Leasing a Jeep Gladiator

[Tortooga Custom Works]

Money Factor explained in a fun way, LMAO, Money factor = lease charge/(term*(net cap cost + residual value)); Lease Charge = Total Finance Charges as specified in contract.

So for example, a money factor of .0017 is about 4.08%. If my lease term is 24 months, net cap cost of $41735 and residual value of $35,614, you can back into the lease charge of roughly $3,155.

This $3,155 is sales tax, dealer fees, acquisition fees, disposition fees, lending fees. All that crap. If you have followed the thread this long, maybe you too will be more comfortable doing a lease. This is totally the right path for me, right now.



https://www.leaseguide.com/glossary/money-factor/
"When visiting a car dealer for the purpose of leasing, ask them about the money factor on their leases. It is not something that is routinely discussed in lease transactions because most customers don’t know to ask. You cannot know in advance what lease money factor will be used before you lease unless you ask. In fact, money factor is not even disclosed in car lease contracts. It’s not required by law, as APR interest rate is in loan contracts. If you don’t ask, you’ll never know. If a dealer refuses to disclose this important information to you, find another dealer."

hey @Dietruck that link above also says, "The money factor in a car lease is always determined by a customer’s credit score. The best scores get the lowest money factor." So when you get a quote from a dealer like Kent, Spencer, Travis, what are they basing your credit score on, because they haven't run your credit yet?

Good info. We should probably do a lease guide tab... and financing too...

As in the math involved...

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[Dietruck]

Key Coverages For A New Car


The following coverages may help protect you financially and get you on the road again should your new car be totaled or need major repair.

New car replacement coverage. This coverage may help pay to replace a new car that's totaled. With this coverage, your policy may allow you to replace the totaled vehicle with a new one of the same make, model and equipment, or it may specify whether a similar model or certain dollar amount would be available.

Repair provision coverage. Some policies may also cover the cost of repairs should there be only a partial loss to your new vehicle, regardless of its actual cash value. Repair provision coverage may help pay for repairs to a damaged vehicle on a replacement cost basis without deducting the depreciation in its value. Remember, however, that coverage limits still apply.

Loan or lease GAP coverage. According to the National Association of Insurance Commissioners, Guaranteed Asset Protection, or GAP coverage, may help pay the difference between the amount owed on an auto loan or lease and the totaled car's actual cash value. Even if your car can no longer be used, you're still responsible for any remaining loan or lease payments. So if the reimbursement check from the insurance company is not enough to cover what you owe, GAP coverage may help pay for the remaining amount on a loan or lease — so you won't be stuck paying for a car that is now in the scrap yard.

 

[steffen707]

I got a quote for gap, new car and some other part as a package deal for $30 more every 6 months

Gap is sometimes included in your lease.

I didn't get gap coverage on my van purchase, wasn't a lease, but my car insurance has this replace the car with 2 year newer model which I believe is going to be better than just gap.

 

[Dietruck]

I didn't get gap coverage on my van purchase, wasn't a lease, but my car insurance has this replace the car with 2 year newer model which I believe is going to be better than just gap.

Gap covers the outstanding loan or lease above value. New car covers the value drop from driving off the lot.

 

[WXman]

I have a question. Can you special order a Gladiator on a lease deal? Will they set the terms and agree on everything and then place the order? How does that differ from special ordering on a "buy"?

 

[Dietruck]

I have a question. Can you special order a Gladiator on a lease deal? Will they set the terms and agree on everything and then place the order? How does that differ from special ordering on a "buy"?

You can order and do a lease. Which is what I am doing. The price can be agreed to at time of order. The leasing terms and paperwork can't be done until the truck is built and invoiced to the dealer. Leasing terms change monthly.

 

[steffen707]

Gap covers the outstanding loan or lease above value. New car covers the value drop from driving off the lot.

you mean if you owe $40,000 on the vehicle, but its only worth $35,000, you're upside down on the loan, so the gap coverage would cover the other $5,000?

Mine sounds like "SUPER NEW CAR COVERAGE"

But I have this,
You can add New Auto Security2 to your ERIE auto policy for an additional cost. And here are the reasons why you’ll want to add it:

• If you’ve had your car less than two years and it gets totaled, ERIE will reimburse you the cost to replace it with the newest comparable model year (minus your deductible).
• If you’ve had your car longer than two years and it gets totaled, ERIE will pay the cost to replace it with a comparable model that’s two years newer (minus your deductible).
• If you lease your car, coverage is provided for the difference between the actual cash value of the auto and the amount due under the terms of your lease or loan.

