Lease pricing question

[SubmarinesOnce]

Good evening! Our 2022 High Altitude 4xe came in today and we started going over numbers. Location is Washington state.

Something seems off to me with what they are showing me, can I get some help with explanation and what I may be missing?

MSRP: 64,600
Selling price: 62,200
Residual: 58%
Rebates: 8000
Trade in at $2000 more than owed.
Money factor: .0053
Cap cost reduction: 7236
Cash due at signing: 2000

They are telling me that comes out to 971 monthly.
Trying to say taxes are like 10% of total cost. Something isn’t adding up to me based on online calculators and what I think I know.

What am I missing? Am I not understanding something?

Thanks in advance for any help!

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[wrexdet]

Check out leasehackr.com/calculator and pop your numbers into their site - probably need to enter in your term length and miles/year as well.

 

[GR8ESC]

As indicated above find an online lease calculator and enter your numbers. You pay sales tax at closing on your down payment because that’s considered as an acquisition and then you pay each month based on your payment. In Washington that’s 6.5% plus your local tax based on where you live in the state. I can tell you based on the money factor your equivalent interest rate is very high, but that is also dictated by the term of your lease (months) and annual mileage.

 

[SubmarinesOnce]

As indicated above find an online lease calculator and enter your numbers. You pay sales tax at closing on your down payment because that’s considered as an acquisition and then you pay each month based on your payment. In Washington that’s 6.5% plus your local tax based on where you live in the state. I can tell you based on the money factor your equivalent interest rate is very high, but that is also dictated by the term of your lease (months) and annual mileage.

Thank you for the response.

I was using an online lease calculator and got lower. That is why I was asking what I was missing.

The lease is 36month, 10k miles.

I think it is the money factor that is affecting it mainly, but the dealership presentation leaves a lot to be desired when trying to understand the overall deal.

having 2000 due at signing, with the 7500 rebate included for the EV tax credit, and 2000 of positive equity with the trade still seems high.

My math is getting residual value around 37,500 based on MSRP 64600. That leaves 27100 to pay. .092 is the tax. If that is on the MSRP would come out to: $5950. That comes to $34000 for total before rebate and positive equity. So knock that down to 24500 left to make 3 years of payments. Even at 12% interest that is a much lower payment per month than $970. What am I missing? I feel like I am missing a big piece

 

[GR8ESC]

I agree something is off with their numbers. You could take a loan vs a lease and likely end up with a lower payment With that much down payment. Have them put a lease vs. purchase side by side and see what that looks like. That will flush out the lease cost which should always be lower.

 

[cripton805]

That money factor rate is almost double than what I paid with a Wrangler in 2019. It's really high. They are definitely screwing you on it. Mine was .0028 and even that was higher than average.

 

[cripton805]

You're better off financing if you have good credit with a credit union. Do a longer term loan. 84 months and you might still break even 3 years later.

After $9500 credit towards the Jeep. You should be looking at $61k ish financed after taxes. OTD. Your payment will probably be a little lower if you qualify for a decent rate. Than a lease.

 

[dalema]

Check put this website to confirm some of the numbers:
https://forums.edmunds.com/discussi...2022-jeep-wrangler-lease-deals-and-prices/p19

I just pulled this from it, but you can ask based on your model and specifics:

“Standard MF for 36 months on the 4xe Wrangler is .00248”

so your MF looks way high, so expect they are trying to screw you on other things as well. Ask them to send you a screen shot or a photo of the lease screen that shows you all the inputs to their lease pricing.

oh - and why not sell your trade yourself, no point putting any equity into a lease ie don’t put any money down, let alone a trade

also - each state is different on taxes so do a little google research on your state. Here in CA you only pay tax on the payments, not the full MSRP / sales price of the jeep

 

[Terpsmandan]

It also depends on the bank.

Good evening! Our 2022 High Altitude 4xe came in today and we started going over numbers. Location is Washington state.

Something seems off to me with what they are showing me, can I get some help with explanation and what I may be missing?

MSRP: 64,600
Selling price: 62,200
Residual: 58%
Rebates: 8000
Trade in at $2000 more than owed.
Money factor: .0053
Cap cost reduction: 7236
Cash due at signing: 2000

They are telling me that comes out to 971 monthly.
Trying to say taxes are like 10% of total cost. Something isn’t adding up to me based on online calculators and what I think I know.

What am I missing? Am I not understanding something?

Thanks in advance for any help!

0.0053 is a high MF, converted to APR is over 12%. Total amount due at signing SB $12000. What is the net cap? Are your taxes being paid up front? Each state is different in their tax calculations.

 

[Jocko]

Do you know what they are considering "rebates" vs "cap cost reductions?" For example, the $7500 tax credit will ultimately be a cap cost reduction on the lease regardless of what they are calling it. And because of the way leases are calculated, it makes a HUGE difference. 4xe leases are cheap (well relatively speaking lol).

 

[caraholic]

They are racking you over the coals. They are not using Chrysler Capital numbers that’s for sure as the residual at 36 months 10k miles is 61% and tier one money factor is .00248. They are killing you with that money factor. Right now they have you at a 13% interest rate. I would tell them to give you the tier one money factor or you’re gone. I would if personally already walked on it.

 

[gerrya]

My leasing rule is $8-$11/$1000 of vehicle MSRP. I've been using this for years. That's (sign & drive) $0 down tax in payment and 12k miles/year, 36 month.
Your payment should be $650ish

 

[SubmarinesOnce]

Thank you everyone for the replies. Going back in this morning better armed. Have a loan from our credit union to purchase outright at a much better rate if the dealer keeps this up.

I am also planning to ask more directly about the numbers. They tried to tell me last time the computer calculates everything and they don’t know the ins and outs.

The taxes on a purchase were way less than they were telling me the lease prices were.

 

[cripton805]

Thank you everyone for the replies. Going back in this morning better armed. Have a loan from our credit union to purchase outright at a much better rate if the dealer keeps this up.

I am also planning to ask more directly about the numbers. They tried to tell me last time the computer calculates everything and they don’t know the ins and outs.

The taxes on a purchase were way less than they were telling me the lease prices were.

That's BS. I've talked to finance managers directly and they flip the screen over for me to look at. Some dealers won't do that, but I had a few that did and were upfront about their profit. But they probably got the vibe that I'm an experienced buyer. Leasing isn't for everyone. It gets confusing and some people get screwed over. They are knowingly screwing you over with the MF rate. They are taking everything you're getting from the Tax Credit, Trade in, and tacking a lot of profit on top of that. This is by far the worst deal I've ever personally seen, trying to be sneaky about it. This is literally why dealerships get a bad rep! No remorse for these people at all.

 

[SubmarinesOnce]

That's BS. I've talked to finance managers directly and they flip the screen over for me to look at. Some dealers won't do that, but I had a few that did and were upfront about their profit. But they probably got the vibe that I'm an experienced buyer. Leasing isn't for everyone. It gets confusing and some people get screwed over. They are knowingly screwing you over with the MF rate.

That is what I thought also. Our credit is “fair” so there is no way it should be that high.

That is why I posted to make sure I wasn’t missing something and I was heading the correct direction.

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