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  #1  
Old 05-07-2015, 10:51 AM
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Asking for help on how to not get ripped off.

I am asking for this community's help on leasing a 2015 Jeep GC Overland (Base model Overland. MSRP around $44,000 not including any discounts).

Currently Jeep is showing on their website $3,500 down/$459 per month/12,000 miles per year.

I would love to hear your thoughts on what a fair lease would be as well as any tips for making sure the best deal is achieved.

If you have any general tips, please share. Id love for other people to be able to use the advice given for any model GC, not just the Overland

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  #2  
Old 05-07-2015, 11:28 AM
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Re: Asking for help on how to not get ripped off.

I found this website talking about lease terms and how to figure out if youre getting a good deal or not.

Quickly Figure Out if Your Lease Deal is Good

Utilizing their formula, the current jeep offer is $123 (read the article to understand what that means) which would be listed as a good deal by their standards. Not sure if anyone has seen that method of calculating before.
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Old 05-07-2015, 11:39 AM
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Re: Asking for help on how to not get ripped off.

May I ask why you are choosing to lease rather than buy?
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Old 05-07-2015, 11:47 AM
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Re: Asking for help on how to not get ripped off.

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Originally Posted by billt View Post
May I ask why you are choosing to lease rather than buy?
Im not one to hold on to a vehicle for a long period of time. Three years is even pushing it for me. Im aware that buying is normally the better option, however id rather pay a lower monthly amount on a vehicle I know I can get out of in two years than worry about depreciation and negative equity.
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Old 05-07-2015, 11:50 AM
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Re: Asking for help on how to not get ripped off.

Understood.
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Old 05-07-2015, 12:10 PM
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Re: Asking for help on how to not get ripped off.

I am currently leasing a 2014 Jeep Cherokee. I don't normally lease my vehicles as I tend to keep them 10 to 15 years but the Cherokee was a new model. I like it so much I intend to buy the lease out.

Anyway, you asked for lease tips. You never want to pay anything down on a lease. The reason being if the vehicle is totaled or stolen you will not get the down payment back. What you want is called a Sign and Drive lease where you put absolutely no money down up front. Secondly, 39 months is the sweet spot in a lease. Anything less than that or longer than that and you are going to pay more over the lifetime of the lease.
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Old 05-07-2015, 12:43 PM
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Re: Asking for help on how to not get ripped off.

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Originally Posted by protect1989 View Post
Im not one to hold on to a vehicle for a long period of time. Three years is even pushing it for me. Im aware that buying is normally the better option, however id rather pay a lower monthly amount on a vehicle I know I can get out of in two years than worry about depreciation and negative equity.
Sounds like all the reasons to NOT lease.

You buy it and you can get out of it any time you want.
By the numbers I see floating around appears Leasing is more costly per month.

The lease effectively assumes and tries to predict depreciation and YOU are paying for depreciation no matter how you slice it.

I got out of my "Purchase" after 18 months. If I leased, I would have been screwed.
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Old 05-07-2015, 01:04 PM
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Re: Asking for help on how to not get ripped off.

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Originally Posted by mswlogo View Post
Sounds like all the reasons to NOT lease.

You buy it and you can get out of it any time you want.
By the numbers I see floating around appears Leasing is more costly per month.

The lease effectively assumes and tries to predict depreciation and YOU are paying for depreciation no matter how you slice it.

I got out of my "Purchase" after 18 months. If I leased, I would have been screwed.

I can absolutely understand the argument on this. However, if I were to purchase this vehicle I would be paying a higher monthly rate. For a lease, youre paying for the years of the vehicle that you are going to be using it. Hence the lower monthly rates. Purchasing youre going to be paying for the MSRP (or whatever the final cost was). Regardless of how long you plan to keep it + the interest rate on the vehicle.

Im certainly not making the argument that leasing is a better option, but if you only want a vehicle for a couple years while maintaing low monthly payments, i think its a good route
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Old 05-07-2015, 01:19 PM
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Re: Asking for help on how to not get ripped off.

I currently have a 2012 WK2 lease which is ending soon. Also, I had a lease about 15 years ago, which was satisfactory as well. In between I was purchasing vehicles. I'm looking to lease again for reasons almost identical to your own. IMO you have to treat a lease like a purchase, agree on a fair price for the car, and let the payment method take care of itself.

A lease is not a "special" or even a different deal, it's just a financing option. Instead of buying and building equity, you are opting to pay depreciation - which you pay for in a purchase anyway. A lease lets you offset the purchase price, or walk away at the end. And you can get out of a lease any time, there's just what you owe, just like a purchase. A lease is more likely to leave you upside-down in the short term though because you aren't paying ahead, there's no equity cushion. Strange thing though after 3 years for me, I have $1000s of equity in my current lease, and apparently that's becoming more common these days. So I will have a decent down payment on my next purchase, and it's the purchase price that matters.

My car buying philosophy - of which there are no shortage of - but mine is that you don't talk monthly payments, you talk vehicle price. If you've done your research on prices, the monthly payment and terms will work out to what you find agreeable. But talking monthly makes it easier for a dealer to build in a bigger profit or even make the deal sound good by changing the terms (low payment, longer term, etc.). Even the most honest dealer wants to make as much money as possible. Everything I see right now is that below invoice is a fair deal on a new Grand Cherokee.

