Questions on Monthly Payment....

[AshDar]

I am not a leasing expert, but have leased many cars in the last 10 years.
The lease payment is calculated with the MSRP, sale price, down payment, residual value and money factor all put into an equation (plus tax, title and all the fees). You can find a lease calculator online and plug in these numbers to figure out your payment.
The residual value is set by the bank, not the dealer. The dealer will usually get the Money Factor (interest rate) from the bank and increase it to make a finance profit. They will then add on lease fees like acquisition fee.
In general, it is not a good idea to put any money down on a lease. If the car is totaled, you will not get any of that money back.
In terms of leasing a TRX, I think is a huge mistake. This truck will hold its value a lot better than most other trucks...especially a 1 of 875 IE.
Do yourself a favor and just buy it.

 

[BlueTRX]

Thank you for this! I leased my rebel for 400$ a month, I expected this to be around 900-1000$, so that surprised me, and made me wonder if its just better to finance given the rates, and market. I guess you ended up Financing instead?

I did finance. Lease with this Truck is absolute stupidity. What made me decide is here in NY you can terminate a loan at anytime without penalty. I like leases because I dont drive much at all and can trade to new cars often. I also had a Rebel before the TRX. Leased it for 33 months(39 months plan) but brought it back early because my dealer gave me close to what I paid at the lease start. I lucked out because they had a TRX and was able to transition at the same time.
Yes I paid over MSRP for the TRX, but with the over I got from my Rebel it was pretty even and I have been driving a TRX since august. If I had waited till the lease end I wouldnt find a TRX and now the dealer has some Rebel inventory in, contrary to August when covid lockdowns were recently ending.

 

[Redneck]

I am not a leasing expert, but have leased many cars in the last 10 years.
The lease payment is calculated with the MSRP, sale price, down payment, residual value and money factor all put into an equation (plus tax, title and all the fees). You can find a lease calculator online and plug in these numbers to figure out your payment.
The residual value is set by the bank, not the dealer. The dealer will usually get the Money Factor (interest rate) from the bank and increase it to make a finance profit. They will then add on lease fees like acquisition fee.
In general, it is not a good idea to put any money down on a lease. If the car is totaled, you will not get any of that money back.
In terms of leasing a TRX, I think is a huge mistake. This truck will hold its value a lot better than most other trucks...especially a 1 of 875 IE.
Do yourself a favor and just buy it.

Thank you for the advice, I cant thank everyone for their kindness, people are truely great on here!

 

[Redneck]

I did finance. Lease with this Truck is absolute stupidity. What made me decide is here in NY you can terminate a loan at anytime without penalty. I like leases because I dont drive much at all and can trade to new cars often. I also had a Rebel before the TRX. Leased it for 33 months(39 months plan) but brought it back early because my dealer gave me close to what I paid at the lease start. I lucked out because they had a TRX and was able to transition at the same time.
Yes I paid over MSRP for the TRX, but with the over I got from my Rebel it was pretty even and I have been driving a TRX since august. If I had waited till the lease end I wouldnt find a TRX and now the dealer has some Rebel inventory in, contrary to August when covid lockdowns were recently ending.

The rebel is a great truck and i love it to death, I was going to trade it, but my brother is in need of a truck after going thru a divorce, So its going to stay in the family which is awesome. Just trying to get the payment where I want it and something I can swallow, and people are right, its best to buy / finance now with inflation and interest rates.

 

[BlueTRX]

I am not a leasing expert, but have leased many cars in the last 10 years.
The lease payment is calculated with the MSRP, sale price, down payment, residual value and money factor all put into an equation (plus tax, title and all the fees). You can find a lease calculator online and plug in these numbers to figure out your payment.
The residual value is set by the bank, not the dealer. The dealer will usually get the Money Factor (interest rate) from the bank and increase it to make a finance profit. They will then add on lease fees like acquisition fee.
In general, it is not a good idea to put any money down on a lease. If the car is totaled, you will not get any of that money back.
In terms of leasing a TRX, I think is a huge mistake. This truck will hold its value a lot better than most other trucks...especially a 1 of 875 IE.
Do yourself a favor and just buy it.

You are absolutely correct. I meant factory/bank because I'm not sure, but believe Stellantis or Ram Financial sells the trucks to dealers. The dealer in turn also puts a small margin on the rate factor(yes dealers make money on those above dealer "recommended rate"). In my business dealers are allowed to run their own show with financing, but vehicles take the game of screwing people to another level when it comes to financing.

Just note salesmen always bring a payment amount, never the rates because they want you to focus on affordability and not notice if they are screwing you. Usually I reject the first two payment offers and hopefully negotiate the third!

 

[BlueTRX]

The rebel is a great truck and i love it to death, I was going to trade it, but my brother is in need of a truck after going thru a divorce, So its going to stay in the family which is awesome. Just trying to get the payment where I want it and something I can swallow, and people are right, its best to buy / finance now with inflation and interest rates.

My advice to you if you are struggling with payment is hold off... remember the gas prices are insane for premium and if you drive a good amount, you will be hurting and not enjoying this truck as much.
I thought insurance was going to be murder, but it only went up like $40 over the Rebel.

 

[Redneck]

My advice to you if you are struggling with payment is hold off... remember the gas prices are insane for premium and if you drive a good amount, you will be hurting and not enjoying this truck as much.
I thought insurance was going to be murder, but it only went up like $40 over the Rebel.

Yea, I can do the payment comfortably, I just felt like it was WAY to much for a lease. Id much rather finance it for a payment like that....

