Hi All, New to the board. Would like to get some feedback on this Jeep Rubicon X lease offer. Averaged out, my Lease payment with taxes is $569 ($5,000 down payment + 35 payments of 443.12 ) over 36 months for a total of $20,509. At $569 per month the deal is right around the 1 percent mark. It looks like I’m eligible for another $1,000 loyalty discount, so payment may be reduced by another $30.00 or so.The difference between the selling price and the residual (72%) is only $10,000, yet I’d be paying $20,509 over the 3 years (36/12). Doesn’t seem like a good deal to me. Am I wrong? If its a bad deal what kind of numbers should I be shooting for? I’m putting the $5000 down because I want the lower payment. Thanks in advance for any replies.
The $8k “Discount,” is that all dealer discount or is that a combo of dealer discount as well as manufacturer rebate(s)?
The 1% rule doesn’t apply, especially if you are putting $5k down. Never put anything down on a lease. If you want, you can pay taxes and reg up front. $0 due sign and drive is best.
What rebates do you qualify for in your zip code? Is there a SFS inventory bonus on the particular VIN unit? Aim for 10% off MSRP, most achievable at end of the month.
Dealer discount. I qualify for a $1,000 loyalty discount that’s not included in the deal yet.
Thank for the info. I qualify for a $1,000 loyalty discount that’s not included in the deal yet. Quick question, if I add all my payments 35x $443.12 + $5,000 down payment = $20,509 then Divide by 36 = $569. I’m still averaging $569 per month over the 36 months or am I wrong? I like the lower payment (443.12 )going forward, thus the $5,000 down payment. Will ask about inventory bonus great tip. How far off is this from being a good deal. Any specific range for payments?
Which is inconsequential.
The only thing the 1% bs serves to do is distract people from working out what a good deal, for their situation, actually is.
Payment range doesn’t tell you anything. That is an output of the calculations, not an input.
Establish what an aggressive, yet reasonable, pre-incentive dealer discount is and then calculate what the lease should be based on your personal situation. That will tell you what an appropriate deal actually looks like.
The monthly payment for your tax situation/incentive qualifications/mileage/region gov fees/credit situation may look very different than someone else’s monthly payment for the same deal.
Thanks for the input. I hear your points. I”m happy enough with the price discount and the high residual. What I’m not sure how to gauge is, I’d be spending $20,000 over the length of the lease when the difference between the selling price and the residual is only $10,000. That seems unreasonable to me but obviously I don’t know enough to be able to gauge this properly. I will say that this offer was pretty straightforward, no add ons and was thousands of dollar cheaper than any local dealers i emailed. As suggested earlier, I may see if I can get an inventory bonus later in the month.
That is not how to gauge good and bad. Where is the dealer located? There’s almost certainly an acquisition fee, doc fee, DMV fees etc. that just aren’t shown on your sheet, so your out the door cap cost is probably closer to $59k.
If there are no other rebates on this truck then this deal is about as good as you’re going to get, so take it or leave it. A 12% discount is very strong for a CDJR dealer right off the bat.
You need to spend time on how a lease is calculated…you are only accounting for one aspect of the lease…you need to account for rent charge too on top of base payment…along with taxes.
Plot twist
Either you’re ok with the residual or you aren’t.
It also seems like you’re comparing purchase price (no taxes and fees) to total of lease payments (incl of tax and fees), please show all the math
Thank you for this answer. It clarifies a lot.
This is very helpful also. I was happy with the Dealer discount. Doc fee is on the sheet it’s $463.00, Dmv fees I will pay separately as I’m out of state. I may wait to see if more rebates become available at the end of the month. New target is another $3,000 off the deal. Thanks so much.
Leasing can be a dense topic. There are multiple questions here IMO.
- Is this a good lease deal for this specific vehicle (year, make, model, trim)?
- Is it better to buy or lease this vehicle?
- If you lease, does the lease represent good value relative to other somewhat similar vehicles?
Most people who want a Wrangler don’t care about 3. Please correct me if this doesn’t apply to you.
If it does, only 1 and 2 are open questions.
Just trying to help focus on what’s most helpful to OP.
Lol, plot twist 
I liked selling the price and high residual, was basing my payment expectations mostly on that and obviously left out a whole bunch of other calculations. As is said “ A little knowledge is a dangerous thing” Thanks for the reply.
Thoughtful post thank you. Question number 1 is the focus. Because I’m inexperienced with lease formulations my main concern was not getting ripped off. I like the Dealer I am currently dealing with and his discount pricing is good, with no games. I may wait to see if more incentives become available. Just wanted to get an idea if I’m in the correct ballpark for what i’m trying to lease, based on those numbers, which it seems I am (without more rebates).
Reading up on it as we speak. These replies have been very helpful, thank you.
The most important metric for evaluating whether you have a good deal is determining if the dealer discount is competitive.
Note that dealer discount and manufacturer incentives are two different things, and this difference isn’t always easy to parse because there is no standard way to present these offers to consumers.
When I look at this I can’t tell what the discount is because this value appears to be the sum of both discount and incentives. Chances that there are zero incentives is low. So splitting that into its discreet components would be step 1.
The dealer can tell you, or you can do the research on your own to see what you qualify for.
Normally we advise not talking to a dealer until you have all of this figured out, but obviously that isn’t practical advice for the quote you’re holding in your hand.
Great info, thank you. Will probably pause and research more before pulling the trigger. Thanks again.
I guarantee you the dealer is not discounting $8000. You’re mixing incentives and discounts.
Sounds good.
Not to overwhelm you, but ultimately you’ll want to understand how to use the calculator to run your own numbers, but one step at a time.
The learning curve is non-trivial, and some people decide to use a broker to avoid it altogether, but I’d still recommend absorbing the broad concepts because even then you don’t want to be operating completely on hope and trust.
There are also reference deals in Marketplace and Signed Deals forums that may help orient you.