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-   -   Yet another leasing question. Seeking advice on numbers, etc. (http://www.jeepgarage.org/f73/yet-another-leasing-question-seeking-advice-on-numbers-etc-63782.html)

JWS360 08-06-2013 08:30 PM

Yet another leasing question. Seeking advice on numbers, etc.
 
Sorry for this, but despite reviewing a few threads I confess I'm not super familiar with what is normal for Jeep, etc. My intuition tells me one dealer is trying to screw me.

Looking at a '14 Overland with the Tech and skid plate packages. List is just under 49K.

Got talking with one local dealer, who without any real prompting started at about invoice ($46,595) and, via some bizarre (to me) numbers, came up with a "Hahn" company (?) leasing offer mentioning a $3500 "rebate" to lower the cap cost for a 36 month lease with a 58% residual of $28,408 and a high to me interest figure of 5.08%. The "rebate" would make the cap cost about $43,095. The quoted monthly lease was $574 for 36 months.

Unless I am totally missing something, the numbers seem WAY high. $574 per month with $3K down seems stupid high. I pay $582 for a BMW with a list of $56K and Cap cost of $50K.

In short, how can a Jeep with a 7K LOWER list price and, assuming the $3500 "rebate" is applied to the cap cost, a 7K lower cap cost have a nearly identical monthly lease?

Something feels wrong. Any lease experts here willing to chime in?

Thanks!

Venom 08-07-2013 10:31 AM

Re: Yet another leasing question. Seeking advice on numbers, etc.
 
Quote:

Originally Posted by JWS360 (Post 870996)
Sorry for this, but despite reviewing a few threads I confess I'm not super familiar with what is normal for Jeep, etc. My intuition tells me one dealer is trying to screw me.

Looking at a '14 Overland with the Tech and skid plate packages. List is just under 49K.

Got talking with one local dealer, who without any real prompting started at about invoice ($46,595) and, via some bizarre (to me) numbers, came up with a "Hahn" company (?) leasing offer mentioning a $3500 "rebate" to lower the cap cost for a 36 month lease with a 58% residual of $28,408 and a high to me interest figure of 5.08%. The "rebate" would make the cap cost about $43,095. The quoted monthly lease was $574 for 36 months.

Unless I am totally missing something, the numbers seem WAY high. $574 per month with $3K down seems stupid high. I pay $582 for a BMW with a list of $56K and Cap cost of $50K.

In short, how can a Jeep with a 7K LOWER list price and, assuming the $3500 "rebate" is applied to the cap cost, a 7K lower cap cost have a nearly identical monthly lease?

Something feels wrong. Any lease experts here willing to chime in?

Thanks!

I'm payingn $360 a month on a 2013 Oberland, with $1,000 down, 39 months. Yours seem really high.m

randwats 08-07-2013 11:13 AM

Re: Yet another leasing question. Seeking advice on numbers, etc.
 
Quote:

Originally Posted by JWS360 (Post 870996)
Sorry for this, but despite reviewing a few threads I confess I'm not super familiar with what is normal for Jeep, etc. My intuition tells me one dealer is trying to screw me.

Looking at a '14 Overland with the Tech and skid plate packages. List is just under 49K.

Got talking with one local dealer, who without any real prompting started at about invoice ($46,595) and, via some bizarre (to me) numbers, came up with a "Hahn" company (?) leasing offer mentioning a $3500 "rebate" to lower the cap cost for a 36 month lease with a 58% residual of $28,408 and a high to me interest figure of 5.08%. The "rebate" would make the cap cost about $43,095. The quoted monthly lease was $574 for 36 months.

Unless I am totally missing something, the numbers seem WAY high. $574 per month with $3K down seems stupid high. I pay $582 for a BMW with a list of $56K and Cap cost of $50K.

In short, how can a Jeep with a 7K LOWER list price and, assuming the $3500 "rebate" is applied to the cap cost, a 7K lower cap cost have a nearly identical monthly lease?

Something feels wrong. Any lease experts here willing to chime in?

Thanks!

Different banks may offer lease cash in lieu of a lower interest rates. It's somewhat of a wash if you consider a higher interest rate with lease cash vs a lower rate and no lease cash.

Running an extremely rough estimate of your listed numbers, it's close to what they're quoting you with $3k down. I show $560.

It really all comes down to the residual. On a lease, you're paying the difference between the residual and the cap cost. The Jeep residual is most likely better and that would make up the "difference".

