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  #13  
Old 07-12-2015, 07:17 PM
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Re: New Member: Leasing Advice

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Originally Posted by Jim_in_PA View Post
Well, if that's what the dealer wants to do, it's going to mean they are not going to have any JGCs to sell for a period of time. MY16 do not go into production until November/December of this year...MY16 is a late introduction. Me thinks they are trying to pressure you into buying "now"... Dealers will be placing orders for MY15 vehicles until something like September/October.

LOL... gotta love salesmen.

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  #14  
Old 07-12-2015, 10:59 PM
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Re: New Member: Leasing Advice

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Originally Posted by Jim_in_PA View Post
Well, if that's what the dealer wants to do, it's going to mean they are not going to have any JGCs to sell for a period of time. MY16 do not go into production until November/December of this year...MY16 is a late introduction. Me thinks they are trying to pressure you into buying "now"... Dealers will be placing orders for MY15 vehicles until something like September/October.
Found out in a passing conversation today that a family friend is a salesman at a somewhat local Jeep dealership. I'll be stopping by there tomorrow after work with these numbers and try to figure out the best deal.

Hopefully this will put everything to rest so i can finally get into a jeep!
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Old 07-13-2015, 09:46 AM
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Re: New Member: Leasing Advice

These days, it's really important to research not just the vehicle specifications, but also know the pricing in the market as well as what's going on with the manufacturer...that's a good part of this community's value. Quite often folks at dealers will "say anything" to try and get a sale and use all kinds of tactics to get that sale "now", including either being less than up-front about something or willfully being uneducated themselves. Our "insiders" present both factual information as well as best-available-at-the-time information that will be very useful to folks shopping for their JGC or next JGC.
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  #16  
Old 07-13-2015, 10:49 AM
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Re: New Member: Leasing Advice

I am leasing a 2015 Overland, just got it about 2 months ago. It is a trickier financing option to understand, I was very frustrated negotiating this deal until it got to the "number" I had figured out was a "good number." You're calculating discount, residual value, down payment, money factor (interest rate) etc.etc., no one can claim their monthly payment is good (or bad) unless they show you their contract because there's so many numbers in play to get a monthly payment. So don't let "I pay $xxx" influence what your $xxx turns out to be.

The best, simplest description I have seen is that under $135 per $10000 leased is a good deal.

I suggest concerning yourself with the price of the vehicle including discount, that's where your monthly begins. You should not be starting at MSRP. Based on my recent experience and buying in general, you should be hovering around invoice price from the dealer, about $45000, then you move on to reducing the price by applying incentives, then to payment options.

If you're paying $3500 down, which you shouldn't pay anything down on a lease except maybe first month and plates, that lowers your vehicle finance price to $41500 (you're still paying $45000 for the Jeep). At $450 mo that would indicate a freakin awesome deal of about $100 per $10k, assuming you are not getting any other incentives and not trading in your Lexus. I think you might be leaving a number out of your description, at least the incentives being applied - or you're getting a really high residual value meaning you won't be doing anything in 3 years but turning this Jeep in.

You shouldn't pay money down on a lease because you're just handing that money to the financing company as a lump sum depreciation payment. Would you rather pay $3600 today or an extra $100 per month? Cause that's how it works out. Also if the vehicle is totaled for whatever reason, that money is gone.
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Old 07-13-2015, 11:30 AM
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Re: New Member: Leasing Advice

I leased a vehicle exactly one time. It was a company car so they put the money down and reimbursed my payments. But after two years I quit that job and wanted a different type of vehicle, but was stuck with it for another year. When I finally turned the car in they practically used a microscope to inspect it and tried to nail me for a few light scratches on the roof. The process took two hours...

Over the last 25 years I've had at least 8 or 9 vehicles. I've changed so often because my vehicle needs have changed so often. And I've had a very stable marriage and the same career for the last 40 years. Changes have been because of my kid's needs, job requirements.

1. Any money "down" you might as well just flush down the toilet.
2. If your situation changes you're stuck, unless you like paying huge buy-out fees.
3. Potential hassles when you turn it in like I experienced.
4. You end up with exactly zero residual value at the end.
5. If you do want to keep the car at the end you'll pay a lot more for it then you otherwise would for another similar vehicle.

