Go Back   Jeep Garage - Jeep Forum > Jeep Platform Discussion > Grand Cherokee - WK2 -

Join Jeep Garage Today
Reply
 
Thread Tools Display Modes
 
  #13  
Old 05-24-2011, 03:39 PM
Member
 
Join Date: Feb 2011
Location: San Jose, CA
Posts: 228
Thanks: 0
Thanked 1 Time in 1 Post
Rep Power: 1637
JayB is on a distinguished road
Re: Good lease deal for 2011? Please help!

what is your sales tax %?
How much of that $3300 signing is cap cost reduction vs. title/license/fees/1st month payment?
What is the actual purchase price of the vehicle?

All that being said and not knowing anything... I'd say it's a decent deal. But I wouldn't put any money down for cap cost reduction. I'd just pay the 1st month, title, license and be out of there. If this is the Jeep you want... then pull the trigger or negotiate a little more. They're definitely not ripping your head off.

Negotiate a low purchase price first then see how the lease terms work out. Check out some other leasing web sites to see what lease terms are typical for the model and lease you are thinking about.
__________________

__________________
Reply With Quote
  #14  
Old 05-24-2011, 03:46 PM
Member
 
Join Date: Feb 2011
Location: San Jose, CA
Posts: 228
Thanks: 0
Thanked 1 Time in 1 Post
Rep Power: 1637
JayB is on a distinguished road
Re: Good lease deal for 2011? Please help!

Nice breakdown Bmwister.
Leasing in different states seems to be a little different.. at least how they let you treat tax.
Leasing can be attractive since you only pay tax on the leased portion (or what you "use") versus paying the whole sales tax upfront with a sale.

Also with a large loan you are paying a lot of the interest up front on the whole loan amount as opposed to leasing when you (at least it seems to me) pay less interest or "lease fee"

Also, you do not address lease termination. Are you returning the lease and potentially only incurring the disposition fee and *possible wear and tear? Or are you buying it out and re-selling it? (tax implications).

I almost think it's more important to base the buying decision on the end game versus the upfront. However, many are tied to monetary situations in the now and may not have a steady future. Either way.... seems like the best way to play the car buying game is to buy a used car outright with cash and keep it til it dies.

PS, I would always lease if I drove less miles... I drive over 20k per year so I'd never be under any leasing terms. But I do like driving new rides a lot

But who wants to do that?
__________________

__________________
Reply With Quote
  #15  
Old 05-24-2011, 04:26 PM
Member
 
Join Date: May 2011
Posts: 18
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 1325
WMO888 is on a distinguished road
Re: Good lease deal for 2011? Please help!

I only drive 8k a year or so. Just a weekend car.

The deal said he is basing the lease at $200 over invoice. Seems like a good deal to me. It is the dark charcoal with black cloth interior.

MSRP is $33,040
Residual is $17,157

I am going back one last time to see if he can do $369 all in each month with even $300 due at signing. If he is saying he is $200 over invoice then taking $300 more off may not be possible?

This deal seems pretty eager to do a deal. Out of the blue question, but are there any other dealer things I could ask for to squeeze out of the deal if the price can't go much lower...ie throw in some floor mats, bumper guards, free detail, whatever...? Any suggestions are appreciated.
__________________
Reply With Quote
  #16  
Old 05-24-2011, 05:01 PM
Member
 
Join Date: Feb 2011
Location: San Jose, CA
Posts: 228
Thanks: 0
Thanked 1 Time in 1 Post
Rep Power: 1637
JayB is on a distinguished road
Re: Good lease deal for 2011? Please help!

Ok.... I'd like to make a nice complete post.... but I can't since you didn't answer all the questions... namely your tax%.

Here's what I'd say though.... You should be able to negotiate the sell price of the car more. At minimum $1000 below invoice. so look for capitalized lease cost of no more than $30,400. The lower you can get the dealer on the sell price of the vehicle the better you are.

Residual seems very generous (~52%). Yes, it's only 10k miles per year, but it is a 39 month term. When I looked into leasing a Laredo X 36 month with a ton of miles (15k or more) it seemed like no one would go above 48%. So residual looks good.

