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Discussion Starter · #1 ·
Anybody leasing one? It's kind of crazy, but according to Jeeps website and payment calculator, I can get a lower monthly payment on Cherokee TH than I can on Renegade TH. Does this make sense to anybody? My deal looks like on Renegade TH (base $27,140). See if the dealer is able to drop the invoice price by $1000-$1200 ($26,140), $5300 trade in, $1000 down, $1000 Jeep loyalty incentive. Renegade TH $211/mo. Entered the same deal with Cherokee (base $31,289), it has an extra $500 cash incentive, but everything else is the same Cherokee TH $199/mo. This really makes no sense.:confused: Anyone have any good leasing tips on how to get what I want (Renegade TH) at the price I want to pay? I know you can always throw more money out of pocket to lower the monthly payment, but to be honest the deal I am drawing up does not put all the risk on the dealer. I think it's pretty fair. Thoughts?? Anyone??? Bueller...??:D
 

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I work for a dealership and just bought mine on a balloon. very little mark up from sticker to invoice. leases aren't very aggressive yet but if you're looking for a low payment the balloon is nice and at least you get to hold the title.
 

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Discussion Starter · #3 ·
I work for a dealership and just bought mine on a balloon. very little mark up from sticker to invoice. leases aren't very aggressive yet but if you're looking for a low payment the balloon is nice and at least you get to hold the title.
Hmm, well something to think about. Not a big fan of the balloon loan though, especially on a $27k-$28k vehicle. I'm specifically looking for a $200-$250/mo payment... I think I can get that on a lease if I get the trade in value I want on my current vehicle. Time will tell, I'll begin my hunt in May. I want a Renegade TH but I'm really dreading the experience.
 

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Hmm, well something to think about. Not a big fan of the balloon loan though, especially on a $27k-$28k vehicle. I'm specifically looking for a $200-$250/mo payment... I think I can get that on a lease if I get the trade in value I want on my current vehicle. Time will tell, I'll begin my hunt in May. I want a Renegade TH but I'm really dreading the experience.
I'm in the same boat as you. I have not yet taken a test drive, but my plan is to lease a TH. I want my payments to be in that same range without having to use up all the value of my trade in (which will actually be a private sale). I'm just waiting out some of the issues I'm reading about. :D
 

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Discussion Starter · #5 ·
Anybody get a great lease deal out there? Please share... I already got a local dealer to bite on a $26500 out the door price on a Trailhawk, now I need $5000 for my trade and I think I'll be close to the monthly payment I want. Anyone got good stories or news on a lease?
 

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Discussion Starter · #7 ·
Uggh... it is sounding more and more like I need to go back to the drawing board. Perhaps I don't understand how a lease works? I thought the leasee is responsible for the difference between vehicle price and residual value...
In which I see this...
$27,140 - $2000(incentives) = $25,140
$25,140 + PA taxes = $26,745
$26,745 - $5000(trade) = $21,745
$21, 745 - $15,500(est residual) = $6,245
$6,245 + APR(used 5%) = $6,574
$6,574 / 36months = $183

How is Jeep making people pay $300-$400 a month?!?! Even if I'm off by $50 a month... that's still only $232/mo. What am I missing or what is Jeep pulling on it's customers?!?!? I should be almost able to lease a Cherokee TH at $300 with $5,000 down!
 

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Uggh... it is sounding more and more like I need to go back to the drawing board. Perhaps I don't understand how a lease works? I thought the leasee is responsible for the difference between vehicle price and residual value...
In which I see this...
$27,140 - $2000(incentives) = $25,140
$25,140 + PA taxes = $26,745
$26,745 - $5000(trade) = $21,745
$21, 745 - $15,500(est residual) = $6,245
$6,245 + APR(used 5%) = $6,574
$6,574 / 36months = $183

How is Jeep making people pay $300-$400 a month?!?! Even if I'm off by $50 a month... that's still only $232/mo. What am I missing or what is Jeep pulling on it's customers?!?!? I should be almost able to lease a Cherokee TH at $300 with $5,000 down!
Can you confirm the Residual value and money factor from Jeep? There is no reason they can't give you the following information:

Capitalized Cost
Title, Reg, Doc fees
Incentives/Rebates
Lease Term
Lease Residual Value
Money Factor
Acquisition Fee
Taxes (and depending on your state, how are those taxes handled, paid up front or are they built into the "loan"?)
Is there a security deposit built into the "loan"?