 

[TReX-RAM]

Ditto to all of the above. For shits and giggles inquired about a lease option for the TRX and the payments came out the same as me financing it. I have leased several vehicles because I like change every 3 years and I drive them really hard and I feel bad for the sucker that gets the car after me. I knew I was going to buy the TRX though. The lease option had a huge money factor and residual was not in my favor. In today's market you can finance the truck drive it for about a year and sell it for a profit and buy another one. I came really close to doing it when someone offered me $130k for my TRX "as-is" three months after I got it (CA people...what can I say ). I just did not want to wait 4-5 months for another one so I declined. We live in rare times when ANY vehicle is an investment that can turn you a profit. Economists are saying this will linger well into 2022-23 before the market corrects itself. Who really knows. DONT LEASE THE TRUCK...BUY IT!!

 

[RH67]

In these times that we live in you want to use the banks money, put enough down to make payments livable and keep your cash. If leasing the best lease is zero down. Buy your truck, with 10k down at 84 months your payment will be less than the lease offered.

 

[Redneck]

In these times that we live in you want to use the banks money, put enough down to make payments livable and keep your cash. If leasing the best lease is zero down. Buy your truck, with 10k down at 84 months your payment will be less than the lease offered.

Very True! So far the dealer said 72 months via Chrysler capital is still around 1500, but ill be FINANCING, not leasing, which as everyone says, in today's market, with inflation, payment only getting cheaper. If I would've known the lease/finance payment is around the same (actually a tad cheaper to finance) then I would've done that in the first place, but my mindset was in the market 3 years ago when i leased my rebel for half the payment of what it would've been to finance it. Crazy times!

 

[Goosed]

Yea, Im probably going to keep the truck for a while, I usually do 3 year leases but that was over 1600 a month, Its just hard for me to swallor it being more then my house payment... it just raises red flags in my mind that something is seriously up. I guess it wont hurt to have them look into a 72 month finance for me, my goal was to have it around 1000 and it hit me in the gut when they thru that price at me even with 10k down.

To have it around $1,000 monthly I think your looking at financing $68k at 2% interest, so you’ll need a larger down payment plus cover taxes out of pocket.

 

[Redneck]

Ditto to all of the above. For shits and giggles inquired about a lease option for the TRX and the payments came out the same as me financing it. I have leased several vehicles because I like change every 3 years and I drive them really hard and I feel bad for the sucker that gets the car after me. I knew I was going to buy the TRX though. The lease option had a huge money factor and residual was not in my favor. In today's market you can finance the truck drive it for about a year and sell it for a profit and buy another one. I came really close to doing it when someone offered me $130k for my TRX "as-is" three months after I got it (CA people...what can I say ). I just did not want to wait 4-5 months for another one so I declined. We live in rare times when ANY vehicle is an investment that can turn you a profit. Economists are saying this will linger well into 2022-23 before the market corrects itself. Who really knows. DONT LEASE THE TRUCK...BUY IT!!

Its insane! Im really wondering what will happen 10 years down the line when the hellcat is 5 years killed, Ive been offered the same for my daytona! LOL. Definitely going to just buy it though rather than lease.

 

[Redneck]

To have it around $1,000 monthly I think your looking at financing $68k at 2% interest, so you’ll need a larger down payment plus cover taxes out of pocket.

Yea, I don't mind 1500 on finance, but on a lease, it surprised me. When i got my rebel lease in 19, the lease monthly payment was almost half of the finance, so I was in that mindset for this market, boy was I wrong, its cheaper to FINANCE LOL

 

[BlueTRX]

To have it around $1,000 monthly I think your looking at financing $68k at 2% interest, so you’ll need a larger down payment plus cover taxes out of pocket.

I find it very hard for the interest to be even close to 2%. It will be close to 4.
Redneck, did you find out interest at the $1,500 finance for 72?

 

[RobR651]

Very True! So far the dealer said 72 months via Chrysler capital is still around 1500, but ill be FINANCING, not leasing, which as everyone says, in today's market, with inflation, payment only getting cheaper. If I would've known the lease/finance payment is around the same (actually a tad cheaper to finance) then I would've done that in the first place, but my mindset was in the market 3 years ago when i leased my rebel for half the payment of what it would've been to finance it. Crazy times!

What’s the rate? Chrysler financial rates traditionally suck. The dealer will
push them because they earn $$$ pushing them. You’re far better off going to a bank / credit union and getting them to run the numbers. I know Bank of America is in the low 2% range. There’s other banks that’ll probably beat it. More food for thought.

 

[Redneck]

I find it very hard for the interest to be even close to 2%. It will be close to 4.
Redneck, did you find out interest at the $1,500 finance for 72?

I believe in the 4%'s , I told them im shopping around aswell.

 

[Redneck]

What’s the rate? Chrysler financial rates traditionally suck. The dealer will
push them because they earn $$$ pushing them. You’re far better off going to a bank / credit union and getting them to run the numbers. I know Bank of America is in the low 2% range. There’s other banks that’ll probably beat it. More food for thought.

Ill give bank of America a shot, seems like most are in the 2-3% range for my credit score

 

[Narbeh]

section 179 - buy and use as a straight 100% deduction through your company if you're a business owner. only way to do it.

 

[Redneck]

section 179 - buy and use as a straight 100% deduction through your company if you're a business owner. only way to do it.

Thought about that, but I run a e-commerce, fully online digital download oriented business.

 

[Goosed]

I find it very hard for the interest to be even close to 2%. It will be close to 4.
Redneck, did you find out interest at the $1,500 finance for 72?

Not hard to find at all. Just locked in 1.84%. Another bank offered 2%. Both were 72 month terms. They’re out there.