I am in Southern NJ attempting to negotiate my first lease deal. I have my eyes on a 2019 Ram 1500 Big Horn V8 Crew Cab, 5’7" bed.
I have talked to a dealer who has quoted me a price. Here are the specs:
MSRP: $49295
Selling Price: $45907 (This dealer selling price is actually a bit lower than the “1% below invoice” affiliate rewards offer through my employer (which dealer says would be selling price of $46146).
Rebates offered $4250
36 month/12,000 miles
Residual Value: 55%
Money Factor: .00008
Money down:$0.00
Due at Signing: First month payment. No other fees. Dealer says tax and other fees are rolled into monthly payment.
Dealer is quoting me $471 per month
Leasehacker Calculator suggests it should be $428 a month(see below)
Additionally, there is a very similar truck with an MSRP of $50310 with a level 2 equipment group which has quite a few more options. Dealer says $4500 in rebates on that one rather than $4250, with a bump up to only $476 for the monthly payment under the same terms above. He didn’t give me the selling price on it, but I’d probably go with $5 more per month just for the extra options.
Also, I have a trade-in (2006 Saturn Ion 3 - 195K, fair cond. - not much but maybe worth a little on trade). Dealer is unaware of the trade-in at the moment.
I’m hoping to bring him down closer to the lease hacker calculator estimate, (I’d like to pay 425, but could live with 440-450. I wanted to hear some opinions if I could. Thanks!
Your calculator is pretty off. Registration is about $450, and I’m sure the dealer has a doc fee (average for NJ is about 500). Tax in NJ is 6.625 not 6.25
Both of those included, I get pretty close to $471
Assuming with these fees rolled in it approaches his monthly number, this would seem to be a fair lease price then it looks like. Crazy that it matches his number almost exactly. (I also didn’t realize to check the zero-drive off box to roll those fees in)
This was his first offer to me so I assumed he was shooting a bit higher assuming I’d try to talk him down.
I’m not sure how the current RAM rebates work ( buy vs lease), but on the buy side, you should be able to get the truck for close to 30% off assuming healthy dealer discount and either 15 or 20% RAM rebate (depends on how long the truck was on the lot). Plenty of reports (on 5th gen Ram forum) of people getting $50k Big Horns for low to mid $30Ks.
The salesman did quote me financing options. He offered 15% off this truck along with $7394 rebates. With $4000 down, he quoted me $543 a month for 84 months. $599 with zero down. Seemed a bit high, and I wasn’t sure if I liked the idea of such a long term.
Figured with the rebates on lease I was hoping to come in around $450 w nothing down on a 36/12K, but maybe buying is better? This will be my first lease so I also was kind of using it as a test to see how I like leasing.
Did he tell you what their interest rate is on the financing side? Seems awfully high! Check out local credit unions (or Penfed) - should be able to get something around 3%. Even if you decide to get rid of the truck after 3 years (if purchasing), there’s a pretty good chance you’ll have some equity.
84 month loans are going to be closer to 5% My local CU has really competitive rates and it’s 4.84% for anything over 72 months. Don’t get an 84 month loan, that means you can’t afford the truck.
On a RAM definitely buy. You can sell it after three years easily as long as you take care of it and you’ll be amazed at what your average monthly payment was.
@Buckpinne have you looked at other dealers? 30% off should be relatively easy to find
Thanks for the replies. Salesman didn’t provide the interest rates, and since it seemed high I didn’t ask. I haven’t checked out other dealers in my area. This is the first one I contacted. I’d consider buying if the price was right, and I could get about 30% off overall.
30% off isn’t impossible. I think the advice to buy is good given current promotions. I’ve been watching the RAMs very closely because I’d love to upgrade from my 13. But, I don’t think I could bring myself to make dump runs or Home Depot trips in a $60k vehicle!
Don’t plan on getting anything for your trade. It has zero value to the dealer.
Buckpinne - I just got back from Dodge Chrysler Jeep City down there in Burlington. I drove home in a blacked out Big Horn Level 2. It took some persistent prodding of several dealers to get the numbers I had targeted. One dealer in North Jersey looked at me like I was crazy.
MSRP: $50555
Selling price $44758 (11.5% discount)
Rebates/Incentives $3750
Residual 55%
MF .00008
36mos/36k miles
Trade-in: $3700
All fees and taxes baked in
$338/month
I did have a $3700 trade-in though. Without my trade, it would have been right around your target of $450. My MSRP was about $1000 higher than yours, yet they gave me a selling price that was about $1000 less than what your dealer is giving you.
If you want to give them a shot, PM me and I’ll tell you exactly who I dealt with and how I went about putting my offer on the table.
I ended up going with a Patriot Blue 2019 Ram 1500 Big Horn with a level 2 equipment group and which had several upgrades I wanted (V8, 20x9 wheels etc.) The one I landed on had a few extra optional features as well as the 12" nav screen which I was really happy about, and had been trying to find in a Big Horn.
MSRP ended up a at $53,105. I got $4250 in rebates, and the selling price ended up at $46,580 (12.3% off MSRP). I had the dealer roll in all state taxes (NJ) as well as any fees into my monthly payments.
Got a 36 month/12K mile lease, put $0.00 down and had no trade-in. I ended up at $474.00 a month which I felt was fair due to the options. I felt like the dealer treated me fairly and was really not high pressure.
So far I am very happy with the truck. Plenty of room for my kids in the back seat, and I love the large 12" screen. Although the screen is so large and clear I could see getting easily distracted by all the pretty colors.
Thanks for all the responses everyone, and good luck. This is my first time leasing, so I am sure I will be here and there both answering and asking some questions.
I honestly never looked into a 24 mo. option/residual etc. This being my first time leasing, everything I had been reading seemed to point to 36 being the usual best term length In retrospect, I probably should have at least looked at 24 as well to explore more options.
I did not get the air suspension. I knew I could only afford a few optional add-ons. I believe the 4 corner Air Suspension was an extra $1795. I chose to find a Big Horn with the 12" Nav screen option instead which I believe was an extra $2095. I had to keep myself honest so I wouldn’t go crazy adding every cool option :). I do think the Air Suspension would be a great feature though, I guess it just comes down to your personal wants/needs if this would be worth optioning up.
For what it’s worth, from my perspective, the ride in my new Ram is really smooth as is with no Air Suspension. I had a brand new 2019 Ford F -150 Lariat 4x4 that I was driving as a rental loaner due to some flood damage on my wife’s car in a recent flood, (2nd driver on the rental) and I can tell you 100% that everyone in my family agreed that the Ram is a smoother ride. I am assuming it is largely due to the Ram having coil springs rather than leaf springs in the rear, but it could be other factors.
