The advantage is it allows a $0 das when there arent incentives available otherwise to cover the first month’s payment.
Also a great way to squeeze a little more out if youre doing an early buyout.
Okay. Still like to see a Jeep contract (CCAP) with that structure.
If I’m the lessee looking at this contract, I would never know that the first payment credit is captured in 5(B)(2) although the 3405.02 looks suspicious. Also, this doesn’t look like a sign and drive (DAS = 0) to me regardless of whether the sign and drive box is checked. Looks to me like I owe 1025.36 cash.
I’ll analyze the full contract later. Thanks for the sample doc. This will help.
Its the instructions from ccap highlighting the relevant sections that need the info adjusted. Treat it as instructions for filling out a sign and drive, not an example of a sign and drive
Okay, thanks.
FYI- I crunched the numbers. If CCAP did not offer the lessee the first payment waiver, the rebate would have been 2500. In order to facilitate a direct apples-to-apples comparison, I computed a CCR = 2528.38 so that the payment would be identical to the waiver payment of 905.02. So, the only thing that requires comparison is the DAS.
The MF = .00611 (waived payment MF = .00640) for the non-waiver and DAS = 1408.76. As such. the non-waiver DAS exceeds the waiver DAS by 383.43. So, the lessee does come out ahead to the tune of 383.43 by waiving the first payment meaning that the lessee realizes 42% of the waived payment. I guess something is better than nothing.
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