miles per year, 36 months, and zip is 95409 Calilfornia

You orginal post said 2022, the reply was 2023. I've posted both below.

2022 GR Cherokee 4Xe Base 36M/10K
.00083 MF and 52% residual (1.99 APR)
$3000 incentive
$7500 PHEV incentive

2023 GR Cherokee 4Xe Base 36M/10K

.00205 and 56% (4.92 APR)
$5000 incentives
$7500 PHEV bonus

The difference in Money Factor is usually offset by residual/incentives when you go from one model year to the next.

The 2023 has a 4% higher residual (MSRP times 4%) and a higher incentive ($2,000) which provides a lower depreciation, which is contibutes the equal payment. Leases always work this way. You cannot have an equal residual between both model years (2022, 2023). A 2023 Grand Cherokee 4Xe must have a higher value exactly 3 years from now than a 2022 model. Stellantis has subvened the rate (MF) for the 2022, essentially bought down the rate to Chrysler Capital instead of using more consumer cash.

You are paying more in lease charges but not more overall for a vehicle that is one year newer during the same time period. It's about your OVERALL expense, how much you pay during the term. That's why no one usually negotiates the price, just the payment.

Re: Chrysler Capital Money Factor Tier 1 credit

drewgoldsby2019 — Wed, 26 Apr 2023 16:06:04 GMT

@fury1995 Thank you for the info- they used a money factor of .00247, so pretty close and I recieved $11,500 in incentives. This was very helpful for my next leasing experience!

Re: Chrysler Capital Money Factor Tier 1 credit

fury1995 — Wed, 26 Apr 2023 16:16:48 GMT

@drewgoldsby2019 You're very welcome. I just wanted to make sure you are informed. There is alot of information that gets flung around with less facts and too much emotion. It can ruin an what should be a milestone credit experience and... well, amke you feel not so good about a decision you've already made. As long you as you are happy with the end result, that's all that matters.

And as GI Joe once said