How does this deal look, if my intent is to purchase the vehicle a few months after? The incentives are not available to me on the 4xe/PHEV if I purchase without the lease. Trade value is fair. I can tell the MF is marked up significantly, but I do not intend to keep the lease long-term. I can/will haggle on MF, but aside from that, anything I’m missing? (My first/only lease).
The financing person is telling me acquisition fee is set by CCAP and is specific to this vehicle (4xe Rubicon X). $1095 seems high, and my understanding is dealerships aren’t even allowed to mark that up significantly: “Dealer markup is allowed on acquisition fees of $595 or more for tiers 1 through 4 only; maximum markup is $300. State maximums apply.” I can’t find the sheet that has the amounts per vehicle per tier, but if it’s $595 then $1095 is definitely above this allowed markup amount.
MF is: .00464 and tier 1 is 0.00391, when I asked about this, I was told they are marking it up to make the deal work.
I’ve never done a lease before, and don’t intend to keep this as a lease, so just want to make sure I’m not taking a bath if I buy this 2-3 months after start of lease. Leasing company is CCAP.
You’re paying $10,250 on day 1 and then roughly $50,000 + $3,000 tax + any purchase option fee within a month.
So that’s like $64k OTD. What’s the plan here? How long do you plan to own it? Are you financing? What’s the car going to be worth after your ownership period?
Plan is to purchase it with a loan 2-3 months after I start the lease. MSRP on the vehicle is $75895 with destination. If I did a loan day one price would be $68623 + tax/title (includes the $425 doc fee). (Minus trade)
They just reduced MF to .00409, fwiw.
On the tax, am I actually paying it twice since I live in TX? I think so.
@max_g I would be financing the lease buyout, yes.
@max_g I appreciate your insight. There is no way I can possibly predict the value of this vehicle (4xe Jeep Wrangler) 3+ years out, the economy has just seen the used car valuations shoot through the roof then start normalizing again, but the entire economy is in turmoil. There is also a refresh of this model coming out in 2025 (actual year) according to UAW documentation, so that will likely have some unknown impact on the used value.
I don’t know how long I will own it - it could be three years, it could be five. If the family loves it and doesn’t expand more than intended (twins and triplets are very common), perhaps five years.
Right now, I’m basically trying to determine if I should just purchase it via loan with the same trade-in, or lease then purchase via loan following the lease by a few months, since I am not eligible for the federal tax credit or other lease programs if I do not do the lease.
Let’s assume the plan is to keep the vehicle five years in either scenario. Only leasing with no purchase wasn’t something I was considering.
Do these qualify for Texas tax credits? Maybe see if you can look around for a dealer that can offer that if it does? Personally, I’d be happy paying the ~500/mo or so to lease one of these and see what the market (and interest rates) look like further down the road, as well as resale value. No sense in buying something out that’s underwater, or will be underwater at lease end. You can buy it out whenever you want during the lease. As a comparison, have you researched the cornucopia of (some very) lightly used 4xes out there that dealers got from flippers? Curious how they price out versus a new one, even with the tax credit involved on a new lease.
Yeah I missed the trade in. I was under the impression that these flips took a bit of a beating so maybe trading for a lightly used one might be a better option? The MSRP on these has gotten astronomical and everyone knows that they arent worth it.
Just so we are clear, I’m not trying to turn a profit/flip the car. It’s a vehicle for me to enjoy with the family that suits my lifestyle (will be my fourth Jeep Wrangler…)
I’m just trying to minimize the punishment I take purchasing something I want vs. something I need, since most car purchases that aren’t used clunkers are “bad” financial decisions.
Thank you for your opinion. I like my GPW, but I don’t drive it on the highway. This is a DD for me. Again, I am not buying a PHEV for life, just 3-5 years.
This is exactly why you should stick to a lease then. As others have pointed out, this is not the type of vehicle to drop $10k+ on day 1 and then later be stuck with while its value drops rapidly.
Just as a comparison, way back in April I got a 23 Rubi 4xe, fully loaded $71k from Gupton - $515/mo & $500 DAS. I was getting it as a daily driver and summer off roading rig.
Now fast forward a few months and since then the used market has totally collapsed on these, I’d be really fortunate to sell it for my payoff. In reality I’m probably underwater, but I don’t mind keeping it for another year or so to see what happens. That’s what’s great about a lease, if it totally collapses in value, in 3 years you just throw back the keys and walk away.
I would say if you’re dead set on a Rubicon to purchase & keep, stick with a gas model and find a heavily discounted unit that’s been sitting around. Gas Rubis will most likely hold their value longer.
Thank you, that is helpful. This was an order I’ve waited on since August, and I already have $1000 down on it. I can outright sell the trade in and just do a lease without it. No idea what those numbers will look like but fair point on the value. I doubt the deals are as nice right now as they were back in April. I’m dealing with an out of state dealer and am ~7% below invoice on the price, so that part is fine, the lease stuff seems a bit squirrelly though.
$600 government fees seems really high in TX. Not sure if they are using their documentation fee ($425) in that field for some reason or what. Not a fan of the acquisition fee at $975 either but I’ll pay a little to play ball and not eat a 1k loss walking out on my order. Sounds like I need to demand MF at 0.00391 which is CCAPs base t1 rate and figure out the fishy numbers.
