6% off msrp is a healthy discount, not out of this world but not garbage. Safe to say this type of discount is achievable by quite a few dealers.
It doesn’t matter if it’s achievable or not. The question is if that is what this dealer is offering. The point is that if one wants to compare deals, you have to know what the deal you’re comparing is. You can’t pick and choose parts of a deal and get rid of others and assume that dealer is ok with that.
It’s no different than a dealer that offers a big discount, but marks up the mf. You can’t assume that dealer would offer the same discount at buy rate just because some other dealer would offer that discount at buy rate.
Sure… I’m not disagreeing with you, you need all the details like the trade in info…
But I can assume because I am dealing with cdjr dealers and have helped buddies get scat pack widebodies, 6% is more than achievable, there’s another thread here where an op started at 8/9%.
This dealer can definitely get to 6% if not more, whether they do it or not is moot cause op can go shop this around the east coast and achieve this all day.
Tell us more about the RAM? Have you tried selling to carvana? 8k negative on the RAM after just one year lease sounds terrible but then what are your lease numbers? Did you roll negative into the RAM?
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Before looking for a new car, figure out:
- How much the RAM is worth
- How much negative equity you have
- If the negative equity is worth getting out of one vehicle and into another (spoiler alert, it usually is not)
Rolling $8,000 of negative equity into an approximately 6% interest rate is not the way to go. If you really want the Charger, figure out how to sell the RAM for as close to the 3rd party buyout.
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My thoughts exactly, my experience is people usually listen to your advice for about 5 seconds and then go do whatever they want, and that’s in real life not even on the internet.
I find 8k in negative equity hard to believe on a half ton truck, i would say 3-4k is more on par but who knows maybe the truck sales price wasn’t that great, the truck has high miles, rough condition, market conditions, etc etc.
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In a way I agree with everyones comments, my big question really was is it a good deal BASED on everything. A few commented about the equity itself which helped me think a little more. But overall my question was is it good deal, because I’ve had dealers offer similar car with similar MSRP yet ask for over $1000 a month.
I think I have provided you with the only real comment on the actual deal, most everyone else is jumping on the negative equity train.
If you are going to eat the negative equity you have two choices in my opinion.
Get a scat and straight up eat the negative equity as a separate deal or part of the deal but shell out the cash don’t pay interest on it.
If you want to roll it in then do so on a base charger hellcat with .00008 mf aka .19% where the interest rate is so low you can roll it in.
Pros and cons to both, base hc vs optioned scat, $525+/mo 1k das + 4-6k out of pocket to cover neg equity or $850+/mo with 1k das.
I would definitely try to figure out how much actual negative equity you have first and foremost, then check out the other scatpack widebody thread for an idea of discount.
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If you need a dave ramsey/personal finance suggestion that I have zero confirmation if it works but, have you tried looking at an EV lease with a butt ton of rebates greater then the 8k - eggy?
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You provided comments on a deal that doesn’t exist. You’re literally the only one commenting on something other than the actual deal. It may (or may not) be a reasonable target, but until the dealer offers the same deal without the trade, it isn’t a real deal. One can’t just assume they’ll offer the same deal without the trade.
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Don’t get butthurt… they aren’t comments they are facts about the market go grab any broker who does cdjr or anyone who works for a cdjr dealer and they can tell me I’m wrong.
I just helped a buddy close on a 62k scat pack wb at 9.5% off when he was offered 4-6% all day.
Nobody in this thread has provided any insight on what the market looks like because nobody in this thread has any idea because they aren’t shopping or have dealt with a cdjr dealer.
I’m just trying to offer op an idea of the market if he ends up wanting one anyway, all the rest of this thread is just telling him it’s a bad deal and then providing no useful information outside of the whole negative equity aspect.
I’m focusing strictly on the selling aspect, I don’t understand what your issue is here.
Op takes peoples advice and trims down the negative equity, op takes my post into consideration and then goes after a higher discount off msrp.