My current daily driver, a '12 GCO, is paid off, and I like it so much I'm keeping it. Since my kids are in college or graduated and my job has been the same now for 15 years, my vehicle needs aren't likely to change for years, and I have no car payments.
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Old 07-13-2015, 05:47 PM
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Re: New Member: Leasing Advice

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Originally Posted by AzakasX View Post
Hi All,

I am in the process of negotiating a lease on a 2015 Overland V6 4x4 with Off road adventure II package and Harman Kardon 19 Speaker system.

I'm currently driving a 2014 Lexus IS F-Sport which unfortunately has had its fair share of problems, ending with a rock cracking my windshield leaving the jeep dealership yesterday. The low ride height and low profile tires have made the car a nightmare to drive in NY winters and its time to change to a more practical vehicle.

Right now i have 2 final deals and i'm waiting till monday to place a deposit on a special order, which i was told will be the last batch of '15's ordered until the 2016's comes out. MSRP on the vehicle is $48,780.

36months 10k Miles-$3602+plates due at signing, $463 a month
36months 10k Miles-$3400+plates due at signing, $448 a month (w/o speakers)

How do these deals look? I'm new to the Jeep market and could use any help i could get before pulling the trigger on monday.

Thanks!
To know whether it's a good deal or not is to look at the numbers for July including money factor, residual and incentives. Also which financing company is the dealer using, Chrysler Capital, Ally or other. Some of the incentives would only be linked to the specific (finance) company.

Some quick numbers for you. Assuming Chrysler Capital, for an Overland 4x4, the residual would be 51% and m.f. of .00001. This is based on 10k/36 month. Also the acquisition fee is being waived. Not sure about the security deposit. Though it is often based on your credit score.

For the incentives, there is a $1k for customers with a competitive lease and $500 for the JGC. There might be others, certainly for existing customers, you'll need to look into this.

As an example, your build has an MSRP of $49,480 and invoice of $47,457. Start negotiation at invoice and then factor all available incentives. Without the latter, your payment would be $617. This does not include the state tax. Each thousand up or down would impact the payment by (roughly) $28.

Never put money down to reduce the capital cost. The only money applied should be for your first payment and registration.
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  #19  
Old 07-13-2015, 06:24 PM
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Re: New Member: Leasing Advice

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Originally Posted by Yadkin View Post
I leased a vehicle exactly one time. It was a company car so they put the money down and reimbursed my payments. But after two years I quit that job and wanted a different type of vehicle, but was stuck with it for another year. When I finally turned the car in they practically used a microscope to inspect it and tried to nail me for a few light scratches on the roof. The process took two hours...

Over the last 25 years I've had at least 8 or 9 vehicles. I've changed so often because my vehicle needs have changed so often. And I've had a very stable marriage and the same career for the last 40 years. Changes have been because of my kid's needs, job requirements.

1. Any money "down" you might as well just flush down the toilet.
2. If your situation changes you're stuck, unless you like paying huge buy-out fees.
3. Potential hassles when you turn it in like I experienced.
4. You end up with exactly zero residual value at the end.
5. If you do want to keep the car at the end you'll pay a lot more for it then you otherwise would for another similar vehicle.

My current daily driver, a '12 GCO, is paid off, and I like it so much I'm keeping it. Since my kids are in college or graduated and my job has been the same now for 15 years, my vehicle needs aren't likely to change for years, and I have no car payments.
Leasing is simply an option that could be viable for some buyers. Though it's understanding the lease process where a lot of owners get derailed. Taking your points in order.

1. Any money down you might as well flush down the toilet ... I agree with this statement except when MSD's can be applied to lower the M.F. At lease-end, the MSD's are refunded.

2. If your situation changes you are stuck ... This would be the same with traditional financing. As is widely known, the depreciation is the worst during the first 2-3 years. Unless a large sum of money is used to offset the depreciation, the buyer will be upside down. Again, there are exceptions to the rule but for most part it holds true.

3. Potential hassles when turning in a vehicle ... Ahead of signing the contract know the expectations when turning the vehicle in. Some items are often overlooked when buying a new vehicle from the same manufacturer and financing company. This can be a moot point if you intend to buy the vehicle at lease end.

