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Discussion Starter · #1 ·
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 jeep.com 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!
 

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I would not put any weight on the Jeep.com 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.
 

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To simplify my calculations, I've created a Google Spreadsheet. You can view it here: https://docs.google.com/spreadsheet/ccc?key=0AmR-pA-VrYPTdGNxZVdseGctTUZNQ0szbndQTXRlVVE&usp=sharing

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.
 

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Discussion Starter · #7 ·
Torifile,

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!
 

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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 penfed.org. 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.
 

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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.
 

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This is true, just something to keep in mind.
 

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I thought Chrysler was done with Ally starting last Monday? Or does the contract end on the last day of the month?
That's been the rumor but I haven't seen confirmation of it. You know, it's so odd that it's so hard to get real, straight answers about leases from dealers. The basics like residuals and money factors should not be withheld from consumers. Why isn't it better regulated? It's like my credit card company trying to keep my APR hidden behind my minimum payment or something. Odd.
 

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I have heard that as well

torifle said:
That's been the rumor but I haven't seen confirmation of it. You know, it's so odd that it's so hard to get real, straight answers about leases from dealers. The basics like residuals and money factors should not be withheld from consumers. Why isn't it better regulated? It's like my credit card company trying to keep my APR hidden behind my minimum payment or something. Odd.
Its terrible, most people who lease just get absolutely screwed because its impossible for them to calculate everything they need to keep the dealer honest.

I don't think I have ever been presented with a lease that was calculated correctly the first time...
 

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Discussion Starter · #15 ·
The update I received yesterday from my dealer was that for an overland 36 month lease with 15000 miles the new resdiual is 48% (down from 50%) and the money factor is 0.00034. There is also a $1,000 incentive for competative lease conquest that applies to just about every vehicle out there, as long as it is a lease.

Also, after numerous "tests" it appears that the jeep.com website calculator is "fairly" accurate and does include tax into the calculation although it does not indicate so specifically on the website.

I have not had time yet to verify the math but my dealers calculation on a 36 month lease was $606/month. The vehicle is a 4x4 overland v6 with a cd player. MSRP: $47,185, negotiated price: $43,557.

Just some data.
 

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The update I received yesterday from my dealer was that for an overland 36 month lease with 15000 miles the new resdiual is 48% (down from 50%) and the money factor is 0.00034. There is also a $1,000 incentive for competative lease conquest that applies to just about every vehicle out there, as long as it is a lease.

Also, after numerous "tests" it appears that the jeep.com website calculator is "fairly" accurate and does include tax into the calculation although it does not indicate so specifically on the website.

I have not had time yet to verify the math but my dealers calculation on a 36 month lease was $606/month. The vehicle is a 4x4 overland v6 with a cd player. MSRP: $47,185, negotiated price: $43,557.

Just some data.
Plug those numbers into the spreadsheet above and let me know if it's what you're getting.
 

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Discussion Starter · #17 ·
Torifile, The numbers come out within $2 per month. The difference could be that I am estimating the fees and could be $100 off somewhere.

The trade-off beween lease and buy is around $600 but to me thats still worth the "insurance" in case the truck has issues.

Thanks for sharing your calculator. Its a nice tool!
 

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The update I received yesterday from my dealer was that for an overland 36 month lease with 15000 miles the new resdiual is 48% (down from 50%) and the money factor is 0.00034. There is also a $1,000 incentive for competative lease conquest that applies to just about every vehicle out there, as long as it is a lease.

Also, after numerous "tests" it appears that the jeep.com website calculator is "fairly" accurate and does include tax into the calculation although it does not indicate so specifically on the website.

I have not had time yet to verify the math but my dealers calculation on a 36 month lease was $606/month. The vehicle is a 4x4 overland v6 with a cd player. MSRP: $47,185, negotiated price: $43,557.

Just some data.
What the down payment on that figure (cap cost reduction)?
 

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I was quoted around $490-500 per month with 2K total out of pocket on a 14' Limited with nav, V6. Sticker was around 42k. Problem is i was told this car has the LUXII package which it did not...I argued that the LUXII package should have the LED headlights and i was told no they don't. Also the HEMI won't be available until October :rolleyes:

Came back home and verified here on the forums that both options are available on the Limited. I also found a handful of Limited HEMI's around my area and with the LUXII pkg. Not sure if i really want to go with the HEMI.

How much should i able to beat them up on the sticker price? A Limted HEMI with the LUXII pkg is around 46k, 44k with the V6. Plus i was told i can't get these options when i actually can, I had to do the work for them!
 
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