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TechBlogTv 03-19-2014 09:47 AM

Leasing Deals and Strategies
 
I want to lease a JGC and I'm in the DC area. So far several dealers have quoted me money factors of .0006 to .00064. Anyone getting better offers these days?

Can anyone share their strategies for getting better lease terms? I plan to use the DC buying club to get a good price for the vehicle.

Jim_in_PA 03-19-2014 10:05 AM

Re: Leasing Deals and Strategies
 
The DC deal reportedly only works extremely well for purchases...leases seem to be "high" compared to other offers out there. You may get a much better deal with a buy at low, low interest rates...and without the mileage restrictions, etc.

TechBlogTv 03-19-2014 10:32 AM

Re: Leasing Deals and Strategies
 
Quote:

Originally Posted by Jim_in_PA (Post 994121)
The DC deal reportedly only works extremely well for purchases...leases seem to be "high" compared to other offers out there. You may get a much better deal with a buy at low, low interest rates...and without the mileage restrictions, etc.

Thanks Jim. When I run numbers based on information obtained from Edmunds.com, I get good numbers. Unfortunately, several DC dealers are offering much higher payments.

Jim_in_PA 03-19-2014 11:00 AM

Re: Leasing Deals and Strategies
 
Leasing tends to be local in many cases...you might check with independent leasing companies to see what they might offer you for a vehicle contract if the dealer offers are not satisfactory. I know one fellow posted an almost $200 monthly difference between doing the deal in DC and doing it where he lives...in NY, I believe.

TechBlogTv 03-19-2014 11:02 AM

Re: Leasing Deals and Strategies
 
I just figured out one of the reasons I'm getting high payment offers. In VA, sales tax is applied to the full cost of the car, not just the payments. Grrrrr!

JohnC 03-19-2014 11:58 AM

Not sure what level trim you are looking. I got a Limited with nav, sunroof, 20" wheels and a V6 for $485 a month. $300 total out of pocket and first month paid. That was for 36 months and 12,000 miles a year. I'm in NJ but only a few miles out of NYC.

lstowell 03-19-2014 12:00 PM

Re: Leasing Deals and Strategies
 
Quote:

Originally Posted by TechBlogTv (Post 994152)
I just figured out one of the reasons I'm getting high payment offers. In VA, sales tax is applied to the full cost of the car, not just the payments. Grrrrr!

If your ancestors thought taxation without representation was bad, they should see taxation WITH representation...

zhenya 03-19-2014 12:06 PM

Re: Leasing Deals and Strategies
 
Quote:

Originally Posted by Jim_in_PA (Post 994148)
Leasing tends to be local in many cases...you might check with independent leasing companies to see what they might offer you for a vehicle contract if the dealer offers are not satisfactory. I know one fellow posted an almost $200 monthly difference between doing the deal in DC and doing it where he lives...in NY, I believe.

That fellow is me - and Jim is 100% correct. Koons Jeep was quoting me a really great price for sale, but at least $150 more for lease then what I got in NY and they couldnt explain why.
I was tempted to buy it instead of leasing, but ultimately decided against it when my friend got me a great lease price

Quote:

Originally Posted by JohnC (Post 994181)
Not sure what level trim you are looking. I got a Limited with nav, sunroof, 20" wheels and a V6 for $485 a month. $300 total out of pocket and first month paid. That was for 36 months and 12,000 miles a year. I'm in NJ but only a few miles out of NYC.

What I got (in February, from a friend in a leasing company)
Limited with nav and sunroof - $415 / month, 36 months, 10k per year, $1000 out of pocket
I ended up getting a Limited with Lux2, nav and 20" wheels for $465/month, 36 months, 10k per year, $1360 due at signing.

The way I negotiate leases is on monthly price. I know it goes against what is suggested (everything I've read says to negotiate based on price of car) but it works for me.
Dealer A - offered me $435 / month
Dealer B - offered me $415 / month
If its the same terms - I dont see why I cant negotiate on monthly price.

TechBlogTv 03-19-2014 12:06 PM

Re: Leasing Deals and Strategies
 
Quote:

Originally Posted by JohnC (Post 994181)
Not sure what level trim you are looking. I got a Limited with nav, sunroof, 20" wheels and a V6 for $485 a month. $300 total out of pocket and first month paid. That was for 36 months and 12,000 miles a year. I'm in NJ but only a few miles out of NYC.

