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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
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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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Replying to: kellim (Dec 19, 2006 1:47 pm)  . I doubt that you will be able to get it for less than this. DaimlerChrysler is no longer providing lease support on 2006 models. As a result, if you were to lease one through Chrysler Financial right now, you would have to use its standard lease program. Chrysler Financial's current buy rate standard lease money factor is .00332 for consumers who qualify for its top credit tier. Make sure that this is the money factor that is being used to calculate your truck's lease payment and you're in business. Car_man Host Prices Paid Forum |
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Replying to: jason16fsh (Dec 19, 2006 5:44 pm) Car_man Host Prices Paid Forum |
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Replying to: triesen (Dec 28, 2006 8:20 pm) Car_man Host Prices Paid Forum |
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Replying to: tleray (Jan 07, 2007 1:55 pm) For now I can tell you that $4,000 is too much money to put down when leasing. Consumers can and should lease any vehicle that they are interested in without making any sort of capitalized cost reduction. I say this because if your leased vehicle is totaled in an accident or stolen and never recovered, your down payment essentially disappears. Car_man Host Prices Paid Forum |
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Replying to: tleray (Jan 08, 2007 6:23 am) I see that you are considering trading in your current vehicle when you lease your new Commander. There's nothing wrong with trading in a car or truck when leasing a new one, but it would be in your best interest to have the dealer that you are working with cut you a check for your trade rather than using the proceeds from it as a down payment for your lease. I always advise consumers not to make large down payments on leased vehicles. Those who make them risk losing them if their leased vehicle is totaled in an accident or stolen and never recovered. Car_man Host Prices Paid Forum |
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Replying to: tleray (Jan 08, 2007 7:07 am) |
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