I have a question about residuals…so if i’m pretty confident that I plan on buying out this Jeep at lease end, wouldn’t I want to go with the lender that has the lower residual value? Right now I have the following financing rates for this month:
67% RV at .00130 MF (3.12%) US Bank
71% RV at .00205 (4.92%) Chrysler
78% RV at .0037 MF (8.88%) Ally
Your opinions and advise would be much appreciated.
Thanks,
Ken
If all payments are equal or close to, yes, you want the one w the lowest RV.
If you plan to sell it at lease end, and not give it back or buy, US Bank is a mistake because you have to buy it personally before it can be sold to a 3rd party.
Leasing to buy usually doesn’t make sense, just buy it or lease it and ditch it at the end(especially FCA products)
Figure out how much the total cost to lease will be. So add up all the monthly payments for each one plus any initial fees (doc, title, etc). Then figure out what it will cost to buy it at residual with taxes and interest. Add the total lease amount and the total buy out amounts together and there is your answer.
With that said, I agree with @joeblogs that lease to buy almost never makes sense.