I'm going to get my Srt 8 tomorrow and want to know what the best way to negotiate the lease is. I already have got them to go 1,000 below invoice because they cant get rid of it but what my main concern is what the invoice REALLY is and what the APR, money factor, and residual on these cars are. I've done a search and cant find anything. Oh yeah and would it be a good idea to just get the car for a 2 yr lease and the least amount of miles per year and then just buy it out and sell it for sale by owner at the end of the lease so i cant keep my monthly payments down?
thanks in advance

PM me, I'll give you what info I have

$1000 below invoice and you're going to lease it?

Stupid, stupid, stupid.

Finance it, end of story.

The GC SRT8 does not lease out that well regardless.

[QUOTE=Beltfed]
Finance it, end of story.QUOTE]

Finance, schminance. That's what cash is for.

my cash is for real estate not cars.
lease depreciating assests, buy apprciating assests.
i like low monthly payments

my cash is for real estate not cars.
lease depreciating assests, buy apprciating assests.
i like low monthly payments

Depending on the part of the country you are in, your RE is also depreciating. Leave Vs. Buy...many variables...Time, payments, mileage, walk away with nothing, or have some cash left in the car.

The SRT's do not lease well. Go look at BMW if you want to lease. Buy the Jeep, enjoy it.

[QUOTE=Beltfed]
Finance it, end of story.QUOTE]

Finance, schminance. That's what cash is for.


2nd most retarded thing to do with a wad of cash....Do people really think like this, or simply trying to impress others?

#1? Lottery

I own all of my vehicles. I buy them all with cash.

The 67 vette I inherited.

[QUOTE=Beltfed]
Finance it, end of story.QUOTE]

Finance, schminance. That's what cash is for.

Sorry, I actually have good credit.......as such have a low interest rate.

If you're a credit bum or just plain rich, go ahead and pay cash.

Granted I did put enough down where if I actually went to sell it tomorrow. I would get $ back.

If you have good credit you might find that the difference in monthly payments not all that great. You should ask them to price it out both ways. I went in looking to save money each month by leasing only to find out that I could buy the car for only $65 more per month. Needless to say, I said no thanks to the lease.

Also, are you planning to modify it at all? Exhausts, headers and CAIs are all wasted money if you're leasing (unless you plan to buy it afterward).

The key in negotiating a lease is homing in on the actual rate of interest used to determine the cost of the money in the lease. Most people think that the interest is charged on the portion of the vehicle used (depreciation amount). It's not, it's charged on the entire balance financed.

I am a CPA, and do a lot of vehicle deals for clients.

When negotiating, you MUST get a breakdown of each month's payment. There should be an interest piece, a rent (depreciation) piece, and sales tax. The depreciation will allow you to work down from the capitalized cost to the residual value. Once you know the interest portion, you should be able to do the math to determine the interest rate. To keep it simple:

monthly interest *12/capitalized cost = rate of interest in lease

It is not a perfect formula, but it will get you there.

Most of the time, the lease interest rate is higher than the rate of interest charged by the more competitive banks and credit unions. If you want to minimize the interest charge, this is the way to go.

Further, if the Jeep is a business vehicle, since the GVWR of the SRT8 is higher than 6,000 pounds, you should be able to deduct $25,000 in the year of acquisition on a purchase. This is a nice perk of a purchase.

Besides, on a lease I'd have to worry about how many miles I'd be putting on the Jeep every year. It's too much fun to have to think about that.

Good luck!

Just buy it!;)

I dont have cash available to buy or else I would. Real estate is still apprciating where i am so no worries.
I realize this car doesnt lease well but my main concern is monthly payments and at 1,000 under invoice payments will be around 620 if negociated properly. I dont like to finance and if i did my payment would be just under 800 a month so thats a big difference. After haggling with the dealership to get this car it just seems more and more like its not worth it.
I have been looking at a bmw as my alternative and it seems to work out alot better as a lease and overall has alot more to offer than the jeep and is less money but the jeep is just so damn cool.
What is this $25,000 write off you talk about if its over 6,000 lbs? does that only work for purchase or lease?? because this will be a business vehicle.

Sheri-

I thought the "HUMMER" write off went away last year?

