Questions on Monthly Payment....

Taurian

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I’m in Arizona and my 2022 TRX arrived at the rail yesterday so it will be a few days until arrives to the dealer. I’m looking for financing scenarios to have an idea how much to put down and what interest rate I can get with an 800 credit score.
You may be able to get 2.50% or better with 800+. Good luck!!
 

BlueTRX

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Do NOT lease a TRX. Better off doing a balloon payment loan to keep the payments down. Or buy it at 2.99% with a credit union for 72 months. The residual value is super low and the money factor will be too high on this truck. Please don’t do it.
What do you mean by "balloon payment loan"? Are you referring to FPPO?
 

Taurian

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What do you mean by "balloon payment loan"? Are you referring to FPPO?
It just means at the end of the loan, you’ll have a payment due because you’re monthly payments are low. You can either sell and payoff or refinance.
 

BlueTRX

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It just means at the end of the loan, you’ll have a payment due because you’re monthly payments are low. You can either sell and payoff or refinance.
What you refer to as a balloon payment loan is an FPPO. FPPO is a lease. "Fixed price purchase option leases" allow for a balloon at the end of the loan which is usually 20% of the total. You would be technically financing only 80% because the bank has 20% at the end, thus payments are lower. At the end of the term, you can buy it or even stretch it further.
If you add payments plus the residual however you will be paying a lot more at the end. Leases are high for this truck, period. Loans are the way to go
 

KingTuck

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I’d imagine the residual value is very high on a TRX. The residual value is the “guestamation” FCA believe the truck will be worth at the end of your lease.

The difference from the sales price to the residual value determines your monthly payment. For example, if a vehicle cost 85k and on a 4 year lease year 4 the residual value is 55k, the difference in that 4 year swing is 30k. You will make payments on 30k. For every 10k Borrowed figure 200 dollar payment. The financing charge (money factor) will be added to this.

The money factor doesn’t always have to do with just your credit. Banks may gouge you a little bit on that money factor and manufactures who works closely with the bank may lower the residual value on TRUCKS especially.

Trucks typically get beat up hence affecting the residual value and money factor on a lease.
 
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BlueTRX

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I’d imagine the residual value is very high on a TRX. The residual value is the “guestamation” FCA believe the truck will be worth at the end of your lease.

The difference from the sales price to the residual value determines your monthly payment. For example, if a vehicle cost 85k and on a 4 year lease year 4 the residual value is 55k, the difference in that 4 year swing is 30k. You will make payments on 30k. For every 10k Borrowed figure 200 dollar payment. The financing charge (money factor) will be added to this.

The money factor doesn’t always have to do with just your credit. Banks may gouge you a little bit on that money factor and manufactures, who works closely with the bank may lower the residual value on TRUCKS especially.

Trucks typically get beat up hence affecting the residual value and money factor on a lease.
You are right on the money. It's about $20 for each $1,000.00
In my type of business lenders need a bit of time to come through with a lease structure for an uncommon machine or new one that hasnt been often retailed. Residuals are a guess and lots of times lenders stay away from riskier than normal units.
Residual value of the TRX is high now being the market is very hot for them due to low inventory. One would think however as time passes the value will go down as an expensive TRX is only appealing to a very specific group of buyers. Dealers favor used vehicles that dont sit long
 

KingTuck

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You are right on the money. It's about $20 for each $1,000.00
In my type of business lenders need a bit of time to come through with a lease structure for an uncommon machine or new one that hasnt been often retailed. Residuals are a guess and lots of times lenders stay away from riskier than normal units.
Residual value of the TRX is high now being the market is very hot for them due to low inventory. One would think however as time passes the value will go down as an expensive TRX is only appealing to a very specific group of buyers. Dealers favor used vehicles that dont sit long

Exactly.
 

KingTuck

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On the TRX standard financing is the way to go especially if you are putting money down.

Sure money down on a lease lowers your monthly payment more opposed to standard financing but the money down on a lease doesn’t particularly go to paying off the principal. If you’re financing a new vehicle, making a bigger down payment increases your equity in it. This helps to ensure you won’t wind up owing more money than the vehicle is worth.

By contrast, a down payment on a lease is merely an advance payment on the deal. Many leases have gap insurance built into the contract. This pays the difference between what the car is worth and how much is owed on it. You will not, however, get back your down payment.
 

Jd81

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On the TRX standard financing is the way to go especially if you are putting money down.

Sure money down on a lease lowers your monthly payment more opposed to standard financing but the money down on a lease doesn’t particularly go to paying off the principal. If you’re financing a new vehicle, making a bigger down payment increases your equity in it. This helps to ensure you won’t wind up owing more money than the vehicle is worth.

By contrast, a down payment on a lease is merely an advance payment on the deal. Many leases have gap insurance built into the contract. This pays the difference between what the car is worth and how much is owed on it. You will not, however, get back your down payment.
This is a good way to look at it in a sense. However in states like NY where tax is paid up front, a lease may be a good option for someone who swaps in and out of vehicles a lot. By not taking on the full tax burden it leave room for a quick flip into new model year.
 

Ponyboy

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@Ponyboy nice!!! I have a TRX on order with Chapman as well. Can i ask which bank? Did you have to provide anything other than a credit check?
Citizens Bank. No, they just used the credit info I had already filled out with Chapman.

Also, another update. My local credit union was doing a Black Friday give away. They gave out a few 1.99% @ 60 month offers which I got drawn for. So I'm planning to refi with them in the next couple of months after I sell my current truck and use the equity to put a bigger down payment on the TRX.
 

Ponyboy

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Ponyboy. How much was the down payment you put? I’m still negotiating my 2022 TRX
I did not put a down payment down. Financed the whole thing including the sales tax. I didn't even know you could do that much financing... :)
 
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ScottSad

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When I looked at leasing, the interest rate was almost 6% ( money factor) I ended up buying it with a 2.7 % interest rate. The payment was pretty much the same . Only difference is after 3 years, I’ll have a lot more truck paid off vs the lease
This what I figure is going to happen with me. With that scenario, it makes way more sense to buy.
 

Steele67

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I may do a Lease on mine, here are the numbers straight from the Ram web tools at 91K build

2021-11-30_10-11-59.jpg
2021-11-30_10-10-53.jpg
 

JUGRNAT22

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Well I did a lease and the TRX can only be done by Ally and after I signed papers I realized I made a mistake. I highly recommend not doing a lease on anything you have equity in. Now I’m working on trying to do a buyout so I can just get into a traditional loan and not lose my butt. My 2 cents
 
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