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Need help on 2018 Sahara lease

Robertrinaustin

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If allowed by the finance company and your state, you're much better off paying multiple security deposits (MSDs) that buy down the money factor and are returned at the end of your lease instead of a down payment. The exception is when the manufacturer supports the lease with a reduced MF, think 0% interest when buying.
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guarnibl

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If allowed by the finance company and your state, you're much better off paying multiple security deposits (MSDs) that buy down the money factor and are returned at the end of your lease instead of a down payment. The exception is when the manufacturer supports the lease with a reduced MF, think 0% interest when buying.
Does FCA even do MSDs? My state doesn't allow them but that's a good suggestion where available. Not sure you can get it all the way to 0 though anymore.
 

ThirtyOne

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Does FCA even do MSDs? My state doesn't allow them but that's a good suggestion where available. Not sure you can get it all the way to 0 though anymore.
Nope.
 

ThirtyOne

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Primary reasons:

1) You are not saving much in interest as you are only paying interest on the amount leased, not the entire purchase price of the vehicle.

2) You are at risk of losing your down payment if your vehicle is totaled early on in the lease term, and especially if the residuals were aggressive (not super aggressive on the JL).

For the most part, the benefit is purely psychological. Only exception would be very high MF (common in Porsche world) combined with a high lease balance, or when you are trying to keep D:I to a certain threshold (say, if buying a house).
I just ask because I hear this a lot. I would challenge this conventional wisdom a little bit with Wranglers.

1 - You actually save more by putting money down on a lease than on a loan. Maybe because money factors on wranglers are relatively high

2 - This is an interesting one to me for a few reasons:

1 - Doesn't the same thing apply to a down payment on a loan? Why doesn't the same logic apply?
2 - Jeeps are a little unique in that 1) residuals are high and 2) We are paying 10% below MSRP so there is not much exposure on being underwater in the early months
3 - On average a driver wrecks a vehicle once every 18 years. So the chance of totaling it in say the first 6 months is about 3%. So that's a boundary case. And as I said above you should start off at 10% below MSRP so you may not be upside down anyway.

I think a lot of the conventional wisdom on leases was based on cars that have a different profile than Wranglers.
 

bikinidreamin

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I am about to agree to a 48 month, 12k/year miles, $444 inc. taxes per month on an 18 Sahara. MSRP at $44985, marked down to $40,500. Not sure of residual yet, which is a problem. I don’t like the unknown. I feel like on 48 month it should be lower payment.
 

guarnibl

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I am about to agree to a 48 month, 12k/year miles, $444 inc. taxes per month on an 18 Sahara. MSRP at $44985, marked down to $40,500. Not sure of residual yet, which is a problem. I don’t like the unknown. I feel like on 48 month it should be lower payment.
'19's are on lots, you should be able to get lower IMO. I'd press for 15% unless you're impatient. You can get a brand new '19 custom ordered with a higher discount.

What's the break out of the lease? I.e., Money factor, money down (cap cost reduction) and all fees (broken down) ? BTW, they can't alter the residual. $444 with taxes is a meaningless number without more information.

MF should be .00225 assuming your credit is good. I'm not sure what the residual is on 48 months. But for 36 it would be 65% for a Sahara 4 door.
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