2018
Jeep, Wrangler JK, Rubicon :
36/12,000:
95128:
Chrysler refuses to lease with a money factor of LESS than .00220, its killing my deal.
Most dealerships in Northern California are doing $6,000 off MSRP, residual is 64% (Rubicon) so not too bad in my eyes.
I’m just not about to do a 5.5% interest rate?
I’ve been to four dealers and although they honor the $6000 off MSRP they will not negotiate on the money factor.
Does anyone know a work around to this?
My understanding is that Money Factors are not negotiable. I would suggest working with dealers (or brokers) that lease through US Bank or Ally. I don’t know the residuals for Rubicon, but US Bank residuals on Sport and Sport S are 79% and 75%, respectively… which is higher than Chrysler Capital’s 69% for 36/12k on a Sport S. So I’d look into US Bank.
I’m a member with Star One credit Union, i wonder if they finance leases? If so they have killer 2% interest rates on auto financing (not sure on leasing)
I would not no where to start when dealing with a broker?
At 6% I had deals ranging from $400-500 a month. Just by reducing the interest to 3% it made a $50 swing with the lease calculator. I think it can be done I just need better financing.
Yea the residual on the Sport is 74% I believe
The Rubicon is 64% through Chrysler unfortunately.
Obviously leasing a Sport makes more sense but I really want the Rubicon drivetrain options.
in So Cal sdccu does leases with cheap interest but they do the RV way less then the manufacture. Your payment is about the same but in the end you owe way less.
let me know which lender you end p going with.
Wranglers is one of those cars it makes 100% sense to purchase over a lease. Unless some ultra loaded model. The residual value on them is insane for trade in 3 years later.
Honestly, get a JL and finance it, you’ll be way better off with a better vehicle.
Yea the wrangler and G wagon hold value better than 90% of suvs on the road. Finance it and you’ll be better off than leasing.
Maybe I’m not understanding this right.
I thought high residual value vehicles were better to lease because the % that you theoretically are paying for (leasing) is smaller. Thus reducing the payments. Do I have this backwards?
I understand that if I buy a Wrangler for $35,000 and the residual is high that afte three years it might still be worth $35,000 or close to it but my overall payments are $600+ with little down on a $35,000 vehicle. Not exactly good for me.
You don’t have it backwards. Best leases are derived by:
When the Money Factor is high, it may overshadow the high residual value - meaning, the savings you would expect in a monthly payment from a high residual value vehicle, goes towards interest expense instead.
Ergo, if you can purchase a high residual value vehicle at a low interest rate, for, say, 72-84 months, your monthly purchase payment will be close to the lease payment, but you will be paying down the balance instead of wasting money on interest expense - so in 3 years you can sell the vehicle and recover the equity you’ve accumulated.
Spot on.
Plus leases are great when that high residual value doesn’t translate to reality. Such as BMWs. They say 70% residual value on 24 month 2017 x3s right now. However go look at what the trade in value is on a 2015 x3 with 20-30k miles and in reality it’s more like a 50-55% residual. It’s painful for anyone who financed, and is why BMW is taking a bath on cpo cars atm.
Meanwhile wranglers have fantastic trade in value, especially on the lower trim models, so better off finding a low interest loan and financing the amount.
I understand now, this all makes perfect sense.
I appreciate you guys breaking it down ft me.
Maybe I’ll attempt to finance the Wrangler since I get more discount off the MSRP and I get a healthy 2.49% APR on my loan.
The discount off MSRP should be independent of financing or leasing. However, the incentives/rebates can differ.
Three different Jeep dealers list $6000 off MSRP but in person will not honor that discount with lease, only finance.
I’ve asked why and I was told that the price discount reflects auto financing to buy not lease. I explained how that doesn’t make sense and I even brought up the fact that every dealer seems to use different residuals and thats concerning if I’m leasing through Chrysler each time.
Honestly the entire ordeal has been very offputting, four dealers have shifted money with different tactics always netting more than the calculator says and I’m not talking a few dollars a month variance.
None of the dealers have any integrity and they always resort to “well from our dealerships standpoint, why would we take a loss when these things sell themselves”
Then I look over across the street and see Chevy marking $10000 off their Silverados and I’m like damn if only I wanted a Chevy.
I want to walk away from Jeep, but I really want a new Wrangler lol
It’s taken great patience and will power to walk away from three different dealers 100 miles apart. I’m just not about to bend myself over and screw myself.
You should be negotiating a sales price BEFORE incentives are applied. That way, you can do apples-to-apples comparisons between deals. Also, negotiate via email instead of in-person.
$6k off MSRP seems good, but that is for the JK and not the JL I presume.
If you qualify https://www.bonusdrive.com/ gives $500 rebate and if you join treadlightly for $100 and wait 30 days you get 1% under invoice pricing, which I believe you can use for leasing.
Job, I like that idea. Then it’s in writing no pressure.
Yes I am.
Must Haves:
6 Speed Only
Hard Top
Want:
Rubicon or Willies
Grey/White/Gobi
I leased a JL Sport S from Felix - 80% residual and .0014 MF on 39/12k - see what he can do on a Rubicon. FYI- He’s in Socal - E-Mail: felix@conciergeautogroup.com
Instagram: @conciergeautogroup
Text: 1-517-505-6330