This is a lease forum not a financial advice forum, I’m not saying you are wrong, I’m actually saying you are completely right, but like I said people do what they want, guaranteed op is looking at every way he can to get out of the truck and into a charger… expensive mistake but it is what it is.
That’s the point. It’s important to understand that a standard tool in the dealer’s toolkit is to offer an inflated discount and pair that with a modified trade equity. The question here was regarding this deal; that means every part of it. Telling someone “hey, this isnt a horrible deal if you ignore the trade equity” is offering an opinion on a straw man. It isn’t the deal at hand. You’re saying a 6% deal isn’t bad, but there’s absolutely no reason to believe that this even is a 6% deal.
So let’s say he takes your advice, decides he’s fine with the negative equity, and goes and negotiates another 2% off msrp. 8% sounds great, right? Sure, until it comes out that this is actually a 2-3% deal with a tweaked trade value to make the discount look larger.
This is all resolved by stepping back, determining the actual trade value, and putting together an informed target deal. Anything else is a pointless roll of the dice.
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You are shopping payments without looking into all of the variables that are making up that payment. On a normal lease deal, it is pre-incentive discount and MF that are the two variables that can be changed by the dealer. Here, it is the pre-incentive discount, MF, and trade/lease buyout. Adding more variables means that you need to sort the unknowns out before figuring out how much the new Charger is going to be. As a leasing forum, like others have said, we are only here to look at the lease deal side of things.
It is practically impossible for us to tell you what a “good” monthly payment is for your specific lease as lease programs are highly dependent on region, personal qualifications, tax rates, etc.
We always recommend the following method before you ever contact a dealership. If you do all of the work up front, you’ll have a stress free dealer experience and set yourself for success.
- Read Leasing 101 (EDITORIAL | LEASEHACKR) to understand how to calculate a lease payment and the variables. Monthly payment is an output, not an input!!
- Pick a specific vehicle that you want to target
- Gather the current MF, RV and incentives from Edmunds forums for your zip code
- Research the LH marketplace and other deals that have been made recently on your vehicle - what was their pre-incentive discount? How did their lease terms differ?
- Plug your numbers into the LH calculator, and use a pre-incentive discount similar to what you have seen
- Create a target deal, this is what you’re trying to negotiate to. You can try different terms, selling price discount, etc. and see how your monthly payment is affected. It is also possible that different trims of your vehicle may have different MF and RV (i.e. this is very common with GM), so make sure that you look into that. Come up with a set of inputs that give you the output that you want - your desired monthly payment.
With a target price determined, you now have a deal to pursue and compare dealer offers against. More importantly, you have a solid foundation to work from.
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Evo, people absolutely understand your question, and also that you were not asking for personal finance advice, but…if somebody asks for the best strategies on winning Russian roulette they ought not to be surprised when people instead advise strongly not to play the game at all.
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This is why in my opinion it is best to never even discuss a trade until you already have an agreeable deal worked out on the new car. There’s just simply no other way to know how the shell game is being played. With all the online buyer/resources available, it is pretty easy to get a rather accurate trade value assessment independently.
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you’re going to rent a 50k car that you can probably get for 45k for 3 years for $33k. Sell that ram private party, put the 4K “down” to get rid off the negative equity (which is way less than 8k private party sale) and get yourself a $300 camaro LT1
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I agree with everything you said up to the Camaro, id rather pay the negative out of my own pocket than get a Camaro lol
Here we go again with “get xxx car bs,” it’s quite clear what he wants. I thought we got past this last year…
It’s as if many of you don’t understand how segments work, in what world is a 4 door sedan comparable to a 2 door coupe??
With that being said I agree about the private party avenue for the negative equity, he should get rid of the negative equity if he can without rolling it into his next lease, as said earlier the negative equity will accrue interest.
You are right about that part maybe I wasn’t clear in how I explained it.
Without trading the car in the sales price is a solid starting point, picking apart the deal I assumed op would be able to discern that but I should have clearly stated that no trade should be involved until the deal is done, anytime you start dealing with a trade in the middle there’s potential for a dealer to hide money in the deal and shaft you on the trade or vice versa.
Hit the nail on the head.
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