Been dealing with a few dealerships and after being offered 975 @ 36 months for a 52k Jeep Wrangler I Decided to learn a bit more and do some research and try to approach it differently. After using the tips I read on here, Found this one that checks all my boxes (has the one touch skypanel on a package under 50k which is a miracle)
MSRP: 49,885
Total After Discounts- 48,691(final selling price is 52,213 after taxes)
Residual: 68%(-33,921.80)
MF: .00195
Monthly payment: $560
48m/15k
I know 48 months is a bit longer but my credit isn’t the greatest and wanted to come in under 600 on a payment. Any thoughts on this deal?
I wouldn’t do a 48 month term and you need to find a dealer willing to discount more than $1,200 bucks. Maybe consider the 4xe if it suits your needs? They are leasing great at the moment.
Lots of factors to consider in a lease:
% discount off MSRP
Money Factor
Incentives
Residual
Term/Miles
The residual is great but everything else isn’t spectacular, particularly the discount from MSRP. Four years is also relatively long for a lease. See the threads on the 4XE. While not exactly want you want, the incentives are making it lease extremely well. On the tricks with leasing unfortunately is not to get like locked in to a particular make/model since many of the deals here are driven by incentives/rebates.
Thanks for the helpful replies! I was originally looking at the 4xe but jeeps here are going like crazy. There was one I was looking at that was priced at 49k and overnight the dealership bumped the online price up $5k. Was working with a broker and he was having a tough time finding anything good with the options I was hoping for. Sure it’s easy to find a stock one for cheap but was really wanting one with the one touch sky panel
Sorry to be Suze Orman and jump to conclusions…but when I see things like ‘credit isn’t the greatest’ and a monthly payment cap, it sounds like you might possibly be stretching yourself thin and may want to look at alternatives that you can more comfortably afford and allow you to improve your credit score/situation. I think the 4xe is a great alternative.
You are in Texas, so you’re paying full tax on the selling price. There is much less advantage to leasing in this case, especially given the lack of incentives and high MF. The MF is pretty atrocious which makes the rent charge very high (rent charge per month = cap cost + residual * MF).
This lease is going to cost you $26,880 over 4 years plus your unknown DAS. ~$168/mo of your $560/mo is rent charge, so a total of $8064 in rent charge over 48mos. I don’t know what rates you can get at local CU’s, but you may want to strongly consider financing if you are set on this particular vehicle.
Financing math example, using Penfed current rate 2.39% on a 72mo;
After payment #48 you will have paid $3427 in interest and owe $18,241 on the Jeep. If we assume that CCAP’s residual is accurate (big assumption but I have no clue, I don’t follow used Wrangler values), that works out to $15050 in positive equity. $37,398 in payments - $15,050 equity = $22,348 total cost. $22,348/48mos = $465/mo effective payment. $560-$465 * 48 = $4,560 savings. So in this case financing it would basically be like a savings account that’s paying 10-12%ish a year, IF the residual is accurate Just to show you an alternative, but then the residual risk is on you not CCAP.
With the approximate 2% discount from MSRP, and without any really good rebates, there’s no way this one can end well unfortunately.
I will echo everyone else’s comments about the 4xe. There’s a $7500 rebate on that one right now which will heavily tilt the wranglers in this direction for buyers who have any semblance of price sensitivity whatsoever (aka everyone on this site).
Just to show you an alternative, but then the residual risk is on you not CCAP.