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  #13  
Old 05-01-2013, 09:49 PM
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Re: All Chrysler Leasing Changed Today

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Originally Posted by ShaunML09 View Post
Any limited numbers?
If these numbers hold true to form (I've been watching the lease numbers for a while), the Limited's residual will be stronger by about 4% - so 56% for a 12k lease - but the interest rate will also be about 1% higher.

I'm kind of surprised that the residual is so low with a Chrysler backed lease. Having a flood of $24k 3 year-old Overlands on the market doesn't do a lot for those depreciation calculators and the "total cost of ownership" decisions. I would have thought that they'd like to reduce the depreciation on their cars.
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  #14  
Old 05-01-2013, 09:49 PM
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Re: All Chrysler Leasing Changed Today

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Originally Posted by ShaunML09 View Post
Any limited numbers?
Sorry, but only have them relative to my Overland.
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  #15  
Old 05-03-2013, 10:39 AM
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Re: All Chrysler Leasing Changed Today

Dealer is quoting 54% on a Limited (15K) with .00027 MF. Is this still current for May or are those April numbers?
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Old 05-03-2013, 10:50 AM
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Re: All Chrysler Leasing Changed Today

If I decided to lease a Jeep (I'm not) why wouldn't I just contact some dealers, tell them exactly what I want to lease, and ask how much a month for 3 years. Then just go with the lowest. I'm talking about a lease I will walk away from in 3 years.

I'm sure I'm missing something, but it seems like a lot of figuring going on to lease a car.



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Old 05-03-2013, 11:00 AM
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Re: All Chrysler Leasing Changed Today

Quote:
Originally Posted by bill_de View Post
If I decided to lease a Jeep (I'm not) why wouldn't I just contact some dealers, tell them exactly what I want to lease, and ask how much a month for 3 years. Then just go with the lowest. I'm talking about a lease I will walk away from in 3 years.

I'm sure I'm missing something, but it seems like a lot of figuring going on to lease a car.



,
Would you buy a house only knowing how much your mortgage will be? I know that most people will just walk away from a lease at the end of the term but that's not the only option available to you. You want to make sure that most of what you're paying is actually on the truck and not just on interest or other fees. So that when it's time to decide what to do, you can make a wise choice.
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  #18  
Old 05-03-2013, 11:01 AM
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Re: All Chrysler Leasing Changed Today

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Originally Posted by satori View Post
Dealer is quoting 54% on a Limited (15K) with .00027 MF. Is this still current for May or are those April numbers?
Those are April's numbers. They might be the same but I doubt it.
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  #19  
Old 05-03-2013, 11:08 AM
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Re: All Chrysler Leasing Changed Today

Quote:
Originally Posted by bill_de View Post
If I decided to lease a Jeep (I'm not) why wouldn't I just contact some dealers, tell them exactly what I want to lease, and ask how much a month for 3 years. Then just go with the lowest. I'm talking about a lease I will walk away from in 3 years.

I'm sure I'm missing something, but it seems like a lot of figuring going on to lease a car.



,
There are very few occasions when you would ever want to lease and just "walk away". You negotiate a lease just like a finance. With a sale price. The Money factor is the same as an interest rate, so you want to find the lowest one. The residual is set by the banks so that can't be changed. Once you find out the baseline residual and money factor, then you can start talking to dealers about price. If you ask the dealer for "how much a month", they can mark up your money factor (interest rate) and you would be paying a helluva lot more for the same car as someone who knows what they are doing, regardless of sale price.

Personally, i'm leasing with the numbers from april. I got a 0.23% interest rate (0.00009583333 money factor. The residual is 52%. So when I get close to the 3 year mark, I will look around and see what other 2014 Overlands are going for and can list mine for sale, or look to trade it in with positive equity. Leasing just gives you the peace of mind that if something goes totally wrong, and the car is a known lemon and nobody wants to buy it after three years and it isn't worth anywhere near the 52% of the original car.. then you can walk away and have a clean slate. When you buy it, you assume ALL of that responsibility.

