Leasing the Limited
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I am also planning on leasing a Limited and would like to know what other people are getting as well.
Nevertheless, I am seeing and reading 10K on MSRP, plus this is a 1st year model, hence the Residual Value for a Lease should be way down after 3 years.
Plus, it seems Chrysler is not selling a lot of these as their Pacfica factory in Canada took a break in the first-second week January 2017. (To tell you the truth, I have seen very few Pacifica's on the road, JUST TWO since it was released on April 2016!!!
Likewise, I am thinking of like $299/month for a least on a 1st year model that hasn't been selling well and Fiat is like last place in reliability.
Nevertheless, I am seeing and reading 10K on MSRP, plus this is a 1st year model, hence the Residual Value for a Lease should be way down after 3 years.
Plus, it seems Chrysler is not selling a lot of these as their Pacfica factory in Canada took a break in the first-second week January 2017. (To tell you the truth, I have seen very few Pacifica's on the road, JUST TWO since it was released on April 2016!!!
Likewise, I am thinking of like $299/month for a least on a 1st year model that hasn't been selling well and Fiat is like last place in reliability.
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$299/month for a lease on a Limited is going to very hard to come by...For example, if you had a Limited that MSRP'ed around $45k, negotiated down to $35k, put zero down except 1st month's payment, 50% residual, 5% interest or .0021 money factor at 36 months, you would be around the $500's including estimated taxes (I used 7% since I live in Indy). This is just an estimation based on 15k miles per year. Even if you went down to 10/12k miles per year, you would still be in the $400's at best.
im having a hard time deciding whether to lease or not...i never have and ive read some money websites with explanations of each but its hard to decide...
some say that if for sure i will change car after 3 yrs then i should lease...but i dont know if thats gonna happen...hard to say....we typically dont changes cars often but todays cars dont seem to last that long anyways....
should i want the residual to be high or low, because doesnt my payment depend on that factor... agreed price - the residual = what the payment is with the money factor rate
at the end of the day im still paying the same numbers right?
some say that if for sure i will change car after 3 yrs then i should lease...but i dont know if thats gonna happen...hard to say....we typically dont changes cars often but todays cars dont seem to last that long anyways....
should i want the residual to be high or low, because doesnt my payment depend on that factor... agreed price - the residual = what the payment is with the money factor rate
at the end of the day im still paying the same numbers right?
2021 Pacifica Limited S AWD - Black. Premium and Safety Sphere - UConnect Theater - 20”
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You want the residual to be higher if you want a lower monthly payment. In a lease you are paying for the difference between the sale price and the residual (plus money factor).
The residual for Town and Country compared to an Odyssey:
> At 36 months, the 2015 Odyssey LX has an ALG residual value of 53% to the Chrysler’s 43%
Residual Value: 2015 Chrysler Town & Country| West Michigan Honda
Based upon the above, Chrysler should offer a Limited, since a 1st Generation Model, to say, from $45MSRP down to $30K(or whatever that number should be) to get a payment of $299/month with zero down on good credit as the residual value of a 1st Generation Pacifica is going fall a lot.
In my opinion, those numbers only fair for a buyer to take a BIG chance on a 1st Generation Pacifica with Chrysler having a historically "very poor" reliability track record.
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Based the residual value you quoted, they would have to sell you a Limited at around $25k. At that point the vehicle purchase is being heavily subsidized by Chrysler, and devalues the vehicle line in general. There is a clear difference between what they should do, and what is actually done. If you can walk into a dealership, present those numbers on a $45k Limited of your choice, and walk out the door with the van, you'll be a forum hero...
LOL! OK, here goes....
First Generation
+ Very Poor Reliability of the Fiat/Chrysler Company
+ Lots of Limited still sitting on Dealer Lots even after 4 months.
+ Lots More Positive Media Car Reviews than actual Pacificas I have personally seen on the road since April 2016
+ Not that easy to get a Sienna or Odyssey owner to switch
+ Existing Owners of Caravan & Town Country who would be repeat Chrysler customers are getting sticker shock from Pacifica.
