Something just isn’t adding up for me but I could be wrong. This is in Southern NJ.
MSRP: $66,955.00
Selling Price: $64,854.00
Government Fee: $408.50
Prep/Doc Fee: $425.00
Capitalized Taxes: $581.44 (more on this below)
Gross Cap Cost: $69216.49
Trade Allowance: $32,000
Trade Payoff: $33,600.09
Cash Down: $1,500
Rebates: $16,500
Adjusted Cap Cost: $51,216.49
PMT: Approx. $557
But some questions have arisen:
You will see taxes of only over $500. Per the dealer, since my lease on my existing JGC Is up in 3 days, he can’t buy the truck out for the equity at my buyout cost but I can technically buy it out at the dealer and then immediately trade it in. The residual is $30,200 + $350 purchase fee + $2000 taxes and then other fees like registration for the lease buyout of $33,600.
According to him, I will then get a “credit” for the taxes I paid on buying out the lease and it can be applied to the taxes on the new lease on the 4xe. OK, I kind of understand that but…
I am still paying for that credit, correct? I still have to pay the difference in buyout versus trade in value. It’s just an accounting maneuver that allows my to at least not have to pay taxes AND the difference in buy out/trade? I just want to make sure as when you add to the gross cap cost, the difference after adding in all fees is basically the difference between trade and and payoff.
Putting that aside, I wonder since this is a left over if I could get more than just 3% off MSRP.
Not a good deal. Dealers are consistently doing double digit discounts. Jersey is notoriously terrible though for deals.
Check the marketplace and have a broker take care of you. Dealers around MD and DC have overflowing lots of these and double digit discounts.
Any if you’re underwater, why not just ground the lease and hand over the keys? What is your GC worth and is there actually any equity? Probably too late to extend the lease which would have bought you time to unlock any equity.
I do have the extension docs, just need to be signed. I can extend for 90 days. But I was trying to do something by month end in case the massive rebates start to disappear. But I don’t think I am gonna get the dealers to budge on discount.
As I work through the math, this dealer is just pulling an accounting trick. I “save” on taxes by paying my taxes buying out the existing lease and then I get a “credit” for it on the taxes on the new lease. But then I pay for that “credit” in the form of having to pay the difference between what he wants to give in a trade versus my buyout cost.
So for all intents and purposes, this is basically the same as if I were grounding it. I may just extend, ride out the extension and just go to another brand altogether.
can get 10% off with some work but not hard before incentives. however, you can get same or better discount on 24s. dealers seem really unmotivated to move these for some reason.
I should have pointed out that I got a deal sheet from them previously before mentioning the trade.
That deal, without the trade, had a payment of $573. Which puzzled me as how can a lease with the same terms (MSRP, sales price, fees, taxes) but no negative equity actually have a higher monthly?
Appears to be more rebates though on the 23s. But I could be wrong. In total, where I am in NJ, per Jeep website, I can get $16,500 in rebates on a 2023 plus another $1000 for the TDM code I have.
Quick question. I have gotten conflicting info on this. If I extend the lease 60 days from March 30, could I then be able to sell to CarMax or someone like that if there was equity for my buyout amount given I’d now be outside the 30 day window?
CCAP customer rep said yes. Dealer said no. He said they can’t get it for my buyout because the original maturity was March 30th and that’s why they go by - original maturity.
It’s a question of what your car is worth. If carmax or Carvana or any of the other players make it worth it to do the extension go for it. You won’t have the car that much longer anyway.
But it also buys you time so you’re not pressured into a deal with bad terms. Take the leverage back… assuming your car actually has equity. Find that out too. and seek a better deal
Dealer one said he couldn’t buy my lease out at my residual + lease buy fee. Would cost him $34.5K. But then floats this instant transaction where I buy it out at time of settlement, pay taxes but then get a credit for the taxes on my new lease. That cost to buy out? $33.6K. His trade offer? 32K. The 33.6 buyout for me makes no sense. Residual + taxes + lease buyout fee is $32.5K. Where is the extra $1.1K coming from? LOL.
Second dealer says nah, we can buy it for your residual and lease buy out fee. Literally shows me the CCAP dealer invoice for my car and yeah it’s the residual plus lease buyout fee for a total of $30.5K. His trade offer? $30K.
Yes, i was looking at 23s and the trim i was on had an extra $2k vs the 24s. I figured dealers would be way more aggressive on 23s but many arent. Theres not much % mark up in these, but it was extra surprising how little effort they seem to put into selling them.
