$1200/mo lease payment for 60 mos

[truckyourself]

Here I thought I was gonna get a deal today...
I went to 3 RAM dealers in Chicago suburbs today and was quoted INSANE lease payments on a Laramie...

Dealer 1 = $767/mo for 39 months (in North Aurora)
Dealer 2 = $1079/mo for 60 months (in St. Charles) no that's not a typo
Dealer 3 = $950/mo for 42 mos (in Schaumburg)

To put in perspective, it should've been around $580-$600/mo if they were giving great deals and good interest rates.
Will make this another thread, but figured I'd update y'all

 

[habu987]

OTD price? Residual? MF? Miles? Without context, random lease quotes mean nothing.

Where's the $1200/60 month quote?

 

[Rick3478]

OTD price? Residual? MF? Miles? Without context, random lease quotes mean nothing.

Where's the $1200/60 month quote?

Some people's minds don't work that way. They just see the monthly number, pay the minimum, and seem totally surprised when the hammer drops.

 

[truckyourself]

OTD price? Residual? MF? Miles? Without context, random lease quotes mean nothing.

Where's the $1200/60 month quote?

I left that out sorry, $1280/mo for 39 months.
OTD price $59,099
Residual was ranging 50% to 52% of MSRP
MF some didn't tell me, but you can deduce it using math, the highest one was 10.5% APR, which is a MF of 0.004375
MIles, these were NEW, 20 miles or less most cases.

Any way you cut it, these are ridiculous.

 

[truckyourself]

Some people's minds don't work that way. They just see the monthly number, pay the minimum, and seem totally surprised when the hammer drops.

?? LOL what?
C'mon guys any way you cut it these are ridiculous, New Laramie, the price range isn't huge, the depreciation % should be pretty standard across the board, the MF shouldn't be insane, and you shouldn't put money down on a lease.

I put it in context saying payment should be around $600 but let me know what other info you need to do the math.
No matter how you slice it, it's insane.

 

[AnthonyRI]

Here I thought I was gonna get a deal today...
I went to 3 RAM dealers in Chicago suburbs today and was quoted INSANE lease payments on a Laramie...

Dealer 1 = $767/mo for 39 months (in North Aurora)
Dealer 2 = $1079/mo for 60 months (in St. Charles) no that's not a typo
Dealer 3 = $950/mo for 42 mos (in Schaumburg)

To put in perspective, it should've been around $580-$600/mo if they were giving great deals and good interest rates.
Will make this another thread, but figured I'd update y'all

42 months is the sweetspot right now for 2024 Laramie 1500 Crewcabs.
Rebates are VERY slim when you do the lease because the interest rates ARE very aggressive actually.

Its very hard for a community board to comment on leasing and support/correct without having the WHOLE shebang of info.
Big swings on how many miles, whether or not you're including taxes/fees or paying those upfront, etc.
Also BIGGER swing if you're talking about a $70K laramie or a $76K laramie

Yesterday we quoted and instock Laramie for a customer in Delaware:

MSRP $77,485
Dealer Discount -$6959
Rebates -$2750

42 Month / 10K mile per year lease:
$1040 due at signing / $789/month
Residual 53% $41067

 

[truckyourself]

42 months is the sweetspot right now for 2024 Laramie 1500 Crewcabs.
Rebates are VERY slim when you do the lease because the interest rates ARE very aggressive actually.

Its very hard for a community board to comment on leasing and support/correct without having the WHOLE shebang of info.
Big swings on how many miles, whether or not you're including taxes/fees or paying those upfront, etc.
Also BIGGER swing if you're talking about a $70K laramie or a $76K laramie

Yesterday we quoted and instock Laramie for a customer in Delaware:

MSRP $77,485
Dealer Discount -$6959
Rebates -$2750

42 Month / 10K mile per year lease:
$1040 due at signing / $789/month
Residual 53% $41067

Thanks, this is very helpful.