= $25K = $299/month lease
How's that?
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You'll hear tons of different advice for leasing. In the end, it's really what suits you. What I tell people about leasing, is that you really need to read up on it, and know it front to back (even knowing how to do all the calculations) before even talking with a dealer. The lure of a "lower" monthly payment, as opposed to traditional financing, really catches a lot of people off guard. You can get screwed in a lease agreement if you don't know what you are doing. You want to know the MSRP, the agreed upon "sell" price, the residual value, the money factor, and the term. From there, you will be able to calculate your lease payment. I typically pay 1st months lease payment and agreed upon lease acquisition fees, dealer fees, title fees, etc when taking delivery of the car. No additional money down.
Residual values are typically set from the lender, with most leases done under the financial arm of X or Y automotive company. In most cases, these captive leases are able to offer the best residual value, because they want the money off the rent charge and interest. You can shop through independent banks, but they don't tend to be as competitive. Residual values are "set", but sometimes dealers can take off a percentage, and drop the residual for back end money. So it is good to know what the standard value is for a certain mileage and term, and these values can be typically found on leasing forums (Edmunds tends to provide a lot of info).
Money factors are also similarly set by the lender. These money factors can be marked up for additional profit, and can vary depending upon credit rating. You should get the base rate from the leasing forums or just ask different dealers that you shop. The base rate is where you want to be, as it is effectively the lowest interest rate they offer. With a money factor of, for example, .0012, the equivalent interest rate percentage is .0012 x 2400 = 2.88%
Whether leasing or buying, my philosophy has always been to negotiate the sell price first prior to any incentives/rebates applied. That's always where you have the biggest leverage. From there, knowing what the residual is for the mileage/term sought, and also the base rate for the money factor, can be very powerful in speeding up the negotiation process, and knowing where you want your payment to be. The only other thing that could drive up your monthly payment is what they sell you (service agreements, tire/wheel insurance, etc.) on the back end of the deal in the finance office.
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LOL! We'll see, make sure you GoPro the negotiations and post it on YouTube: "I got a 2017 Pacifica Limited for $299/month, zero down!!!"
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Sound like trolling. Please take it down a notch.
Let's not forget these newly added points below:
+ Not that easy to get a Sienna or Odyssey owner to switch
+ Existing Owners of Caravan & Town Country who would be repeat Chrysler customers are getting sticker shock from Pacifica.
Hence, Chrysler should look again at it's entire market of customers, existing and would-be, and ask, "Ok, we know Sienna and Odyssey owners are happy with their minivans and could pay our Pacifica MSRP price. However, those Sienna and Odyssey owners demand reliability and expect good resale value and likewise be hard to convert to a Chrysler customer. They also could more easily take a wait and see approach for 2018 or 2019 version before switching.
Second, our existing Chrysler Owners might not have the financial means like an Sienna or Odyssey owner as the Pacifica now costs as much as a Sienna and Odyssey and those Sienna/Odyssey owners can at least point to reliability plus good resale value."
So could Chrysler just use sales and marketing to convince it's existing Caravan and Town and Country to pay a lot more for a minivan? Well, if they could do that, we would be seeing a lot more Pacificas on the road by now as the Pacifica was released in April./May 2016 and there are dozens and dozens of positive and great reviews since, yet very little Pacificas on the road as of today, Jan 12, 2017.
Hence, Chrysler needs a plan B as clearly what they have been doing and dozens and dozens of of positive reviews are not translating to sales.
+ Not that easy to get a Sienna or Odyssey owner to switch
+ Existing Owners of Caravan & Town Country who would be repeat Chrysler customers are getting sticker shock from Pacifica.
Hence, Chrysler should look again at it's entire market of customers, existing and would-be, and ask, "Ok, we know Sienna and Odyssey owners are happy with their minivans and could pay our Pacifica MSRP price. However, those Sienna and Odyssey owners demand reliability and expect good resale value and likewise be hard to convert to a Chrysler customer. They also could more easily take a wait and see approach for 2018 or 2019 version before switching.
