percent, and gotten a kickback on the finance fees. This profit is called“reserve” and can double their real dealer profit.
This is an acceptable legal practice, and most homeowners are familiarwith it from mortgages, though with them you usually know how many
“points” the mortgage company is making on the deal.
TIP: To figure out the rate, get a reverse lease calculator.This used to require an HP financial calculator, but now there are somegreat reverse loan and lease calculation programs online and in apps for (^)
smart phones that will help you figure out what lease rate the dealer isusing. I use iLeaseCarPro on my iPhone almost every day; it is almost (^)
always within a dollar of what a dealer’s computer comes up with for alease payment. It, or a similar program, is well worth the minimal cost.
similar profit mark-up on the vehicle’s capital cost—just like a car loan.TIP: A mark-up in rate may affect the payment less than a^
The other item dealers can mark up is the lease acquisition fee, which is atransaction fee that is paid to the lender, and that all leases have. They run (^)