Working on a 2018 Wrangler JL (new body) for my little brother.
Car is the Unlimited Sport S with some premium options including Alpine sound, backup sensors, blind spot detection, upgraded rear axle, and remote start.
MSRP: $42,880
Sales Price: $40,400
Acquisition Fee: $795
MF: .002
RV: 73%
Term: 39 months
Miles: 12k per year
Cash at Signing: $1,125
Payment: $415.59 including tax rate of 7.75%
LH Score: 8.3 years
The dealer is talking about an MMR value for this car of $41,000 which is hurting my monthly payment. I have a deal on the table for $375 per month including taxes with zero out of pocket and zero drive offs for a $39,375 MSRP Sport S that does not have the Alpine option that I need. I feel like there is major disconnect between my payments for such little difference in MSRP (notice cash at signing)
What are your thoughts and any insight on to what this MMR value that US Bank is implementing would be helpful.
Bob, MMR is the max amount that can be residualized. Every dollar the MSRP exceeds the MMR is a dollar you pay, rather than 27 cents on the dollar with a 73% residual. No lease makes sense over MMR. You need to find a vehicle below MMR or purchase/finance.
Jason, one other question. I’m being told US Bank is setting the MMR. Do you know if I can call lenders directly to setup a lease or it has to be done by their provided options, ie Ally, US Bank, Chrysler capital etc.
Just fyi, group deals basically never work. Our goal is to get these things as cheap as possible by catching the dealer at the right time that they are willing to take a loss or break even on a deal to make their numbers work. Very rarely will you get a great deal on a group unless end of quarter bonanza where there is a ton of manufacture cash on the table and the dealer doesn’t have to discount much.
However I definitely encourage you guys to work together to canvas several dealers and work them down on your own separate deals. Knowledge is power in this game.
