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Prices Paid: Buying & Leasing Experiences Jeep Grand Cherokee Lease Questions
512 messages, Last post on Aug 20, 2008 at 2:43 AM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Replying to: asd302 (Nov 09, 2005 5:44 pm) Using your figures and Edmunds' lease calculator I compute a monthly lease payment of $288 + tax. The calculator at LeaseGuide.com yields the same result. So why the discrepancy between this figure and the dealer's $349? I suspect the dealer is including assorted fees in the payment, like documentation, registration, license, acquisition, disposal, and heaven knows what else (possibly at inflated prices). The reg and license fees are likely state mandated, but the others are negotiable - or should be. I suggest you ask that they be waived! In my opinion that's a reasonable request on an '05 left-over, particularly in today's slow bus environment. A doc fee of, say, $250 is a rip-off, since it probably costs no more than $10-$20 for a dealership to prepare paperwork on the sale or lease of a vehicle. Refuse to pay it. Car_man is correct about the $29,000 reduced cap cost. I estimate that your negotiated lease price of $35,500 before rebates is ~$1100 below Edmunds' invoice. Has the manufacturer discounted the invoice price to your dealer? A 5% (of MSRP) discount wouldn't surprise me and that wouldn't include any holdbacks, either, which the dealer would still get. (In your case, 5% of MSRP = $2000, approximately, which would reduce the invoice cost to about $34,600. So your negotiated price leaves the dealer with about $900 profit, less advertising and assorted incidental costs, but not including holdbacks. That $900 is about 2.5% of the adjusted dealer invoice - a reasonable profit in my opinion). Before the days of customer rebates a 5% discount by auto makers was common practice at the end of the model year and may still be, even when manufacturers are offering direct customer incentives. If so, that should tell you how slow business really is. My own experience with the purchase of an '05 Laredo at the end of October was similar; my dealer offered to sell me my JGC, before rebates, nearly $700 below Edmunds' invoice (leaving him by my estimate with about 3.7% profit after a 5% invoice discount, not including holdbacks). In fact, I didn't even ask. See my post #282 on the Prices Paid & Buying Experience discussion board in this forum. It's my understanding that most auto manufacturers grant Edmunds access to internal company Web sites, not available for public access, where manufacturer-to-dealer incentives and marketing support are listed. Edmunds then consolidates this information and posts it. But other incentives that not even Edmunds has access to can also exist. |
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This price of $29000 does include the $1000 lease loyalty, I know that is a great deal cap cost wise, but I too calculated around $290+Tax and am wondering where the extra $60 is coming from! Thats roughly $2000!! They also did say that the new lease is through chrysler financial. Is there a way to find out if Chrysler has given a dealer the 5% invoice discount you talk about, and if so should I keep going for an even better deal? Oh, and they have two in the COLOR I want, about 7 on the lot with the same deal!
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Replying to: asd302 (Nov 10, 2005 2:48 pm) I suggest you ask your salesman, but, beware, he may not know, or may inadvertently give you incorrect information. In fact, getting accurate information from a car dealership is often like pulling TEETH. Asking your salesman's manager may not help, either, although he will know. If you feel so inspired and have lots of time and energy to run around town between dealerships, query the sales staff at more than one store. (And not over the phone or by email. No....face to face in a showroom....and be sure the store knows you are a serious buyer.) However, don't be surprised if some dealerships won't offer or negotiate an end-of-model-year discount that exists, particularly in today's world of direct and often confusing customer rebates, which constantly change. But that doesn't appear to be the case in your deal, so I think it's moot to ask your dealer about the discount. What your store offered is consistent with my premise of one, based on my own experience (and now yours). No, I don't think you will be able to do much better than what's offered, unless there's a discount greater than 5% or the store is willing to work even closer to invoice. Of course, it certainly doesn't hurt to ask (your decision). You won't embarrass yourself if you do! Regardless of what you decide, ask (insist!) that the non-mandated lease fees be waived and be prepared to negotiate hard. By that I mean standing your ground and budging only reluctantly if you need to, and only by a small amount. During my transaction last week I asked my salesman, "Do auto makers still discount left-over vehicles 5% at the end of a model year?" He said, "Yes." That answer was enough for me and I didn't question him further. Later, however, I phrased the question a little differently to one of the store's finance managers. He said there was no discount to the invoice. If that was the case, then the store dug deep into its holdbacks to close my sale. Fat chance of that (or I'm missing something). |
