Is this a good lease deal?

MojitoJLUR

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So what do you think, should I accept the deal?
I think it's a completely case by case basis depending on your situation. I have always leased vehicles but we started driving too many miles to do it anymore. I don't like putting money down on leases but I'm also spoiled being able to get the employee discount and living in detroit. We can generally lease a vehicle for 15k miles with zero down for about $300 a month, never tried a wrangler though. So $5k down and a payment of $380 seems crazy to me lol.
I think they are making too much money off this deal compared to buying it. I think the wrangler is a odd situation because it does retain it's value. It's one vehicle that you could buy and end up selling after three years and probably be better off than leasing it.
 

ThirtyOne

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Selling Price if I were to buy all cash right now- $41,700.

Selling Price if I were to buy at the end of my lease-

$5,000 down +
$380 a month for 39 months = $14,820 +
63% residual value on MSRP of $45,680 = $28,778

Total buying price after lease ends= 5000+14,820+ 28,778 = $48,598.

The difference of Buying after lease ends - Buying all cash now = $ 48,598 - 41,700 = $6,898

This means they are making an additional $6,898 off me if they lease to me and I end up buying it after. That comes to about MSRP price out the door.


Someone with better knowledge please let me know if my numbers are correct.
Much appreciated
Unfortunately buying out the end of the lease is always a bad deal. I have tried to justify it with math but it just doesn't work.
 

ThirtyOne

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Residual value is 26k, so the delta is just over 15k, and with 5k down, payments are for 10k/39 months plus interest/fees...seems right to me
This is what happens when you swap the MSRP and Selling Price in the lease calculator! Sorry about that.

Now what I get is in the ballpark.
 
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ThirtyOne

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So what do you think, should I accept the deal?
For a Wrangler, this is a good lease deal. I don't think you should have any hesitation taking this deal if a lease is right for you. That is a realy good payment for a Sahara.

Lease versus buy is another conversation. I hate to give advice other than do the math both ways and figure out what is right for you.
 

BaldEagle

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Unfortunately buying out the end of the lease is always a bad deal. I have tried to justify it with math but it just doesn't work.
It only works if you want a new car every 3 years
 

yongming

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Just
Selling Price if I were to buy all cash right now- $41,700.

Selling Price if I were to buy at the end of my lease-

$5,000 down +
$380 a month for 39 months = $14,820 +
63% residual value on MSRP of $45,680 = $28,778

Total buying price after lease ends= 5000+14,820+ 28,778 = $48,598.

The difference of Buying after lease ends - Buying all cash now = $ 48,598 - 41,700 = $6,898

This means they are making an additional $6,898 off me if they lease to me and I end up buying it after. That comes to about MSRP price out the door.


Someone with better knowledge please let me know if my numbers are correct.
Much appreciated
Just Curious how you calculate.
"63% residual value on MSRP of $45,680 = $28,778"
Isn't that true you need to calculate 63% of "selling price which is about $41k" instead msrp???
 

yongming

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Just


Just Curious how you calculate.
"63% residual value on MSRP of $45,680 = $28,778"
Isn't that true you need to calculate 63% of "selling price which is about $41k" instead msrp???
I might be wrong cuz I'm learning the mechanism of lease...somebody comfirm?
 

GOMD

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Just


Just Curious how you calculate.
"63% residual value on MSRP of $45,680 = $28,778"
Isn't that true you need to calculate 63% of "selling price which is about $41k" instead msrp???
Residual is always calculated from the msrp, not selling price.
 

GOMD

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Wranglers are too popular to lease well. The money factor is high, since Jeep does not need to discount it to move vehicles.

Residual is high, which is good, but without large discounts from msrp and non existant rebates, it won't be a cheap lease.
 

ThirtyOne

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Wranglers are too popular to lease well. The money factor is high, since Jeep does not need to discount it to move vehicles.

Residual is high, which is good, but without large discounts from msrp and non existant rebates, it won't be a cheap lease.
I agree they are not as cheap as you would think given the high residuals.
 

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