what Toyota has to do to sell Camry's
these are comparative lease rates. we lease about 25% of the cars we sell. some East Coast markets do 60% leasing (salt on roads, lower annual mileage used) basically; you multiply the money factor by 2.4 to get an equivalent interest rate. there are other factors involved so it's not 100% that simple. there are lease acquisition fees, on Honda the GAP insurance is included, you have to pay extra for that on the Camry, and lease end disposition fees are different. but the rate is a big deal and make about a $75 per month difference on the same trim level cheaper for the Camry.
.00006 x 2.4 = .00014----.014% is the rate......essentially zero interest......for a fresh new model. a joke.
the Accord has a .00136 money factor.....x 2.4 = 3.26%.......a few basis points over prime. decent deal for a car that stands on it's own as a value. obviously also a higher residual.
Accords sell about equal retail volume to Camry if you take away the fleet rental car sales of Camry. due to much lower residuals, not many of those other brands are leased. payments mostly not competitive as well as the whole value proposition. this is why many manufacturers are abandoning the car market in favor of sport utilities. the bar is set very high by Honda on value, and Toyota on the deal......in a shrinking segment.
you do get what you pay for.
these are comparative lease rates. we lease about 25% of the cars we sell. some East Coast markets do 60% leasing (salt on roads, lower annual mileage used) basically; you multiply the money factor by 2.4 to get an equivalent interest rate. there are other factors involved so it's not 100% that simple. there are lease acquisition fees, on Honda the GAP insurance is included, you have to pay extra for that on the Camry, and lease end disposition fees are different. but the rate is a big deal and make about a $75 per month difference on the same trim level cheaper for the Camry.
.00006 x 2.4 = .00014----.014% is the rate......essentially zero interest......for a fresh new model. a joke.
the Accord has a .00136 money factor.....x 2.4 = 3.26%.......a few basis points over prime. decent deal for a car that stands on it's own as a value. obviously also a higher residual.
Accords sell about equal retail volume to Camry if you take away the fleet rental car sales of Camry. due to much lower residuals, not many of those other brands are leased. payments mostly not competitive as well as the whole value proposition. this is why many manufacturers are abandoning the car market in favor of sport utilities. the bar is set very high by Honda on value, and Toyota on the deal......in a shrinking segment.
you do get what you pay for.
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