Leasing Help Please

[00 Trans Ram]

I've had 2 leases, back to back. First was on a 2017 Camaro SS that I ordered. I had to have a specific options list (black, black wheels, red interior, 2SS, leather, M6, adjustable suspension, sport exhaust, etc.). I got absolutely zero negotiating on it. They demanded MSRP, and I paid MSRP. Because they knew that no other Camaro like that existed (that we knew of) and I knew I was willing to pay.

Fast forward to July 2020. I wanted a Jeep. The only options I needed were tow package and diesel. I didn't even care about color. Just the cheapest diesel/tow I could find. That was at the height of the pandemic, and there was little stock on lots. The few that I found were . . . ahem . . . unreasonable.

Found one that was a Sport S. MSRP was around $40k. Jeep.com site estimated the lease at ~$425. The dealer's own site quoted a lease of $435. I called, talked to a few people, and was quoted . . . wait for it . . . $795.

I had to wait until December 2020. Bergeron Jeep (new New Orleans) had one on the lot for $50,000 (Sport, diesel, tow, enhanced safety, etc.). I saw it on my phone one day, and decided to stop by. On the way, I stopped by Carmax and got a printed offer of $32,000 for my Camaro. When I got to the dealership, I told them if they matched the website lease payment of $460 (not including taxes), and gave me $32,000 for the Camaro, I would sign then and there.

An hour later, I drove off in the Jeep.

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[dshark1]

I've had 2 leases, back to back. First was on a 2017 Camaro SS that I ordered. I had to have a specific options list (black, black wheels, red interior, 2SS, leather, M6, adjustable suspension, sport exhaust, etc.). I got absolutely zero negotiating on it. They demanded MSRP, and I paid MSRP. Because they knew that no other Camaro like that existed (that we knew of) and I knew I was willing to pay.

Fast forward to July 2020. I wanted a Jeep. The only options I needed were tow package and diesel. I didn't even care about color. Just the cheapest diesel/tow I could find. That was at the height of the pandemic, and there was little stock on lots. The few that I found were . . . ahem . . . unreasonable.

Found one that was a Sport S. MSRP was around $40k. Jeep.com site estimated the lease at ~$425. The dealer's own site quoted a lease of $435. I called, talked to a few people, and was quoted . . . wait for it . . . $795.

I had to wait until December 2020. Bergeron Jeep (new New Orleans) had one on the lot for $50,000 (Sport, diesel, tow, enhanced safety, etc.). I saw it on my phone one day, and decided to stop by. On the way, I stopped by Carmax and got a printed offer of $32,000 for my Camaro. When I got to the dealership, I told them if they matched the website lease payment of $460 (not including taxes), and gave me $32,000 for the Camaro, I would sign then and there.

An hour later, I drove off in the Jeep.

& that is exactly what I’m talking about! $795 to $460 amazing! That is what I am trying to avoid & not lose a $1k in the process!

 

[Gunzz]

Maybe try to call around and see if any dealership is willing to allow your deposit on an ordered vehicle to be refundable. If one will, that's usually enough to get any other to do so also, since you can always just order form the one that does. I encountered similar difficulties as you are when I sat down to order my Jeep and I wasn't able to get a clear picture as to what the purchase price or lease terms would be. I ended up putting down $1k as a non-refundible deposit, but I was fairly certain that the market wasn't going to change enough between order and delivery to push me out of the deal.

Like 00Trans Ram said above, when I ordered my Jeep I got zero negotiation on the purchase price, but I was able to negotiate favorably on the trade-in price of the vehicle I traded.

 

[00 Trans Ram]

& that is exactly what I’m talking about! $795 to $460 amazing! That is what I am trying to avoid & not lose a $1k in the process!

It was a pain in my ass. I got so pissed at dealerships. Not at Jeep, or the Wrangler, but the dealerships.

I'd even had this same dealership (different salesman and other staff, though) do a similar thing like 5 months before. For me, it was just a matter of finding the needle in the haystack.