I would not put any money into cap cost reduction (extra down payment). Just see what your monthly payment would be if you only pay 1st month, title, license.

Here's what I think a decent lease on this Jeep would be. (with assumptions)

MSRP: $33,040
Sell Price: $30k
Residual: $17,157
Money Factor: .00046 (1.1% interest) (assumed)

39 month term at 10k miles per year. (make sure it's 10k miles per year and not 30,000 miles total for the lease term)

Tax: 9% (assumed)

Cost: $351 per month plus $31.59 tax = $382.59

I would have a hard time paying more than that for the Laredo E.

Always ask for more stuff. What are they going to say? No? or Yes?

EDIT: Actually I'd probably try to get under $30k purchase price since the vehicle is already on the lot.
__________________
Reply With Quote
  #17  
Old 05-24-2011, 05:16 PM
Member
 
Join Date: May 2011
Posts: 18
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 1325
WMO888 is on a distinguished road
Re: Good lease deal for 2011? Please help!

Agree about the residual...seems very fair.

I do want my payment to be a certain amount that is why I am putting more money down rather than just 1st month, license, and title.

Deal actually seems pretty good. The lease special online is $2499 plus all tax, fees, etc.

I am going to see if the guy can do $3000 total due at signing and $369 total due each month.
__________________
Reply With Quote
  #18  
Old 05-24-2011, 05:20 PM
jgc4ever's Avatar
Senior Member
My Jeep: 2012 5.7L WK2
 
Join Date: Mar 2011
Posts: 3,244
Thanks: 1
Thanked 83 Times in 74 Posts
Rep Power: 1160399
jgc4ever has a reputation beyond reputejgc4ever has a reputation beyond reputejgc4ever has a reputation beyond reputejgc4ever has a reputation beyond reputejgc4ever has a reputation beyond reputejgc4ever has a reputation beyond reputejgc4ever has a reputation beyond reputejgc4ever has a reputation beyond reputejgc4ever has a reputation beyond reputejgc4ever has a reputation beyond reputejgc4ever has a reputation beyond repute
Garage
Re: Good lease deal for 2011? Please help!

http://www.truecar.com/prices-new/je...866041,6782137
__________________
Reply With Quote
  #19  
Old 05-24-2011, 05:21 PM
Member
 
Join Date: Feb 2011
Location: San Jose, CA
Posts: 228
Thanks: 0
Thanked 1 Time in 1 Post
Rep Power: 1637
JayB is on a distinguished road
Re: Good lease deal for 2011? Please help!

If my 9% tax estimate is correct....

Just try to get them to sell you the Jeep at $29,500 with the same residual and try to get them to knock the money factor down to .00038 (.9%) then you can pay $364.30 per month. Don't just give them a down payment to reduce your monthlies...
If my 9% tax is correct, it may be a stretch to get down to $369 per month with nothing down... but I think you can do it. Negotiate the purchase price down. It's probably going to be hard to get around $29k and 0.9% finance rate, but that's what I'd shoot for and if you stick to your guns and are able to walk out of the dealership I think you could make that deal.
__________________
Reply With Quote
  #20  
Old 05-24-2011, 05:34 PM
Bmwister's Avatar
Member
 
Join Date: Oct 2010
Posts: 546
Thanks: 11
Thanked 13 Times in 9 Posts
Rep Power: 2141
Bmwister has a reputation beyond reputeBmwister has a reputation beyond reputeBmwister has a reputation beyond reputeBmwister has a reputation beyond repute
Re: Good lease deal for 2011? Please help!

Take a look at my spreadsheet updated for your particular Laredo E. I'm in an airport and cobbled this together from a sheet I made for someone else so if there are still errors, do please let me know.
__________________
An expert is one who knows more and more about less and less until he knows absolutely everything about nothing.
---
2013 GC Ltd Hemi (2nd Jeep)
Reply With Quote
  #21  
Old 05-24-2011, 05:44 PM
Member
 
Join Date: Feb 2011
Location: San Jose, CA
Posts: 228
Thanks: 0
Thanked 1 Time in 1 Post
Rep Power: 1637
JayB is on a distinguished road
Re: Good lease deal for 2011? Please help!

