Leasing a new wrangler JL unlimited

[Merlin28]

I just did a build out on a JL Rubicon , my 3rd . Loaded. Only thing I didn’t get was the painted roof and fenders. 500$ for 48 it msrp’d for 53,275.

Sponsored

 

[will1111]

I just did a build out on a JL Rubicon , my 3rd . Loaded. Only thing I didn’t get was the painted roof and fenders. 500$ for 48 it msrp’d for 53,275.

Elaborate...if I could lease a Rubicon fully loaded at that price with a low down I'm in

 

[Merlin28]

Elaborate...if I could lease a Rubicon fully loaded at that price with a low down I'm in

What exactly do you want me to elaborate on?

3 k down 48 months

 

[will1111]

What exactly do you want me to elaborate on?

3 k down 48 months

First u didn't have a down payment posted, second, is that a dealer quote or you're going by the jeep website, 3rd mileage.

 

[Merlin28]

That’s not a quote , I signed that deal today...

53,470
Negotiated to
51 and change
3k down
12k miles
48 month
500 per month.
Residual
25,758

 

[brandon3_16]

Ok here's my deal

$53,675 msrp, I got 5% under invoice which is $47,903

10k miles, 69% residual, .00193 money factor, 39 months with only $1000 down I'm at 475 a month. Money factor is aggressive I'm over 800 score.

Residual is $37,035

Dealer let me take screen shot with my phone. Nothing should change by the time my jeep comes in, per dealer.

 

[ThirtyOne]

becsuse the residual is 60% and not 24% you put more money down with lower residual . It’s not that big of difference in a leese so you want to put as little as possible. 2500 is only $30.00 difference with Jeep

I think I have figured out why people say this. It can't be about the total monthly payment. The principal goes down linearly with the cap reduction. It must be the interest.

The interest calc for a lease is (cap cost + residual) * money factor.

So that means that if the residual is high, no matter how much you pay down in cap cost you will always have similar interest. So in an example I did the interest payment only goes down form $150 to $130 per month even if you put down the maximum amount of of $9,000. If the residual is low the cap cost has more influence on that equation so you can make a bigger difference.

So if your goal is to reduce interest then it doesn't have that much effect. And you may be able to do something more productive with that money. For example if you have credit cards at 20% interest you are much better off using that money to pay them off.

But there really isn't any harm in it. The guy that started this put down $5,000 and saved $400 in the process. $400 is 1% of the invoice price. People have been willing to stab their grandmother around here for an extra 1%.

But here is the part that drives me crazy. On a loan, they would say pay down as much as you can. That supposedly makes more sense. But the difference in interest payments over the life of the loan in the example of paying down $5,000 up front? $311. Less than on the lease. And it takes 5 years to get there not 3 and that is after paying around $40,000 versus around $14,500 on the lease.

I still don't understand why the conventional wisdom for a loan and lease are different.

 

[ThirtyOne]

Ok here's my deal

$53,675 msrp, I got 5% under invoice which is $47,903

10k miles, 69% residual, .00193 money factor, 39 months with only $1000 down I'm at 475 a month. Money factor is aggressive I'm over 800 score.

Residual is $37,035

Dealer let me take screen shot with my phone. Nothing should change by the time my jeep comes in, per dealer.

So your dealer went ahead and quoted a non-binding lease payment before you did the order? I am having trouble getting some dealers to do that.

 

[brandon3_16]

I'm in the business for 16 years, the guy that quoted me was my gm 15 years ago. The residual doesn't change on jeeps they stay strong and money factor should stay constant for the next few months.

 

[Merlin28]

I'm in the business for 16 years, the guy that quoted me was my gm 15 years ago. The residual doesn't change on jeeps they stay strong and money factor should stay constant for the next few months.

That’s pretty good monthly but that residual is high,

I’m on a 4 year at 12 k and my residual is over 10k less.

 

[jtp]

If you order a Jeep out of state and lease it does that dealer collect the sales tax for your state?
Also I'm assuming when ordering for a lease that the cap cost (purchase price below invoice), length of lease, residual would all remain constant and the money factor would be the only variable?

 

[ThirtyOne]

If you order a Jeep out of state and lease it does that dealer collect the sales tax for your state?
Also I'm assuming when ordering for a lease that the cap cost (purchase price below invoice), length of lease, residual would all remain constant and the money factor would be the only variable?

Residual could be different if they use a different bank. But yes it's mostly the money factor.

 

[BaldEagle]

I’ll be honest with you guys, I have the slightest of clue with all of that. One of my buddy’s has a leasing company and I asked him what rates are out there and that’s what he gave me.

Can you ask him what should we be putting down

 

[NOVA551235]

Got a quote today. 2018 Jeep Sahara unlimited msrp 47k. 12000 miles a year/ 3year lease for 499 down and 499 a month. Thoughts?

 

[ThirtyOne]

Got a quote today. 2018 Jeep Sahara unlimited msrp 47k. 12000 miles a year/ 3year lease for 499 down and 499 a month. Thoughts?

Did you get a residual or money factor?

Also did they give you a selling price?

Sponsored