I have one month left on my current Nissan lease and was doing some test driving and planning ahead for when I will be looking to make a deal next month… I know that the numbers will be different in April but I wanted to get an idea about the current market. I have leased 3-4 vehicles so I have some experience but I wanted some input into the deal offered and how to approach it next month…
Jeep Grand Cherokee Limited
MSRP - $43,985
Cap - $34,750
Residual - $24,191
Money Factor - .00241 or 5.7%
36 months/10k miles
$0 down - $492/mo which includes tax
We didn’t get into total DAS as far as fees and such but generally, with first months payment, I’m used to about $1000 DAS all included.
So i know that that cap cost is very good and the residual is ridiculously good… but of course they’re jacking up the money factor to make their money. so question 1… i have seen people saying ‘just google “xxxxx car MF” to get the MF’ and i have tried googling the ‘base money factor’ for several vehicles and have never found anything… is there a trick to this? it seems that the base money factor is subjective to what the each specific dealer is offering.
question 2… with those numbers i get $435 before tax… i don’t think there would be a $57/mo payment for tax but i guess i could be wrong. but assuming that is the tax, what should be the approach to move this number down… i could get a MF from another Jeep dealership in the area and then go back to this dealership and ask for a lower MF but i assume that would cause the residual to go up. I’m confident i could get this lease lower but was curious as to how low you guys think i should aim for.
Also… any other suggestions for comparable SUV’s in this price range that you guys have experience with and like would be cool to hear. I haven’t had an SUV in about 10 years and am excited to get back into one.
I’m beginning to look at the Jeep Grand Cherokee Altitude in CT. If a dealer is willing to take about 10% off the MSRP, (don’t know if that’s even possible) and then use all the incentives Jeep is offering this month, I think I could get a good deal. Otherwise I think the lease would be too high for a Jeep.
Here is one of my confusion points and if this is not the right place to ask this then please let me know…
My understanding was that they can inflate this % but is ‘they’ only the bank with no dealership involvement? like someone mentioned below, the MF for March looks to be .00007. So if you do the math with the cap cost and residual above, it comes to $294/mo before the MF. the .00007 MF would add something like $5 to that monthly payment… where the .00241 is adding $142/mo…
The money factor can be inflated by the dealership, but it cannot be lower than the “buy rate” which is set by the bank. Usually there’s a maximum amount they can inflate the money factor, but I highly doubt if the buy rate is .00007 that they can inflate all the way up to .00241.
I think what’s happening here is you’re getting the money factor for two separate financial institutions. The .00007 seems a little low for a Chrysler Capital money factor. The .00241 makes way more sense for them. FCA and Jeep dealerships use multiple banks to pass leases (Ally Bank, US Bank, local CU’s) so Edmund’s will not give you an accurate picture of what the MF should be since there’s so many different possibilities. You can verify Chrysler Capital’s numbers on Edmunds, I believe. If I’m wrong, I’m sure one of the more knowledgeable members can correct me.
With that being said, I still think the offer is too high, though.
Are you sure your initial quote is through Crysler Capital? Seems like you are mix and matching RV/MF/incentives, which you can’t do. That cap cost sounds way too low too. It probably includes incentives which need to be taxed and might only be available with 3rd party bank deals.
Jon, i do not know what bank is being used. I used the .00007 MF number as an example as another user posted that number. I am not mix and matching, but just used that as an example to show the discrepancy from the MF that they gave me. I did not counter any offer as I am still a month away from making a deal as my current lease expires end of April… Hence why I am here to clarify a few areas of confusion i had and for the experts to take a look at this deal and hopefully give me some advice as to how to approach negotiating when I am able to.
I agree, the cap cost sounds very low, but that was indeed the offer in writing waiting to be signed. Which is why I am a bit perplexed when you say that the MF is set by the bank and I take that as you implying that it is non-negotiable as this is something the dealer does not set. So I am in a place of a very low cap cost (this is good) and a very good residual value (this is good), but a very high MF.
You need to find out what bank is being used to determine what the RV/MF/rebates are. There’s no point asking for .00007 MF if the deal is through USBank or Ally.
Thanks Jon… I think I am not doing a good job explaining what I am asking you. Forget about the .00007 MF… We are in agreement that the cap cost is very low and the residual is very good… I don’t think there is much room to work with on getting these numbers lower…
so my question from the beginning was… how would you then negotiate this offer lower? or is this simply just a bad deal due to the high MF that the dealer cannot budge on as it is set from the bank? I think we can all agree that $492 is a high price for a lease on this vehicle.
You need to find out if the MF is the buyrate MF or if the dealer is inflating it. You also need to find out how much the rebates are. If it’s maInly rebates that are lowering the cap cost, then you might be able to negotiate a bigger dealer discount.
You should also run the deal through other banks to see which program is best to use.
Right… how do I figure this out?.. like i said, I have done a lot of googling and i cannot find the ‘buyrate’ MF… i looked at the Chrysler Capital site and I do not see it there… and the one rate that a user gave from Edmunds you said was wrong…
Got it - makes sense
I assume this is something that I would rely on the dealer to do at my request?
PhillyGuy above kindly linked the Edmunds thread that provides the .00007 MF that your suggested google search returns. But thanks for that… Solid passive aggressiveness also…
Thanks - I had a look at their site when you posted it earlier and will definitely be calling them.
I was just also trying to understand a few points of confusion I had… It’s almost like finding and understanding how to make a deal on a car is a difficult moving target that they make online resources and forums for. I must’ve slipped past Jon’s threshold for tolerance on that one
I just made the final payment on my current lease and turn it in in about a month. So I have a month to procure another vehicle and figure I will start when April incentives come out considering my current vehicle is paid through April. I’m happy to update with other offers that are negotiated next month and looking forward to seeing yours too. Hoping to see at least the same incentives or better in April - $4k for Altitude and $2,750 for Limited
Keep me posted next month, I’m kind of slow-playing a few dealers, monthly isn’t quite where I want it yet for the JGC so hoping April’s incentives improve as well. Will keep you up-to-date too.
Keep me posted next month, I’m kind of slow-playing a few dealers, monthly isn’t quite where I want it yet for the JGC so hoping April’s incentives improve as well. Will keep you up-to-date too.