I think your spreadsheet is nice, but it needs to accurately reflect the tax situation for the particular consumer.

In other words... if I were to buy the Jeep for $29,750 I would pay 9.25% tax = $2.751.88
If I were to lease the Jeep for the same $29,750 purchase price at 9.25% for 39 months I would only pay $1232.40 in tax (assuming I returned it at lease end instead of buying it out).
__________________
Reply With Quote
  #22  
Old 05-24-2011, 06:20 PM
Bmwister's Avatar
Member
 
Join Date: Oct 2010
Posts: 546
Thanks: 11
Thanked 13 Times in 9 Posts
Rep Power: 2141
Bmwister has a reputation beyond reputeBmwister has a reputation beyond reputeBmwister has a reputation beyond reputeBmwister has a reputation beyond repute
Re: Good lease deal for 2011? Please help!

Quote:
Originally Posted by JayB View Post
I think your spreadsheet is nice, but it needs to accurately reflect the tax situation for the particular consumer.

In other words... if I were to buy the Jeep for $29,750 I would pay 9.25% tax = $2.751.88
If I were to lease the Jeep for the same $29,750 purchase price at 9.25% for 39 months I would only pay $1232.40 in tax (assuming I returned it at lease end instead of buying it out).
The vehicle is purchased at the purchase price at the time of lease by the leasing company and they are not going to eat the sales tax, so one way or the other the Lesee is paying it. It may depend the individual state in how it is paid for a lease. However, if in the OP's case he was only paying tax on the amount "used" in the lease (the selling price less the residual) then his effective interest rate would be ridiculous for the $369/mo for 39mo pay schedule. I do not see anything approaching 1.9% interest rate here; perhaps 1.9% per month, but certainly not per year not for $369/mo given the financed amount.
__________________
An expert is one who knows more and more about less and less until he knows absolutely everything about nothing.
---
2013 GC Ltd Hemi (2nd Jeep)
Reply With Quote
  #23  
Old 05-24-2011, 06:51 PM
Member
 
Join Date: Feb 2011
Location: San Jose, CA
Posts: 228
Thanks: 0
Thanked 1 Time in 1 Post
Rep Power: 1637
JayB is on a distinguished road
Re: Good lease deal for 2011? Please help!

in some states you pay your appropriate sales tax on the monthly payment as evident in one of my earlier posts. So you only pay sales tax on what you "use." If you chose to buy the car out at the end of the lease you will have to pay sales tax on that sale as well. No one is eating any of the tax.
I think the deal I laid out is possible though might be tough to achieve. Need a strong buyer and a dealer willing to make the sale.
__________________
Reply With Quote
  #24  
Old 05-25-2011, 01:04 PM
Member
 
Join Date: May 2011
Posts: 18
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 1325
WMO888 is on a distinguished road
Re: Good lease deal for 2011? Please help!

moving forward with the following deal...
$897 total due at signing (first month, license, tax).
$429 month all in
10k year
39 months

Think this is a good deal. Dark Charcoal exterior, black cloth interior.

If I am making a huge mistake....let me know!!!!
__________________

__________________
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
HELP! First Post: Leasing a Laredo X package...Is this a good lease deal???? pumpumdr Grand Cherokee - WK2 - 18 05-24-2011 09:56 AM
Is this a good deal for an srt front bumper it looks good the guy said it's 9/10 blackonblack Grand Cherokee - WK 13 04-17-2011 09:26 PM
Did I get a good deal on this? rhaines Grand Cherokee - WK2 - 6 03-22-2011 01:01 PM
Good deal? psychrunner Grand Cherokee - WK2 - 2 02-01-2011 02:35 PM
Seems like a good deal CatMan879 Visual Modifications 3 02-20-2010 01:27 PM

Powered by vBadvanced CMPS v3.2.3

All times are GMT -5. The time now is 01:09 AM.


Powered by vBulletin® Version 3.8.8 Beta 4
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
Copyright 2012 - JeepGarage.Org
The Jeep Grand Cherokee Owners Community

JeepGarage.org is in no way associated with or endorsed by Chrysler Group LLC.