Anyone here lease a Dodge RAM 1500?

[ddeder]

I am looking at leasing a 2006 Dodge RAM 1500 SLT Quad Cab 4x4. The dealer has quoted a MSRP of $33,260 and an Employee price of 28,524 (which is being offered to everyone). There is an additional incentive of $3500 cash back being offered. So the sales price of this vehicle is $25,024. I have a trade-in that will take another $5000 off of this price so the final price is almost exactly $20,000.

I plan to lease for 3 years with a 12,000 mile a year allowance. I have not been given the residual value of the vehicle or the money factor but I will get these values before I close the deal.

The salesman has told me that he thinks we can make a deal around $250/month with no hidden fees or costs. Simply trade in my 1999 Dodge RAM for $5000 and walk out with a 2006 Dodge Ram for $250 a month for 3 years.

Now this figure is actually quite a bit lower than I was expecting. Am I being set up for some kind of sales gimmick/trick or does this seem to be a reasonable amount? According to my lease calculator, using $20000 as the Adjusted Cap cost and a residual value of $12,160 and a money factor of .00275 (I'm guessing on these values based on web research), the lease payment would still be $295 a month. Now if the residual is bumped up a bit, to say $14,000, then the lease payment would be around $250 a month.

So does this sound like a good deal, too good of a deal or not a good deal at all?

 

[hoorah]

Where are you getting the residual number from?

Remember, the residual value is a percentage of the original price of the car, say for example 58% in 3 years. I'm not sure if it would be .58 (about) X 33k or if it would be .58 x 25k, but its certainly not .58 x 20k.

Basically, don't let there be any magic steps between cost and monthly payment.

I really know not much about leasing, but I think residual value numbers are published from the manufacturer (or the leasing company, I can't remember). See if you can find those numbers.

Even if you get employee pricing + manufacturer incentive, the dealership hasn't given up that much. You might be able to push for a little more, but probably not as much as with MSRP - incentive.

 

[Tom]

I was looking at 3 year old Rams like the one you describe the other day on autotrader.com and retail used prices seem to be about $18000-19000. I don't know how that translates to a residual value.

 

[vi edit]

I would most certainly think it would be worth more than $11,000 with only 36,000 on the clock. More likely, something along the lines of $18,000. Remember to include things like gap insurance, tax, title, and license get figured in as well. Those alone could could add an additional $50+ into your payment depending on local sales tax and registration rates.