I stopped by my local Jaguar dealer today and spoke to the finance manager about leasing an F-Type. I went from elation to depression in an instant.

The residuals range wildly over the model line, but the very best residual to be had is an unbelievably high 76% (for 36 months!), made even better by the availability of low and ultra-low mileage leases that add 4-5 points to that figure.

An 81% residual is nearly 20 points higher than the previous best I'd ever seen from any manufacturer. I was sure my next car would be a beautiful new Jag.

Then I glanced at the money factors. For 2017 models, they're currently 0.00278 (almost 7%) for most models, with a high of 0.00358, nearly 10%!

So quickly running the numbers on my phone, the depreciation would be only $13,500, but the interest would be almost as much, about $13,000. The same lease with the MF I'm currently paying on my BMW would be almost half the total cost over the life of the lease and would be the deal of the century.

I asked about MSDs or a single-payment lease, but apparently they do not offer the former, and the latter is not enough lower to make it worth the risk.

I realize Jaguar does not set the interest rates (they use Chase for their leases), but I don't understand why Chase is charging such a ridiculous and uncompetitive APR. Apparently they don't want our money.

 

Maybe JLR has a deal with Chase where JLR gets a piece of the interest (money factor) that's enough to cover the high residual.

 

Dealers frequently do get a piece of the pie by adding on to the money factor, but in this case the finance manager was kind enough to show me the actual figures direct from Chase, so that money figure did not include any additional amount.

The dealer is also unhappy about the high MF because it makes it more difficult for them to move inventory, and it prevents them from making as much profit as they typically would because the MF is already so high they can't realistically add to it like most other dealers do.

I hear December is a good time of year to lease. Maybe by then the figures will be more favorable (although I don't expect that residual to last).

 

what are the MF and residual for this month?
2016 base model
2017 base model

 

You can usually find that out pretty quickly by asking over at the Edmunds forums

 

For 36 months and 15k miles per year:

2016 Coupe (manual): 63%, MF 0.00181
2017 Coupe (manual): 76%(!), MF 0.00278

If you put fewer miles on, you can add up to 5% to the residuals above by going down to 5k miles/yr. Each step is 1% (15k -> 12k -> 10k -> 7.5k -> 5k)

 

for automatic trans...

2016
24/10 - 71% and .00253
36/10 - 64% and .00152
42/10 - 57% and .00247

2017
24/10 - 83% and .00358
36/10 - 77% and .00278
42/10 - 68% and .00278

Add 1% to all numbers for 7500 miles per year.

 

Bummer. I was first out of the gate in April w/ a 2017. I got a residual of 60% on 36/12k. My interest rate was a little better though. Still would be paying about $200/mo less on the deals above.

 

what deal did you get?
MSRP
negotiated price
months/miles
down payment
monthly with or without tax

 

bump...

 

Does everyone there do dealer finance?

Here I usually get them to give me a quote but I also check out 3rd party and bank. For my F I got my finance through my bank.

 

Short answer is no. We too are free - and likely well-advised - to get a number of quotes and if dealer financing, through the bank(s) they use, turns out to be the least expensive way to finance (unless one is flush enough to pay all cash), as it did for me (1.89% for 5 years) so much the better.

Best regards,
Jay

 

My residual was 74 percent for 12k miles and money factor .00177

 

That is phenomenal, but 2017 or 2016? If you are in the US, I have a hard time believing that Chase is leasing that low on a 2017. In any event, per your other post, it has nothing to do with Brexit, Chase looks at US financial forecasts.


Larry

 

Mine is a 2017 and the loan is with us bank.

 

Forgot to mention. I'm in SoCal
My deal came out to be 3500 down and 355 per month including tax.
The floor on the finance managers face was priceless...

 

Btw they have 3 more base cars left. If anyone wants to take advantage of these number just pm me and I'll help you out.
I don't know the residuals for s , r ,
Manual,
Or convertible which makes predicting numbers extremely hard. My numbers are for base automatic coupe.
I know for fact that r residuals are extremely low but can easily be discounted upwards of 20k

 

You got a great deal but I would not have put anything down on a lease.
Larry

 

US Bank had pretty reasonable residuals and much better money factors than Chase back in May when I got my 2016. See my post here.

 

0 drive off would have been 480/ month including tax