Looking for feedback on a lease

lunaman11

Hello, I'm new to leasing. I want to lease a jeep cherokee limited 4x4. 12,000 miles a year. San Francisco CA

Here are the details from the lease agreement. How do I tell if this is a good deal? Any red flags?

msrp: 40,060
cap reduction: 9757
Capitalized cost: 38460
cap reduction (based on tradein):9735
Net cap: 29677
Residual: 20,831
total depreciation: 8831
total drive off: 11.312
monthly payment: $309.52


Can anyone provide feedback>

lunaman11

Adding more info here:

Rate: .00077

There are 4 quotes here. The first two don't include the trade in. The second two include the trade in and are for 12k and 15k miles respectively.

kyfdx

lunaman11 said:

Adding more info here:

Rate: .00077

There are 4 quotes here. The first two don't include the trade in. The second two include the trade in and are for 12k and 15k miles respectively.

.00017 MF and 51% residual for 36mo, 15K/yr, 52% for 12K/yr

The money factor markup is adding $30/mo.

Also, I would never put $9700 down on a lease... Better to keep that in your pocket and take the higher payment. The true cost of this lease? About $560/mo. (that's the zero down number).

Pretty pricy for a compact crossover..

lunaman11

Thank you!

lunaman11

Quick follow up question, are you saying putting down 9700 because that's what the cap reduction is showing? That's for an option where I trade in my existing jeep wranger.

Are you saying that you wouldn't trade in and instead sell and keep the cash?

Michaell

lunaman11 said:

Quick follow up question, are you saying putting down 9700 because that's what the cap reduction is showing? That's for an option where I trade in my existing jeep wranger.

Are you saying that you wouldn't trade in and instead sell and keep the cash?

Trade in and have the dealer cut you a check. Same reasoning - large amounts of cap cost reduction, either cash or trade equity, puts the money at risk. If the car is stolen or totaled, you lose that money.