Last post on Feb 10, 2010 at 9:11 AM
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Jeep Liberty, Car Leasing, SUV
#96 of 105 Re: Please explain lease "rent charge" [kyfdx]
Jun 13, 2008 (1:49 pm)
Thanks, my mind is turning to mush trying to calculate all this at the last minute. I calculated my current lease by your instruction at 6.48% APR, not as high as I was expecting.
We are currently being quoted a money factor of .00259/6.2% for an 08 Liberty Limited, I think that seems high based on the fact that we qualify at their top tier level. Do you think this seems high? We could probably find a better rate, but then we would have to give up some of the incentives, so...
Thanks for all your help. )
#97 of 105 Re: Please explain lease "rent charge" [jen_b]
by kyfdx@Edmunds HOST
Jun 14, 2008 (4:23 am)
I'm not well-versed in Jeep lease programs.. This is actually Car-man's gig over here in lease questions.. He has all of the inside information on the actual numbers.. I'm just familiar with the math..
He will roll through here periodically to answer money factor and residual questions..
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#98 of 105 Early Termination of Lease on 06 Liberty
Aug 10, 2008 (1:19 pm)
I have three payments left on my 06 Liberty, I want to come out of the lease now. Will I just have to pay the 3 months payments, plus the $300 early lease termination fee or will I have other penalties?
#99 of 105 Re: Early Termination of Lease on 06 Liberty [cbam]
Aug 11, 2008 (2:11 am)
Hi cbam. As long as you make your final three payments, I don't see why you would have to pay any penalties.
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#100 of 105 property tax
Aug 11, 2008 (7:38 am)
Hi: I was under the impression that once we signed the lease, the monthly lease payment includes any taxes. This month I got a bill, which they charged me extra $300 for the property tax. Is it common? or I misled about it. Since actual owner is leasing company, I thought they are supposed to be responsible for the property taxes, Well being the first time lease holder learning along the way.
#101 of 105 Re: Please explain lease "rent charge" [kyfdx]
Aug 26, 2008 (7:02 pm)
Repeated your post here to make it easier to follow my reply...
Take your rent charge... $4331
Divide by the term.. 48 months.
Add your net cap cost and your residual amount. Just as an example.. $20K + $11K = $31,000
Divide $90.23 by $31,000 = .0029.. This is your money factor
Multiply .0029 X 2400 = approx. 6.96%.. This is the equivalent APR of your lease, assuming your CAP and residual are the same as above..
What I want to understand in your example is what is the 6.96% applied against? In other words, what value exactly are you being computed the equivilent of interest against? II would have thought you should owe interest on the part of the car you are buying, or the depreaciation and amortization (i.e. the adjusted cap cost MINUS the residual value).
But in your example, for instance, that would be 20K-11K = 9K, But if I use a compound interest calculator against 9K over 48 months the monthly interest payment should be less than $30/month of the total payment, far less than the $90.23. So the "interest" must be calculated against something far larger than the amount being the equivilent of "borrowed" or used. The interest is larger even than if applied to the residual amount, but smaller than if applied to the entire value of the new vehicle.
Your help is appreciated.
#102 of 105 Re: Please explain lease "rent charge" [citivas]
by kyfdx@Edmunds HOST
Aug 27, 2008 (3:20 am)
It's $20K + $11K
The amount that is financed is an average of those two numbers.. You start out borrowing $20K (the cap cost), and end up owing the residual amount (which is satisfied by giving the car back).
You owe interest on the whole car.. because, after all, you can't borrow just the part you use... you have to borrow the whole car... then, give back the part you didn't use.. Since you pay for the car as you use it, that amount gradually drops to the residual over the life of the lease.
So, technically, it is ($20K + $11K) divided by two.. But, the division calculation is accounted for in the money factor..
Hope that helps,
#103 of 105 2010 Jeep Liberty 36 mo lease?
Jan 05, 2010 (4:04 pm)
I'm looking for the MF & RV for a 2010 Jeep Liberty 4x2 Limited, 36mo lease, 10,000 mi/year. I'm looking to buy within the next few days so your timely reply is SO greatly appreciated!
What would we do without you guys??
#104 of 105 Re: 2010 Jeep Liberty 36 mo lease? [stargazer534]
Feb 07, 2010 (11:00 am)
Hey Car_Man, I had similar question to previous post. I'd like to get the Chrysler Financial MF & RV for a 2010 Jeep Liberty 4x4, 36mo, 10K miles/yr. Thanks!
#105 of 105 Re: 2010 Jeep Liberty 36 mo lease? [jkelly555]
Feb 10, 2010 (9:11 am)
Hey jkelly555. Here you go. GMAC's current base lease rate and residual value for a 36 month lease of a 2010 Jeep Liberty Limited 4WD with 10,000 miles per year are 3.54% and an ugly 40%, respectively.
As you can see, GMAC publishes lease rates instead of money factors for Jeep vehicles. You can convert its published lease rates into approximate money factor equivalents by dividing them by 2400. So, a lease rate of 3.54% is equivalent to a money factor of around .00148.
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