In Denver, Colorado
MSRP: $55405
Price after rebates and discounts: $42,243
That rent charge seem high?
Why do you think it seems high? Did you already sign?
I did not sign.
$148/month or about 29% of the payment before tax.
Good, cos there are better SUVs out there than a Durango.
Haha. I get it. But I want an American(my businesses lean into American made manufacturing branding) 3rd row and nothing leases well right now. Would you agree?
I see some 2024 Telluride EX & EX X Line in the Denver area that would come out cheaper. Assembly in West Point, Georgia
Nope. Your money factor = .00201 which means a rent charge of 5329.44. The tax rate used to compute the tax on the monthly bas payment is 8.81%. So, I assume the car will be titled in either Arapahoe or Jefferson County. If that is so, then the 183.21 tax on the cap reduction is inaccurate unless I’m missing something.
There is an even bigger problem. The cap reduction calculation is questionable as well as the adj cap as you have a trade credit.
I believe your contract should read as follows…
Gross cap 50349.20 (I’d like to see an itemization of the gross cap)
Rebate CCR 5434.31
Trade Credit 634.00
Adj. cap 44280.89
RV 30255.50
MF .00201
Sales Tax Rate 8.81%
Term 36
Base Pay = .00201 x (44280.89 + 30255.50) + (44280.89 - 30255.50) / 36
= 539.41
Contractual Pay = 539.41 x 1.0881
= 586.93
Lease Inception Fees
1st Pay 586.93
Rebate CCR 5434.31
CCR Rebate Tax 478.76
CCR - Trade 634.00
TOTAL 7134.00
Rebate Credit 6500.00
Trade Credit 634.00
DAS 0.00
Bottom line: Zero drive-off followed by 35 monthly payments of 586.93 each
Yes, my calculations show a higher payment with nothing due at signing. You may choose to keep your mouth shut and take the dealer’s deal. However, don’t be surprised if they ask you for more money triggered by the inaccurate CCR tax calculation. As such, I would be surprised if CCAP funds the lease if CCAP is the fund provider.
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Thanks so much for this.
The money factor per Edmonds should be .00112. I can try to negotiate that?
Yes. You can ask them to use the base MF rather than inflated MF.
Also, since you are a super supporter, why don’t you try to fill out the LH calculator and see what payments you are supposed to get.
You’re a Super Supporter and have access to the LH money factors which are the finance captives buy rate. Chances are good that it matches Edmund’s .00112 which is the buy rate (MF is not marked up). If your credit score is good enough 720+}, you should qualify for the lower .00112 buy rate.
I suggest that you craft a lease proposal (example below) and email it to the sales manager (SM), not a floor salesperson as they’re often order takers and lack knowledge.
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 right away. 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, always control the deal. That can only be achieved with education which breeds confidence and increases the likelihood of success.
??? Let me know.
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In Colorado, BEV or PHEV is definitely the way to go.
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