I’ve come across a lease deal for a car, and I’m curious to hear your thoughts on whether it’s a good offer.
Here are the details:
Car Details:
Model: Jeep Grand Cherokee 4xe
MSRP: $62,155
Annual Mileage Allowance: 15,000 miles
Lease Options:
Option 1: $576 per month for 24 months
Option 2: $599 per month for 36 months
Payment Details:
First payment due at signing
Considering the provided information, what do you think of these lease options? Are they reasonable in terms of monthly payments and lease duration? Would you recommend any other alternatives or factors to consider?
I appreciate your insights and experiences in lease deals.
They said they’d give me $33,000 for the vehicle but it’s like they’re giving me $34,000 because of some automatic $1000 bonus on any trade-in. Whatever. Seems like typical dealership smoke and mirror bullshit. Another dealership offered me $35,000 so it’s in the ballpark.
Does that answer your question?
I was planning on going with the 24 months after some deliberation.
Why do you think it seems very high? I’d be happy to explore other leases for other hybrids or EVs. I just don’t want to exceed $600/month with nothing out of pocket or whatever little equity I have in my vehicle.
One thing to note is even with an 800 credit score it means you are eligible for a deal at the base mf, it does not entitle you to a deal at the base mf.
Marking up the rate is one of several ways in which a dealer generates more revenue, even with a high credit score. It’s up to you to negotiate it back to base mf or find a dealer that will.
I was mostly making the OP aware that this is a standard and allowed practice so they aren’t making an assumption that they shouldn’t be.
Many times on LH we see people are unaware that having a high credit score isn’t an automatic pass to most advantageous rate or mf. Most times when a buyer makes an assumption that any variable is going in their favor without verifying it, turns out the dealer will turn every variable in their direction.
For most leases / purchases you are correct that as a hacker you should structure your offer with base mf. Though as @mllcb42 has thoroughly explained before there are certain instances where one could take a marked up money factor in exchange for a commensurate or higher discount on the purchase price.
Ahh. Fair points. You’re right. One shouldn’t go in assuming that the dealer must offer the buy rate. For me, I’d walk if they didn’t agree to it, but that’s also because we don’t get nearly as much off on the selling price up here (Alaska) due to lack of competition.
Makes sense. Sorry. Up here in Alaska it’s quite difficult to get the same type of discounts others may see - very few dealers, and fewer who are direct competitors.
