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Old 04-26-2013, 11:20 AM
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Lease Evaluation (Limited)

Hi all, I have used this forum and other resources to work on a lease deal. Finally found a very upfront dealer that have been great deal with. Please advise as your opinion on the lease.

Jeep Grand Cherokee Limited, 4x2, Nav and Sunroof, MSRP $38.5k

Negotiated Price - $37,000 (includes destination fee)
MF Factor .00075
Residual - 56% (actual on printout is 21,604.00)

Amount at due at sale - 2k
Incentives - 1k (conquest - I lease a VW)
Monthly payment - $409.55 + $24.57 for a total of $434.01

My thoughts are the negotiated price is a little high, but not by more than 400-500. The dealership has sent me printouts of the lease deal and it seems calculated correctly and they have been upfront.

Essentially 2318.06 goes towards the cap reduction, and the rest is for 1st months payment, 1st year fees and taxes, for a total of 681.94 out of the cash down.
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Old 04-29-2013, 06:10 AM
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Quote:
Originally Posted by ShaunML09 View Post
Hi all, I have used this forum and other resources to work on a lease deal. Finally found a very upfront dealer that have been great deal with. Please advise as your opinion on the lease.

Jeep Grand Cherokee Limited, 4x2, Nav and Sunroof, MSRP $38.5k

Negotiated Price - $37,000 (includes destination fee)
MF Factor .00075
Residual - 56% (actual on printout is 21,604.00)

Amount at due at sale - 2k
Incentives - 1k (conquest - I lease a VW)
Monthly payment - $409.55 + $24.57 for a total of $434.01

My thoughts are the negotiated price is a little high, but not by more than 400-500. The dealership has sent me printouts of the lease deal and it seems calculated correctly and they have been upfront.

Essentially 2318.06 goes towards the cap reduction, and the rest is for 1st months payment, 1st year fees and taxes, for a total of 681.94 out of the cash down.
Your MF appears high as well as the sale price. You should be aiming for MF at 0.00027.
Invoice is $36,856 for you configuration I would check into the breakdown of the fees.
Also, you did not mention the other terms of the lease - mileage allowance and length of term and is this thru Ally?
Check this other site for more info and use the calculator to evaluate your lease: http://www.ridewithg.com/

This is from the '14 Lease Rates April Thread.
Quote:
Originally Posted by torifile View Post
I got 'em all. I was able to get the lease rates for the month of April from my dealer.

These are 15k mile rates:

Laredo: Interest rate - .9, Residual - 55%
Limited: Interest rate - .65%, Residual - 54%
Overland: Interest rate - .23%, Residual - 50%

Add 2% to the residual for 12k lease, 3% for 10k lease.

I also have the 2013 rates available if you want them.
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Old 04-29-2013, 07:54 AM
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Re: Lease Evaluation (Limited)

As AbleRiot said, your numbers are high. The money factor is about 3x what it should be. You're quoted 1.8% when the actual rate this month is .65%. Your money factor should be .00027. If you're doing a 15k lease, your residual should be 54%. A 12k lease should be what you quoted.

You should pay nothing at signing except doc fees and first month payment. That should be less than $1k.
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Old 04-29-2013, 10:39 AM
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Re: Lease Evaluation (Limited)

Got them down to .00033 for the MF and used an affiliate to get to 1% under invoice. Sale price of 36,515 - and another $1000 for the conquest deal, putting me at about 35,515 for the truck.

I've heard various reports of not honoring the $1000 conquest cash on 2014's but they've quoted me on it, so I am going with it. Its not 5% under invoice, but I think I can live with it.

The "upfront fees" are only 1st month payment + "first year fees" of 242.

