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Daytonguy21 04-02-2013 01:26 PM

14' Lease Rates (April)
It is my understanding that lease rates update every Tuesday, used to be every other Tuesday. I have emailed my dealer to get confirmation of the new rates but I suspect they have gone up.

Last week I ran a build and price on the website and with my overland came out to a per month lease payment of ~$650/month (36 months, 15,000 miles, $1000 lease conquest). I even made the best attempt to enter "down payment" information to reflect the negotiated price including TTL with my dealer.

Today I ran the same calculation (using the same inputs) and came out to a price of ~$730/month.

Just wanted to see if anyone had the updated lease numbers for an overland and to see if in fact they had changed. Also, has anyone had luck using a bank other than Ally for a GC lease?

If the Jeep website is accurate then there is no question the better option is to buy vs. lease.

Thanks for the help!

torifile 04-02-2013 05:16 PM

Re: 14' Lease Rates (April)
Without knowing the residuals and money factor, it's impossible to know anything about the lease. I use RIDE with G | monthly lease rates, auto leasing tips, industry news and personal rants for lease calculations. That sounds awfully high for a lease, though.

SW03ES 04-02-2013 06:56 PM

Re: 14' Lease Rates (April)
I would not put any weight on the lease estimator. You need to get the numbers and do the math yourself.

Unless you can write the vehicle off for business, this is a "buy" vehicle IMHO. Residuals are not good, and unless you get some sort of crazy incentive to lease vs buy, I'd buy.

torifile 04-02-2013 08:01 PM

Re: 14' Lease Rates (April)
Depending on how good a deal you negotiate, a low residual might favor a lease then purchase at lease end. I ran the numbers on a couple different scenarios and leasing actually comes out cheaper if residuals are 56% and the money factor is .001.

torifile 04-02-2013 08:18 PM

Re: 14' Lease Rates (April)
I just ran some scenarios again. With the 7% below invoice many of us are getting and a 54% residual, the buy vs lease options are nearly identical. Personally, I might take a lease with those numbers just in case the truck is a stinker. It'd be a cheap insurance policy.

torifile 04-02-2013 10:10 PM

Re: 14' Lease Rates (April)
To simplify my calculations, I've created a Google Spreadsheet. You can view it here:

Feel free to copy it and change the values to fit your circumstances. In my particular scenario with an assumed 54% residual and .001 MF, staying on a 5 year timeline and assuming I can get a loan for 1.99% like I can now (big assumption, possibly), leasing-to-own only costs an extra $900. If I'm judicious about the $200/month I'd save by leasing, I could make that up.

Keep in mind that the payments on a 2 year loan for the purchase option will be very high, especially if you don't save those $200/month for the payments. But if I sock away that money, my monthly payments won't be any higher during those last 2 years than they would be in the last 2 years of the outright purchase scenario.

Daytonguy21 04-03-2013 08:12 AM

Re: 14' Lease Rates (April)

Thanks for the great comments. I have been making the same analysis, which has been the trade-off of the lease vs. the buy and viewing the balance (loss on lease) as insurance in case the 14' has major problems and I want to unload the rig at the term of the lease.

The numbers were "fairly" close using a residual of 50%, which is what the Overland was for 36 months with 15,000 miles in March, however my concern is that the lease rate has dropped, which would obviously slant the numbers more heavily towards the buy option.

If I did go the buy option I am interested in where you were able to get 1.99% on a 60 month loan. The best I have been able to find is 2.99% through Chase. I qualify for top teir credit so that should be an issue.

Again thanks for your input!

torifile 04-03-2013 08:49 AM

Re: 14' Lease Rates (April)
I've been watching lease rates for a while and they haven't changed much in the past several months. As far as the 1.99% rate goes, check You have to be a member, but that just means you open up an account for $5 and you're in.

I've done some digging around on lease rates and last month (they change monthly) for a Limited (Overland tends to be a little less) was 54% for a 15k mile lease with an interest rate of 1.45% (or about .0006 MF) through Ally. (See here. The poster, Car_man has the inside scoop on nearly all lease terms for car manufacturers.) Per my calculations. that actually makes the lease with a buyout at the end CHEAPER than an outright purchase.

In reality, however, it depends on your negotiated sales price. I messed around with many percentages and MFs to see and they all are about the same as far as end cost. I'm going to get 7% below invoice through the DC group buy and that alone makes the lease nearly equal to buying.

edit: per the discussion here, a fully loaded Limited is a better value from a leasing perspective.

SW03ES 04-03-2013 04:38 PM

Re: 14' Lease Rates (April)

Originally Posted by torifile (Post 794400)
Depending on how good a deal you negotiate, a low residual might favor a lease then purchase at lease end. I ran the numbers on a couple different scenarios and leasing actually comes out cheaper if residuals are 56% and the money factor is .001.

Remember too that Ally charges like $2,500 if you buy out the lease on top of the buyout.

torifile 04-03-2013 06:36 PM

Re: 14' Lease Rates (April)
Ally isn't the only leasing option out there. There's US Bank too, in addition to my credit union.

SW03ES 04-03-2013 08:14 PM

Re: 14' Lease Rates (April)
This is true, just something to keep in mind.

sndrsk 04-03-2013 09:52 PM

Re: 14' Lease Rates (April)
I thought Chrysler was done with Ally starting last Monday? Or does the contract end on the last day of the month?

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