Lease Residuals

[Mikegcny]

As of right now the Rubicon has a money factor apr whatever you want to call it of 5.688. on Jeep website for 38 months. Sport and sport s it's over 6. I think there there trying to push as many Rubicons as they can.

Probably - but dont use the Jeep Website. Dealers have access to bank with better rates on leases.

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[Rex3rd]

Probably - but dont use the Jeep Website. Dealers have access to bank with better rates on leases.

Yeah I know I was just using it as an example

 

[WXman]

so if I plan to lease then buy, having a low residual in the hopes the vehicle keeps it's value is what I want. so residuals going down is a good thing in that case, right? just trying to get some clarity on this.

it sounds to me like the residual is a projection of the value of the vehicle though, and then the at the end of the term it's compared to what the value is at that time. so it seems the higher the residual, the lower the lease payment but possibly a higher buy-out, but a lower residual has a higher lease payment but a possibly a lower buy-out.

but I could totally be wrong. that's why I'm asking.

Yes - The residual value is the amount of money that you can buy the Jeep for at the end of the lease.

1. Higher Residual = Greater Buy Out at end; Lower Monthly Payment
2. Lower Residual = Lower Buy Out at End; Higher Monthly Payment

But just to be clear, at the end of the lease, you do not have to buy the Jeep or pay any difference between actual market value and the residual value stated on the lease agreement. My feeling is that the people who leased the Galdiators when they just came out are going to have trucks that will be worth less than the residual value on the lease. I think the banks thought there would be more demand in 3 years time than there actually will.

Yes, the early lessees like me will be anxiously waiting to see how this cookie crumbles. My sticker was a little over $47k and if memory serves me correctly I think my "purchase price" at the end of my 48 months is around $35k. Will my truck be worth $35k as a 4-year-old truck with 40,000 miles on it? Hmm... I'm starting to really doubt it.

I agree, I think the banks were using Wrangler history to gauge interest in Gladiator and may have gotten burned. But time will tell! On the flip side of the coin, lower volume of Gladiators sold equals fewer Gladiators on the used market which in theory should equal greater demand/higher used pricing. We'll see.

 

[PsyRN]

Is the residual based on the MSRP? or the "sale price"? Meaning if I get something below invoice, is it based on the below invoice price or MSRP?

 

[Mikegcny]

Is the residual based on the MSRP

MSRP. It is the price the bank believes the vehicle will be worth at the end of the lease for the given number of months and miles.

 

[PsyRN]

MSRP. It is the price the bank believes the vehicle will be worth at the end of the lease for the given number of months and miles.

So is worth trying to get a lower then MSRP price?

 

[Mikegcny]

So is worth trying to get a lower then MSRP price?

Totally. Simple Hypothetical Lease:

MSRP: $50,000
Sale Price: $40,000
Residual: $30,000

Your lease payments are basically the difference between the sale price ($40,000) and the residual ($30,000) divided by the number of months*.

So it would be $10,000 / 36 months = $278 a month

If you were to pay full MSRP it would be double that for 36 months.

* This is a simple calculation. It does not show the interest charged, or other fees or taxes.

 

[TommyGp]

Question for thought. I ordered my rig and have pricing already agreed to. However I’m curious about leasing for two reasons:

1- What if the ecodiesel is a giant turd with regard to reliability and I want out? A lease seems like the low-risk solution so long as the warranty remains in effect.

2-Literally 8 days after ordering the truck my wife was diagnosed with cancer. It’s treatable and unlikely to be fatal, but I’m thinking that if I can save some monthly money for a couple of years until we know more about her health (and the expenses) it might make sense.

I have impeccable credit so qualifying for either a $0 down lease or $0 down financing at very good rates is absolutely available to me. Just thinking strategy while I wait for it to arrive.

So, what’s the MF and Res on a 21 Rubi Ecodiesel?

