[lumberjim]

The term 'leg' ....or 'air' or 'fluff' refers to a deliberately overestimated monthly payment. when a customer knows enough to negotiate the interest rate, and knows the sale price, and even the amount financed, the salesman will occasionally tell them that their payment is $20-$50 more than it actually is. They do it because they can always come down, and if the customer says yes, it makes it much easier to sell ancillary items because the actual payment increase is hidden therin. It is actually illegal to do this intentionally, but very hard to prove that it wasn;t just a mistake in the quotation.

The service contract referenced above retails for $2495, so I actually discounted it to get to that price. If you meant 'profit'...then no, nowhere near that much profit. most service contract have 100% profit margin,IOW about half of the price = cost.