Once we have all of the above, there is an absolute number that we'll come up with and if anyone is not in agreement with it, they did something wrong. There is only one way to calculate a lease payment and it involves all of the variables above.

But yeah, based on your assumption numbers, the lease payment should not be 300-400. It should be around half of that.
 

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Discussion Starter · #9 ·
Can you confirm the Residual value and money factor from Jeep? There is no reason they can't give you the following information:

Capitalized Cost
Title, Reg, Doc fees
Incentives/Rebates
Lease Term
Lease Residual Value
Money Factor
Acquisition Fee
Taxes (and depending on your state, how are those taxes handled, paid up front or are they built into the "loan"?)
Is there a security deposit built into the "loan"?

Once we have all of the above, there is an absolute number that we'll come up with and if anyone is not in agreement with it, they did something wrong. There is only one way to calculate a lease payment and it involves all of the variables above.

But yeah, based on your assumption numbers, the lease payment should not be 300-400. It should be around half of that.

Cannot confirm $15,500 as residual, but I have based that which I have posted off of what others have posted in the forums... I have seen $15,300... $15,500... and $15,900... assuming that all of the different Renny's were equipped differently.
 

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Cannot confirm $15,500 as residual, but I have based that which I have posted off of what others have posted in the forums... I have seen $15,300... $15,500... and $15,900... assuming that all of the different Renny's were equipped differently.
Until we see the confirmed residual value or percentage used to calculate, as well as the money factor applied on the Renegade, we won't be able to determine what an appropriate lease payment is.
 

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Uggh... it is sounding more and more like I need to go back to the drawing board. Perhaps I don't understand how a lease works? I thought the leasee is responsible for the difference between vehicle price and residual value...
In which I see this...
$27,140 - $2000(incentives) = $25,140
$25,140 + PA taxes = $26,745
$26,745 - $5000(trade) = $21,745
$21, 745 - $15,500(est residual) = $6,245
$6,245 + APR(used 5%) = $6,574
$6,574 / 36months = $183

How is Jeep making people pay $300-$400 a month?!?! Even if I'm off by $50 a month... that's still only $232/mo. What am I missing or what is Jeep pulling on it's customers?!?!? I should be almost able to lease a Cherokee TH at $300 with $5,000 down!
The thing you are missing here is YOU PAY INTEREST ON THE RESIDUAL MONEY AS WELL.

In order to lease a car to you the dealer or leasing division have to buy the car from the manufacturer. So you pay interest for the entire agreed upon amount so $21,745 or it might be the full amount $25,140 as your trade in amount is just deducted from your principal owing. :(
 

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I might as well keep going here, sorry, I don't mean to pee in your cornflakes but at the end of the lease, when you return the car you will pay a clean-up charge plus whatever it costs if there are paint scratches (bad ones) dents, tires, brakes. Basically anything they need to do to certify for re-sale. And if you go over the agreed upon mileage that will cost a lot of money.

If you keep the car and buy it out then no assessment is done. But when all payments are over you will have paid a lot more. 3 to 5 grand more (depending on interest rate) than if you bought the car at the beginning.

Most ppl who lease do so for the lower monthly payment, understandable, as not many of us can handle $500 to $600 a month for 5 to 7 years.
 

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Discussion Starter · #13 · (Edited)
The latest head scratching lease deals (local) see link below...
Cherokee $199
Patriot $169
Compass $199
Renegade $269 WHAT THE... WHAT??
Wrangler Unlimited $289

Sorry folks... I can't wrap my brain around $20.00 separating a Renegade lease and a Wrangler Unlimited lease... I don't care how you spin it that's just effing nuts. I have a family of 4 and I thought I was having to "settle" for the affordable Jeep (what the Renegade is supposed to be) only to have it priced ridiculously for it's size when compared to other Jeep models... Soooooo I can lease a Cherokee Latitude, Patriot Latitude, Compass Latitude... all for at least $70 cheaper than the smaller (let us not kid, significantly smaller) Renegade Latitude. The only one I'd actually consider is Cherokee even though I'm less than thrilled with the front end design. I have a Patriot and can't wait to get out of it... Compass has nothing more than a Patriot that peaks my interest.

http://www.jimshorkeychryslerdodgejeepram.com/jeep-specials.htm?start=32&model=Cherokee&
 

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The latest head scratching lease deals (local) see link below...
Cherokee $199
Patriot $169
Compass $199
Renegade $269 WHAT THE... WHAT??
Wrangler Unlimited $289

