How bad is this deal on new Rubi? Please

[dshark1]

Hey guys , my brother has Jeep fever bad. And wants one now! trying to explain to him that ordering is the best way to go, however he found a Rubicon at a local dealer. This is the paperwork that he has yet to sign. Just want to know how bad or good this looks? (MSRP $53,715) His goal was to stay in the $600 range of payments. He is doing $1200 out of pocket, Not $2289 like stated in contact. ( 48 month Lease) also includes tire/wheel insurance for $10 additional a month to the payment. I am not very familiar with the lease language. Any inputs highly appreciated. Thx in advance!

Sponsored

 

[dshark1]

If I am reading this correctly, Is he being charged like $60 grand for this vehicle? ^^^^^ I am confused to understand what Is the final sales price?

 

[JSFoster75]

Hey guys , my brother has Jeep fever bad. And wants one now! trying to explain to him that ordering is the best way to go, however he found a Rubicon at a local dealer. This is the paperwork that he has yet to sign. Just want to know how bad or good this looks? (MSRP $53,715) His goal was to stay in the $600 range of payments. He is doing $1200 out of pocket, Not $2289 like stated in contact. ( 48 month Lease) also includes tire/wheel insurance for $10 additional a month to the payment. I am not very familiar with the lease language. Any inputs highly appreciated. Thx in advance!

He can finance $45k for 2.79% at 84 months for $600/mo... (Choose bi-weekly payments, and it's actually $272.34 every 2 weeks)
I have no idea about leases, I stay as far away from them as humanly possible...

 

[Codak]

Is there a reason he wants to lease vs buy? Running rough numbers if he just waited and saved a little more and took a 45k loan @ 3.11% for 72 months his payment would virtually be the same but would own the vehicle.
And already if he wanted to buy it at the end of the lease he would be at $63,108 and that’s if he paid the 29k cash at the end of the lease.

 

[GATORB8]

RV is showing as 54%. MF should be .00128 (3.1% APR).

Selling price of $52,832.57 (882.43 discount off MSRP). Then add back on the $10/mo for the wheel tire insurance.

I'd have to calc it out, but the Rent Charge looks higher than the real MF to me.

 

[dshark1]

Is there a reason he wants to lease vs buy? Running rough numbers if he just waited and saved a little more and took a 45k loan @ 3.11% for 72 months his payment would virtually be the same but would own the vehicle.
And already if he wanted to buy it at the end of the lease he would be at $63,108 and that’s if he paid the 29k cash at the end of the lease.

His idea is, he’s not gonna own it. His last couple of vehicles have been a lease.

 

[dshark1]

RV is showing as 54%. MF should be .00128 (3.1% APR).

Selling price of $52,832.57 (882.43 discount off MSRP). Then add back on the $10/mo for the wheel tire insurance.

I'd have to calc it out, but the Rent Charge looks higher than the real MF to me.

So how bad of a screw deal is this? Lol. So, selling price is $52,832.57 that’s what I was trying to figure out. Thx for your input!

 

[rcadden]

Without even looking at this paper, I can tell you 2 things:

1. Buying off the lot (at sticker) is going to hose him for ~$5-6K right off the bat, just straight up. Potentially even more depending on dealerships, etc. Ask him if he's really got $5-6K that he'd like to just burn right now.

2. Leases are almost universally a poor financial decision. With decent credit you can easily finance for 60 months at 2.6-3.12% right now. Stupid low.

 

[GATORB8]

MF looks pretty close when you add the $20/mo your reduced drive off is adding in:
https://leasehackr.com/calculator?m...&memo=&monthlyTax_radio=true&bmw_demo_25=true

 

[dshark1]

Without even looking at this paper, I can tell you 2 things:

1. Buying off the lot (at sticker) is going to hose him for ~$5-6K right off the bat, just straight up. Potentially even more depending on dealerships, etc. Ask him if he's really got $5-6K that he'd like to just burn right now.

2. Leases are almost universally a poor financial decision. With decent credit you can easily finance for 60 months at 2.6-3.12% right now. Stupid low.

My thoughts exactly. Thx

 

[GATORB8]

2. Leases are almost universally a poor financial decision. With decent credit you can easily finance for 60 months at 2.6-3.12% right now. Stupid low.

I disagree with "Universally", you just have to know how to play the game. Other than the 4xe, the wrangler isn't going to lease really well since there is limited support by FCA. On our German leases, we can generally get the cost down below what an equivalent low mileage used car would cost to drive for a similiar duration.

The equity developed in the lease does not disapper. If his truck is worth more than $29k at the end, he can recover most of that equity.

 

[Windshieldfarmer]

Nothing complicated about this deal - he’s basically paying $400 below sticker but paying 6,700 in rental (interest expense) for the lease. I don’t see this as a great deal (no real discount) but not as bad as some. I am estimating the imputed interest rate on the lease at about 4%…and the lease residual at 58.5%…which helps keep the payment down. The lease residual plus a few fees is what your brother will pay to buy the Jeep at the end of lease if he wants to keep the Jeep. I am assuming he has no plans to make mods to the Jeep…if he elects to buy the Jeep at lease end he will need to return it to OE condition. Leases don’t work for those who want to make changes to their rides…. I’ve personally made some good deals using leases…but I know what I am doing. With a lease it’s very easy for a dealer to manipulate the price, lease factor (interest rate), and lease residual. A lot of moving parts which can be used to screw someone like your brother..

 

[dshark1]

MF looks pretty close when you add the $20/mo your reduced drive off is adding in:
https://leasehackr.com/calculator?make=Jeep&miles=12000&msd=0&msrp=53715&sales_price=52832.57&months=48&mf=.00128&dp=0&dealer_fee=69.35&acq_fee=595&taxed_inc=0&untaxed_inc=0&rebate=0&resP=54&reg_fee=1460.43&sales_tax=5.5&demo_mileage=0&memo=&monthlyTax_radio=true&bmw_demo_25=true

Great link! Thx Looks like he would be paying like $50 more then he should according to the calculator.

 

[GATORB8]

So how bad of a screw deal is this? Lol. So, selling price is $52,832.57 that’s what I was trying to figure out. Thx for your input!

If you have time, join tread lightly and use the affiliate pricing (1% under invoice +$75), takes 30 days to work.

 

[GATORB8]

Great link! Thx Looks like he would be paying like $50 more then he should according to the calculator.

About $20 of that is the reduced downpayment, he's doing $1200 instead of the real drive off.

Sponsored