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Today's topic:
MRM: Maximum Residualized MSRP
 

What is MRM?
Nowadays, there are many lenders that use MRM for new car leasing. MRM (Maximum Residualized MSRP) is the maximum MSRP that can be used to calculate the residual.

If the customer spends more than the MRM, they will pay 100% of the additional MSRP over the course of the lease. This can make additional options very expensive.

Example
Let’s look at this example for a vehicle with a MRM of $26,800. A dealer enters $29,000 as the Total MSRP in mDesking and desks a deal.

Scenario A – no MRM The entered MSRP would be shown as the Original MSRP on the Program Information Sheet. If the lender does not use MRM, the MSRP would also be used in the Adjusted MSRP field. The Adjusted MSRP is used to calculate your residual value $15,370 (53% * $29,000).
 
 
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Scenario B – with MRM The MRM value is lower than the MSRP so the MRM would be listed in the Adjusted MRM field. MSRP Adjustments (the red box) will show the reduction. The Adjusted MSRP is used to calculate your residual value $14,204 (53% * $26,800). It makes a difference to have the MRM in place.
   
 
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  More Questions?

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  Market Scan Information Systems
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