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SUVs Jeep Cherokee and Jeep Grand Cherokee Jeep Grand Cherokee: Lease Questions
538 messages, Last post on Nov 20, 2009 at 3:05 PM
You are in the Jeep Cherokee and Jeep Grand Cherokee Forum. Your Hosts are steve_ & tidester
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Hi everyone. Please use the following discussion to post any questions that you have about leasing a Jeep Grand Cherokee. Thanks. Car_man Host Smart Shopper / Prices Paid Forums |
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Replying to: Car_man (Aug 31, 2005 3:19 am) Can you tell me the curretn lease rates on the Jeep Overland with DVD? The dealer is quoting no money down (inceptions roughly 2k) $41,200 price at $577 month 12k miles 39 months. MF .00214 and residual 55% Thanks!
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Local dealer has following offer. 05 Jeep GC Laredo with MSRP of $29,195. Sales price after rebates of just under $23K I think. I have not negotiated a final price or even talked to the dealer. The offer is 39 months for $289/mo. 12K mi/year. 1st month and security deposit due at signing. For assumptions sake, let's say I could negotiate so that I paid no security deposit. Is this a good deal?
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can you tell me if this is a good deal based on the current chrysler financial numbers. 27mo, 12k/yr MSRP: $40160 NEG Price: $35500 Rebates : -$ 6500 NetCapCost:$29000 55% residual ($22088), .00063 MF PA State Tax 9% on leases, they are quoting $349/Mo + Tax which makes it roughly $377, is this right, it seems to me it should be a bit lower, maybe $300-$320, any help would be appreciated as they only have two left!! Thanks!
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Replying to: fxsport (Oct 26, 2005 7:04 pm) Car_man Host Smart Shopper / Prices Paid Forums
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Replying to: chiefbigg (Nov 05, 2005 7:51 pm) Car_man Host Smart Shopper / Prices Paid Forums |
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Replying to: asd302 (Nov 09, 2005 4:44 pm)  . The money factor that you were quoted is much lower than any I have seen being offered by Chrysler Financial right now. According to my calculations, if you were to lease this truck through CFC for 24 months with 12,000 miles per year, its zero down, pre-tax monthly payment should be around $354. As you can see, the payment that they quoted you is pretty close to the one that I came up with using Chrysler Financial's actual current lease program. Car_man Host Smart Shopper / Prices Paid Forums |
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Replying to: asd302 (Nov 09, 2005 4:44 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 1:48 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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