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First Post - Leasing Question... (*Sigh*)

DBarton02

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Hi Everyone! I've been stalking this forum for some time - as my wife and I have been considering purchasing / leasing a new JL to add as a second car (to retire our Hyundai Veracruz that is over 10 years old).

I have been in casual negotiation with a few dealers in and around the Chicago Metro area, and came across a 2018 Sahara - MSRP of $48,220 equipped as follows:
  • 2.0 Liter Turbocharged 4
  • Auto Transmission
  • Leather Seats w/ Sahara Logo
  • Cold Weather Group (28G)
  • Infotainment System Group
  • All Weather Floor Mats
  • 3 Pc Black Hard Top
Again - total sticker is $48,220.
The dealer has the vehicle marked on their website as their 'best price' of $39.784, which was the price I was quoted when I spoke with them.
Figuring it was a 2018, I thought what the hell, and threw out the lowball of lowballs at $33,000 OTD (I know - go ahead and laugh). I figured they wouldn't budge - and they didn't - though after a few back and forths in email and then on the phone, they had asked where I had figured my purchase price to be, and I proposed finance and a lease option to see where they'd go.

I used the Leasehackr calculator, and plugged in the MSRP of 48220, with a figured sale price of 37000 flat. MF was .0017 since I have tier 1 credit, a 60% residual, 12,000 miles per year over 48 months.

My monthly came out to $327 with tax included, at about a $1,200 drive off (including 1st months payment and all fees) and I was told again that they could go NOWHERE near that with the price I gave - so I even went in and calculated it at their advertised price of $39,784, which put me at $350/month calculated (still acceptable) and it was still a no-go in the dealers eyes.

They sent me a picture of Jeep's lease ad with the Sport S Advertised for $269/mo with $3500 down, and said if I were to lease a Sahara, I could expect they payment to be in the high 5's - touching 6, which would be damn close to what I could get to finance it.
I really don't want to pay $600+ per month for a second car, and like the idea of the lease, with a vehicle having a higher residual at the end of the term that could net me some money.

What the heck am I missing? Is there a dollar amount I'm not putting in right? Seems to me like it would be a good deal, but I could be wrong here.

Any input/advice would be welcome!

Thanks!
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Scott2.0

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It’s really just math. Figure 8% below invoice as the lowest possible cap cost that you’ll get (probably shoot for 6% under to be realistic unless you’re willing to travel) and calculate the rest based off of that. I don’t believe there is lease support for 2018 models, but I may be wrong.
 

sobeit69

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Hi Everyone! I've been stalking this forum for some time - as my wife and I have been considering purchasing / leasing a new JL to add as a second car (to retire our Hyundai Veracruz that is over 10 years old).

I have been in casual negotiation with a few dealers in and around the Chicago Metro area, and came across a 2018 Sahara - MSRP of $48,220 equipped as follows:
  • 2.0 Liter Turbocharged 4
  • Auto Transmission
  • Leather Seats w/ Sahara Logo
  • Cold Weather Group (28G)
  • Infotainment System Group
  • All Weather Floor Mats
  • 3 Pc Black Hard Top
Again - total sticker is $48,220.
The dealer has the vehicle marked on their website as their 'best price' of $39.784, which was the price I was quoted when I spoke with them.
Figuring it was a 2018, I thought what the hell, and threw out the lowball of lowballs at $33,000 OTD (I know - go ahead and laugh). I figured they wouldn't budge - and they didn't - though after a few back and forths in email and then on the phone, they had asked where I had figured my purchase price to be, and I proposed finance and a lease option to see where they'd go.

I used the Leasehackr calculator, and plugged in the MSRP of 48220, with a figured sale price of 37000 flat. MF was .0017 since I have tier 1 credit, a 60% residual, 12,000 miles per year over 48 months.

My monthly came out to $327 with tax included, at about a $1,200 drive off (including 1st months payment and all fees) and I was told again that they could go NOWHERE near that with the price I gave - so I even went in and calculated it at their advertised price of $39,784, which put me at $350/month calculated (still acceptable) and it was still a no-go in the dealers eyes.

They sent me a picture of Jeep's lease ad with the Sport S Advertised for $269/mo with $3500 down, and said if I were to lease a Sahara, I could expect they payment to be in the high 5's - touching 6, which would be damn close to what I could get to finance it.
I really don't want to pay $600+ per month for a second car, and like the idea of the lease, with a vehicle having a higher residual at the end of the term that could net me some money.

What the heck am I missing? Is there a dollar amount I'm not putting in right? Seems to me like it would be a good deal, but I could be wrong here.

Any input/advice would be welcome!

Thanks!
I’m north near Gurnee IL. Every dealer has hit me $650 to 700 plus $5k down on 49,000 sale price Rubicon. List 55500. Anyways there is know where I can find in IL that can even get to their advertisement price. It’s always add $$$3 to 10k down, plus taxes and fees . And oh your 800 plus score dosnt matter we are still gonna hit you at 5 or 6. % on. A lease ...it’s out of their hands.... so frustrated too
 
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DBarton02

DBarton02

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It’s really just math. Figure 8% below invoice as the lowest possible cap cost that you’ll get (probably shoot for 6% under to be realistic unless you’re willing to travel) and calculate the rest based off of that. I don’t believe there is lease support for 2018 models, but I may be wrong.
I hear ya. I've run every scenario possible using the Leasehackr calculator - including a higher cap. cost and I'm still nowhere near where this things SHOULD be.