 

[Biga]

Some people's minds don't work that way. They just see the monthly number, pay the minimum, and seem totally surprised when the hammer drops.

yea I never understood that, I want to know what I paying for the truck. Payments would be duscussed with the finance guy after the agreed to sale price has already been met. That's how so many people end up side down when either the truck gets totaled and they have a life changing event and they need to sell the truck and wonder why they truck is worth less then what the owe.

 

[DEG]

They were offering good deals. The North Aurora dealer had several 2024 Laramie you could have purchased at deeply discounted prices. The one below is discounted by $13600.

New 2024 Ram 1500 Laramie in North Aurora, IL - River Front CDJR

 

[truckyourself]

yea I never understood that, I want to know what I paying for the truck. Payments would be duscussed with the finance guy after the agreed to sale price has already been met. That's how so many people end up side down when either the truck gets totaled and they have a life changing event and they need to sell the truck and wonder why they truck is worth less then what the owe.

You guys don't want to see my spreadsheets. I run the numbers 10 different ways and I always ask what the total price of truck is before talking to finance.
I'm a numbers guy, they were surprised I was asking about money factor, rebates, etc. Apparently no one goes through numbers as thoroughly as I did.

 

[truckyourself]

They were offering good deals. The North Aurora dealer had several 2024 Laramie you could have purchased at deeply discounted prices. The one below is discounted by $13600.

New 2024 Ram 1500 Laramie in North Aurora, IL - River Front CDJR

Thanks. Trust me, I searched far and wide every night past 2 weeks. I did end up buying at N Aurora yesterday!

I sat down with several dealers and all the ones with $13k off are based on cash or financing, which was an option, until they were quoting me 7% and 8% interest on a 6-7 year finance. Even if I got 5 or 6% from my credit union, it was a crazy payment.

With the lease, the $13k off doesn't apply, you get about $7k to $8k off instead.
I got 1.3% interest, only $1000 out the door, 42 months, 10k miles/yr, and LOVE MY NEW RAM - 1st time buyer.
In 3 years I plan to buy it, will be about same payments, and keep it until it blows up.

 

[boogielander]

usually i'd tell people to just go through Mark Dodge and skip all the shenanigans of comparing and negotiating because they do give the best deals (at least compared to where I'm at)

but i'm glad you got the deal you got! that seems solid.

 

[gpbst3]

To put in perspective, it should've been around $580-$600/mo if they were giving great deals and good interest rates.

I dont see a $600 a month lease happening on a Laramie even during "good times"

 

[truckyourself]

I dont see a $600 a month lease happening on a Laramie even during "good times"

Yeah you're right. I saw some a few years back posting $550/mo lease payments on Laramies and on YouTube, but I don't know the details of their deals.
I think there were more rebates a few years back and close to 0% interest

 

[firecadet613]

Thanks. Trust me, I searched far and wide every night past 2 weeks. I did end up buying at N Aurora yesterday!

I sat down with several dealers and all the ones with $13k off are based on cash or financing, which was an option, until they were quoting me 7% and 8% interest on a 6-7 year finance. Even if I got 5 or 6% from my credit union, it was a crazy payment.

With the lease, the $13k off doesn't apply, you get about $7k to $8k off instead.
I got 1.3% interest, only $1000 out the door, 42 months, 10k miles/yr, and LOVE MY NEW RAM - 1st time buyer.
In 3 years I plan to buy it, will be about same payments, and keep it until it blows up.

Congrats on the truck!

But to clarify, it's a three year lease and then you'll buy it and likely finance it for 5 years?

I could not imagine paying for a truck for eight years, just think how old that truck will be and you'll be making $700+ payments on it...

 

[AnthonyRI]

Congrats on the truck!

But to clarify, it's a three year lease and then you'll buy it and likely finance it for 5 years?

I could not imagine paying for a truck for eight years, just think how old that truck will be and you'll be making $700+ payments on it...