 

[dgoodhue]

I ordered and leased my Jeep. I created my own spreadsheet, but you can use online calculators to figure out the price. My suggestion is to find out the price of the Jeep, ask the dealer to figure out the lease price from CCAP with what you plan to make for a down payment. Make sure they include all the capitalization costs and locals fees (Some dealer in my area like to omit the $1500-2000 of fees to make the lease price look more attractive) Ask them what MF and residual is.

Then negotiate the price of the vehicle before you order. You should be able to figure of the lease payment from the online calculators as well. CCAP can change the lease terms but it is usually not going to drastically change. If the month payment goes up $10/month and that is problem, you probably should not be buying a Rubicon. When you Jeep comes in, you can have the dealer shop different banks. When my Jeep arrived, I used a local bank over CCAP and it save me about $10 month, because they had better MF rates, but high acquisition fee.

 

[dshark1]

Maybe try to call around and see if any dealership is willing to allow your deposit on an ordered vehicle to be refundable. If one will, that's usually enough to get any other to do so also, since you can always just order form the one that does. I encountered similar difficulties as you are when I sat down to order my Jeep and I wasn't able to get a clear picture as to what the purchase price or lease terms would be. I ended up putting down $1k as a non-refundible deposit, but I was fairly certain that the market wasn't going to change enough between order and delivery to push me out of the deal.

Like 00Trans Ram said above, when I ordered my Jeep I got zero negotiation on the purchase price, but I was able to negotiate favorably on the trade-in price of the vehicle I traded.

Thank you for your input highly appreciate it. It’s honestly not the market I’m worried about it’s the Dealer! @trans

I ordered and leased my Jeep. I created my own spreadsheet, but you can use online calculators to figure out the price. My suggestion is to find out the price of the Jeep, ask the dealer to figure out the lease price from CCAP with what you plan to make for a down payment. Make sure they include all the capitalization costs and locals fees (Some dealer in my area like to omit the $1500-2000 of fees to make the lease price look more attractive) Ask them what MF and residual is.

Then negotiate the price of the vehicle before you order. You should be able to figure of the lease payment from the online calculators as well. CCAP can change the lease terms but it is usually not going to drastically change. If the month payment goes up $10/month and that is problem, you probably should not be buying a Rubicon. When you Jeep comes in, you can have the dealer shop different banks. When my Jeep arrived, I used a local bank over CCAP and it save me about $10 month, because they had better MF rates, but high acquisition fee.

Thx a lot for the excellent advice. Thankfully $10 won’t make or brake me! Lol. Just very surprised, some dealers are actually over by $100 or more of what the lease is supposed to be! But I have narrowed down a couple. And hopefully will be placing an order today. Fingers crossed!

 

[dalema]

Lot of good advice for you above:
- negotiate the sales price of the vehicle first as a percentage off invoice (tell them you want to lease after that)
- ask them to commit to the “buy rate” on the lease money factor so they are not marking up the interest rate
- ask for a list of all fees
- get a detailed screenshot from their lease screen that shows all this
- verify it looks right using an online tool - I bet if you post the details here someone will recalc it for you too

The only thing I would add is I’d never put money down on a lease. Also its easier to calc the lease assuming no down payment, you’ll probably find the biggest swings in payment are due to what they are using as the down payment (cap cost reduction) - that’s how they make a lease look cheap.

 

[mllcb42]

The other big thing to be aware of is that not all banks have the same policies. Some allow you to trade in/sell the lease at any point if you want, some will but charge the dealer buying market rate instead of your buy out, some allow you to transfer the lease to someone else, etc.

Sometimes it makes more sense to go with a more expensive lease that maintains better flexibility than to only focus on the monthly payment.

 

[Terpsmandan]

I work at a Jeep dealership and we would love to quote you an exact payment when you order a new Wrangler, but the residuals and rates are changing on a monthly basis. I have 5 lease banks in the mix right now so I can get the best payment for the terms presented. Case in point is a Grand Cherokee L residual went down 5 percentage points between December and January. Make sure you have a solid quote on the agreed upon price of the order and you should get price protection from Stellanits when the order is placed. My 22 JLURD is supposed to ship 1/21. I ordered it on 12/9 and the MSRP went up about $3000 but I will get the FF price from the order date.

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