I even went through with different models, and my wife really likes the blackout look with the Sport S Altitude Package (in Firecracker Red) - even on Jeep's website, the lease calculations match what I am coming up with including the dealer discount, less any cash from FCA.

Only thing I can think of is, yesterday was the first of the month, so nobody really cared since any goals were hit on Friday night - or the dealer just really isn't aggressive in selling those vehicles.

*shrugs*

Benefit in my position, at least, is we don't NEED to buy a Wrangler... it'd be nice to have - but the Dealers are the ones that NEED to sell it...

First world problems, I guess!;)
I'll consider myself lucky that's the biggest problem we've got!
 

sobeit69

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I bet the real problem is they are not selling at that sale price. You will most likely find they included like $2000 in rebates or more that you won’t qualify for ....plus they probably included the $1495 in destination charge into the so called sale price. That’s common here in corrupt IL. I believe Napelton Jeep in Arlington Heights started this dishonest trend.
 

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DBarton02

DBarton02

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I bet the real problem is they are not selling at that sale price. You will most likely find they included like $2000 in rebates or more that you won’t qualify for ....plus they probably included the $1495 in destination charge into the so called sale price. That’s common here in corrupt IL. I believe Napelton Jeep in Arlington Heights started this dishonest trend.
I sort of called them on it when I was on the phone with them yesterday - told them what my calculations were coming out to, and the response was the standard "Well, there are a million calculators out there, and they're all wrong".

So I asked them to send me the full breakout of their calculation so I can compare. Never did get anything from them yet.

My guess is they're banking on getting someone in, making their head spin a bit and then going with the claim of "you're really not going to find anything better than this" since fewer people have the understanding of the components of a lease - so they look at the reduced monthly payment, and feel better about it regardless since its 'less' than what they would be financing.

Gotta love it! But yes - buying in a corrupt, tax me state just makes is that much more fun!
 

Scott2.0

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If you're not getting the capitalized cost that they're using, you'll never be able to evaluate your deal. Negotiate and understand that and the rest will add up.
 

nypharm

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Yea leasing Wranglers are tough. You will not get good discount on vehicle and no up-charge on money factor. I was about to get a Rubicon $51,740 msrp for $499 monthly 42 months, 10k and 1,699 due at lease. I feel lucky. Try to see if they use US bank, they have best rates.
 
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DBarton02

DBarton02

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If you're not getting the capitalized cost that they're using, you'll never be able to evaluate your deal. Negotiate and understand that and the rest will add up.
Yeah... That dealer is going to be a walk-away. After I asked about the approximate residual, dealer fees, and selling price (understanding the money factor is a big variable) I got the following response:

Got the "Great News! My business manager said they can get you to a payment in the high 400s! I'm not privy to all the information - but stop on in and we can review it and get the paperwork going!"

Yeah... no...
 

Scott2.0

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Yeah... That dealer is going to be a walk-away. After I asked about the approximate residual, dealer fees, and selling price (understanding the money factor is a big variable) I got the following response:

Got the "Great News! My business manager said they can get you to a payment in the high 400s! I'm not privy to all the information - but stop on in and we can review it and get the paperwork going!"

Yeah... no...
Good call! What a joke. They love suckers that shop for a payment, without understanding the numbers that contribute to it. Most sales people don’t even understand leases, hence all the BS when you ask them for the numbers. It’s really not that difficult. Good luck!
 

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Awilson9172

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They will never give you any price close to a calculator price. I went back and forth on the price a calculator was giving me and their price and walked out I swear 4 times before they finally walked down over a 100 dollars a month to meet me close. It's all a game. Just a heads up. Tier 1 credit should get .0017 MF. However dealer makes money on anything above that. So ask for the bank verification of what the MF you were approved for. And watch it closely.
 

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Just for the record when I dealt with Tri-City they gave me every variable and matched my calculator to the penny. You just have to find a dealer willing to be transparent on a lease.
 

Scott2.0

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They will never give you any price close to a calculator price. I went back and forth on the price a calculator was giving me and their price and walked out I swear 4 times before they finally walked down over a 100 dollars a month to meet me close. It's all a game. Just a heads up. Tier 1 credit should get .0017 MF. However dealer makes money on anything above that. So ask for the bank verification of what the MF you were approved for. And watch it closely.
The good thing about financial regulatory laws is that all the numbers will be disclosed to you at some point, no later than at signing. Math has no gray area. It either adds up or there is a reason why it does not. In the end, the payment will be exactly what any reputable calculator will spit out if all the variables are accurately understood.
 

HealthRebel

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Yeah... That dealer is going to be a walk-away. After I asked about the approximate residual, dealer fees, and selling price (understanding the money factor is a big variable) I got the following response:

Got the "Great News! My business manager said they can get you to a payment in the high 400s! I'm not privy to all the information - but stop on in and we can review it and get the paperwork going!"

Yeah... no...
Yep. They are trained to target your biggest concern, which is usually where you are the weakest and most vulnerable. "Sales 101"!
 

BWWJL

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There’s something call a minimum cap value (I forget the actual name). I was close to leasing a sport s and had the price to $38k but the min cap value was $40k which jacked the price up $40/mo or so.
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