Lease deal.. any Good?

ThirtyOne

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Ok I ran these numbers
I know you are saying that the sales tax is included. I don’t think it is though. I will explain. I believe you are in Pennsylvania. The sales tax rate there if I am correct is 6% and you pay the tax on the lease payment or depreciation each month in Pennsylvania.

I used your 48 month lease example with a payment of $440 and down money of $440.

If I use the parameters you provided I am coming up with a monthly payment of $433.41 and that does not include taxes or any fees. The drive offs in this case would be $873.41 which includes the $440 down and the first payment. If I back into a monthly payment of $440 then there is room in this lease for a total of $316 in fees. That seems way too low. But let’s go onto the assumption that the payment is $440 with the fees. With your 6% sales tax the monthly payment would be $466.40.

I am just doing basic math using a lease calculator here. I know you’re going to come back and say the dealer said that was inclusive of everything. But if so then some number you gave in your parameters is not correct.

As for your parameters it looks like you are getting about 4 1/2% under MSRP for a sales price. That is not terrible but not great either. The money factor of .00200 equates to an interest rate of 4.8%. I don’t know anything about your credit but if you are top-tier I would say that that is sort of OK but definitely not great.

Take everything here with a grain of salt because I’m just going by what you provided and I don’t know your specific situation.

With a residual of 67% after four years I am guessing that it will be a toss up as to whether it would make sense to buy this vehicle at the end of your lease. You might be a little upside down. Maybe not. But since a 36 month lease with 10,000 miles on a Rubicon is said to have a residual of 70%, that 67% for four years seems high.
Pennsylvania also has a 3% lease fee that basically works like a tax, so it is more like 9% taxes/fees.





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ThirtyOne

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can someone explain to me how to find out whether you will be "upside down" after a lease?
thank you!!
When people talk about being upside-down what they simply mean is that the residual value is higher than the actual market value.

Most cars have a residual in the mid-50% range after 3 years. Wranglers traditionally are closer to 80% so this really shouldn't happen. But it can.

The good news for a lease is you can just pay the disposition fee and walk away. You can still buy it out because most banks will lend over the market value (up to 120% I think).

The more likely scenario with a Wrangler lease is you end up with a little equity and you can go in a couple of months before your lease is up and trade it in or buy it out with a loan at the end and sell it to get your equity out. Not a good idea financially to buy it out at the end and keep it but you wouldn't be the first (I've done it twice).
 

ThirtyOne

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Never heard of this before. That's not how it works on my BMW. If i was to turn it in early, unless i purchase another vehicle through BMW and get the charges waived, I am still responsible for any/all payments until the end.
I've done this in the past - go with the low mileage lease and then ignore the mileage limits and buy it out. It will get you a lower payment but you will be more likely to be upside-down at the end. Wranglers hold their value well so that mitigates it. Best to do the math and see what makes sense for the individual case.
 

ThirtyOne

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48095 msrp
46000 selling
67% resi
.00200 mf
Don't know the fees yet
440 a month with 440 down (latest price)
Rubicon jlu
I can't quite get to those numbers either but generally that deal aligns. Residual matches the posted residual for 10,000 miles/year 48 months on Rubi.

Money factor is in line too. We generally see .00190-.00230. Yes those numbers suck but they are typical for a Wrangler.

I am getting a payment closer to $475 with a lot more money down for the fees. But this lines up to a pretty typical Rubi lease deal.

I would recommend you stick to the 39-month lease so you are not leasing so far past the warranty but that is your call I guess.
 

mde8965

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I can't quite get to those numbers either but generally that deal aligns. Residual matches the posted residual for 10,000 miles/year 48 months on Rubi.

Money factor is in line too. We generally see .00190-.00230. Yes those numbers suck but they are typical for a Wrangler.

I am getting a payment closer to $475 with a lot more money down for the fees. But this lines up to a pretty typical Rubi lease deal.

I would recommend you stick to the 39-month lease so you are not leasing so far past the warranty but that is your call I guess.
This is good info for the OP. ThirtyOne is definitely the guy I’d want the opinion of when it comes to leasing these Wranglers. So in this case the true drive offs and/or payment will likely be higher than quoted but the parameters are in line with an average Wrangler lease.

Anybody ever heard of MSDs on a Wrangler lease? I always do these with BMW leases.
 

ThirtyOne

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Gotta admit MSD is new to me. Never used it before. Rarely see security deposits on leases at all any more.

Edit:Did a little research and No MSD program from Chrysler. I guess it is possible with other leasing banks.
 
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Jlb1177

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Sounds like I should take this deal. I have the offer already in writing. 440 a month. 440 down. Not to sounds redundant but I am 100% sure everything is included. I may be off on the selling price or MF, I was estimating those. I will get the exact numbers and repost back so it makes more sense.
 

fish4food

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When calculating the residual (e.g. 70%), is that based off of MSRP - including destination?
 

ThirtyOne

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When calculating the residual (e.g. 70%), is that based off of MSRP - including destination?
Yes. MSRP includes everything on the sticker.
 

fish4food

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Thanks ThirtyOne. Seemed odd that the residuals on my initial lease offer were based off MSRP minus destination.
 

JLforlife

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Jl rubicon unlimited. 48100. 10k . 48 month. 440 month. 440 down. Everything included. Tax title docs. Etc. OR 39 months 480 / month . 480 down ( first month payment). I believe the selling price is 46000.any good ?
I just got a quote from Kent at Peterson in Nampa Idaho, looks like they are offering a similar deal on JL’s that another Idaho dealer was/is offering. 7-8% below invoice. Anyone else getting similar info????
 

jeeper27

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Got this quote today from dealer; a good deal?
Sport S
MSRP: 39,875
WV
36mo/10k
Nothing down except first months payment
357/mo
 

ThirtyOne

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Got this quote today from dealer; a good deal?
Sport S
MSRP: 39,875
WV
36mo/10k
Nothing down except first months payment
357/mo
I'd say that price looks good. I would like to see the residual and money factor to make sure there is nothing too funny going on. I always say to do the math but I have looked at enough of these that a Sport in the mid-$300's is good.
 

BaldEagle

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Jl rubicon unlimited. 48100. 10k . 48 month. 440 month. 440 down. Everything included. Tax title docs. Etc. OR 39 months 480 / month . 480 down ( first month payment). I believe the selling price is 46000.any good ?
Great
 

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