2022 Grand Cherokee 4xe Base deal for demo vehicle

Ask the Hackrs
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1

Dealer offered 8% off MSRP for demo vehicle with 3500 miles on it. They said they’re agree with the terms but the price sheet doesn’t match with the one that I created with leasehackr calculator.

  • Region: Chicagoland, IL
  • MSRP: $63955
  • Dealer discount: $5116 (8%)
  • Incentives: $12,500
  • Terms: 24 months / 10k m / $0 down

I have two questions.

  1. Is 8% good for 3.5k miles demo?
  2. What’s wrong with this price sheet? Because over the phone, the manager said himself money factor is 0.00057(1.37%), and the residual is 59% but the monthly payment doesn’t match with that.

Price sheet from the dealer:

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image1465×303 64.4 KB

My calculation with same terms:
Calculator

Edit: updated sales tax.

2

Take a look at the Marketplace and see what you can get for a new one.

Apples to apples, so either compare a % discount at buyrate against another at buyrate, or compare max markup against max markup.

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3

Are you in chicago proper? One does not lease if they live in Chicago.

There may also be a per mile penalty for the demo mileage.

4

No, I live in Cook County suburbs. This particular dealer located in northwest suburbs. I didn’t know such a penalty exist. I’ll ask them, thanks!

5

Which Cook Country suburb has 9.75 tax rate?

6

Palos Park, Orland Park etc… Some areas are 10% but regardless of that, the difference between the calculator and dealer’s sheet is huge.

7

I thought suburban cook county only has 8.25% auto sales tax. Auto sales tax is different from regular sales tax.

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8

When negotiating, I will recommend requesting a minimum discount of 15%, although a favorable deal would be a discount of 20%.

2 Likes
9

I was able to get 10% discount on a new 2022 right at the end of March in Indiana. I’d think for a demo you should ask for 12-15% range.

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10

Looks like you’re right! I always thought it was same as regular sales tax of your address.

11

What is the best way to search for demos? I recently contacted the dealer in Midwest and he would not want to take 17% off a fart GC with almost 4k miles on it.

12

This does not shock me

13

I am trying to get 12.5% right now, the dealer is at 11%. Any thoughts on this?

14

How much of a reduction in residual value/per mile penalty is there for the 4000 miles?

15

Tell them you’ll hold off for now, come back in a week or so (or even better just before end of month) and see if they give in. They’ll probably reach back out to you before you reach out to them if they’re a decent dealership.

Which dealership is it out of curiosity?

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16 
or even better just before end of month

This is something I was wondering. Do they willing to discount more at the end of the month for this specific vehicle? Because, the ones I talked to, kept saying that this is the last month to get the EV credit, incentives etc. Is it possible for them to act like ‘take it or leave it’ at the end of the month because it’s unknown next month?

17

They’re always going to try to create a sense of urgency. Sometimes it’s legit, sometimes it’s just a manipulation tactic. I haven’t seen anything to suggest the incentives are going away, the ev credit is going away, etc, but it’s possible they could be getting ready to pull lease support on the 22s.

Because this is a demo, I still would want to know what the mileage penalties are that go into calculating the lease payment. 11% on a demo may be a great deal or it may make it more expensive than you could get a new one for, depending on the loaner penalties.

1 Like
18

I was told there is no penalty for extra mileage over the phone today.

19

So do they just chop the 4k miles off your allowable miles? There’s always some sort of penalty on demos… either an rv reduction, a straight per mile charge, or the mileage counts against the allowable total

20

Sales manager told me that there is not penalty or Rob reduction. Do I trust him? Not, as we know much more about leasing that an average sales person does…

However, this doesn’t change the fact that the sales manager assured me that there is no penalty or RV reduction for 4K miles.