[ominous24]

Just placed the order, the reason I went with the Overland over the Summit was because of this money factor. If you are in NJ/NY area, the dealer is Team Welsh Jeep. A dealer 10 miles away had a factor of .0018 on the same vehicle.

 

[SnoFire]

Did you negotiate the price or just lease from the MSRP?

 

[ominous24]

Used Tread Lightly. MSRP was $50,175, Invoice $47,567, FFP is what I got at $47,166.

 

[SW03ES]

Wow...thats incredible. Thats like no interest at all...

 

[SnoFire]

Ya, that's a good deal for leasing!

 

[AAAA]

I've never leased a car. Is it normal to have life insurance and accident and health insurance on the invoice?

 

[Srt8_hmi]

What does all that mean?? You have no payment now?

 

[ominous24]

What does all that mean?? You have no payment now?

The payment is 327.10. My trade was $9k and I put down $2500 cash.

 

[SMG1]

I'm not really well-versed in leasing, so bear with me. Don't they recommend not putting so much down ($11,500 in this case) on a lease since if you total the vehicle you've lost that money?

 

[Taws600]

How many miles per year?

 

[Srt8_hmi]

So it would be close to $650 per with no money down? That's not bad really. Why put that much down if rates are as stupid low right now? I got 2.39% for 75mos.

 

[ominous24]

I put that much down to keep the monthly low. It was either I pay more now and less later, or less now and more later, the lease amount is still the same. Just a preference, that's all. I like having a new vehicle every few years so it works for me.

 

[Srt8_hmi]

You're doing better than most with the amount you were able to throw down. Kudos to you!

 

[xmonger]

Congrats on the order but putting anything down, let alone 11,500 on a lease is a big mistake.
If the vehicle is stolen or totaled early in the lease, that money goes up in smoke. As this is just an order, I would change this asap.

 

[mazdaspeed29]

Looks like a solid deal. On another note, I used to bring my GC to Team Welsh for service when I worked in the area and they are great people to work with. A relatively small place, but always helpful and willing to go above and beyond.

 

[tgfisher]

What is the mileage allowance on the lease?

 

[SW03ES]

I'm not really well-versed in leasing, so bear with me. Don't they recommend not putting so much down ($11,500 in this case) on a lease since if you total the vehicle you've lost that money?

Correct. You should never put any money down on a lease. All it does is prepay lease payments, so if you take that money, divide it by 36 you get the savings in the payment. Much smarter to put the money in a savings account and make payments/portions of payments out of that.

If the car is totaled there is no provision for prepaid lease payments, which is all the downpayment is.

I too would urge the OP not to put anything down.

I've never leased a car. Is it normal to have life insurance and accident and health insurance on the invoice?

I've leased a lot of cars, and I have never seen those items on an invoice, or been offered those items. It lists LOE insurance too, loss of employment.

At least they are zeroed out on the OP's invoice...

 

[GCOverland]

Congrats on the order but putting anything down, let alone 11,500 on a lease is a big mistake.
If the vehicle is stolen or totaled early in the lease, that money goes up in smoke. As this is just an order, I would change this asap.

I would suggest to the OP that he sets aside this huge downpayment (i.e. on a savings account) and divides it by 36 and uses that fraction every month towards the higher lease payment. At that money factor, anything else would be an unnecessary gamble due to the risks you just mentioned.

EDIT: I just read SW03ES's post....so +1 on that.:thumbsup:

 

[ominous24]

Thanks for the input guys. I have about 6 weeks to figure out exactly what to put down on this lease. I see what you guys are saying and it makes a lot of sense. I will stick with my $2500 down, that takes my monthly to $600, then I will take the $9k, put it in a savings account and draw payments from there.

Thanks guys, this is my first lease and you all have been tremendously helpful!

 

[Copefree]

I see what you guys are saying and it makes a lot of sense. I will stick with my $2500 down, that takes my monthly to $600...

How is that possible?

If you put NOTHING down, I see your payment as being $607.50.

$47,961 (cap cost) - $26,091 (residual) = $21,870 (depreciation you will be paying over 36 months).

$21,870 / 36 months = $607.50 + tax and lease fee (money factor) so ~$665 or so. That is with $0 down.


How did you get to that $600/mo. number with $2,500 down?