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PatriotUSA

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Buying or leasing JLU for our college age son. Sport or Sport S (preferably). What kind of deal can I expect? Money down, payment, mileage allowance. I’m in Texas and will travel to Neil at DeMontrond in Conroe.
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beachbum

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Buying or leasing JLU for our college age son. Sport or Sport S (preferably). What kind of deal can I expect? Money down, payment, mileage allowance. I’m in Texas and will travel to Neil at DeMontrond in Conroe.
Depends on if you are getting an inventory 2018 or 2019 or custom order 2020. On a new custom order 2020, you should target 8% below invoice with a reasonable (sub $500) dealer fee. You can find invoice in attached spreadsheet. As for financing, just take the total out the door price and put it in a payment calculator (bankrate.com has good calculators) with the length of term and interest rate to get payments. You never need money down but the more you put down the lower the payments obviously.

If you choose to lease, just plug the same numbers into the lease calculator at bankrate.com. For the residual and interest rates for 2019's go to:

https://forums.edmunds.com/discussion/53031/jeep/wrangler/2019-jeep-wrangler-lease-deals-and-prices

For 2018's go to:

https://forums.edmunds.com/discussion/48521/jeep/wrangler/2018-jeep-wrangler-lease-deals-and-prices

There are no residuals and money factors yet for 2020's but they will probably be very similar to 2019. If you get a money factor and the calculator asks for interest rate just multiply the money factor by 2400. Right now I believe Jeep mf is .00227 which is 5.448%. I always recommend leasing unless there is a tax advantage for you to buy. People sometimes misunderstand leasing.

A lease is exactly the same as financing just with a longer depreciation period. Usually when you finance a new car, the bank limits the term to 6 or 7 years but the car often depreciates slower than that (after 6 years the car is worth more than zero), so you are essentially paying for more depreciation than the car experiences but you get that excess back when you sell it so it's like paying a bit extra every month into a low interest savings account. Leases just extend the depreciation schedule usually out to 8 to 10 years. They do that so the amount owed on the car equals exactly the predicted value of the car at some future point when the lease expires. So if Jeep expects a Sport to be worth 68% of it's MSRP in 3 years, they will set the length of the term so the balance due in 3 years exactly equals 68%. To do so, they use a longer amortization schedule. However you are not obligated to return the car to Jeep at the end of the lease, you can buy it back at the agreed residual. So if you've loaded the car up with aftermarket stuff you can keep the car or sell it for more than you owe and keep the difference. It's just a longer term loan with a free option to turn it in at the agreed upon date should the value be below a certain number. The only downside is a higher interest rate (Jeep interest on Wrangler leases is high). You also don't have to keep the Jeep the entire length of the lease. If you've done a good job getting a low payment by getting a good discount, it's pretty easy to put the Jeep on swapalease or leasetrader and have someone take it over at anytime. If you plan to do that, get a longer term 48 month lease for even lower payments that will be more attractive to someone taking over your lease. In short, with a lease you only pay the ACTUAL depreciation and interest that you car uses every month and if done right you can get out anytime you want.
 

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