I have been looking at a bmw as my alternative and it seems to work out alot better as a lease and overall has alot more to offer than the jeep and is less .

More to offer, what exactly does that mean?

If better lease figures on certain models, then yes BMW has more to offer in that regard.

To note, I've had three BMWs to date (all M models).

The Jeep is very different, apples and oranges.

Sheri-

I thought the "HUMMER" write off went away last year?
No, heavy SUV's can still use the $25,000 Section 179 maximum currently.

The old rule was that you could use Section 179 to its $108,000 maximum, thus writing off 100% of the vehicle in the first year.

I know they are very different, but in the aspect of MSRP and speed they are similar. I am looking at the new 335i which is a fast car also.
It has more to offer in the aspect of a nicer refined interior, push button ignition, more room for mods(i.e. chip adds 40 whp), paddle shifters, and direct iPod hookup.
In the end it leases better and bmw doesnt even give that great of a deal.

I own all of my vehicles. I buy them all with cash.

The 67 vette I inherited.

I do the same. Apparently we're foolish or are trying to impress others.

[QUOTE=omegaman]

Sorry, I actually have good credit.......as such have a low interest rate.

If you're a credit bum or just plain rich, go ahead and pay cash.

Granted I did put enough down where if I actually went to sell it tomorrow. I would get $ back.

I have good credit (772 midscore) - can you beat that? And are you telling me that if you COULD pay cash, you still wouldn't? Don't hate those of us who write checks for the things they want.

[QUOTE=Beltfed]

I have good credit (772 midscore) - can you beat that? And are you telling me that if you COULD pay cash, you still wouldn't? Don't hate those of us who write checks for the things they want.

Um, if I really wanted to pay cash for the car I would......but given the fact that I have a low interest rate I'm doing better with my money collecting interest than sitting in a depreciating asset.

And yes, my score is slightly better than 772.....in a few months once a certain item comes off I'll be over 800.

To each their own, I pay cash for things that go up in value not go down. Cars are only one interest of mine.

I know they are very different, but in the aspect of MSRP and speed they are similar. I am looking at the new 335i which is a fast car also.
It has more to offer in the aspect of a nicer refined interior, push button ignition, more room for mods(i.e. chip adds 40 whp), paddle shifters, and direct iPod hookup.

Push button start, but you still need to order comfort access or you'll be using a key and still pushing a button.

I drove the 335 coupe, very nice car......smooth riding and it moves.

But once you start adding all the toys, like Idrive, sport package, etc. It can get pricey, but still think you'll do ok on the lease (just negotiate that cap cost).

Right now (Dec. rates), the 335 sedan actually leases out better. It has a 61% residual in comparison to the coupes $58% residual. The buy rate is also slightly lower, .00150 vs. .00175 for the coupe. Add 2 points to each residual for 12k/miles.

Are you guys seriously comparing 335 to GC SRT??? What a joke! Push button start, iPod connectivity, supplier (if there is such a word) leather. I didn't hear a single thing about performance!? That is the only real reason one would buy an SRT-anything.in the aspect of MSRP and speed they are similarWas I smoking crack when I saw 0-60 of 5.3-5.5sec in the BMW? ‘Cause that looks about 3/4sec slower than the SRT. I’m not even talking about the rest of the performance parameters.

BlackedOut, just buy/lease the BMW, it seems to suite your life better. I’m saying it because you’re looking for a DEAL not a CAR. Leave the SRT beasts to us guys/gals who love it BECAUSE it doesn’t have that fancy emblem (and carries a big stick). I say it lovingly since I owned beeeeemers before and will own them again.

P.S. regarding everyone’s good credit. Believe it or not, the difference in rates when you get financing between a FICO of 750 and 800+ is negligeable.

yeah I've looked at them both closely and even with a fully loaded beemer its cheaper because of European Delivery.

I am not comparing the two at all but they are the 2 cars i want for different reasons. They both fit my lifestyle for different reasons and I'm just want the best price. Just cuz i don't wanna get ripped off on my lease doesn't make me less of a man.