Sorry folks... I can't wrap my brain around $20.00 separating a Renegade lease and a Wrangler Unlimited lease... I don't care how you spin it that's just effing nuts. I have a family of 4 and I thought I was having to "settle" for the affordable Jeep (what the Renegade is supposed to be) only to have it priced ridiculously for it's size when compared to other Jeep models... Soooooo I can lease a Cherokee Latitude, Patriot Latitude, Compass Latitude... all for at least $70 cheaper than the smaller (let us not kid, significantly smaller) Renegade Latitude. The only one I'd actually consider is Cherokee even though I'm less than thrilled with the front end design. I have a Patriot and can't wait to get out of it... Compass has nothing more than a Patriot that peaks my interest.

http://www.jimshorkeychryslerdodgejeepram.com/jeep-specials.htm?start=32&model=Cherokee&
If you drill into each of those ads, it'll show you some of the assumptions - different MSRP's, different money down, and for the actual details behind MF, RV, and NC being used, you'll have to talk to the dealer.


The incentives shown also assume you're using lease conquest as well as military service incentives.


I hate to beat a dead horse, but find out what the leasing variables are and then we can figure out if any deviations are grossly unjustified.
 

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Discussion Starter · #15 ·
I have issues, I know... my problem is it's Trailhawk or bust for me. I'm not interested in a Latitude, Limited looks silly with the silver grill IMO, and Sport well... I'm not impressed with any Jeep model with the Sport trim. My Patriot is a Sport with a few premium upgrades (premium wheels,premium cloth interior) and it has been less than thrilling to own. Oh this whole process is really stressing me out and I really haven't began to shop yet!!! Good grief!!
 

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I have issues, I know... my problem is it's Trailhawk or bust for me. I'm not interested in a Latitude, Limited looks silly with the silver grill IMO, and Sport well... I'm not impressed with any Jeep model with the Sport trim. My Patriot is a Sport with a few premium upgrades (premium wheels,premium cloth interior) and it has been less than thrilling to own. Oh this whole process is really stressing me out and I really haven't began to shop yet!!! Good grief!!
No worries, I can tell you're very passionate about this and you're just getting really frustrated with the lease pricing. I definitely understand where you're coming from. I'm just trying to be helpful in identifying where the gaps are coming from between the prices you've been looking at. At the end of the day, we need to know the Money Factor and Residual Values being used for each of these comparisons to determine why cars with relatively similar MSRP values are varying by quite a bit in monthly lease.
 

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I've learned long ago the best thing to do is to buy and plan on having the car for a long time. That is the best thing to do financially. Leases are for people who have cash sitting around and can pay for the "at signing" fee and can afford to change cars every few years. If monthly payments on a 5 year loan is too high for you, then it's likely you are not ready to be on the market for a new car. 7 year loans are bad news. A lot can happen in 5 years (job loss, recession, illness/injuriy, etc.), let alone 7. It's stressful enough to have a car loan hanging over your head for 5 years.

Of course, there are incredible lease deals from time to time on offer... usually when dealers are trying to clear the last of certain models just prior to a refresh or redesign. Or to boost sales figures at the end of the month/quarter/year. The Renegade is too new for you to see deals like this though.

Have you looked into local credit union loan rates? they tend to be more competitive than banks. I've seen as low as 0.9% being offered... provided you have excellent credit.
 

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7 year loans are bad news. A lot can happen in 5 years (job loss, recession, illness/injuriy, etc.), let alone 7. It's stressful enough to have a car loan hanging over your head for 5 years.
On the other hand, with interests rates at record lows, a 7 year loan at around 2% interest is pretty damned good. Dump your money into a higher yield investment vehicle or make some other use out of it and you'll be better off.

Anything more than a 5 year loan back when interest rates were closer or beyond 10% never made fiscal sense, but in this market, it's actually not a bad idea if you'd rather free up your capital for something else. Not to mention that you don't have to wait the 7 years to pay it off, you can simply pay it as if you were paying for 5 years and be done early with no penalty.

My only advice regardless of length of loan is to make sure you're at positive equity from an insurance total loss perspective. You don't want something to happen to the car and you end up owing on something that your insurance didn't cover and now you're paying for thin air. GAP insurance will help, but might as well go above water on the loan.
 

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My only advice regardless of length of loan is to make sure you're at positive equity from an insurance total loss perspective. You don't want something to happen to the car and you end up owing on something that your insurance didn't cover and now you're paying for thin air. GAP insurance will help, but might as well go above water on the loan.
Precisely why I noted that 7 years is a long time and a lot can happen.
 
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