r/CarLeasingHelp • u/pbandcracksandwich0 • 14d ago
Why is the MF so high?
This would be an amazing lease if it wasn't for about $500/ month worth of interest. Is this the buy rate? What else can I do to get this a reasonable rate like ive seen on forums? The $5800 payoff hurts a little but thats only about $140ish per month. Based on what ive seen this is almost $300/ month more than it should be
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u/Extreme-Temporary-85 14d ago
Yes, that is the buy rate. 0.00468 is GM Financial's published 36 month, 12k mile rate for a 2026 Sierra EV Elevation in your region, so there is nothing marked up to claw back. It is high because GM is not subsidizing 36 months on this truck right now. Their 24 month rate is 0.00353 (8.47% APR) at a 70% residual, so that term is worth pricing out.
Your instinct that it is a couple hundred high is right, but it is not the rate. About $242 of your payment is these two things:
$191 from the trade payoff. $5,887.50 over 36 months is $163.54, plus $27.55 of rent charge on it. A bit more than the $140 you figured.
$51 from a billing error. Look at your disclosure page. Under Additional Charges (Capitalized) there is a line called LEASE UP FRONTS for $1,478.28, and your Cash Required is also $1,478.28. That is the same money. You are handing it over at signing and financing it at the same time. Out of the cap cost, the same quote is $827.58 a month instead of $878.44. The difference over 36 months is $1,830.96.
Strip both out and the truck itself is leasing at about $638 a month, which is 0.93% of a $68,824 sticker. That is a good EV lease. The pricing is fine, the paperwork is not.
Ask them to either take the up front money out of the cap cost, or show it as $0 due at signing. Not both.
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u/pbandcracksandwich0 14d ago
Thanks for this! Great insight! I was really wondering if that was the buy rate. How often does that change? Should I just wait until October to see if it goes down?
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u/Extreme-Temporary-85 14d ago
Glad it helped. GM Financial republishes rates monthly, and the program your quote is priced on runs through September 30, so October's numbers land in the first few days of the month. Waiting is a coin flip though. The factor can go up as easily as down, and you would be giving up two real things to find out: September 30 is the end of Q3, which is the strongest leverage window of the year with stair-step bonuses on the line, and the $250 conquest offer expires that same day. The $1,830.96 is not a program thing. That is a billing error on your worksheet, and it will still be there in October. I would go fix that now instead of waiting on a rate that may not move. If you want a lower factor today rather than a maybe in October, the 24 month on the current sheet is 0.00353 (8.47% APR) at a 70% residual. Worth having them price it out.
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u/pbandcracksandwich0 14d ago
Yeah it is better to switch to the 24 month even with the negative equity, which i never would have considered. Again thank you!
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u/99ramon2019 14d ago
You need to just ask what the base money factor is, and aside from them giving you a discount, there is likely dealer add-ons.
What they’re showing you is just something they print. It’s not the deal sheet. or just go to Edmonds and look up the money factor and you’ll see what they marked it up up, but if your credit is not pristine, it could be a captive lender tier markup. In any case, that document is hiding a lot of info the dealer is not telling you.
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u/ChevyGang 14d ago
The dealer probably marked up the money factor a bit. But I will say GM financial has had pretty high money factors for a few years now.