4. You end up with zero residual value at the end ... This depends on the vehicle and lease terms. Sometimes it works in your favor. If the market value drops you would be insulated from the declining value. Simply walkaway and lease or buy another vehicle.

5. If you want to keep the vehicle you would pay more for it ... Not always. It depends on the lease parameters including the M.F. and acquisition fee. In 2008 I leased an Audi Q7 and had a low M.F. (converted to 0.5%) plus the acquisition fee was waived. At the time, a traditional finance rate was around 3.5-4%. I didn't keep the vehicle beyond the lease term but I could've and saved money vs. traditional financing.

In the end, there is not right or wrong answer to financing a vehicle. Simply there are options (of leasing, financing or cash). Run the numbers and determine which is best for your budget and personal goals including opportunity cost when funds are taken from investment(s) to pay for a depreciating asset.

In my garage I have three cars. One that was acquired as a lease, one with traditional financing and the other I have title. I may also be (again) acquiring a JGC and I am looking at all finance options.

Just my .02 cents.
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Old 07-13-2015, 06:44 PM
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Re: New Member: Leasing Advice

Here is a picture of the dealer disclosure sheet, not included in this deal is the 19 speaker HK sound system and blind spot/cross traffic monitoring.

This changed the monthly payment to $464.37 and increased the purchase option to $24,445. I put down a $500 deposit and the order has been placed for production.

It was confirmed by a second dealer that Jeep will stop taking orders from dealers on 2015 Jeep Grand Cherokees any day now. There is a ton of information here, thanks for all the help guys.

Sorry the picture is sideways, not sure why it posted like that.
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  #21  
Old 07-13-2015, 07:25 PM
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Re: New Member: Leasing Advice

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Originally Posted by JackBurton View Post
If you're paying $3500 down, which you shouldn't pay anything down on a lease except maybe first month and plates, that lowers your vehicle finance price to $41500 (you're still paying $45000 for the Jeep).
I absolutely agree that there should be no down payment with a lease, outside of taxes, fees, and, perhaps, the first month. That said, a capital cost reduction (to lower the monthly payment) just just prepaying some of the "financed" cost of the vehicle. It really doesn't lower the cost of the lease in the least, as it were. In fact, it somewhat raises it a few shekels because the money used to pre-pay that chuck might have earned interest or been put to better use. With today's low finance interest rates for buying, if one wants to put a down payment into play, a buy may be the better deal.
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  #22  
Old 07-13-2015, 07:29 PM
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Re: New Member: Leasing Advice

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Originally Posted by AzakasX View Post
It was confirmed by a second dealer that Jeep will stop taking orders from dealers on 2015 Jeep Grand Cherokees any day now.

I think they may be under the impression that MY15 production will end soon like it would in a "normal" year. Not this time around. MY15 was extended and MY16 will be a short model year. (just like MY143 was a short model year)

Here's a scrape from the stickied MY16 information thread up above:

Jeep Grand Cherokee WK2 2016 Model Year

***JEEP GARAGE EXCLUSIVE INFORMATION***

Last updated 06/22/2015

***** IN PROGRESS *****

------------------------------------------------------------------------------------------

Order banks open - October 26, 2015
Production startup - November 23, 2015
Shortened model year - Production ends July 2016
Sales launch - November/December 2015
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  #23  
Old 07-13-2015, 08:53 PM
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Re: New Member: Leasing Advice

Just leased a limited 2 weeks ago, never done a lease before, I think I got an ok deal. MSRP was $42.4k, they took about $3k off, with the $2500 leasing rebate, they gave $6k for my 06 JGC Laredo with 118k miles, used 1/2 of that toward 'down payment', which was the only thing I did wrong, should've only needed to put down $500 instead of $3000. It was nice to get a $3000 check from the dealer, $5500 would have been nicer,but will raise my monthly payment by $85. My monthly payment is $363 + tax. I will most like buy it out when the lease is up for around $22.8k. So with my monthly payment of $363 x35 + the $22.8k to buy out + the $3000, I pay about $38600 for this, so somehow the $2500 rebate got eaten up by fees,which is fine, because it didn't come out of my pocket....at least that's what I am telling myself. Money factor was 0.00055.


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