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  #1  
Old 11-02-2015, 08:55 PM
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Leasing Questions..

Hello all,

Looking into leasing for the first time in the next month or so. I've got a couple questions. For reference I'm looking at a summit/ loaded overland depending on the price. My credit is near perfect.

What kind of payment will I be looking at for 24 month and 24k miles in the Denver area?

It's my understanding that I should negotiate up from the invoice "price" how do I go upon finding that for a specific model?

What is an "affiliate"?

Is there better incentives for a 2015 in December or should I wait until January when the 16's come out?

Lastly, I've convinced myself I need all the luxuries included in the summit as I spend most of my day in the car for work. Do the current overland/ summit owners find that you use all the added features or is it paying extra for unnecessary stuff?

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  #2  
Old 11-02-2015, 09:44 PM
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Re: Leasing Questions..

Four components:

- MSRP
- Cap Cost (the agreed upon cost of vehicle)
- Money Factor (multiple this by 2,400 to find the equivalent APR to get an idea of if it's good/bad)
- Residual (what the car will be worth at lease-end)

The last three items are areas the dealer can get you. So be careful. After negotiating the price of the vehicle (3% below invoice is decent) ask what the money factor would be with top-tier credit (right now it's .00017 through Chrysler). Also ask what the residual is (not sure what it is with 24mo leases but should be in the 58-62% range I'd imagine).

The higher the residual, the lower your payment.

If the agreed upon sale price of a $50,000 Jeep is $47,000 and the residual is 62%, you're payment would be as follows on a 24 month lease:

$50,000 MSRP
Residual: 62% of MSRP 50,000 = $31,000

Cap Cost ($47,000) - Residual Value ($31,000) = $16,000

This means you'll pay $16,000 over those 24 months. $16,000 / 24 = $666 per month.

I didn't include the money factor on that payment, or sales tax. So that payment would be more like $700/mo.

They'll try to hide the money factor and residual value from you while negotiating the lease. Never tell them what you want your payment to be. Just ask for those 4 numbers above to be clearly outlined for you and go from there.
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  #3  
Old 11-02-2015, 10:33 PM
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Re: Leasing Questions.

Quote:
Originally Posted by Willden1 View Post
Hello all,

Looking into leasing for the first time in the next month or so. I've got a couple questions. For reference I'm looking at a summit/ loaded overland depending on the price. My credit is near perfect.

What kind of payment will I be looking at for 24 month and 24k miles in the Denver area?

It's my understanding that I should negotiate up from the invoice "price" how do I go upon finding that for a specific model?

What is an "affiliate"?

Is there better incentives for a 2015 in December or should I wait until January when the 16's come out?

Lastly, I've convinced myself I need all the luxuries included in the summit as I spend most of my day in the car for work. Do the current overland/ summit owners find that you use all the added features or is it paying extra for unnecessary stuff?
From what I understand, the "big" incentives don't apply to the Summit, you may want to confirm that although, someone else may chime in regarding this. I also lease for 24 months though with 18k per year. I would venture to guess you'll be in the $850 per month range with zero out of pocket. If I'm correct on the Summit not having the same incentives as the Overland, you may want to look into a High Altitude.
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Old 11-03-2015, 01:50 AM
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Re: Leasing Questions..

Thanks for the info! I do like the look of the high altitudes too, are there larger incentives for them?
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Old 11-03-2015, 10:55 PM
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Re: Leasing Questions..

One other point: NEVER put any money down on a lease. Most leases come with GAP insurance (which is typically paid for from the "acquisition fee")

If the vehicle is a total loss (stolen, wrecked, etc.) , the GAP insurance pays the leasing company the difference between the depreciated value that your insurance company will pay, and what the lease buy out is.

Any money that you put down is lost in the event of a total loss.

Many States mandate GAP insurance on vehicle leases by statute. If your lease does not come with GAP insurance, you might want to get it. Nothing is worse than paying on a vehicle that you no longer have.
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