How bad is this deal on new Rubi? Please

[dshark1]

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..

I guess this is what buying off the lot will cost vs ordering. At least u said it’s not the worst deal U seen? Lol thx for the input.

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[CMF150]

WTF is 'tire/wheel' insurance? Sounds dumb even for $10/month.

 

[GATORB8]

WTF is 'tire/wheel' insurance? Sounds dumb even for $10/month.

I hate "monthly costs" since it makes it sound cheap, it's $480. I believe it just writes off his wear and tear fees if he returns with curbed rims and bald tires.

I assume he'll have more value than residual at turn in, so it wouldn't matter anyways.

 

[rcadden]

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.

Hence "almost universally". There are always edge cases or unique circumstances, but generally speaking, for most consumers, leases are approximately as wise as payday loans.

 

[dshark1]

WTF is 'tire/wheel' insurance? Sounds dumb even for $10/month.

I know in the past on my BMW X5, I had tire insurance. Actually end up being great. Repaired & replaced 4 tires which got nails & screws. However, with the Jeep tires not sure?

 

[Warz2k4]

Does he plan on modding the Jeep?

I wouldn't mod that thing if it's a lease.(Since he doesn't own it) I also probably wouldn't offroad it either. That's just me though lol.

In any case, why not just finance it? Wranglers hold great residual, Can sell it after 3 years, if he doesn't like it.

 

[GATORB8]

Hence "almost universally". There are always edge cases or unique circumstances, but generally speaking, for most consumers, leases are approximately as wise as payday loans.

The leasehackr forum is a great resource if someone's considering it. That way you can make sure you're in the "almost" part.

In this case, I would definitely recommend considering financing. Outside of interest, the extra cost is about $1000 (Acquisition Fee +Disposition fee). The benefits are that he's "only" financing (paying interest) and taxes on the depreciation.

 

[dshark1]

Does he plan on modding the Jeep?

I wouldn't mod that thing if it's a lease.(Since he doesn't own it) I also probably wouldn't offroad it either. That's just me though lol.

In any case, why not just finance it? Wranglers hold great residual, Can sell it after 3 years, if he doesn't like it.

He will be a true mall crawler with it. Lol

 

[GATORB8]

Does he plan on modding the Jeep?

I wouldn't mod that thing if it's a lease.(Since he doesn't own it) I also probably wouldn't offroad it either. That's just me though lol.

In any case, why not just finance it? Wranglers hold great residual, Can sell it after 3 years, if he doesn't like it.

The "own" part doesn't really matter. IF he turns it back in (i.e. his value is less than the residual) he just needs to put it back to stock to turn it in. In that case, the lease is probably better since Chrysler Cap eats the loss compared to residual. If it's worth more, he can either buy it or sell it to the dealer and pocket the equity.

 

[dshark1]

The leasehackr forum is a great resource if someone's considering it. That way you can make sure you're in the "almost" part.

In this case, I would definitely recommend considering financing. Outside of interest, the extra cost is about $1000 (Acquisition Fee +Disposition fee). The benefits are that he's "only" financing (paying interest) and taxes on the depreciation.

Definitely going to recommend financing. Wondering, if he does lease. Is it reversible in the near future? can he get another loan & turn it into a finance , at a later date?

 

[GATORB8]

Definitely going to recommend financing. Wondering, if he does lease. Is it reversible in the near future? can he get another loan & turn it into a finance , at a later date?

Yes, he can buy out the lease during the term. Normally like a $500 fee to do it. He would pay the RV + remaining payments - interest (IIRC) + the fee. He'd have to pay the tax on the sale at that time, since he's only paying taxes on the payments.

EDIT: Confirmed, it's on the lease sheet, fee is $350:

 

[Warz2k4]

The "own" part doesn't really matter. IF he turns it back in (i.e. his value is less than the residual) he just needs to put it back to stock to turn it in. In that case, the lease is probably better since Chrysler Cap eats the loss compared to residual. If it's worth more, he can either buy it or sell it to the dealer and pocket the equity.

IMO - if he does plan on modding it, seems like a PIA to return back to stock for example if changing suspension(lift kits)

Or, bumpers. He'd have to find storage for these large items.

Just a few examples.

 

[GATORB8]

FYI, if anyone's wondering why the 4xe is leasing like hotcakes.
This is the same deal. I bumped the MSRP UP to $60k, with a similiar small discount.
Monthly payment would be $547, all because the $7500 comes off the depreciation, and the RV is a percentage based on MSPR.
https://leasehackr.com/calculator?make=Jeep&miles=12000&msd=0&msrp=60000&sales_price=59000&months=48&mf=.00128&dp=0&dealer_fee=69.35&acq_fee=595&taxed_inc=0&untaxed_inc=7500&rebate=0&resP=54&reg_fee=1460.43&sales_tax=5.5&demo_mileage=0&memo=&monthlyTax_radio=true&bmw_demo_25=true

Note, the MF and RV is a little different, I just used OP's for this example.

 

[dshark1]

Yes, he can buy out the lease during the term. Normally like a $500 fee to do it. He would pay the RV + remaining payments - interest (IIRC) + the fee. He'd have to pay the tax on the sale at that time, since he's only paying taxes on the payments.

EDIT: Confirmed, it's on the lease sheet, fee is $350:

Thx so much for all the great info. I guess at the end of the day, If he takes this deal. Buying off the lot he is losing the ability of getting % under invoice which probably means he’s paying $5k for impatience.

 

[GATORB8]

IMO - if he does plan on modding it, seems like a PIA to return back to stock for example if changing suspension(lift kits)

Or, bumpers. He'd have to find storage for these large items.

Just a few examples.

I don't expect to turn in our 4xe, but I'll sell the stuff I remove, and just buy stock take offs at the end if I do.

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