Everyone Loves The Numbers.... Here’s My Deal

[Madmike]

$500 military discount. Dealer discount of $500 for being a repeat customer ..(Ram 2500 diesel 9 months ago )
The rest was just playing the back and forth game.

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[Drewellis93]

So, you pay $15k over 36 months and then give them $34k to own the Jeep. You wind up paying $49k to own a Jeep with a $45k sticker?

 

[Raven]

So, you pay $15k over 36 months and then give them $34k to own the Jeep. You wind up paying $49k to own a Jeep with a $45k sticker?

I can see you’re only picking and choosing the numbers you want to make your argument... but there is more to it than that. I can say, “why on earth would anyone finance?!?” The same 45k truck you talk about at 3.95% (CCAP best rate) and my PA 6% tax would have you paying a total of $52,708.

I lease for one reason... options. If at the end of 3 years I don’t like it and there is equity, I buy it out and sell it to make a profit. If I like it and there is equity, I buy it out and keep it. If the truck is under water, I turn it back in and let the bank take the loss.

Unless you pay cash upfront, most everyone will be paying more than sticker for their Jeep because of interest. There isn’t enough of a discount right now for these trucks to barely get out the door under MSRP.

 

[B345T]

I
I lease for one reason... options. If at the end of 3 years I don’t like it and there is equity, I buy it out and sell it to make a profit. If I like it and there is equity, I buy it out and keep it. If the truck is under water, I turn it back in and let the bank take the loss.

Raven I like your use of the word Profit..

Reminds me of when my spouse has a garage sale and tells me how much she made...I remind her that she has only recovered part of the original investment..

to Drewellis93 As for Financing I am making in excess of 20% in the market for the last 2 years and if I were to pay cash for the Gladiator it would cost me even more in lost revenue...

Raven has it right with the lease/purchase routine...I am leasing mine but with the stupid high residual it is highly unlikely that purchase plus sales tax at the end will work so I will just get another one...if the market is down at that time I may just stroke a check for the next one..

 

[AncientCityGladiator]

Lots of experts here it seems. If my trade was 5k underwater, how would that work on the lease you have? Never had a lease, always wondered how negative equity would apply.

 

[rvillano8188]

Raven I like your use of the word Profit..

Reminds me of when my spouse has a garage sale and tells me how much she made...I remind her that she has only recovered part of the original investment..

to Drewellis93 As for Financing I am making in excess of 20% in the market for the last 2 years and if I were to pay cash for the Gladiator it would cost me even more in lost revenue...

Raven has it right with the lease/purchase routine...I am leasing mine but with the stupid high residual it is highly unlikely that purchase plus sales tax at the end will work so I will just get another one...if the market is down at that time I may just stroke a check for the next one..

I went for the balloon option, which worked out to be a hybrid, but with a better rate. It’s a lease like payment for 59 months, at 3%, and balloon for exactly half of the truck’s purchase price. It’s a better rate than financing so I’m just going to add a few hundred bucks on each payment and take advantage of the interest savings. I was only finding 3.5% and higher for 60 and 72 months so it worked for me

 

[rvillano8188]

Lots of experts here it seems. If my trade was 5k underwater, how would that work on the lease you have? Never had a lease, always wondered how negative equity would apply.

They’d spread that 5k across the amount of months you’re leasing for. Really not a great idea as it blows up your payment in this case because leases are shorter terms than financing

 

[Heathsrow]

I went for the balloon option, which worked out to be a hybrid, but with a better rate. It’s a lease like payment for 59 months, at 3%, and balloon for exactly half of the truck’s purchase price. It’s a better rate than financing so I’m just going to add a few hundred bucks on each payment and take advantage of the interest savings. I was only finding 3.5% and higher for 60 and 72 months so it worked for me

Who did you get the balloon loan through?

 

[Raven]

Raven I like your use of the word Profit..

I use the word profit because as soon as I sign my lease, I treat my payments as money lost. Anything gained at the end is money I never expected to have lol

 

[rvillano8188]

Who did you get the balloon loan through?

Teacher’s federal credit union. I ran the numbers and it saves quite a bit on interest.

 

[Thatrabbitfoot]

So i ordered a couple weeks ago, seems like delivery is imminent like this month. So i had them rerun lease numbers and they are a little higher than before. Do you think i could get a little more off my selling price or not even worth asking? At 8% under invoice. Only a 250 deposit so i could leave for another dealee if they give a better deal

 

[Raven]

So i ordered a couple weeks ago, seems like delivery is imminent like this month. So i had them rerun lease numbers and they are a little higher than before. Do you think i could get a little more off my selling price or not even worth asking? At 8% under invoice. Only a 250 deposit so i could leave for another dealee if they give a better deal

September residuals have gone down which is inflating the payment. You can try to get more off or see if they will give you numbers with US bank as the captive.

 

[Thatrabbitfoot]

September residuals have gone down which is inflating the payment. You can try to get more off or see if they will give you numbers with US bank as the captive.

Is US bank the best bank?

 

[Renegade]

So i ordered a couple weeks ago, seems like delivery is imminent like this month. So i had them rerun lease numbers and they are a little higher than before. Do you think i could get a little more off my selling price or not even worth asking? At 8% under invoice. Only a 250 deposit so i could leave for another dealee if they give a better deal

Where the heck did you get 8% under invoice?

 

[Raven]

Is US bank the best bank?

It’s a “your mileage may vary” situation. No one bank is “best”, it’s what is best for your situation. I would have been better off using US bank but my dealer didn’t work with them.

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