Like you, I hope to get an Overland this time. Trying not to get too attached to one car or model, I am looking at Limiteds as well, and if you're not stuck on anything, a dealer has less opportunity to stick you. But I'll be opting for a lease again. Maybe I'm wrong, but I only see upsides to leasing. If the buyout after 3 years is low, good for me, if high, sucks to be the leasing company, I walk away. Either way, I've paid towards what was agreed upon as the selling price of the vehicle, and the market in 3 years determines if I'm sitting pretty, or walking away, just like a purchase. You can get stuck with a purchase too when the market is against you. Purchases just provide a more flexible window, and bigger cushion (a cushion you paid for).

Again, 3 years or whenever in the future, the market is either in your favor or not, so it's best to get that initial purchase price as low as possible.
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Old 05-07-2015, 01:23 PM
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Thumbs up Re: Asking for help on how to not get ripped off.

Quote:
Originally Posted by JackBurton View Post
I currently have a 2012 WK2 lease which is ending soon. Also, I had a lease about 15 years ago, which was satisfactory as well. In between I was purchasing vehicles. I'm looking to lease again for reasons almost identical to your own. IMO you have to treat a lease like a purchase, agree on a fair price for the car, and let the payment method take care of itself.

A lease is not a "special" or even a different deal, it's just a financing option. Instead of buying and building equity, you are opting to pay depreciation - which you pay for in a purchase anyway. A lease lets you offset the purchase price, or walk away at the end. And you can get out of a lease any time, there's just what you owe, just like a purchase. A lease is more likely to leave you upside-down in the short term though because you aren't paying ahead, there's no equity cushion. Strange thing though after 3 years for me, I have $1000s of equity in my current lease, and apparently that's becoming more common these days. So I will have a decent down payment on my next purchase, and it's the purchase price that matters.

My car buying philosophy - of which there are no shortage of - but mine is that you don't talk monthly payments, you talk vehicle price. If you've done your research on prices, the monthly payment and terms will work out to what you find agreeable. But talking monthly makes it easier for a dealer to build in a bigger profit or even make the deal sound good by changing the terms (low payment, longer term, etc.). Even the most honest dealer wants to make as much money as possible. Everything I see right now is that below invoice is a fair deal on a new Grand Cherokee.

Like you, I hope to get an Overland this time. Trying not to get too attached to one car or model, I am looking at Limiteds as well, and if you're not stuck on anything, a dealer has less opportunity to stick you. But I'll be opting for a lease again. Maybe I'm wrong, but I only see upsides to leasing. If the buyout after 3 years is low, good for me, if high, sucks to be the leasing company, I walk away. Either way, I've paid towards what was agreed upon as the selling price of the vehicle, and the market in 3 years determines if I'm sitting pretty, or walking away, just like a purchase. You can get stuck with a purchase too when the market is against you. Purchases just provide a more flexible window, and bigger cushion (a cushion you paid for).

Again, 3 years or whenever in the future, the market is either in your favor or not, so it's best to get that initial purchase price as low as possible.
Beautifully worded. I couldnt agree more with what youre saying. Jeep GC tend to hold their value extremely well so Im sure there will be positive equity in the end.
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Old 05-07-2015, 01:38 PM
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Re: Asking for help on how to not get ripped off.

Thanks. I did want to add: below invoice is a fair price, BEFORE any incentives and so on. There's about $2500 right now, but that should come off AFTER you agree on that below invoice purchase price. I guess invoice or just above invoice might be fair as well, depending on your area or availability, so research. For example, there are few Overlands in my area, but lots of Limiteds, so I'm anticipating I might not be able to deal so well on an Overland, there's just no choice. But along with several factors in my favor so far, I'm hoping the Overland is few and far between because they can't get rid of them, so maybe they will deal.

And as far as not getting ripped off... know who the sucker is. Dealers sell cars every day, walking in off the street, who's more likely to be the sucker? In fact, who's going to be the sucker every time. A dealer is going to make money on the sale of the car, they are not going to make a mistake or get taken by you. So don't be a sucker, and accept that the dealer is going to make money off of you. Remove the game, and know your prices.
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Old 05-07-2015, 01:56 PM
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Re: Asking for help on how to not get ripped off.

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Originally Posted by JackBurton View Post
Thanks. I did want to add: below invoice is a fair price, BEFORE any incentives and so on. There's about $2500 right now, but that should come off AFTER you agree on that below invoice purchase price. I guess invoice or just above invoice might be fair as well, depending on your area or availability, so research. For example, there are few Overlands in my area, but lots of Limiteds, so I'm anticipating I might not be able to deal so well on an Overland, there's just no choice. But along with several factors in my favor so far, I'm hoping the Overland is few and far between because they can't get rid of them, so maybe they will deal.

And as far as not getting ripped off... know who the sucker is. Dealers sell cars every day, walking in off the street, who's more likely to be the sucker? In fact, who's going to be the sucker every time. A dealer is going to make money on the sale of the car, they are not going to make a mistake or get taken by you. So don't be a sucker, and accept that the dealer is going to make money off of you. Remove the game, and know your prices.
How do you find the invoice price of the car vs the MSRP?

To be more specific, below is the link of the vehicle im looking at
New 2015 Jeep Grand Cherokee For Sale | Grapevine TX

The MSRP is 44,290. Of course they advertise all the discounts online of which the average person is probably eligible for 1 of. So how do you find the Invoice of the vehicle so that you can apply the additional $2,500 jeep is offering?
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