2016 Jeep Grand Cherokee limited 75th anniversary help

Ask the Hackrs
1

I have been negotiating with a local dealer on a JGC limited 4x2 75th anniversary in Georgia

36 month/15,000 miles
MSRP is 44,420
Discount 4,000
Rebate 6,250

Adjusted 34,170

Taxable fees (estimated) 991
Dealer doc 598
Tag fees 20
Gatavt 2503.20
Non tax fees 21
Net price 38,304.20

Monthly with $1,000 down is $576

I asked about rv and mf. He is going through US Bank with 48% residual and .00195 mf

The monthly payment is nowhere near the calculators. What am I missing? Is he just trying to get me into the dealership? I have a 2014 jeep close to lease end

2

What you are missing is all the signs to walk away.

1 Like
3

I was offered a 16 overland for less than $500 a month with just drive offs and that was with worse incentives.

4

I texted him and asked him to double check the numbers because the monthly looked extremely high. Even with the 2500 in taxes rolled into the lease. Wasting my time?

5

You got the MSRP from $44,420 to $34,170 – that is some good negotiating. That $10k off is usually good enough to get you a great deal. Your 48% residual is not great but 15k miles may explain part of it, probably much better at 10k miles but if you need it, you need it.

The residual $21,321 (MSRP * 0.48) which makes your rent (depreciation) charge $12,848 / 36 = $357/mo. Not awesome but the residual % is bringing this up but nothing you can do about it. So somewhere between $357, your payment went up by $219 (taxes and interest) which is pretty hard to do. I think the more realistic scenario is that they snuck some more things in there that put back most of the $10k you negotiated off MSRP

6

What i can only tell you is search my deal in the forum. Tell them to try another bank and i guarantee you the MF is marked up. 2016 Grand Cherokee Deal NY. I had only 10k a year and my residual was 57%.

7

2.5 k taxes + 0.002 MF + 48% residual results in the poor lease. You need to look for cars with higher residuals and better MF. Time for you to consider the QX60

8

Do you know if the residual should change that much from 10k to 15k miles?

57% vs 48%?

Not sure how residuals look but it’s gotta be cheaper than the over mileage charge

@ $0.10/mile * (5k/yr / 12) 417 miles = $42/mo extra “effectively” ($1,512 total)
@ $0.15/mile * (5k/yr / 12) 417 miles = $63/mo extra “effectively” ($2,268)
@ $0.20/mile * (5k/yr / 12) 417 miles = $84/mo extra “effectively” ($3,024)

Then back it into the residual … too much math for one day :frowning:

9

Not that much but at least 4% to 6% for sure. Plus do not forget its 2 months later and yours is a 4x2, which has lower residual. Dealer cant mark up the residual, only MF. Try Ally Bank tell the dealer. I think they had better residuals. Just out of curiousity what rebates you using?

10

Im not sure which incentives, but true car gave me $9,526 off msrp so it was not too hard to get them to 10k off.

11

Different rebates for leasing versus buying. Just wanted to compare versus my deal to see if i misses a rebate or not.

12

Most leasing companies vary the residual according to the following:

15k/yr: X
12k: X + 2%
10k: X + 3%

What you are seeing above is most likely two different leasing companies (US Bank vs someone else).

13

Agreed. Either different vehicle or, if possible, the same vehicle with a different leaseCo.

48% and .00195 = Buy it if you really want it or walk away.