Need help on money factor

Youssefb08

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So I have recently inquired about putting an order to lease a Rubicon. MSRP is about 47k...agreed on price is 43k.

At a 77% residual with $3500 down I would be paying $425 a month. I've realized that this price is too high, by a long shot.

I've inquired about my money factor, after going back and forth for some time, the dealer giving me the run around (MANHATTAN JEEP). Finally the salesman told me its 7.75% as they use allied bank for their rates. I have t1 credit 750+ and demanded the rate be lower. He told me to come into the actual dealer and work it out there. What is an acceptable money factor quote here and what can I do?
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galleywinter

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So I have recently inquired about putting an order to lease a Rubicon. MSRP is about 47k...agreed on price is 43k.

At a 77% residual with $3500 down I would be paying $425 a month. I've realized that this price is too high, by a long shot.

I've inquired about my money factor, after going back and forth for some time, the dealer giving me the run around (MANHATTAN JEEP). Finally the salesman told me its 7.75% as they use allied bank for their rates. I have t1 credit 750+ and demanded the rate be lower. He told me to come in to the actual dealer and work it out there. What is an acceptable money factor quote here and what can I do.
I can't help much as I have never leased and NYC is a different beast but that is a super high rate for your credit score but you already know that. Like way high for a 750+ unless there is something I don't know on leases. A good going rate on a conventional loan and good credit is anywhere from 1.99% to 4%. Some car brands are doing 0% but not on a Wrangler. Still with your credit rating I wouldn't pay more than 3%. Now..... Maybe lease % is way higher, IDK??
 

ThirtyOne

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So I have recently inquired about putting an order to lease a Rubicon. MSRP is about 47k...agreed on price is 43k.

At a 77% residual with $3500 down I would be paying $425 a month. I've realized that this price is too high, by a long shot.

I've inquired about my money factor, after going back and forth for some time, the dealer giving me the run around (MANHATTAN JEEP). Finally the salesman told me its 7.75% as they use allied bank for their rates. I have t1 credit 750+ and demanded the rate be lower. He told me to come into the actual dealer and work it out there. What is an acceptable money factor quote here and what can I do?
That is actually not a bad payment for a Rubi I am sorry to say. But it is a crappy lease deal.

I need more info though. How many months is the lease and what is your tax rate? What's the doc fee? How many miles on your lease

Ally does this. They charge a ridiculous money factor but offset it with a high residual.
 

ThirtyOne

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I can't help much as I have never leased and NYC is a different beast but that is a super high rate for your credit score but you already know that. Like way high for a 750+ unless there is something I don't know on leases. A good going rate on a conventional loan and good credit is anywhere from 1.99% to 4%. Some car brands are doing 0% but not on a Wrangler. Still with your credit rating I wouldn't pay more than 3%. Now..... Maybe lease % is way higher, IDK??
Lease rates on Wranglers suck to offset the high residuals.

Typical is .00190 - .00230 MF which is 4.56% - 5.52%

So even with great credit you are around 4.5%.
 

JLWF Dealer Guy

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So I have recently inquired about putting an order to lease a Rubicon. MSRP is about 47k...agreed on price is 43k.

At a 77% residual with $3500 down I would be paying $425 a month. I've realized that this price is too high, by a long shot.

I've inquired about my money factor, after going back and forth for some time, the dealer giving me the run around (MANHATTAN JEEP). Finally the salesman told me its 7.75% as they use allied bank for their rates. I have t1 credit 750+ and demanded the rate be lower. He told me to come into the actual dealer and work it out there. What is an acceptable money factor quote here and what can I do?
MF on a Wrangler is going to be high. A lease is about payment. Anyway. You can’t buy it for that payment so take the deal. I think that that MF is low compared to the Ally rates I’ve seen. Tier one around 10.5. Yes, high, but again, it’s a lease. Chrysler is lower as said in the 4-5 range but the residual is lower.
 

ThirtyOne

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MF on a Wrangler is going to be high. A lease is about payment. Anyway. You can’t buy it for that payment so take the deal. I think that that MF is low compared to the Ally rates I’ve seen. Tier one around 10.5. Yes, high, but again, it’s a lease. Chrysler is lower as said in the 4-5 range but the residual is lower.
Its true. If you are going to lease it and turn it in in the end all that really matters is the payment. So it depends.

I ran through what i would consider a good lease deal and the payment was about the same. Hard to get exact without knowing some of the other terms.