Any reason i'm not seeing why Erie: New Auto Security2 is less desirable than just traditional GAP coverage, other than maybe cost?

 

[Dietruck]

you mean if you owe $40,000 on the vehicle, but its only worth $35,000, you're upside down on the loan, so the gap coverage would cover the other $5,000?

Mine sounds like "SUPER NEW CAR COVERAGE"

But I have this,
You can add New Auto Security2 to your ERIE auto policy for an additional cost. And here are the reasons why you’ll want to add it:

• If you’ve had your car less than two years and it gets totaled, ERIE will reimburse you the cost to replace it with the newest comparable model year (minus your deductible).
• If you’ve had your car longer than two years and it gets totaled, ERIE will pay the cost to replace it with a comparable model that’s two years newer (minus your deductible).
• If you lease your car, coverage is provided for the difference between the actual cash value of the auto and the amount due under the terms of your lease or loan.

Any reason i'm not seeing why Erie: New Auto Security2 is less desirable than just traditional GAP coverage, other than maybe cost?

Allstate does something similar. They wrap new care replacement and gap into one package deal. Then call it new car expanded protection.

 

[steffen707]

Allstate does something similar. They wrap new care replacement and gap into one package deal. Then call it new car expanded protection.

Just GAP from my credit union was like $300 up front. This erie thing was like $40 per year more.

 

[Dietruck]

Just GAP from my credit union was like $300 up front. This erie thing was like $40 per year more.

I was quoted 60 a year. I will need to get the fine print and read it.

 

[RIPLER]

you mean if you owe $40,000 on the vehicle, but its only worth $35,000, you're upside down on the loan, so the gap coverage would cover the other $5,000?

Mine sounds like "SUPER NEW CAR COVERAGE"

But I have this,
You can add New Auto Security2 to your ERIE auto policy for an additional cost. And here are the reasons why you’ll want to add it:

• If you’ve had your car less than two years and it gets totaled, ERIE will reimburse you the cost to replace it with the newest comparable model year (minus your deductible).
• If you’ve had your car longer than two years and it gets totaled, ERIE will pay the cost to replace it with a comparable model that’s two years newer (minus your deductible).
• If you lease your car, coverage is provided for the difference between the actual cash value of the auto and the amount due under the terms of your lease or loan.

Any reason i'm not seeing why Erie: New Auto Security2 is less desirable than just traditional GAP coverage, other than maybe cost?

It sounds like if you lease a vehicle you have GAP coverage, if you buy you don't.

 

[WXman]

I was able to special order on a lease deal. The residuals are nuts. 80+% on 24 months, 70% on 48. It's unheard of. If you want one, now is the time to strike before the market catches up. Thanks guys.

 

[steffen707]

I was able to special order on a lease deal. The residuals are nuts. 80+% on 24 months, 70% on 48. It's unheard of. If you want one, now is the time to strike before the market catches up. Thanks guys.

Only your purchase price is locked in, residuals and money factor change month to month. Could be 70% on a 24 month by the time yours shows up.

If you're cool with not knowing by all means. If you're concerned about the residual changing, I'd call your dealer and discuss this with them.

 

[Wizzard005]

We have had good exp with leases.

Bought a Nissan back in 2013 for 21k, put nothing down.. Payment was 259/month 3 year after. Ended up liking the car, so we set up double payments when the 3 years was up, the car was only 5k to buy out. we bought it out...

Bought a MB Benz, traded in an upside down car, we are over paying the lease now, the car is now worth more as a trade in vs we couldn't get out of our other car because it wasnt worth enough.

So I also feel it really depends on your end goals...

We are still undecided on buy or lease for our LE, We don't want to put 20-30k down to get a normal car payment, we may keep it in the bank, lease and walk out the door for 400/month or so and then if we like the truck set up double payments like we did with Nissan, and then in a few years refinance it....

 

[RIPLER]

I was able to special order on a lease deal. The residuals are nuts. 80+% on 24 months, 70% on 48. It's unheard of. If you want one, now is the time to strike before the market catches up. Thanks guys.

Am I right to assume that the residuals should be close to the same no matter where you live? My dealer said that the residual on a Rubicon lease was 70% on a 36 month lease.

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