2016 Dodge Challenger SXT - how does this look?

Ask the Hackrs
1

Howdy chaps,

Big fan of this forum and the incredible advice offered here. I’ve been addicted to the forum since I first found it, and just started the process of emailing dealers to try to work out a best price on a 2016 Dodge Challenger SXT base, with a couple of extras bringing the total MSRP to 29,690. I emailed for a quote for leasing, $0 down/36mths/10k miles per year, and received the following numbers:

MSRP: 29,690
Dealer discount: 3563
Cap cost: 26,127
Add ons (VTR vehicle theft registration, dealer said it’s mandatory): 296
Sales Tax: 1125
Acq Fee: 595
Dealer/State fees: 390.75
TOTAL PRICE: 28,534.30

Rebate: 5000
Net Residual: 18,110.90
Drive Off: 5000
Miles: 10,000
Monthly Payment options:
$0 down, 36mnths, res 61%: 286.45
$0 down, 39mnths, res 59%: 289.46

So, a few questions! I thought I’d read somewhere that I can ask for the rebate to included in the Cap costs, rather than used as a downpayment, but the dealer says differently - “Rebates act as cash, therefore, can not be added to the cap cost. All rebates are cash down.”. Are they correct? From everything I’ve read on here, I don’t want to use the rebate as cash down.

If this rebate is directly from Ally, can I also add the $4000k California rebates I’ve seen on the Dodge website? This is what Dodge.com lists as available on this model: $2000 California 2016 Bonus Cash CACGA, $2000 California BC Retail Consumer Cash 71CG1

I asked why the MF was so high and whether it was through Chrysler Financial and received the following response:

“”We are going through Ally Financial because they have a bigger rebate which is $5,000. Chrysler Capital only had $2,000 worth of rebates. Ally Financial uses interest rates for leases which in this case is 7.25%. When configuring deals, we go through all banks to see who has the best program… in this case, Ally has the better program.“”

My understanding was that the MF should be around 0.00165 through Chrysler, shouldn’t Ally be similar or better than this? At least it shouldn’t be near 7.25% APR, right?

Any thoughts or advice very welcome, the dealer seems pretty honest when I press them on things, so hopefully we can get this deal way down from this price…

Thanks in advance

2

Ok different rebates for leasing vs purchase so on dodge website calculator use leasing option to show rebate. Banks use different rates.

3

This doesn’t seem like a good deal at all. Several people on the forum were leasing 2017 Scat Packs for mid-$300s last month. Ally typically has a much higher APR… I was actually quoted 10.5% thru Ally for a 2016 Scat Pack.

4

I went to finalize the details on my Challenger lease recently and I noticed the MF was much higher than I was quoted. I got the same response as you. I asked them to run it through Chrysler to see what the figures looked like. The finance person and the sales manager we SO annoyed with me, but they quoted me a lower MF when I decided to move forward on the lease. After about 90 minutes in the finance office, I finally agreed to the Chrysler Capital deal and it worked out to $10 less per month than Ally. If they’re pushing Ally first, they’re making more on the deal…you can take that to the bank! BTW, I think you can get a better deal on this vehicle.

5

Thanks for the replies. I agree, it’s not a great deal currently, I haven’t pushed them at all on the dealer reduction yet. I wanted to work out the rebate cash thing first. Is it true that the $5k cash rebate has to be used as a downpayment? I thought I’d read on here somewhere that I can ask them to roll that into the cap cost?

I’ll ask them to look at financing through Chrysler and see what they say…

6

Looks like a solid deal to me. It’s not “epic” but it passes the 1% test: your payment is less than 1% of the MSRP, and $0 cash out of pocket at that.

The dealer is correct; the $5,000 in rebates is used as a capitalized cost reduction.

If you’re curious, here are the US Bank numbers:

36/10K: 55% RV, .00139 MF
All: $3,000 IDL lease cash + $2,000 bonus cash
Targeted: $1,000 lease conquest, $500 military, $500 lease loyalty

US Bank’s residual is 6% lower than Ally’s, but the MF is lower.

7

How do you get us bank numbers? Would like to know them before hitting the dealer which usually always lie about the numbers

8

Lease for $165 a month, $0 Down for 36 Months, 10K Miles per Year.

9

@gabbee - can you share the link to that deal? Is that a Dodge promotional deal or from a specific dealer?

10

Thanks Michael, that’s very useful. Dealer is saying the rebate can’t be used as Cap cost reduction, it has to be used as money down?

11

Money down is cap cost reduction.

12

Sounds like the dealer is telling you that you can not have the $5,000 as cash back, it must lower the cap cost.

13

I think you are overthinking this. Using the rebate as cash down is a problem because…?

Whether a rebate lowers your cap cost or pays your drive off costs, it ends up being roughly the same thing. Use the calculator both ways and you’ll see your total lease cost is the same (give or take a small amount due to interest).

14

Bayside Chrysler http://www.baysidechryslerjeepdodge.net/specials/new.htm

I’m currently working on a deal with them. if u want i can give you the salesman info. nice guy and honest

15

If niether works for you guys in NY, i can give you my salesman too at easthills jeep. Again, sometimes i wonder if there is price colluding amongst some of these places because they seem not as inclined to make a deal.

16

@gabbee Thanks for the info. I’m not near that area, but if you close the deal can you post the dealer price and incentives? Stay warm , I heard you had a bunch of snow out there.

17

I had read on here that putting any money down is a bad idea…because if you total the car you lose that money straight away. But I guess that’s only when it’s your own money as opposed to rebates. I hadn’t quite made that connection. You’re right, overthinking it. Thanks for clearing that up.

1 Like
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I sure will…thank you! lucky i still have an AWD suv for the snow. Chargers n Challengers suck really bad in this weather.