How are you defining a better deal?
Great question. Most of the other cars I liked were over 2% in terms of payment as a proportion of MSRP. I think Telluride is a great car and at 1.5% the payment is significantly better. If a broker or someone else can find me a better deal on a nice 3 row in Texas, Iāll gladly cancel my deposit, and pay the broker finders fees.
Finance a grand Cherokee ?
A car that āleases wellā has a combination of four different ingredients. Usually you need all four to hit a home run but there are exceptions when one of those four attributes is an outrageous outlier (ie. the obscene RV of the Tacoma and Frontier at their best). Those four ingredients are as follows:
High Residual Value (Tacomas and Frontiers when they were hot are probably the best examples of this)
Dealer discount (Obviously a difficult one to get nowadays with some rare exceptions/being willing to wait for an order)
Large manufacturer rebates (Probably even rarer now except for EVs that are still getting the whole tax credit passed through like the Wrangler 4xe)
Low Money Factor (Weāre looking for at least 3 zeroes here, preferably four. Again, this will be harder to find as interest rates continue to climb)
I donāt really see this car checking any of those boxes. The Telluride is well regarded in the 3 Row SUV class but most people here who have gotten into one recently seem to come to the conclusion that its a better value proposition as a purchase.
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Thanks for this. What 3 row suv has a higher RV than 66-68%?
How does that relate to it leasing well though?
Less bad, perhaps, but well?
If you are using payment to msrp as your metric, the gc-l will treat you much better. I wouldnt use % of msrp as a metric though.
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I would strongly recommending reading up leasing 101 to have a basic understanding on what variables help determine a monthly payment. It is not just the RV or MF.
Pre-pandemic, manufacturers used to incentivize leasing. Hence, my definition of a great lease is a combination of a good discount off MSRP, manufacturer incentives, high residual value (RV) based on your mileage requirements and low money factor (MF).
Lease payment shopping is not the way to go, IMO.
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Thatās only one ingredient though. And itās not obscenely high enough to offset the lack of the other ingredients. In terms of real world value thereās also a not unlikely chance that the Telluride will outperform the somewhat conservative value that KMF has set, which means that financing would be the better option if thereās no subvented lease rate and/or lease cash being offered to make a lease more attractive.
That would be your best option.
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Simple advice (take it if you would like)
Compare the total out of pocket cost over the term of the lease with % off the purchasing the vehicle.
This will make you realize how much more youāre actually paying to āleaseā which does or doesnāt make sense cuz itās damn so much.
The Telluride is a great SUV, we have a '22 SX-P that my wife drives. BUY the Telluride, donāt lease it!!
Also, avoid Hyundai Motor Finance at all costs! They are well documented as being a horrible bank to deal with
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That interest payment is ridiculous
So unfortunately I donāt have too much details outside of this. I am considering these lease options of cars available now vs. waiting months for the Telluride to arrive.
2022 Volvo XC90 Inscription 7 seater MSRP $71,585. 36 months. First Months Payment only. $1041/mo. (All taxes and fees included)
2022 Infiniti QX60 Sensory MSRP $60,580. 48 months. First Months payment only. $939/mo. (All taxes and fees included).
In Texas and yes includes tax credits. Open to other ideas as well.
These are horrific. How are you even considering these?
All the leases I have seen in this market are even worse! Iāve been looking for a decent lease on a 3 row SUV for months to no avail.
Inscription seems high but inline with the programs.
The QX60 is the real shocker and should be discarded from the running at $45,000 cost to lease a $60K car.
Sound like this guy (like many other wandering in here) simply wants a āleaseā no matter how terrible the value is, all of you telling him how bad it is again and again are waiting your breath imo.
Sorry OPā¦
Have you ever researched residuals on a Jeep, Toyota, Honda, Nissan Frontier? or Lexus?! The 4Runner is one of the highest residual vehicles on the road.
A good lease deal is SUPER EASY to figure out without a calculator. No more than $2,000 DAS (youāll lose it if the car is totaled) and 1% of the MSRP as a payment. A 41k vehicle should have a $410 payment give or take $30/mo per thousand for taxes and add-ons.
My 2020 Tacoma TRD has a 42MSRP with a $309 payment and first and $500 broker fee (Thanks Jim!) down. While that isnāt possible today, you can still get a Tacoma SR (same vehicle/engine with no fog lights or nannys) for $37MSRP for just over $400.
I love the Telluride, but the Sorrento has a better/higher third row position and is MUCH cheaper to lease. The V6 sport +blackout option didnāt have keyless start/entry, and had a tiny LCD, which I found hilarious in 2020 when I was shopping. The tiny red fonts (ala BMW) and rear visibility on Kiaās (not all of them) isnāt that great either.
You should look into a credit unionās balloon loan/lease. Iām buying my Tacoma lease out and my payment will be under $400 for 48 months. I hold the title, but I can walk away from it at the end. Iām only doing that to get the equity out of it.
The modified 1% rule is as useless as the 1% rule. It in no way says if something is s good deal or not.
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