MARCH LEASE DEALS

[ALJLSahara]

Ok, here you go - be sure to read the notes in the spreadsheet.

Also, I recommend checking out Edmunds.com for an article they have on calculating your payment yourself, by hand (also included in the Notes section of my attached spreadsheet. This is the article I used to build the spreadsheet. It's helpful to work through the exercise once by hand (using the Edmunds guide) - this gave me a much better understanding of what is going into my payment and how the lease deal works.

I would not expect the numbers to match your deal to the penny, or even to the dollar - these should be directionally accurate estimates, though. I tried multiple lease calculators online, and nothing will match 100% of what your dealer comes up with - which at the end of the day (right or wrong) is what matters. Everything else is just a tool to help you and the dealer agree on the terms.

Some dealers calculate residual off of MRM, some do not. Fees will vary from dealer to dealer, state to state, and lease to lease. Tax of course varies, as does MSRP, negotiated purchase price, etc.

If any mistakes are found in the spreadsheet, please report them to me.

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[ALJLSahara]

Just leased a JL Sahara; MSRP $50,195 with 3% discount under invoice at sale price of $45,764. 36mo @ 15K miles with residual at 67% but unable to get the MF of 0.00150 with US Bank because they utilize MRM ( Maximum Residualized MSRP) which caps the MSRP at $47,700 and protects the bank with a lower residual against the augmented value with options, thus transferring the cost to the monthly payment. Also there was an acquisition fee, I think $675 with US Bank and residual of 66% from that MRM. It turns out I had a lower payment with Chrysler Capital at a higher MF of 0.00193 with no acquisition fee. Did not feel happy with a 4.6% interest rate but had not other option.
As I have read in this forum looks like they only use US Bank, Ally and Chrysler Capital.
I have never heard of this MRM until now.
Any experience with this situation?

 

[aug0211]

Just leased a JL Sahara; MSRP $50,195 with 3% discount under invoice at sale price of $45,764. 36mo @ 15K miles with residual at 67% but unable to get the MF of 0.00150 with US Bank because they utilize MRM ( Maximum Residualized MSRP) which caps the MSRP at $47,700 and protects the bank with a lower residual against the augmented value with options, thus transferring the cost to the monthly payment. Also there was an acquisition fee, I think $675 with US Bank and residual of 66% from that MRM. It turns out I had a lower payment with Chrysler Capital at a higher MF of 0.00193 with no acquisition fee. Did not feel happy with a 4.6% interest rate but had not other option.
As I have read in this forum looks like they only use US Bank, Ally and Chrysler Capital.
I have never heard of this MRM until now.
Any experience with this situation?

Hi There,

Your residual of 67% seems a bit low to me. Telhio Credit Union is giving RV of 69% on a JLU Sahara such as yours with 15k miles over 36 months.

I have heard of MRM (Maximized Residual MSRP). My leasing credit union is using it as well. I believe the MRM for my deal sets residual to something like $52,250 for MSRP, and from there, residual is calculated. An MRM of $47,700 seems quite low to me for this vehicle - that is way below MSRP (are you sure they got the MRM for a JLU Sahara and not a JKU Sahara or a JLU Sport?).

As an example of MRM, if your residual is, say 70% and your MSRP was $53k, the residual would be 70% of $52,250 instead of $53k. The MRM caps the MSRP that can be used to calculate your residual value.

If you ran your deal through Telhio, your RV through would be 69% of your full MSRP ($50,195) (since your MSRP is below the MRM) = $34,634.55.

Disclaimer - I'm not in finance and I don't work at a dealership. I'm not an expert on leases - I've never even done one. I'm just learning about them myself as I'm going through my first one, so take what I say with a grain of salt. If it doesn't make sense or line up with your experience, consider disregarding it altogether Don't let yourself get bent out of shape or overly worked up over anything I share

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