Huge monthly payment disparity?

Ask the Hackrs
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1

Looking at a new 2019 RAM Laramie and a dealer is offering significant discounts on their website. MSRP is $53955, and with discount and all incentives the price is $41021. They don’t break down the incentives and discount so I made some assumptions. I am in Arizona so from what I can tell incentives are not taxed. Even being generous the LH calculator is showing ~$450-470 a month with zero drive off (56% residual, .00065 MF). The quote they gave me was for $626/month.

Where are they hiding the extra money or am I calculating something completely wrong?

2

Where is your dealer quote sheet? Unless you want speculation/guesses.

3

There’s no point making assumptions. You need to find the purchase/finance rebates and back those out.

1 Like
4

Seriously, you need to post the dealer’s lease worksheet. Otherwise, no one will be able to address your issues intelligently.

5

They didnt give me the full breakdown. I’ve requested it and will report back if they provide it.

6

Numbers he sent me:

MSRP 53955
DISCOUNT 6483
REBATE 2750
LEASE PRICE 45021
TAX 3871.81
DOC FEE 499
REGISTRATION 781.43

610.63/MONTH

7

So you have your answer right there. Your LH calc is showing 20% off plus a $2k rebate. Change your sales price to $47,472 and update your incentives to $2,750.

8

Yeah, they are telling me the lease price is higher than the purchase price. Is that typical?

9

Purchase and lease incentives can vary so yes I’m not surprised.

1 Like
10

I am confused by some of the fine print on these Ram deals. How do I know which ones stack?

I know some are lease only, and some are purchase only, but how can you tell 100%?

I also have $500 available through my company.

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What does #4 mean (offer limited to 10% of eligible vehicles)

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11

Your LH calculator shows sales tax levied on the payment streams. Yet, the dealer is computing sales tax on the selling price at 8.60% (i.e., agreed upon value) which is what they call “lease price”…
8.60% x 45021 = 3871.81. Apparently, the 2750 is a manufacturer to dealer rebate (incentive) because it’s not taxed. Additionally, it is being deducted from the MSRP. This tells me that it’s very likely a manufacturer to dealer incentive. My calculated payment is 609.38 assuming the 499 doc fee is paid upfront… Something is missing

12

I was quoted this and I cant get the calculator numbers to match. What is wrong? Numbers are from December rates but changing the residual and MF to the January rates has zero impact on the monthly payment.

53955 MSRP
6483 discount
2750 rebate

45021 lease price

3871.81 tax
499 doc fee
781.43 registration

50173.24 total

56% residual (30214.80)
.00065 money factor

0 down / 36 months / 12k miles per year = 610.63 per month with all fees included

The calculator shows $564. What am I missing?

13

You’re missing the lease sheet from the dealer

1 Like
14

have you tried searching around the forums for what others have gotten? On paper it looks like an ok deal. Needs more info, most likely dealer hiding cash by jacking up the mf. Also take a look at how much edmunds says the lease incdentives are for said trim.

15

The numbers are are all they gave me, including the MF and Res. I assume they are screwing me some other way.

16

Demand a worksheet, or tell them you’ll look elsewhere. If they don’t want to be transparent, you don’t want to give them business.

Another wonderful FCA experience.