Insight/advice requested by lease-newbie re: 2015 Ram 1500 Express Quad 4x4

rambound

As offered by dealer:

MSRP: $40,920
Price: $29,139 (demo model with 3,578 miles)
10,000 miles per year and 36 month lease
Residual: 54% of MSRP ($21,216)
MF: 7.1% (translates to .0029583, I believe)

Dealer is quoting a payment of $450-465 per month which I haven't been able to duplicate with available calculators, even when factoring is local sales tax.

Why, may I ask, is the MF (above) so out of sync with those being quoted within the discussion forum. Does it have to do with a private lender being utilized as opposed to Chrysler Capital, perchance? With excellent credit worthiness is such an MF a ridiculous proposition? Any thoughts or insight would be appreciated.

kyfdx

rambound said:

As offered by dealer:

MSRP: $40,920
Price: $29,139 (demo model with 3,578 miles)
10,000 miles per year and 36 month lease
Residual: 54% of MSRP ($21,216)
MF: 7.1% (translates to .0029583, I believe)

Dealer is quoting a payment of $450-465 per month which I haven't been able to duplicate with available calculators, even when factoring is local sales tax.

Why, may I ask, is the MF (above) so out of sync with those being quoted within the discussion forum. Does it have to do with a private lender being utilized as opposed to Chrysler Capital, perchance? With excellent credit worthiness is such an MF a ridiculous proposition? Any thoughts or insight would be appreciated.

1) The residual quoted is less than 54%, which makes sense, since the truck already has miles on it.
2) Definitely another bank than CC.
3) The answer to the payment difference would show itself, if you knew the CAP cost. That would include acquisition fee (maybe $1000 with ALLY?) and any other fees that are being rolled in.
4) Leases calculated with true APRs tend to be a little higher than those calculated with money factors, even after the conversion (but not a lot... a few percent).
5) Is the money factor ridiculous? Sure, but if you are getting a $5000 incentive and higher residual to take it, all that matters is the final payment. Is it more or less than using the CC program?

I wouldn't be all that thrilled with a $450/mo. payment for 36/10 on a $41K truck... especially a demo at year end.

rambound

Thank you very much for the reply and for the information and insight you provided. I'll inquire about the CC program and associated fees and incentives for a proper comparison. Your point re: the $450 payment for 36/10 on a $41K truck (let alone a demo) is particularly salient and appreciated. Thanks again.