This is regarding a Jeep GC 4XE. Thank you!
Acq fee is wrong (sfs is $995 on these) and they likely have the mf marked up. Is irrelevant though since that deal is abysmal
Definitely agree that the deal is abysmal. I already asked about the MF and they said they were using base, unless they’re just lying and marking it up to use it as a buffer zone for a “discount” later in the negotiation. After changing the acquisition fee to 995, payment becomes 614… close. A $1,000 deficit remains in order to match the dealer sheet.
Sfs buy rate on a 24 month sign and drive is .00069.
Adjust your mf to that and correct the acq fee and you get the $679 number theyre showing
Is this a true sign and drive lease meaning that the fund provider waives the 1st payment? Or is the 1st payment capitalized in the lease (usually added to the sell price)? In which state are you located and are you certain that the sales tax rate is 6%?
It appears that the 3753 tax is levied on the sell price, not the individual payments streams. What Is 976 ELR? Many dealer worksheets are garbage. They’re only useful in collecting hard data (e.g., money factor, term. doc fee, acq fee, gov fees, etc.). All data should be vetted.
The dealer discount is horrible and a 57% residual for 24 months and 10K miles isn’t good either. IMO, this is a horrible dealer.
Don’t waste time trying to decipher a dealer’s worksheet or chasing after them. Otherwise, you’re allowing them to control the deal. You need to rely on credible outside sources (e.g., LH marketplace and signed deals, Edmunds, etc.). Do your own research and establish a reasonable selling price in your market. Be sure to get a copy of the factory window sticker. Check for non-factory add-ons or dealer-installed options. And, if possible, eliminate those you don’t need or want. Get a list of all customer and dealer rebates/incentives including VIN#-specific discounts/incentives, if any. And, yes, the dealer has such a list.
Organize all relevant data with the goal of creating a lease proposal that reflects your target deal. The idea is to create your own target deal (proposal), not replicate the dealer’s deal.
Once you’ve collected and vetted all data, you’re ready to create a lease proposal (example below).
Email it to the sales manager (SM), not a floor salesperson as they’re often Mickey D order takers and lack knowledge. Be sure to contact the SM first to let them know you’re emailing them a one-page lease proposal b/c you want to close the deal ASAP. Be nice but firm. Unless they’re very stupid, once they see your proposal it will speak volumes. They’ll immediately know it’s time to put away their toys and board games and get down to business absent all the BS.
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. 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.
??? Let me know.
Wow I really appreciate this. Thank you much for writing such a detailed response. As far as the 1st payment, its capitalized in the lease. State is MI & yes, 6% tax rate.I couldn’t figure out what ELR was either! I tried googling it when I first saw it, to no avail.
Thank you again, I will do just as you said!
Unfortunately, there little analyses I can perform as there is missing info notably gross cap, cap reduction, monthly payment. You may want to get some clarity on ELR. In economics, ELR means effective labor rate. Oherwise, I can’t imagine what it means as it relates to leasing.
All of that is a waste of time IMO. Don’t spend a minute on anything else until you’ve figured out what your target deal is.
I wouldn’t be too quick to dismiss ELR. Anyone with a thirst for knowledge would naturally be curious. I know I am as it appears to be a calculated number. So, it’s not a waste of time IMO.
Watch it be something they tie to tariffs.
Priorities, man. Priorities.
If you don’t know what ELR is, why would you exclude it on your list of priorities?
Perhaps ELR should be an integral part of the target deal. Ignoring it may taint the target deal triggering credibility issues and make OP look foolish by omitting it.