Hope this helps a little.

randwats 08-07-2013 11:16 AM

Re: Yet another leasing question. Seeking advice on numbers, etc.
 
Quote:

Originally Posted by Venom (Post 871260)
I'm payingn $360 a month on a 2013 Oberland, with $1,000 down, 39 months. Yours seem really high.m

That seems extraordinarily low for an Overland or an absolute fantastic deal? :D How'd you mange that?

JWS360 08-07-2013 11:24 AM

Re: Yet another leasing question. Seeking advice on numbers, etc.
 
Quote:

Originally Posted by randwats (Post 871276)
Different banks may offer lease cash in lieu of a lower interest rates. It's somewhat of a wash if you consider a higher interest rate with lease cash vs a lower rate and no lease cash.

Running an extremely rough estimate of your listed numbers, it's close to what they're quoting you with $3k down. I show $560.

It really all comes down to the residual. On a lease, you're paying the difference between the residual and the cap cost. The Jeep residual is most likely better and that would make up the "difference".

Hope this helps a little.

It does help, thanks.

I'm stumped, though. Getting quotes for a BMW 5 series with a substantially higher sticker, yet lower lease cost. True, the residual is a bit higher (62% for BMW vs. Jeep's 58%), but how can a BMW with a sticker north of 10K more be within $30 per month?

It just doesn't make sense to me and I thought I was somewhat familiar with leasing.

randwats 08-07-2013 11:54 AM

Re: Yet another leasing question. Seeking advice on numbers, etc.
 
Quote:

Originally Posted by JWS360 (Post 871283)
It does help, thanks.

I'm stumped, though. Getting quotes for a BMW 5 series with a substantially higher sticker, yet lower lease cost. True, the residual is a bit higher (62% for BMW vs. Jeep's 58%), but how can a BMW with a sticker north of 10K more be within $30 per month?

It just doesn't make sense to me and I thought I was somewhat familiar with leasing.

A vast majority of luxury vehicles (75%) are leased and they usually have fantastic programs available. I would venture a guess that the APR on the BMW lease is crazy low which definitely helps when you're essentially on a 36 month term.

Jim_in_PA 08-07-2013 01:24 PM

Re: Yet another leasing question. Seeking advice on numbers, etc.
 
How many miles per year is allowed on that lease quote? It does make a difference...a lot of "very low" lease payments revolve around very low annual mileage allowances which in turn, pushed up the residual.

JWS360 08-07-2013 01:36 PM

Re: Yet another leasing question. Seeking advice on numbers, etc.
 
Quote:

Originally Posted by Jim_in_PA (Post 871341)
How many miles per year is allowed on that lease quote? It does make a difference...a lot of "very low" lease payments revolve around very low annual mileage allowances which in turn, pushed up the residual.

Both the BMW & Jeep quotes are 12K/year.

Venom 08-07-2013 03:02 PM

Re: Yet another leasing question. Seeking advice on numbers, etc.
 
Quote:

Originally Posted by randwats (Post 871278)
That seems extraordinarily low for an Overland or an absolute fantastic deal? :D How'd you mange that?

Not sure, didn't do anything out of the ordinary. Leased it in June of this year, salesman told me they were pushing the 13's out to make room for the 14's:rolleyes: I couldn't turn that deal down! It was my 4th vehicle I leased from that dealer, maybe that helped.

jeep5.7 08-07-2013 03:34 PM

Re: Yet another leasing question. Seeking advice on numbers, etc.
 
I leased a 14 lareado with no money down 36 with all fees,465 month

TTUMBIO2010 08-07-2013 03:43 PM

Re: Yet another leasing question. Seeking advice on numbers, etc.
 
I leased a 2014 Overland 4x4, Adv Tech, Quadra-Drive - 36 months - zero down - 15,000 miles/yr.

$650.

JWS360 08-07-2013 03:45 PM

Re: Yet another leasing question. Seeking advice on numbers, etc.
 
Quote:

Originally Posted by TTUMBIO2010 (Post 871420)
I leased a 2014 Overland 4x4, Adv Tech, Quadra-Drive - 36 months - zero down - 15,000 miles/yr.

$650.

Perhaps the $560 or so I was quoted isn't that far off.

Weird, though. I can get a well equipped BMW 5 series for less--and it has a 10-12K HIGHER sticker price!

Now I really don't know what to do!


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