 

[Holoscape]

Question for thought. I ordered my rig and have pricing already agreed to. However I’m curious about leasing for two reasons:

1- What if the ecodiesel is a giant turd with regard to reliability and I want out? A lease seems like the low-risk solution so long as the warranty remains in effect.

2-Literally 8 days after ordering the truck my wife was diagnosed with cancer. It’s treatable and unlikely to be fatal, but I’m thinking that if I can save some monthly money for a couple of years until we know more about her health (and the expenses) it might make sense.

I have impeccable credit so qualifying for either a $0 down lease or $0 down financing at very good rates is absolutely available to me. Just thinking strategy while I wait for it to arrive.

So, what’s the MF and Res on a 21 Rubi Ecodiesel?

You were able to have pricing agreed to on an order? Ive never heard of that.

Very sorry to hear about your wife, i hope everything turns out to be ok!

It would be nice to find a place that houses the MF/RV #s for each bank per month...

 

[TommyGp]

You were able to have pricing agreed to on an order? Ive never heard of that.

Very sorry to hear about your wife, i hope everything turns out to be ok!

It would be nice to find a place that houses the MF/RV #s for each bank per month...

Thank you. She has surgery scheduled for this Thursday and we're hoping they can remove it all and she can be on the path to a speedy recovery.

Yes. I got a couple of different quotes from different dealers for the order and signed an agreement before the order was placed. Of course, if I change financing plans that could give them cause to change it. However this salesperson is a close family friend that I grew up with so whatever I do they will work with me within reason.

I custom ordered a Subaru Legacy for my now-ex-wife probably 5-6 years back. It worked out exactly the same with a definitive price and agreement signed at order under the following assumptions.

- I would finance through the dealership
- Any applicable rebates go to them
- If there are additional rebates beyond what was priced at the time of the order they will be taken off as well.

Of course, this one being a Rubi there really aren't any rebates to be had. As far as financing, I have perfect credit and strong income so qualifying for the best rate is a no brainer. Should be about 2.49% @ 72 months, which is also what my credit union does.

I'm just curious about the lease simply to keep cash expense down to a minimum during this period of uncertainty.

 

[Holoscape]

Thank you. She has surgery scheduled for this Thursday and we're hoping they can remove it all and she can be on the path to a speedy recovery.

Yes. I got a couple of different quotes from different dealers for the order and signed an agreement before the order was placed. Of course, if I change financing plans that could give them cause to change it. However this salesperson is a close family friend that I grew up with so whatever I do they will work with me within reason.

I custom ordered a Subaru Legacy for my now-ex-wife probably 5-6 years back. It worked out exactly the same with a definitive price and agreement signed at order under the following assumptions.

- I would finance through the dealership
- Any applicable rebates go to them
- If there are additional rebates beyond what was priced at the time of the order they will be taken off as well.

Of course, this one being a Rubi there really aren't any rebates to be had. As far as financing, I have perfect credit and strong income so qualifying for the best rate is a no brainer. Should be about 2.49% @ 72 months, which is also what my credit union does.

I'm just curious about the lease simply to keep cash expense down to a minimum during this period of uncertainty.

it varies Bank to bank. I think you can find out mf/rv from Chrysler capital via edmunds, but third party banks typically have better rates. It’s just a matter of finding out what they are, they’re not easily accessible to the public (at least from my research). If you have a family friend salesperson, I would just ask them, they should be able to tell you.

 

[TommyGp]

it varies Bank to bank. I think you can find out mf/rv from Chrysler capital via edmunds, but third party banks typically have better rates. It’s just a matter of finding out what they are, they’re not easily accessible to the public (at least from my research). If you have a family friend salesperson, I would just ask them, they should be able to tell you.

That is actually my fall-back plan. I just wanted to be somewhat educated beforehand. Thanks for the tips!

 

[WXman]

Can somebody tell me where current lease residuals are on a Sport with the EcoDiesel as of February 2021 assuming a 48 month lease? 65%? 68%? Higher? Lower?

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