Hello looking to lease a 2024 Jeep Wrangler 4xe Willys with 29W package on it. Provided pictures is what the dealer has advertised to me. I guess I’m confused about how the sale price can be $41k but residual is almost $39k at these monthly prices.
Current deal is with only 5,000 miles per year and they said add $20-$30 for each mileage increment increase.
I’m thinking about going in to talk in person tonight but I feel like their monthly price needs to come down a lot as theyre even advertising $389 on their website with 0 down + tax.
Anything specifically that I should be asking for with this deal?
Well I know it shouldn’t cost $516 per month. Am I wrong to assume that the cost should roughly be vehicle sale price after rebates/incentives - RV ÷ by 36 = monthly price +tax/interest?
Need to add fees too, but when you have a .00404 mf, the interest/rent charge is a significant amount. That’s where all your money is going to and you need to do the math to see how close to $516 it is.
Right, I’m sure they have added a nice bonus for themselves in there somewhere and I know the interest equals 9.72% which is a lot and I’m hoping to get them down on that. She mentioned that they are required to put MSRP on the online quote so idk if the $516 is based off of the MSRP, advertised online price of $51k, or this new $41k price they gave me.
So I guess I’m confused on this part: they will sell the vehicle for $41k and RV is $38,948. Does this mean my payment should be the difference of these (obviously plus tax, fees, interest, etc) that seems like an absurdly low amount ($2000) divided by 36 months. The sale price and residual are almost the same price? I must be thinking/calculating wrong.
Yup. You’re neglecting the cost of money which is a whopping 9.72% = .00405 x 2400 and so, it’s not likely to be they buy rate. Also, the dealer discount is very weak. Lots of info missing (e.g., adj. cap, sales tax rate, lease inception fees, Dealer shows two sales prices which is beyond stupid. Shows they don’t have an understanding of leasing terminology and do things half-assed. I would never favor a dealer that is ignorant about leasing and would likely move on.
MSRP - Dealer Discount = Sell Price
Gross Cap = Sell Price + Amount Capitalized
Adj. Cap = Gross Cap - Cap Reductions.
Payment = MF x (Adj. Cap + RV) + (Adj. Cap - RV) / Term
You didn’t mention your state or sales tax rate. As such, the above ignores taxes. Don’t know whether you live in a state that taxes sell price or individual base payment streams or the sum of the base payments.
Do the research and create a target deal. Don’t allow the dealer to control the deal by chasing after them and wondering how they got this or how they got that… it’s a waste of time.
Thanks for the info. Yeah I tagged CO (Colorado) in the post I should have clarified. Tax rate is 8.2% but not sure if it’s on total or just lease. I know I should have a plan going in. That’s kind of what I wanted to do/learn on this post.
I want to clarify that I am not desperate for this vehicle so unless they’re willing to get the payments substantially smaller I’m walking. This is just from a few emails back and forth and I have not given them any information other than what vehicle I’m interested in.
I guess I’m just unsure what these wranglers “should” lease for and what a reasonable money factor should be (in this market). Is there another post someone could reference here just so I have an idea of what a good deal looks like with no more than 1st month down?
Also @AutoCompanion has some that you’d need to ship but are showing as hundreds less than these quotes. Hopefully @Drew_CentennialLease can get close in state.