My trim as a JGC Limited + Diesel + Lux + 20" Wheels.

I was offered $585 for 36 months and 12,000 miles with no money down besides first payment. The residual was 57% and the money factor was .00061.

SW03ES 03-19-2014 05:10 PM

Re: Leasing Deals and Strategies
 
The most important strategy when leasing IMHO is to become an expert on leasing beforehand. Understand it, understand how to calculate payments longhand while you're there. I have never leased a car where I did not know significantly more about leasing than the dealer...including the finance people. That includes luxury car dealers who do much more leasing than Jeep does.

The other thing is, in my experience if you want to lease you're better off on a loaded Limited than a basic Overland. Lease terms are better on the Limited...for some reason.

Quote:

Originally Posted by zhenya (Post 994188)
T
If its the same terms - I dont see why I cant negotiate on monthly price.

The answer is that you can, as long as you understand the terms and have already reached the bottom of the negotiating floor on every facet of the lease, MSRP, MF, wrap in costs, etc.

The reason we tell people not to negotiate based on the payment is because they are unfamiliar with how leasing works, or what a reasonable cost is. If someone just walks in off the lot and the guy says "You can drive this $45,000 Jeep for $650 a month"....hey...that sounds great...if I finance it the payment would be $800! Maybe he negotiates them down to $600. Super great! Well...had he done his homework he'd know he's paying $150 more than he needs to be.

Once you know what you're doing, you can tell in the payment if its right or not. Thats an advanced step, not a newbie step.

2012JGCOVERLAND 03-22-2014 06:44 AM

Re: Leasing Deals and Strategies
 
I know the MF for an Overland is .00005 w/ a 52% residual for 12k miles. THis is through Chrysler, it's the March national program. Dealers will mark up a reserve factor to pocket. You have to find that and is often the cause of higher quotes. I've been looking too and in OH the tax is put into the cap cost, if you then try to pay tax out of pocket its considered money down and goes into the cap cost making everything much more expensive. I can buy for cheaper and don't know how people lease expensive cars in OH. Look at edmunds general discussion forum on GC, there is a lease forum and the moderator posts all the factors for Limited, Overland etc. But make sure you educate yourself on how a lease is calculated or the dealer will hose you.

polizei 04-13-2014 04:30 PM

Re: Leasing Deals and Strategies
 
Can you guys help me!? I'm suppose to be ordering a 14' Limited 4x4 with 8.4A this week and I'm looking at leasing in Ohio.

I negotiated the following:

MSRP - $39,685
-$3,500 off MSRP (just over 4% off invoice)
= $36,185

$36,185 x 6.5% (tax) = $38,537 OTD

Price - $36,185
Down - $1,000
Tax - 6.5%
Residual - $20,575
MF - 0.00117 (2.80%)
Term - 36m
Monthly - $501.69

Total Cost = $19,060 ($6,353/year)

and

Price - $36,185
Down - $1,000
Tax - 6.5%
Residual - $20,575
MF - 0.0006 (1.44%)
Term - 36m
Monthly - $467.84

Total Cost = $17,842 ($5,947/year)


$33.85 (difference) x 36m = $1,218.60 savings

Now...the first two are generate from the Cars.com website, and don't factor in the mileage (15k/year). So...by dropping the MF from 2.80% to 1.44%, I would be saving $1,218.60 over the course of 36 months. Does this sound ok? Is my math good? What kind of Money Factor are you guys getting? I've seen anywhere from ~0.006 (1.44%) to the standard 0.00117 (2.80%) on Cars.com.

The quote the dealership gave me was:

Dealer Quote:

Price - $36,185
Down - $903
Tax - 6.5%
Residual - ???
MF - ???
Term - 36m
Monthly - $494

Total Cost = $18,784 ($6,261/year)

I have no idea what MF they have on that though...I just want a good idea of what I should negotiate going into the dealership. Also, VERY important, did you guys put any money down? I originally was going to put a down payment on the lease, but I've heard that if you total the car, your essentially completely out of the down payment??? I know there's GAP insurance in the lease, but that does NOT cover the down payment, correct?

Sorry for the length, I just have to make a decision soon and I'm not wanting to get screwed!


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