I will try to give the short version of this deal. Went to the local ******* and told them I would pay invoice witch was 36,600 (so the INVOICE said) I also got the extended warranty for 1100.00 and some protection pkg. For 799.00. I had every intention of buying this truck with a down pmt. of 10,000 cash. (They said they could only give me 4,000 trade-in on my 96’ witch I sold for 11,000) After four hrs of BS we almost had a deal. Then the salesman says: “why don’t you just lease the truck” I informed him I knew nothing about leasing and didn’t feel comfortable doing that. Well after another 45min. of showing me on paper what a good deal it was (basically 5,000 down and “around” 480.00 per mo. For 48 mos. And a residual of 19,000) it didn’t sound to bad. Now mind you it is 10:00pm on a Sunday night, and I have been at this place for almost 5hrs. So, with the deal done there, I go see the finance guy. He has a stack of papers to sign, so rather than read every one, I ask him what it is I am signing, while signing. ( I know, first mistake) Well, got my firs pmt. and almost s#@! My pants. 617.00!! I went back to the finance guy yesterday and asked what the h*!! happen to AROUND 480.00 that the salesman told me. Of course he had no answer, but did tell me there was no way anyone could get that kind of pmt. with 5000.00 down. He said the absolute best he could do with perfect credit (mine is around 650 I think he said) with 5000.00 dwn. Is 590.00 a mo. My questions are:
1. Is there anything I can do at this point?
2. For all you finance guys out there, how bad a deal is this?

 

Hmmm... The rotten part about leasing is you never can tell what you are really paying for the truck.
The good thing about leasing is it can POSSABLY be a writeoff on your taxes. (if you use your truck to earn a living)
I don't think I would concentrate so much on your monthly payments (well, I guess you would if you can't make them) but whip out that calculator and figure out what you would be paying total. you would also have to factor in the intrest you would be paying on a truck loan.
The next thing I would do is figure out how to make lemonade out of the lemons that were just handed to you.

1. I don't know if there is anything you can do...
2. I can't tell if this is a bad deal...
3. It dosn't sound like the dealership was being very forthcoming with you in CLEARLY explaining the terms of the agreement you signed.

 

Here are a few of the #s.
7500.00 dwn. (my 5000 plus 2500 of dodges money)
29624.00 (total of 47 pmts)
300.00 (turn in fee)
36807.46 (total of all pmts)
19727.31 (residual)

56534.77 That hurts!!

Is there any way to know what it would have been if i had just put down the 10,000 cash and bought the truck with a standard loan for 4 years? Pmts, and total price paid i mean

 

$36,600 Invoice
$1,100 Extended warranty
$799 protection package
$38,499 total price
-$10,000 cash down
-$2,500 rebate
$25,999 finanaced as I understand your note

Payment for 48 months at 5% interest (your rate may vary but this is for a gee-whiz) would be $607.55.

Total paid for the truck if you paid it off full term would have been:
$29,163 ($25,999 finance + $3164 interest)

The total price paid for the truck if going this route, including down, rebate, interest, extended warranty, protection package, etc., would be $41,663...and you would have owned it all for that price after the 48 payments! Leasing stinks and I'm afraid you got took. I tell everyone I deal with never to lease unless they run it past their accountant to see if there are any tax advantages to doing so for the company. Leases are very easy to hide numbers and is the expensive way to finanace a vehicle. Looks like your stuck...

 

according to the numbers, you are paying $14,871 too much. Time to start calling your better business bureau and raising holly errm... heck in general. scream loud, long, and everywhere.
dang, nothing like letting a rotten deal spoil the excitement of a new truck.

 

RACER47, I see you're in California...the only other thing I didn't calculate into the payment is California taxes...I know they're high but I don't think they're high enough to make up $14,000.....I agree with westcoaster, I'd start raising heck but the problem is you signed the paperwork and it's been over a week now, correct? If that's the case, I believe you're not only stuck but stuck bad. My sympathies.

The only good advice I've ever given anyone when purchasing a vehicle is to read the fianance documents very carefully and be sure you understand it completely. Failure to do so will cost you thousands....

