Greetings guys,
I’m brand new to this forum and I have never leased. My wife has her eye on a 2017 Sport in purple, manual transmission–clearance price at dealership is currently at $30,793…On Jeep.com they currently have a $359/36 month–$0 down, $0 1st payment, $0 due at signing and $0 security deposit…
However, MSRP from a similar build on the jeep.com site returns MSRP of $27,895 $259 per month for 48 months…
Of course , that is with 10% down and APR of 4.64%—Estimated Selling price/Estimated Capitalized costs of $29,038.
I have good credit–around 750 and I reside in 53095.
Suggestions are greatly appreciated–Thanks!
Hello There:
This is a generic copy + paste answer to your question about how I can get a better deal.
# SELL PRICE SELL PRICE SELL PRICE.
Remember that dealers make money based on the following. (Sell price + Incentives + Holdback (look it up for each car sold the dealer gets around 2% MSRP) + Volume Discount (secret ask someone on the inside)) - (INVOICE). Check out the wiki for sites on what other people have paid including NADAguides. Again, that’s (Sell price + Incentives + Holdback + Volume Discount) - (INVOICE)= Profit.
For dealer holdback numbers: https://www.edmunds.com/car-buying/dealer-holdback/
Which sites do you use to do research? (Updated 08/10/17 Alt Lease Calc) [Library]
# INCENTIVES
These are programs made by corporate to give to dealers so they have more room to discount cars. Autobytel has lists for each make and model. However, make sure you are eligible before barging into the dealer demanding the moon. DO not let the dealer factor this into the sell price discount. They get reimbursed for incentives.
# MONEY FACTOR
This is the bank’s profit, or in other words, interest. Go to edmunds (again info on wiki) to find the BASE MF for your vehicle. Dealers will sometimes mark up the interest and pocket the difference. This is where Edmunds comes in. Don’t get got.
## MSDs.
Many carmakers allow REFUNDABLE MSD (multiple security deposits) to lower your MF aka interest. MSDs are simply monthly payments paid up at the beginning of the lease and refunded at the end of the lease. No questions asked even if the car is totaled (assuming insurance pays off the rest of the lease).
# Fees
Look up the lease acquisition fee for your brand and other user’s average standard doc fees. Acquistions fees may be marked up so for example: MB’s base acquisition fee is $795. Many dealers mark this up to $1095 which you then have to call them out on.
In terms of doc fees, for example NJ is usually ~$499 and Florida can get up to ~$1000. Remember doc fees are sometimes the finance manager’s cut so they can be negotiable. However, lease acquisition costs are usually not, but why not ask?
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