Also, the taxes are spread out throughout the length of the lease, and you don't really want to put down a down payment. So it saves a LOT of money up front.

So, when contacting those dealers, the lowest might not actually be the lowest possible. But you won't know unless you know what the baseline values are. Sorry for the long explanation, but I feel like a lot of people look at leasing and "renting" as the same thing. When leasing a vehicle especially like this one can really work to your benefit.
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  #20  
Old 05-03-2013, 11:09 AM
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Re: All Chrysler Leasing Changed Today

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Originally Posted by torifile View Post
Would you buy a house only knowing how much your mortgage will be? I know that most people will just walk away from a lease at the end of the term but that's not the only option available to you. You want to make sure that most of what you're paying is actually on the truck and not just on interest or other fees. So that when it's time to decide what to do, you can make a wise choice.
Torifile beat me... I feel like you are the only other one on here who looks at leases the same as me.
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  #21  
Old 05-03-2013, 12:55 PM
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Re: All Chrysler Leasing Changed Today

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Originally Posted by torifile View Post
Would you buy a house only knowing how much your mortgage will be?
No, but I'm not asking about buying.
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  #22  
Old 05-03-2013, 12:59 PM
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Re: All Chrysler Leasing Changed Today

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Originally Posted by adthebadstud View Post
There are very few occasions when you would ever want to lease and just "walk away". You negotiate a lease just like a finance. With a sale price. The Money factor is the same as an interest rate, so you want to find the lowest one. The residual is set by the banks so that can't be changed. Once you find out the baseline residual and money factor, then you can start talking to dealers about price. If you ask the dealer for "how much a month", they can mark up your money factor (interest rate) and you would be paying a helluva lot more for the same car as someone who knows what they are doing, regardless of sale price.

Personally, i'm leasing with the numbers from april. I got a 0.23% interest rate (0.00009583333 money factor. The residual is 52%. So when I get close to the 3 year mark, I will look around and see what other 2014 Overlands are going for and can list mine for sale, or look to trade it in with positive equity. Leasing just gives you the peace of mind that if something goes totally wrong, and the car is a known lemon and nobody wants to buy it after three years and it isn't worth anywhere near the 52% of the original car.. then you can walk away and have a clean slate. When you buy it, you assume ALL of that responsibility.

Also, the taxes are spread out throughout the length of the lease, and you don't really want to put down a down payment. So it saves a LOT of money up front.

So, when contacting those dealers, the lowest might not actually be the lowest possible. But you won't know unless you know what the baseline values are. Sorry for the long explanation, but I feel like a lot of people look at leasing and "renting" as the same thing. When leasing a vehicle especially like this one can really work to your benefit.
Thanks, that makes a little more sense. When you talk about trading it with positive equity, don't you first have to buy the car from the lease company, since up to that point you don't own it?



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  #23  
Old 05-03-2013, 01:04 PM
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Re: All Chrysler Leasing Changed Today

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Originally Posted by bill_de View Post
No, but I'm not asking about buying.
And that's the thing here. A lease is more akin to buying than it is to renting. Consider it a long term tryout that allows you a chance to purchase at the end. Renting is different because there is no provision for purchase.

And when you consider how good a rate adthebadstud and I got on our leases, buying would have been dumb. But that wouldn't have been the case if we just said "I have $580/month to spend on a truck." We would have spent it, for sure, but we'd be the suckers.
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  #24  
Old 05-03-2013, 01:04 PM
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Re: All Chrysler Leasing Changed Today

Quote:
Originally Posted by bill_de View Post
Thanks, that makes a little more sense. When you talk about trading it with positive equity, don't you first have to buy the car from the lease company, since up to that point you don't own it?



---
Nope. They write a check for the amount, and you get the difference from the bank.
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