 

I feel for you. Hate to tell, but the wife and I got the same deal when we bought a 96 few years back. Ended up by finding we were going to run out the milage limit in about 2 1/2 of the four year allowable, then were faced with 10 cents per mile penalty. Went to the bank and explained what was going on and they made me a buyout loan for the lease. Saved enough to make it worthwhile, but still payed more for the truck than if I had just bought it outright. Lease laws are really varied from state to state it seems. We talked to the State Attny Gen and got told "should have read the lease closer". Sorry to hear you are in the same boat.
BTW, that truck never was a good deal. 3 trannys, 2 intake manifold gaskets, and various other things. But, I was pretty mean to it.
Ed

 

I don't know Cal. law but in the state of KS you 30 days to back out of any major purchase. I would consult a lawyer, I
know their exspensive but in this case you may save $.
Disrtrict atterney may have the answer for free.

ramguy

 

Leases are also calculated from LIST price, not invoice. Leases make the dealerships and dealers TONS of money. They sucker you with the low monthly payment (that never ends) Can't call the BBB because a dealer can sell a vehicle for whatever they want. If they didn't put a gun to your head then you are stuck with the payment, or park it on their lot and walk away. This will hurt your credit tho. If they took a blank check for direct debit of the lease payment then you better change banks also. Read the fine print they can take whatever they want outa your account whenever they want. Leasing, even for business, is bad (according to my accountant) I buy all my stuff outright. I never give a bank acc't # for any payments. Checks only. And I have tons of write-offs. Hope it works out for you.

 

This isnt really looking to good. Is it possable i could talk to the bank (chrysler) and work out some kind of deal, or is that just wishfull thinking? I thought about mounting a 4x4 sheet of plywood in the bed of the truck (a sign) that says BEWHERE !! UNFAIR BUSINESS PRACTICE!! I have herd of people doing this but i wonder if its aginst the law. Any other sugjestions?
By the way, i send them a ck. They cant do a direct debit Thank god!

 

I've never met you and don't know you so please don't take this the wrong way. DO NOT and I mean DO NOT go back to the dealer unless you've got an accountant and an attorney to help watch your back. They're likely to make you a deal that looks good on the surface and then a few days after signing you'll realize they actually took advantage of you again and have buried you deeper.

If it's financed through Chrysler Credit, I'd give them a call to see what can be done. I'd optain the buyout price and then run to a bank to see what you can do to finanace it. You will be paying more for the truck than if you had financed it outright but less than if you keep the truck and continue for the term of the lease.

 

[quote author=ramguy link=board=17;threadid=22186;start=0#msg207627 date=1068385602]
I don't know Cal. law but in the state of KS you 30 days to back out of any major purchase. I would consult a lawyer, I
know their exspensive but in this case you may save $.
Disrtrict atterney may have the answer for free.

ramguy
[/quote]California has a "no cooling off law"which means there isnt much wiggle room Although you could cancel your check,drop the truck on their doorstep with the keys in it and say adios.Of course they could play games with your credit...I did this once at my local FORD dealer a few years back,and no adverse effects.Course it could go either way...good luck

 

5 hours to make a deal? Sounds like they were jerking more than your leg. Any dealer that plays the old stall game is going to win if you allow them to play it. If I can't wrap up a deal with a dealer in less than an hour, I go elsewhere. 8)

 

Go get a loan and pay off this deal and arange your payments through a bank or credit union, where you won't be messed over. Good Luck
PS I would call the Attorney General's office about this.

 

[quote author=RACER47 link=board=17;threadid=22186;start=0#msg207584 date=1068354614]
Here are a few of the #s.
7500.00 dwn. (my 5000 plus 2500 of dodges money)
29624.00 (total of 47 pmts)
300.00 (turn in fee)
36807.46 (total of all pmts)
19727.31 (residual)

56534.77 That hurts!!

Is there any way to know what it would have been if i had just put down the 10,000 cash and bought the truck with a standard loan for 4 years? Pmts, and total price paid i mean
[/quote]

That sounds almost identical to the "Smart Buy" I bought my first truck out of college on. It was a beauty of a truck, but after paying four years @ $573 a month I was still going to owe about $15,000. After realizing what a bad deal it was, I tried my best to find a way out of the thing. I couldn't refinance it because I owed more than the blue book value (which is all a bank will loan you for a vehicle). Nobody would pay me what I owed on it so I couldn't sell it. Finally after about a year I got a REALLY good deal on another Ford and I traded it in. I lost about $6000 on the trade but ended up better off in the long run....with a new truck that I was paying $494 a month and it would be payed off completely after 5 years. Like yours, had I kept the other truck and paid it off completely I would have ended up paying over $50K for it. :

I can assure you that the ONLY way to get out of the lease is to either sell the truck or trade it in. I can also assure you that chances are you are going to lose money on it. I lost money on mine even after paying on it for a year and a half. Unfortunately, I'm afraid you don't have a lot of choices here. I learned my lesson with mine and I'll never do another lease or "Smart Buy" again.