Got the following offer, just want to see if it is fair with everything considered.
2020 Pacifica Touring L Plus
Includes both the Tire and wheel Group and Advanced SafetyTec Group
Trade-in, not turn in, my current lease that is a 2017 Pacifica Limited with 4 payments left totaling $2,400 ($600/month payment). Was told this was the best way to eliminate the $2,400. I have attached the offer, the window sticker, and my current payoff for the vehicle. Was also told each payment I make on my current lease will deduce me new lease payments by about $20 roughly.
Why are you trading early? I see no advantage considering a rather standard dealer discount, bad RV, not very good MF, and almost no post-discount incentive. Are you over the miles on current vehicle?
I also don’t understand what you mean about trading vs turning in. If they are telling you that the payments are still due and being rolled into new lease, then you are turning it in. If trading, they’d be discussing negative equity, not remaining payments.
BTW, you can get an Odyssey Touring for way less than that. Even Rodo has them for $528/mo with $528 DAS for 39/15k with my 6.625% tax rate included. Roll in $2400 and it is still right about $600/mo. I like the Pac, but not for more $ than the Honda, IMHO.
I don’t see the attachments you mention, so I can’t speak to your trade. Did you run it through Carvana/Vroom to check their offers?
Also, doing a search there are not a lot of Pacifica vans in a 100 mile radius of my area. I currently have a Pacifica and love it. I was thinking I might get a good deal on a 2020 from a dealer trying to make room for the new 2021 model coming.
The dealer said he would just trade in my current lease. He would value the trade at enough to cover to the negative equity instead of rolling in the $2,400 into a new lease.
I don’t need riddles. To me it seems if I pay more off on the lease the the payoff on the entire vehicle is lower so more of the trade value can go towards the new vehicle which lowers the price. If I am wrong let me know but no need for riddles.
Did you look at what your current car is worth with trades at other dealer (Carvana, vroom, algo, carmax, etc), figure out if they are over compensating your trade and cutting your discount, or under compensating and over doing discount, etc.
Use the search button (top right), search other Pacifica deals, and figure out if your discount is normal, high or low.
Go to forum.edmunds.com search up the Chrysler Pacifica + forum + edmunds, and register an account via google, ask for money factor incentives and residual for your zip to find out if they are adding to your lease’s rent charge (money factor) by marking it up or adding to it.
Ask your salesperson if the lease is through Chrysler capital (often said as Chrys Cap, etc), or another bank like Ally or USBank.
He claims to be doing you a favor with the valuation to cover your negative. So if you pay 2 more months, does it make sense that he’d overallow to show positive equity? I think not. It is not a riddle, it is obvious, as long as your statements are accurate.
I’m shocked anybody would pay near $700/mo for a minivan of any sort. Chrysler’s website is showing me $399/mo with $2400 DAS on a Limited with $47,340 MSRP. My real quick back-of-the-napkin suggests that would come to $598 or so with all fees and taxes, 15k/yr, and $0 DAS.
First off the documentation you’ve attached shows no accounting for a trade-in, so we have no idea what value they are giving you or how much negative equity is being carried over into the new lease. Given the quote from Carvana, there should be under a $1000 gap, so you need to understand what value the dealer is providing and get them to match Carvana.
Second, I do not see any tax credit for the trade-in on the sales order. Since you’ve already paid your sales tax up front, in full, on this unit, you would be much better served buying it out yourself and then treating it as a standard trade-in. For VA, going dealer to inventory on a lease buyout bypasses the tax benefits because you never own it.
Third, this lease program is pretty terrible. You are paying almost $25K to rent this car. It would be cheaper to finance the vehicle out over 72 months. You don’t appear to reference any incentives, but you should be able to get a $500 TDM for either PenFed or Truecar. You should also look into conquest and loyalty for another $500. These should all stack because you are not using Affiliate pricing.
Fourth, what’s up the with the security deposit. Do you not qualify for Tier 1? I am presuming you are borderline if CCAP is asking for a MSD.
Well, I only want the vehicle for 3 years so would that still make sense for the 72 months. If I did the 72 months finance I would want to plan on trading it in for a new vehicle in 3 years still.
As I stated earlier, you are going to have to run the numbers to see if it makes financial sense. My wife financed her 2017 Pacifica three years ago. She plans to keep it for a while (She has put on more than 50k miles on it).
I made the finance suggestion for a couple of reasons:
You seem to like the Pacifica - You are coming from a 2017 model.
You “should” have some equity after 3 years of ownership. You could always trade it in for another one.
