I checked the calculator vs. my understanding of a lease and get about the same $. But dealer(s) say the calculator numbers are way off. Is it the residual number, or are they just padding the deal somewhere. I’ve yet to see the entire contract as I can’t get past the extra $10k they seem to be tacking on. I think they are applying the incentives to the MSRP and not to the selling price?
MSRP Jeep Wrangler is $69,445. Negotiated 10% off makes $62,500. Jeep incentives $8500. Residual is .66 for $45,833. Taxes are usually about 1.1% of purchase or see the link below, so I should be financing for 36 months about $14,500 plus interest and fees.
as: Purchase 62500 - 45833 = 16667. 16667 times tax 9.25% = 18208. plus 1345 fees plus 550 interest = 20103. Then less incentives (8000/ 1.0925tax) = 13K for the lease?
So I am $1500 below the calculator, and the calculator is $7200 below what the dealer is offering…
Frustrating because they won’t print out the deal for my review, without me agreeing to it!
As far as dealer number being way off, yeah I suppose that’s kinda common and I’ve definitely run into this many times where I got excited using their advertised MSRP discount and plugging in the standard rebate + RV only to find out later with them that their monthly is way higher.
I think you need to check with them on individual break down (MF, RV, MSRP discount) they use in getting you the number they got you. Either they didn’t honor some of the discounts, or they added some bs in there.
I think them giving out dishonest numbers is just a sign they they won’t budge for a good deal so manage your expectations.
Hoping to learn, but haven’t found the manual yet… my understanding is that a lease is the sale price less the residual value plus interest and tax per month. I thought incentives were deducted from the sale price (capitalized cost.). Also hoping someone might review the calculator I applied to see if I inputed the correct numbers.
Sounds a lot like a certain chatbot that has never accurately calculated an auto lease afaik. You will want to spend time reading Leasing 101 and looking at threads of past Jeep leases to understand the mechanics, the possible leasing banks, and the tax treatment where you live — all of which may impact how good or hateful the lease is.
Stop talking to dealers until you understand the basics. Don’t ask for quotes or they will tell you how much they want you to pay (they’ll sneak in their own boat payment if you let them). Put together a well researched target deal and move to a strategy of making offers.
This is not a target deal. This is an ambiguous goal.
A target deal should be specific, well-researched, and unambiguous. It’s not “my target is to get a great deal”. It is “based on my current qualifications and a pre-incentive discount of x%, for this specific vehicle, my target is $xxx per month with $xxx due at signing for xx months and xxxx miles per year.”
With that laid out, you can then go make offers to dealers rather than ask them how much they want you to pay. There is no need to try to back calculate their offer. They either agree to your offer or they don’t.