The 335i 0-60 is reported as 5.3 by BMW but 4.7-4.8 by magazine(which is more accurate) and for $1000 i can get a chip that will make it a 320 whp car that runs 4.3 or 4.4 0-60 which is not too shabby at all. I like both cars for completely different reasons. Jeep is pure bad ass raw power. BMW handles awesome and can be modded very easily and inexpensively because of the turbos.

With the 335 you also get a 4 year/50K warranty, and free maintenence for the 4 years, zero out of pocket cost. One person with an LX SRT recently lost to a 335 but he lives at a pretty high elevation, and that twin turbo really helps the 335. I really like the BMW's. THey are a quality built machine, hold their resale, etc. My wife has an 06 X5 4.4 and loves it. Me, I like the JEEP!!!!!!

yeah, exactly my thoughts i love them both but im leaning to the bmw becasue of my altitude and reading about some of these dynos the the bmw is throwing down. Looks like 100 whp gains is not out of the question with higher octain gas and chip and exhaust...

both rides are nasty but i did look at the 335 before i picked up the jeep and the 335 wasnt slow but jeep throws it down a little harder.

Actually a very strange conversation to be having a 335 vs. GCSRT8, but I totally agree...I considered the 335i before I decided on the GCSRT8 because it is a pretty slick car and definitely a good performance coupe.

The decision for me came down to the fact I really need AWD living in the North East and using the car for commuting I thought the jeep was just the better pick.

So What Would Be The Best Way To Figure Out If Im Getting A Good Deal On A Lease? Im In Ny ,,and Im Going To Get One Soon ,,

My feeling is that the most important issue is the cost of the money. If you can do better with regard to the interest rate by purchasing vs leasing, go for the purchase. You also really need to consider how many miles you are going to drive the car per year vs the alotted amount. YOu should buy miles up front if you are going to be over miles.

Also, if it's a company car that will be depreciated, no doubt, purchase, to get the $25,000 Section 179 expense.

This is the info you need from your salesman determine a good lease:

Obviously, the term length, allowed mileage and overage charge. Money factor that they're basing the lease on (that's essentially the interest rate), residual value (what they are calculating the value of the vehicle to be at the end of the term - the higher this value, the lower the lease) and the net cap cost (the sale price that they're basing the deal on).

When manufacturers are running these awesome lease deals you occasionally see, they're usually subsidizing the money factor. I'd never do a lease without the dealer disclosing the money factor, sale price and residual value.

You can find a good calculator to work with here (http://www.leaseguide.com/calc.htm).

Alex

This is the info you need from your salesman determine a good lease:

Obviously, the term length, allowed mileage and overage charge. Money factor that they're basing the lease on (that's essentially the interest rate), residual value (what they are calculating the value of the vehicle to be at the end of the term - the higher this value, the lower the lease) and the net cap cost (the sale price that they're basing the deal on).

When manufacturers are running these awesome lease deals you occasionally see, they're usually subsidizing the money factor. I'd never do a lease without the dealer disclosing the money factor, sale price and residual value.

You can find a good calculator to work with here (http://www.leaseguide.com/calc.htm).
Alex
Excellent points. I have found that the salespeople don't have that info, or are not savvy enough to know what to ask for. You may want to go to the sales manager with all of these questions to prevent another "layer of confusion"

Excellent points. I have found that the salespeople don't have that info, or are not savvy enough to know what to ask for. You may want to go to the sales manager with all of these questions to prevent another "layer of confusion"

You're right, many salesmen are clueless to these numbers, although you might be surprised at how many of them know it. Regardless, if you walk in and demand these things upfront, you'll send the message that you are a knowledgeable buyer and start the negotiation relationship on the right foot. You know, the alpha dog thingie...

Alex

Because of the benefits of purchasing these things, I have never investigated a lease. SInce there are no factory supported lease deals currently (that I know of), it might be worth going to one of the nationwide lease companies. Some of them are listed in the ads in Autoweek, and they may be able to provide a good alternative.

Jeeps do not lease well because they do not hold there value. You could lease a more expensive BMW for less. Especially when BMW has some decent subsidizing on 3 year leases. Now I pay more sales tax than my 69 RR 44 6-pack cost new. Then again, I am now making $9 an hour, compared to $2 back then. Yes, life is good.