Never leased before but am really contemplating a new Ram Laramie or Rebel. Don’t know much about the ins and out of leasing and all the dealer and lessor tricks so I’d appreciated any info on what to look out for.
From my research, the Rebel tends to lease about $100 more a month than the same price Laramie or Limited. Why is this? Is the residual that much lower? I understand that the Bighorns are the big movers for Ram but I was kind of shocked and confused about why the Rebel seems to lease so poorly.
Anyway, any great deals out there on the horizon for either truck? I’m in NW PA, zip code 16407.
Hey MisterB,
I’m new to the lease game myself and it’s been a pretty daunting experience so far.
Here’s a couple videos that really helped me understand the terminology and terms appropriately when making a lease deal. They also explain on what to look out for and such.
Best of luck
Around 1:32: “for business IRS allows you to write off more taxes because they allow you to deduct DEPRECIATION and financial cost”? Sounds like BS. How can you deduct depreciation on a lease when you don’t own the car?
“You only pay taxes on depreciation and usage”? Not even in “most cases”?
Ive been looking at Rams recently… Currently they have big purchase incentives but none virtually for leasing.
Your best bet is to get the dealer to lease one via a credit union or outside bank such as ally, who then can apply the purchase rebates into the lease…
GIven there is only 1 day left of the month, all this could change by next week though when the new deals drop…
Given the shortage of units and delay on cars due to covid, i am going to assume the deals get worse before they get better
I watched the first video. Aside from the click baity title ($0 down is easy, you just ask for it) and a few misstatements, it’s very useful and informative. Recommended for anyone hacking a lease deal!
It would have made me so happy if the video had that click baity title and the content of the video was 10 seconds of the guy saying “you tell them that you want the deal structured with $0 down” and then it faded to black
Welcome. Put in as much or as little time as you wish in researching the hallmarks of a great Ram Laramie/Rebel deal.
For most people, the critical components of a good deal are straightforward. You need to understand and manipulate the following: a. solid-to-great discount off MSRP, b. methodically stack manufacturer/dealer incentives, c. buy rate MF, d. customary fees/taxes, e. minimal DAS and f. no garbage add-ons. Some high school math is involved, so invest time to grasp the lease calculation/calculator. The leasing process can appear formidable. But, master it’s critical components and you can negotiate a great deal. Don’t get too good at it, your friends will drag you on their next 6-hour dealership adventure.
Here is a roadmap on how you get there:
First, you spend 20+ minutes on the “leasing 101” and “calculator” sections of this forum and discover or brush-up on leasing fundamentals. Hackrs share their insights in shorthand so to get the most out of their feedback know how the leasing game is played. Calculator tip: To get the most useful feedback on your deal from the hackrs make sure you know how to reflect 3 key variables in the calculator: A. Pre-Incentive Selling Price (calc input = Selling Price, please master pre-incentive SP), B. direct-to-consumer incentives (calc input = Taxed Incentives), and C. direct-to-dealer incentives (calc input = Untaxed Incentives).
Second, you spend 5 minutes on edmunds.com (see link below) to request the current MF, RV and incentives available for your specific vehicle and region. You post a customized version of the following question and wait for a response (usually less than one business day): “Dealer zip code 98765. 36/10k. 2021 330i xDrive. Please share the latest MF, RV and incentives. Plus any loyalty, conquest or college cash available?” Note: you need to provide a dealer zip code where you plan to negotiate the deal plus year, make, model, and drive. https://forums.edmunds.com/discussions/tagged/x/leasing/p1
The buy rate MF is the lowest interest rate available from the lender. You must qualify for tier 1 credit. During your negotiation determine if the dealer is calculating your payment using the buy rate. To add profit, a common practice among dealers is to “mark-up” the MF. Your homework from step 1 will explain how to counter MF mark-ups. Make your offer at the buy rate. If the dealer insists the deal must be done with a markup simply adjust you selling price offer down to compensate for the MF markup.
