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Prices Paid: Buying & Leasing Experiences Jeep Commander Lease Questions
196 messages, Last post on Aug 27, 2009 at 2:24 AM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
| Hello. I'm interested in finding out what I should expect in terms of a lease price on a 2006 Commander 4WD 4.7L 8 cyl. The MSRP is $40,450 and invoice price is $36,928. I want to have the DVD package added. I would like to make a deal within the next day or two. I'm open to a 27-month or 36-month lease and am willing to put as much as $1,000 down. Any thoughts? Thanks is advance. | |
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Replying to: kyfdx (Dec 09, 2005 4:20 am) Do you know the residual value for a 2007 Commander Limited 4X2 with a 5.7l Hemi engine? Thanks!
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Replying to: triesen (Dec 28, 2006 8:20 pm) Thanks! |
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Hello, I'm wanting to lease a 2007 Commander limited 4x2. I was told the following, can I get better? I'm new to leasing.... MSRP 37690.00 Cash Down 4000.00 39 month lease  $496.00 15K miles What can you negotiate? Does anyone know the current incentives for leasing, I can't get the webpage to pull up?
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Replying to: tleray (Jan 07, 2007 1:55 pm) The key to leasing is the following: negotiate your price as though you are going to buy it. Then, when they give you the price, tell them to calculate the terms for leasing at 39 months with 15k miles and $0 down payment. You don't want to make a large down payment (like $4k) on a lease b/c in the event you are in an accident and the vehicle is totaled, you lose the downpayment. Once they tell you the montly payment at $0 downpayment, you can work upwards from there, but again, a smaller down payment is advisable.
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Replying to: triesen (Jan 07, 2007 5:52 pm) Question: Should they be reducing the sticker by $2500? They state this includes sales tax. Are their any other charges they are not telling me? What if we decide to buy or not buy, at the end of the lease are there charges that we need to negotiate now? We are very new to leasing and would like as many pointers as possible. We are talking to the local dealership in a small town, but I'm thinking about calling a big city dealership and maybe getting a better deal, what do you advise? Also is it better to buy less miles and pay at the end or buy more miles and get the money back if they are not used? |
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Replying to: tleray (Jan 08, 2007 6:23 am) Essentially, your total payments should cover the amount the vehicle depreciates over the life of the lease, plus taxes, plus an interest payment for the use of the vehicle (known as a money factor - you can convert any money factor into an interest rate by multiplying the money factor which looks something like .000365 times 2400. The money should be equivalent to prevailing interest rates for buying). The amount the vehicle is worth at the end of the lease is known as the residual value. The residual is higher for a 24 month lease than it is for 39 month lease. I believe I was recently told that the Chrysler residual on a 2007 Commander for a 24 month lease is .52 or 52% of the MSRP. The longer you lease the vehicle, the more it depreciates and hence, the more you pay overall. Sales tax is calculated based on the purchase price and you pay for these in increments along with your lease payment each month (i.e., it would be incorporated in the $487/month). So, the price after the $2500 discount is $32165. Take out your trade in of $2700 ($17500-14800) and the price is $29465. Your payments of $487 per month for 39 months total $18993. That means the residual value is $10472 or 30% of the MSRP. This sounds about right for such a lengthy lease. If you shorten the lease to say 24, 27, or 36 months, your payment will be lower since more of the value of the vehicle will be left over (higher residual). Other notes: - Mileage: the higher the miles you purchase, the lower the residual. Consider the mileage you buy in terms of the vehicle's expected daily drive. For example, 12,000 miles is only 32 miles per day for a month. If you don't use the miles at the end of the lease, they do not refund anything for the unused portion. If you go over the limit, what you pay is something like .15 per mile. So, let's say you go over by 10,000 miles, you'll owe $1500. For most people, that's a lot of $$$. However, if, at the end of the lease, you release with the same OEM (Chrysler in this case), they may forgive this little oversight (they did for me on a Dodge Durango). Leasing is the best option, relative to buying a new car, if you stay under the mileage limit. - Term: you may want to rethink the 39 month lease. I suspect you may want something new again after only 24 or 27 months. Its nice to have a new vehicle every two years and the only money out of pocket to you is the sales tax. - Down payment: again, keep it $0 or very small. You'd lose that money in the event the vehicle is totaled in a accident. - Point of reference: I have a 2004 Dodge Durango lease. The terms were 36 months with 12,000 miles and the price was $32000. I put $2500 down and my monthly payment is $393 per month. I believe the interest rates (money factors) are slightly higher for Commanders since Chrysler deems them a near-luxury vehicle.
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Replying to: triesen (Jan 08, 2007 6:55 am) MSRP $34665 15K miles Trade In : $17500 Owe : $14800 No cash down 39 month lease 38 payments $487 Residual $16292.55 .15 mile overage charge includes sales tax
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Replying to: happymom2 (Dec 08, 2006 3:38 pm) Car_man Host Prices Paid Forum |
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Replying to: jdpancer (Dec 16, 2006 3:06 pm) Car_man Host Prices Paid Forum |
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