Does Money Factor matter for lease buyout?

[RJStinger]

Hello,

If I was planning on doing an immediate lease buyout, does the MF really matter other than slightly increasing what you pay for the first month's rent charge?

If you agree to a higher MF, the dealership may be willing to give you a greater discount on the MSRP. And if you are going to do an immediate payoff, wouldn't this be in your favor.

My thinking may be a little off here as i'm not fully understanding leases.

 

[mcmckuf]

I'm in the same boat. Planning to lease, then buyout and don't really see where this impacts the deal other than the week of time you are still with KMF before moving the loan to a credit union.

 

[Mach_Tuck]

If you can bargain a higher MF for a better discount (which reduces Adjusted Cap Cost) definitely jump on it. Do this ONLY if you intend to buy it out. Otherwise, the higher MF will take its toll over the long run.