Second, our existing Chrysler Owners might not have the financial means like an Sienna or Odyssey owner as the Pacifica now costs as much as a Sienna and Odyssey and those Sienna/Odyssey owners can at least point to reliability plus good resale value."
So could Chrysler just use sales and marketing to convince it's existing Caravan and Town and Country to pay a lot more for a minivan? Well, if they could do that, we would be seeing a lot more Pacificas on the road by now as the Pacifica was released in April./May 2016 and there are dozens and dozens of positive and great reviews since, yet very little Pacificas on the road as of today, Jan 12, 2017.
Hence, Chrysler needs a plan B as clearly what they have been doing and dozens and dozens of of positive reviews are not translating to sales.
I just leased my Limited. O-down, $574/month. Ally bank is offering a $5,250 reduction in the capitalized cost through 1/31. That combined with the $1,500 in rebates lowered the capitalized value by $6,750. I also negotiated and bought below invoice - $4,000 off MSRP. I did a lot of research and think I got a fair price. Also, with a lease you don't pay the sales tax on the entire cost, so that saved me another $1200. I shopped leases and loans and it made most sense to go with the lease.
so i am lucky enough where i could just pay for the vehicle cash in hand and not deal with leasing, financing etc.....but even there is a question of should i or not....
I want whatever will get me the best deal at the end of the day.
I feel that lets say if lease whether the residual is higher or lower, or the payments are higher or lower, that at the end of the day your still paying the same? at 40000$ van wont suddenly turn into a 30 or 50000 product based on your method of purchase right......bottom line is what u negotiate agreed price to be
right now im looking at a limited in gilroy that is around 8 off msrp per their website....ive kept my interest levels with dealerships strictly thru email without a phone number and im waiting to hear back.......there is a TL+ driving distance from me that per website is priceir than the gilroy car but is less intriguing now......im also gonna talk to cartelligent and see what their whole gimic is.......
I want whatever will get me the best deal at the end of the day.
I feel that lets say if lease whether the residual is higher or lower, or the payments are higher or lower, that at the end of the day your still paying the same? at 40000$ van wont suddenly turn into a 30 or 50000 product based on your method of purchase right......bottom line is what u negotiate agreed price to be
right now im looking at a limited in gilroy that is around 8 off msrp per their website....ive kept my interest levels with dealerships strictly thru email without a phone number and im waiting to hear back.......there is a TL+ driving distance from me that per website is priceir than the gilroy car but is less intriguing now......im also gonna talk to cartelligent and see what their whole gimic is.......
So far I haven't been able to get any lease numbers for a limited, but for the TL+, I've been getting a money factor of .00017 from one place and .0006 from another. Also the residuals from both places was set at 49%. This is for a 36 month lease with 10K miles a year. I guess the key part is negotiating the purchase price of the car.
I just leased my Limited with all options except advanced safety Tec and wheels. O-down, $574/month. Ally bank is offering a $5,250 reduction in the capitalized cost through 1/31. That combined with the $1,500 in rebates lowered the capitalized value by $6,750. I also negotiated and bought below invoice - $4,000 off MSRP. I did a lot of research and think I got a fair price. Also, with a lease you don't pay the sales tax on the entire sale price, so that saved me another $1200. I shopped leases and loans and it made most sense to go with the lease. The Limited can go up to $50k with all options so each price will be different. $10k off MSRP is likely available in larger cities but I've not seen it anywhere. Also, dealers may be discounting to clear pre-9/1 builds from their lots.
It's Mid January 2017, the 2018 Pacificas are going to be announced in perhaps 3 months in April and released in perhaps this May 2017. Hence, any 2017's (as a First Generation) are going to drop like a rock as the Pacifica debuted around April of 2016.
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If you want the best total price, and you're willing to pay cash, you shouldn't be looking at leasing. You should be able to negotiate a good price on a purchase. Finance $5000 to get an extra $500 discount from Chrysler Capital and then pay it off the next week.
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Those dates seem early for the 2018. The 2017 was announced and released early because it was an all-new model. As a second year model, the 2018 is more likely to hit dealer lots in late summer to early fall.
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