Basic facts on renegotiation:

12k year, 36 month lease
MF factor of .00033
Residual of 55%
35,515 price (includes conquest lease deal)
1k at signing (instead of 2k)
430

Looks like we'll go with the 39 month @ 414 with 1k at signing.
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Old 04-29-2013, 12:24 PM
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Re: Lease Evaluation (Limited)

The MF and residual still aren't right. The money factor is still high and the residual is still low. Keep at it.

https://dl.dropboxusercontent.com/u/...leaserates.pdf

This is the lease rate sheet for the month of April, straight from the manager's desk. Use it to get your numbers right. Disregard the first page - that's for the 2013.
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Old 04-29-2013, 02:00 PM
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Re: Lease Evaluation (Limited)

Quote:
Originally Posted by ShaunML09 View Post
Looks like we'll go with the 39 month @ 414 with 1k at signing.

What state are you in? Sounds like a pretty good deal, I haven't seen a limited that cheap around here but I never priced out a 4x2. 1% below invoice was the best I could muster as well. Most important you need to find out which lease provider rates you are getting quoted, if it's a bank other then Ally or US Bank, make sure the dealer isn't keeping your IDL rebate. Also, FYI, current lease programs expire tomorrow.
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Old 04-29-2013, 02:06 PM
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Re: Lease Evaluation (Limited)

I am in Florida - my local SWFL dealers were all in the 500 a month, so I found one through truecar who has been pretty good (about 2 hours away). They didn't come down much on the price but through forcing them with the Access Fund its at least acceptable.

The dealer just emailed me back they were incorrect on the residual (they were using the 4x4 and not 4x2), it should be 53% and not 54% on the 39 month lease for the 4x2. Bumps the payments up to 427 a month with 1k down.

I am looking at the chart that was so nicely provided by Torifile and unfortunately that appears to be correct - we are only the 4x2 so the residuals are lower on it. The 2014 chart shows base residual of 51 on the 39 month, plus a 2% bump for a 12k lease mileage, for a 53% residual.
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Old 04-29-2013, 02:37 PM
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Re: Lease Evaluation (Limited)

Also, I am trying to get them back down to the 414 number quoted, but he is claiming they don't get holdback because its a dealer located car, and not part of their inventory?

True or false?
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Old 04-29-2013, 02:55 PM
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Re: Lease Evaluation (Limited)

That 4x2 vs. 4x4 excuse seems bogus to me. I've never heard of banks differentiating based on the drivetrain.
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Old 04-29-2013, 03:02 PM
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Re: Lease Evaluation (Limited)

Quote:
Originally Posted by torifile View Post
That 4x2 vs. 4x4 excuse seems bogus to me. I've never heard of banks differentiating based on the drivetrain.
If you lived in Colorado, dealers wouldn't even talk to you about a 4X2. In fact, if you want a 2WD truck or SUV in SW Colorado, you have to factory order. Banks here do indeed look at this here.
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Old 04-29-2013, 03:16 PM
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Re: Lease Evaluation (Limited)

Quote:
Originally Posted by ShaunML09 View Post
I am in Florida - my local SWFL dealers were all in the 500 a month, so I found one through truecar who has been pretty good (about 2 hours away). They didn't come down much on the price but through forcing them with the Access Fund its at least acceptable.

The dealer just emailed me back they were incorrect on the residual (they were using the 4x4 and not 4x2), it should be 53% and not 54% on the 39 month lease for the 4x2. Bumps the payments up to 427 a month with 1k down.

I am looking at the chart that was so nicely provided by Torifile and unfortunately that appears to be correct - we are only the 4x2 so the residuals are lower on it. The 2014 chart shows base residual of 51 on the 39 month, plus a 2% bump for a 12k lease mileage, for a 53% residual.
Quote:
Originally Posted by ShaunML09 View Post
Also, I am trying to get them back down to the 414 number quoted, but he is claiming they don't get holdback because its a dealer located car, and not part of their inventory?

True or false?
Is that $427/month with the tax and fees rolled into the payment?

If they are not going to budge down on $427, make them give you 15000mi/year and call it even. (unless torifile has a good reason not to)
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Old 04-29-2013, 03:20 PM
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Re: Lease Evaluation (Limited)

Yep, that's a total fee of 427 with tax rolled into the payment - out of pocket is 1k (1st month + 240 in "first year fees")
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