Lets say for simplicity he's got a $60K truck with a $30K residual (and he, being also me, in a similar situation)

3 year lease he's got a ~1% APR equivalent.
Take your would-be trade-in, down payment, and any other bonus cash that comes your way and instead of socking it into the truck to lower the bill, put it anywhere that nets better than 1%.
For example short term CDs right now for 5%+, or paying down other debt, etc.

3 year mark you've got a no-lose situation.
If your needs have changed, market changed, demand for your truck has plummeted, you can bail out and start clean you cannot be upside down at all, and you started with near $0 down.
If everything is awesome and you want to keep it, yes you buy it out and sure you could do 36 months, 60, whatever makes sense.

Anyone else hopeful that interest rates are much lower in 2027 than they are now? Even though used car loan is more than a new car loan, remember we're balancing it out against 1% APR on the first half. If interest rates are nearly the same and I get 6% on the used portion of the loan at the end, its balanced out by paying 3.5% average.

If you plan on keeping a vehicle for 8+ years, this isn't a bad way to do it IF the numbers work out in your specific scenario

 

[firecadet613]

Lets say for simplicity he's got a $60K truck with a $30K residual (and he, being also me, in a similar situation)

3 year lease he's got a ~1% APR equivalent.
Take your would-be trade-in, down payment, and any other bonus cash that comes your way and instead of socking it into the truck to lower the bill, put it anywhere that nets better than 1%.
For example short term CDs right now for 5%+, or paying down other debt, etc.

3 year mark you've got a no-lose situation.
If your needs have changed, market changed, demand for your truck has plummeted, you can bail out and start clean you cannot be upside down at all, and you started with near $0 down.
If everything is awesome and you want to keep it, yes you buy it out and sure you could do 36 months, 60, whatever makes sense.

Anyone else hopeful that interest rates are much lower in 2027 than they are now? Even though used car loan is more than a new car loan, remember we're balancing it out against 1% APR on the first half. If interest rates are nearly the same and I get 6% on the used portion of the loan at the end, its balanced out by paying 3.5% average.

If you plan on keeping a vehicle for 8+ years, this isn't a bad way to do it IF the numbers work out in your specific scenario

Great explanation, thanks @AnthonyRI !

And in theory it's no different than someone buying a 3 year old used truck from a dealer and financing it for 36-60 months.

I just have a hard time wrapping around 8 years of payments on the same vehicle...

 

[millerbjm]

There is just way too much factored into leasing to really discuss the details on a forum. Each individual situation differs and blanket statements like you should never put money down or trade-in or leases are more expensive than purchase don't always apply. I've leased a 2018, 2021 and now 2023 and have had significant equity everytime that allowed me to upgrade trim/features on each new lease and lower payments. In 2 of those leases it was almost certain that leasing then buying would also have been cheaper all in than financing a purchase. This was a lot of luck, lots of negotiation etc. Never paid more than $500/month on any of the trucks on a 3/36.

 

[AnthonyRI]

Great explanation, thanks @AnthonyRI !

And in theory it's no different than someone buying a 3 year old used truck from a dealer and financing it for 36-60 months.

I just have a hard time wrapping around 8 years of payments on the same vehicle...

And for reference I would NEVER have thought of leasing, aside from a 4xe, until this experience.
You should have heard me trying to explain this to my father, who buys ALL vehicles cash, tried & true GM family employee with EP... it was as if I was saying the world was flat lol.

 

[HEMIJAKE]

As mentioned, it all depends on how the numbers work for you, and only you. I've always leased pretty much everything, mainly because I like new vehicles every couple years. Maybe not the most sound decision, but oh well. I actually looked to buy my ram 3 years ago, but with low incentives at the time, and a low lease rate apr, it just made sense to lease again. With my about 4k in equity from a previous vehicle, my lease payment came in at $475 for a 3 year / 10k mile. My lease is up in May, and I've been eyeing some things, but I haven't run any numbers yet. If they look okay, I'll consider trading in. If not, I'll buy out what I have and enjoy it for a while longer.