Given the choice all things being equal i would rather have a deal with lower residual and have the chance of getting a little trade value at the end of the deal. but if the payment is lower than a Chrysler deal than i agree it's worth considering. just know what you are getting into.

You're financing less than $7,000 on this deal. It's basically a credit card transaction.
 

JLWF Dealer Guy

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Its true. If you are going to lease it and turn it in in the end all that really matters is the payment. So it depends.

I ran through what i would consider a good lease deal and the payment was about the same. Hard to get exact without knowing some of the other terms.

Given the choice all things being equal i would rather have a deal with lower residual and have the chance of getting a little trade value at the end of the deal. but if the payment is lower than a Chrysler deal than i agree it's worth considering. just know what you are getting into.

You're financing less than $7,000 on this deal. It's basically a credit card transaction.
Leasing isn’t the horrible beast it once was. I’m a huge fan of the lease. Best part on a Wrangler, like it at the end, but it!
 
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Youssefb08

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It is a 39 month lease, 10k miles per year. My concern is can they force me to use Ally Bank or can I request Chrysler Financial? Also the residual is based off the final sale price...not the MSRP correct...

Reason being is price of car is about 43,700. Claiming a 77% residual but then buyout is 36k. That would be 77% on actual MSRP which is about 47 and change.
 

ThirtyOne

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It is a 39 month lease, 10k miles per year. My concern is can they force me to use Ally Bank or can I request Chrysler Financial? Also the residual is based off the final sale price...not the MSRP correct...

Reason being is price of car is about 43,700. Claiming a 77% residual but then buyout is 36k. That would be 77% on actual MSRP which is about 47 and change.
Residual is based on MSRP. Doesn't matter what the selling price is.

Just like anything else tell the dealer what they need to do to close the deal. This is a good payment but you should be able to get a similar payment with a Chrysler deal. Just tell them you want a lower residual and lower money factor. They may be willing/able to do it or not.

What is your plan? Do you want to buy out the lease or flip it after 3 years?
 
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Youssefb08

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I would want to buy it after 3 but not for 36k
 

ThirtyOne

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I would want to buy it after 3 but not for 36k
I don't like conventional wisdom on leasing but there is one that is true - It is generally much worse financially to buy out a lease than to take out a loan to start with especially with a Wrangler because of the high money factors.

If you do decide to do it then a lower money factor/lower residual is the better way to go.
 

ALEX-4LO

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Lease on a Jeep is horrible. After Doing research it’s a loser all the way around. It’s only there for a low payment which it’s still a bad deal even with all that money down upfront.

If you have good credit I would recommend purchasing shopping credit unions for the lowest rate and putting some money down. I’m currently looking at a 1.9% for 48 months and financing close to less than half. That is the only way it makes sense for me.

Other than that you can do the 60 month financing with no money down but your payment will be up in the north of 800 per month.
 

yongming

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I would want to buy it after 3 but not for 36k
If you wanna buy it out, lease is not a good option for wrangler. Total number at the end will be higher than purchase number for sure.

But lease has several benefits so I prefer lease more than purchase.
I just got msrp $46340 Sahara jlu for 36months lease and the monthly payment is $474 with $1250 down.
I think you got a good deal so just take it and enjoy your Rubicon.

But again, of you are going to really buy it out, after 39months, hmmmmmm I dont recommend you to chose lease.
But it's your call :)
 

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So I have recently inquired about putting an order to lease a Rubicon. MSRP is about 47k...agreed on price is 43k.

At a 77% residual with $3500 down I would be paying $425 a month. I've realized that this price is too high, by a long shot.

I've inquired about my money factor, after going back and forth for some time, the dealer giving me the run around (MANHATTAN JEEP). Finally the salesman told me its 7.75% as they use allied bank for their rates. I have t1 credit 750+ and demanded the rate be lower. He told me to come into the actual dealer and work it out there. What is an acceptable money factor quote here and what can I do?
I got 3.99% with prime credit, they initally approved me at 8.49% I declined, 2 days later I got 3.99%. Talk to your dealer and his finance manager. Depending on how bad they want your sale they'll negotiate with the banks, also Im not sure how it works in the US; but in Canada your application for financing gets sent to multiple banks. Starting with who you bank with first, then it fans out to who else you have history with. This lets your dealer basically shop around for better rates and basically have the banks bidding for you with their rates. Im looking at $662 monthly CAD.
 
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