Can you lock in lease terms on custom order?

[jessio]

When purchasing a new car, I'v been able to lock in the interest rate, even though the car was a custom order. Are you able to do this with lease terms? I'm trying to negotiate a lease deal, but since the car is being ordered, the dealer is telling me that both the money factor and residual could change by the time the car is built and reaches the dealership. Does anyone know if there is a way to lock in terms?

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[BlackRook]

I've heard of locking in a rate with loans, but never on a lease. Reason is that the residual changes throughout the year, and it's a key component of the rate calculation.

I'd love to be wrong on this. Anybody else?

 

[ThirtyOne]

No. You cannot. The best you can do is get a good faith estimate based on the current lease terms in writing (which I recommend).

But the deal cannot be done until the vehicle is actually purchased. Technically you can do that as soon as it ships but that may be risky since you are not officially taking possession.

I ran into that with my Jeep. I picked it up 5/1 but we did the deal on 4/30.

 

[jessio]

No. You cannot. The best you can do is get a good faith estimate based on the current lease terms in writing (which I recommend).

But the deal cannot be done until the vehicle is actually purchased. Technically you can do that as soon as it ships but that may be risky since you are not officially taking possession.

I ran into that with my Jeep. I picked it up 5/1 but we did the deal on 4/30.

Thank you ThirtyOne. Do you know who sets the lease MF and residual? Or does it vary from bank to bank? I'm just wondering if there is a way to know whether the MF I am given is inflated. I have a great lease offer on the table, but when the car comes in, will the dealership say "sorry, rates have changed." I know this can and often does happen, but how do you know if it is legit?

 

[ThirtyOne]

Thank you ThirtyOne. Do you know who sets the lease MF and residual? Or does it vary from bank to bank? I'm just wondering if there is a way to know whether the MF I am given is inflated. I have a great lease offer on the table, but when the car comes in, will the dealership say "sorry, rates have changed." I know this can and often does happen, but how do you know if it is legit?

The banks set both the MF and Residual. The dealer can mark up the MF but they generally cannot touch the residual.

It's a little tricky benchmarking the MF. Chrysler rates are pretty easy to find. Other banks such as US Bank and Ally are harder to find. They have also been fluctuating the last couple of months more than usual.

To get the chrysler rates, use this forum:

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

Here are some broad generalizations -

- USBank tends to have similar residuals and slightly better rates
- Ally tends to pair really high residuals with really high money factors. The resulting payment can be a little lower but you will almost certainly have to turn it in and walk away at the end.

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