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| Hi Car_Man. Can you post the numbers for a 39 month 12k & 15k miles/year lease on a 06 Jeep Grand Cherokee Laredo? Thanks so much! Steve | |
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Replying to: stevern (Nov 12, 2005 12:50 am)
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Replying to: stevern (Nov 14, 2005 1:14 pm) |
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Hi Car_man, Sorry to bother you again, but I am trying to gather as much infomation as I could before I go to the dreaded dealer. Can you please post the money factor and residual for both the 2005 Grand Cherokee Limited with Hemi 12k/39 months and for the 2006 Grand Cherokee Laredo (V6) & Limited? My current lease is drawing near and I'd like to complete this as soon as possible. Thanks in advance, Steve
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Hello, I am very interested in leasing a 2005 Cherokee Limited with a Hemi and the DVD in the rear for the kids. Bottom line loaded. I am seeing sticker prices for such models at about $42,500. I am willing to put about $2500.00 down. The current incentives appear to be $4500.00 plus an additional $1000.00 back. Should I be applying those incentives to the sticker price or the invoice price? Once I do how do I determine a fair and reasonable lease price? My goal is to be in the $500.00 a month range on my payment. Is that reasonable or not? any help will be greatly appreciated. Thanks |
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Replying to: njdealguy (Nov 24, 2005 11:28 am) I won't comment on lease terms, other than to suggest that a $500 monthly lease payment is grossly out-of-line. You might be able to get a lease payment in the $350 range without putting much money down. Read recent posts on this board. To get that kind of a payment you will need to compute a fair and reasonable cap cost (lease price) carefully. I suggest that you do so according to the following formula, which assumes a 5% reduction in the invoice price of leftover 2005 models and a 3% (of invoice) profit to the store: adjusted invoice price = Edmunds invoice - 5% of MSRP Include the destination charge in the MSRP figure. (reduced) cap cost = adjusted invoice price x 1.03 - direct manufacturer-to-customer rebates Lets take an example: suppose the MSRP is $42,000 and Edmunds invoice price is $38,000 for your vehicle. (These are my approximate figures; use the manufacturer's window sticker and Edmunds invoice pricing - but NOT Edmunds TMV - to get the actual numbers.) According to Edmunds, the manufacturer-to-customer rebate on '05 JGC Limiteds is $5,500, so 5% x MSRP = $2,100 adjusted invoice cost = $38,000 - $2,100 = $35,900 3% x $35,900 = $1,077 (profit to the store) reduced cap cost = $35,900 + $1,077 - $5,500 = $31,477 The store still gets the usual holdbacks (as well as nearly $1,100 in profit!) and you get all of the direct manufacturer-to-customer rebates. Of course, you may feel that a 3% profit is more than you are willing to spend on a leftover 2005. If so, reduce the 1.03 factor. You won't embarrass yourself in the store if you do. Bottom line: by using this approach at your dealership you should be able to get a lease deal with a cap cost at least $10K below MSRP on your vehicle. And insist that the store waive its typical documentation fee, which was as high as $250 at stores I visited when I was shopping last month, and some or all of the usual junk lease fees. Be prepared to negotiate hard on this point, i.e., be firm and, if you need to, yield only grudgingly. |
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Replying to: njdealguy (Nov 24, 2005 11:28 am) The $5500 incentive gets subtracted at the invoice price (or negotiated price.) As most people will tell you, putting money down is usually not a good idea to simply lower your payment. The reason is, if the car gets totalled or stolen, that money is gone (the ins. company pays off the leasing company and you are out the $2500). Having said all that, the important numbers to know are for a 12k mile/yr/39 month lease through Chrysler Financial the residual is 49% and the money factor is .00129 (you can use the edmunds lease calculator to get a close estimate.) I think that you could be in the $500/month range with no money down. (And please don't tell them up front how much you want to pay per month, negotiate the price of the truck first and then work from there.) Good luck! I'm picking mine up today here in NY. |
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