Now this is a critical step. Understand and share your selling price BEFORE incentives. What people on here refer to as the pre-incentive selling price. Hackr feedback on this critical variable is what you seek - clearly identify your pre-incentive discount to make it easy for the hackrs to share their viewpoint on your situation. Best case - before you reach out to dealers - do your research on this forum and ask the hackrs: “Based on my homework, I plan to target a pre-incentive discount of X-Y% in the SoCal market. Can I be more aggressive? Will I need to settle for less?” I will be explicit - the single most important variable you will negotiate is your pre-incentive discount from MSRP. The rest of the monthly lease calculation - RV, buy rate MF, acquisition fee - is non-negotiable with the lender. Incentives are set by the mfg - just make sure you get them all.
Use the search function on this forum to discover relevant deal posts (i.e. comps) so you can gauge the range of possible pre-incentive discounts for your situation. This step can NOT be skipped. As you review “Signed” and “Deal Help” postings you will put your working lease knowledge to the test and gain confidence in quickly identifying “good-bad” deals. This exercise will steady your nerves as you engage in your actual negotiations. “Under pressure, you sink to your level of training” (Badass Navy Seal).
Go get a competitive quote - and you don’t even need to leave this forum. Your first “dealer” quote can come from one of the brokers/dealers on this site. Brokers/dealers post their current deals every few weeks: monthly, DAS, MF, RV, incentives, MSDs. If you like the numbers, you are driving a new car in a few days. If you want to invest energy to get a more aggressive deal, you know what to shoot for.
Find all available incentives (step 2 Edmunds plus mfg websites), know the standard fees/taxes in your state, research how to structure DAS, avoid buying down cap cost and just say no to garbage add-ons.
It’s best to have a solid understanding of what deal is possible in your market and in the current environment BEFORE you engage with dealers. With an outline of a great deal in hand, work your way down a list of dealers until you get it - or close to it. If you crave an aggressive deal you will hear “no” 90% of the time; respectfully move on to the next dealer until you run out of energy or time. Pull the trigger … and enjoy your new car with the confidence that you played the game well. Or, reach out to the many reputable brokers/dealers on this site and start driving your new car in a matter of days.
Lease payments = depreciation + rent charge (mf) + other fees like taxes are in there. Correct???
When you write it off 100% for business on a purchase you can only write off an x amount of depreciation and that % decreases every year. Versus on a lease you write the full payment off which includes the tax, rent charge, depreciation and whatever other fees are composed of the monthly like acq fee.
Also you can write off maintenance as part of that in a lease if applicable and you don’t have to log your miles (whereas in a purchase if audited that’s the first thing that will be looked at)assuming it’s 100% a business vehicle. That’s how it was explained to me by a few cpa’s, I’m sure someone else can chime in on the complexities.
So he’s not wrong he just didn’t or couldn’t explain it properly.
On a purchase, you can write off the financing interest, fees, etc as well. Depreciate is dictated by either MACRS tables or accelerated depreciation based on the vehicle. In either case, you’re likely over depreciating the vehicle, so you’re getting a more significant write off (after all, what car is actually worth $0 at the end of 5 years?) but then claiming the equity as income when you go to sell.
If the vehicle is truly 100% business owned and operated, you don’t need to log your miles. If it is split use, you need to log your miles regardless of if it is leased or purchased. Maintenance is written off in either case.
The alternative approach is claiming the per mileage write off rather than writing off the lease or depreciation amount. You’d need to look at the numbers to see which option made more sense there. No switching once you start down a path.
Yeah see the way the cpa explained it was that a lease is just simpler than dealing with the purchase, I think another proponent is that driving to and from your home is not technically business use but most skirt the law anyway, we do the same, the trucks drive everywhere including non business trips in between on the weekends but the whole lease payment + maintenance is written off as well as gas and insurance.
I think a lot of people get around or claim more than they should but some would claim the government takes too much
