I filled out the calc with a deal I want to offer on a lyriq. I know 15% discount is a stretch but it’s been on the lot over a year.
It seems too good to be true and I’m guessing I am doing something wrong.
I am currently leasing a 2022 Jeep Grand Cherokee 4xe and want to get out of it. For obvious reasons.
Any guidance on the calc would be appreciated
How many months do you have left on the GC? It can’t be -$8,000 bad.
17 payments left. Got it in May 2023. I think payoff is about 38000
What is so obvious about wanting to get out of a JGC 4xe lease 17 payments early? Are you simply planning to make all the remaining payments and return the vehicle early?
I think 2022 JGC 4xe are going for about $30K at auction right now. You hate it that much?
I’ve had 8 recalls on it since I got it. Service with Jeep is a nightmare. I am hoping to roll the negative equity into the new lease.
Let’s address your concern…
Your money factor is not valid. An MF is of the form .00XXX. As a super supporter, you have access to the MF buy rate in the LH Calc. I changed it to .00122. Also, you’re showing 8000 of negative equity. Notice that this throws off your tax calculation which shows negative tax. If you wish to capitalize your negative equity, it’s best to add 8000 to the sell price to get 61712. I assume capped negative equity is taxable in your state, but you need to confirm.
Here is my LH Calc
??? Let me know.
Any chance to lemon it?
The MF on my calc is also .00122 so not sure what you mean about that, I used rate finder. Also I’m not seeing anything about negative tax on my calc.
I’ll have to look into the taxable negative equity for AZ, I’m not sure about that.
I’ve tried, was denied by stellantis and I don’t think I have a case since it was never in the shop long term. I’m just over the whole experience of owning a Jeep.
You LH Calc in your first post shows…
The MF = 0.00122083 and under “Due at Signing” upfront taxes: -$162
There is a negative (-) sign in front of $162.
Did you talk to a lawyer? I never had the experience, but I’ve seen people recommending this path a lot here.
Oh ok I see that now. Thank you for pointing that out. How would I go about offering this deal to a dealer with my negative equity? Ask for 61712 selling price but that includes my negative equity?
Do not send them a copy of the LH Calculator output as some have done. They will have you for breakfast. Craft a one-page professional-looking lease proposal (the round peg, round hole won’t work- this is only an example and may not apply to your situation) and email it to the sales manager (SM), not a floor salesperson as they’re often Mickey D order takers and lack knowledge. If you send a proposal like the one below, I promise you that they will put their toys and board games away… they won’t screw with you because they know they can’t.
The negative equity is capitalized and highlighted in yellow. You need to establish the market trade value (CarMax, KBB, Edmunds, etc).
All numbers should be accurate otherwise, you’ll lose credibility. Negotiate via phone/email. Once an agreement is reached, ask the dealer for a review copy of the lease agreement and all contract addenda BEFORE you go to the dealer and sign. Moreover, it’s helpful to know the terms and conditions of the lease contract such as early termination liability criteria and purchase option criteria as well as lease amortization methodology and excess wear/tear criteria. If all is as agreed, tell the SM that you’ll come in to sign asap. You don’t want any surprises or dealer excuses like …. Oh, we made a mistake. That’s unacceptable and shouldn’t be tolerated.
If the dealer isn’t transparent or is uncooperative or showing signs of incompetence, WALK AWAY AND MOVE ON!
Leasing is time-consuming and requires a good deal of study and attention to detail. You must educate yourself and know much more about structuring leases than they do. If you don’t have the time to commit, perhaps your best alternative is a good broker. There are some outstanding brokers on this website. However, if you’re willing to commit your time and resources, be sure to always control the deal. That can only be achieved with education which breeds confidence and increases the likelihood of success.
The ChatGPT shows 0 drive off at the bottom but then a down payment and total DAS of $2000. That is not 0 drive off. It’s 536 with $3500 DAS as that reads to me atleast.
I’ve tried having chatgpt calculate a lease before just to see if it could and it never did any of the math even remotely correct. Considering it can’t even get the due at signing consistent with itself, I recommend you just delete the file.
Nope. Show this to a dealer and be prepared for lots of questions that I hope you can answer such as…
What is the sell price? Only show sell price, not discount.
What is the Gross cap?
What is the Cap Reduction?
Updated Adj. Cap cost? Consider deleting “updated”. Dealer will ask what you mean by updated.
What is the base payment (pre-tax)?
What is the sales tax rate?
Where did the required down payment of 1463.67 come from? Down payment means the same thing as cap reduction which is 7478 that I had to calculate. How does ChapStick interpret down payment? As a cap reduction?
Any Rebates?
Where is the dealer doc fee and the title/reg./license fees? According to your ChapStick output, they are paid upfront as the only capped amounts are the acq. fee and the negative equity.
And, finally, the BIG QUESTION… How do you get to zero drive-off when it says 2000 is due at signing?
The proposal should flow smoothly leaving no doubt or questions. Otherwise, you’re inviting trouble.
For what it’s worth… never use Chapstick or any program unless you thoroughly understand the output. Be thorough and precise. I never allowed my students to use calculators unless they understood the math and they always had to show their work… no work = no credit.
I am in a similar situation. The recalls are a PITA, but not worth taking on $8K in negative equity. The Jeep runs well and has not had any real issues other than the annoying recalls.
Ok, I’ve updated the offer sheet in a way that I think is correct. I’m not a mathematician or lease expert but I tried my best
Yeah I mean I’m not opposed to keeping it just trying to see if I can make a deal to get out of it. After doing the math, I’m not sure it makes sense to pay $150-200 extra per month to get out of it. 8k is being generous, it’s probably more in the 9-10k.
