Hi there - quick (ok, not really quick) question. I’m trying to negotiate for a 2019 Ram which should have pretty decent terms. Essentially the MSRP is about $50k (Big Horn with some extras). Through Edmunds I’ve received information that what I’m looking for has the following information: 36/15: .00001 MF and 49% residual with $5000 incentive.

So I plug in the following numbers ( leasehackr.com/calculator?make=Ram&miles=15000&msd=0&msrp=50000&sales_price=45000&months=36&mf=.00001&dp=0&dealer_fee=85&acq_fee=595&taxed_inc=0&untaxed_inc=5000&rebate=0&resP=49®_fee=400&sales_tax=9&demo_mileage=0&memo=&monthlyTax_radio=true )

MSRP of $50k, Sales price of $45k (figure 10% off MSRP is reasonable?) and I get that my payment would be a decent $448/month before taxes. Not bad. Not as great as a lot of them I see on here, but still a good starting point at least.

Well, I am talking with a dealer and he quoted me $528 before tax going through their bank. Here is his response when I asked why the numbers are higher than I’m expecting. He used $50k - $12k off for his calculations, but would not/did not give me his residual & MF.

*Our local bank is actually a cheaper payment than what Chrysler Capital will be because when you go through Chrysler Capital we don’t get the $12k off due to the fact that we lose rebates going through Chrysler Capital. The money factor Chrysler Capital uses is what’s called an incentivized rate, Chrysler is using part of the rebates we would normally get to buy down the money factor. Doing this compared to the extra discount we get going through our local bank paired with the higher residual we get through our local bank gives us a lower payment than what Chrysler Capital would be. The reason your payment calculations are coming out so low is because you’re using the incentivized money factor along with the discount that doesn’t go with Chrysler Capital bank.*

I guess I’m curious - am I doing something wrong here in my assumptions or is this just a tactic for him to get better terms on his end. I’ve never leased anything before, and while I have been reading these forums for a while I’m still a novice.