Lease buyout - Is my thought process wrong?

[cripton805]

I only read the original post. It really depends when you're going to buyout and the incentives available.

For example.
They had crazy deals for the 4xe recently where you could get one way under MSRP. If the buyout was the same price as a new one. Why would you buyout?

Now, if your 4xe is worth 10k less than the buyout. That's really up to you. One thing to consider is if the bank is willing to finance the car. It is worth way less than the buyout, so you're going to have a crappy interest rate. Putting 10k+ down will offset that interest, but rates are high right now regardless. Now, the insurance would only cover the total value of the car in the event of an accident. You would be out 10k. Now, if you paid for gap coverage, read the fine print. They only cover a percentage over the value of the vehicle. You may still need to pay out of pocket. I fear for people that are severely underwater on their COVID markup auto loans without GAP coverage.

It really comes down to timing, incentives available, and what you're willing to risk.

Sponsored

 

[alphawolff]

Good point about future costs. I almost brought that up but wasn't sure if it was relevant. Eventually the battery pack/system is going to cost $$$$. It's also generally true that electric vehicles depreciate faster than ICE. So yeah, that should be a consideration.

Can you elaborate some on "2024's are vastly superior than the first gen JLs"? I have been shopping 2024s this summer. My JL was an early 2018. I'm seeing almost nothing that has changed. Dash is covered in a different material for appearance now, adaptive cruise is on Sport S and above, infotainment has changed slightly, new grille, new wheels. Everything else seems identical. The 2024s are 99% cosmetic changes.....and $10k to 15k more money.

There's the performance upgrades like the full floating rear axle. The big upgrades, other than cosmetic, is the addition of full side airbags along the roll bar. I consider that a massive upgrade for the safety

 

[Skeethree]

I did it through "Autopay". They were the lowest advertised by Bankrate. It's been pretty seamless so far, just upload the documents they need to your unique online portal while they do the rest.



Wow you got a good amount on your trade in... your Rubi must be far more loaded. I have a barebones Rubicon with no added options. I.e. no safety group, no tow package, no cold climate package etc...

Had a tow package and both safety groups, soft top, no leather but low miles

 

[us3r1d]

There's the performance upgrades like the full floating rear axle. The big upgrades, other than cosmetic, is the addition of full side airbags along the roll bar. I consider that a massive upgrade for the safety

I got hit back in May on the left front tire at highway speed by a guy running a stop sign, which sent me _through_ a telephone pole and multiple fence posts. My 24 Rubicon X was totaled, but I limped away from it with a sprained wrist and general banged-up-edness.

The new side airbags definitely helped; 5 stars.

 

[hamiamham69]

Do not want to hijack the thread but I do have some questions on the assumptions the OP and others are making.

Given its a lease aren't the options the OP pays $42K as a buy-out price or tosses the keys back to the dealer? I leased a car once, we paid the buy-out, and went on our merry way.

Is the trade-in value really the correct metric with which to value this car? And is trade-in value the metric by which a bank would use to value a loan?

One of the OP's options is sell his Jeep to another private party. He is saying he can't come close to buying the same Jeep for $42K.

I understand their are other factors at work here - some non-economic - but it seems as if all the options have not been explored.

Also I thought 4xe's where selling for a steep discount to MSRP. I would imagine if this is the case that the discount would increase as we go into the model year change-over in August/Sept (or whenever they start having '25's on the lot...)

 

[us3r1d]

The new side airbags definitely helped; 5 stars.

In less catastrophic situations, the full-float read axle is a good upgrade to have if you tow. It's the reason we went with the Rubicon over the Willys.

 

[Steemax]

Do not want to hijack the thread but I do have some questions on the assumptions the OP and others are making.

Given its a lease aren't the options the OP pays $42K as a buy-out price or tosses the keys back to the dealer? I leased a car once, we paid the buy-out, and went on our merry way.

Is the trade-in value really the correct metric with which to value this car? And is trade-in value the metric by which a bank would use to value a loan?

One of the OP's options is sell his Jeep to another private party. He is saying he can't come close to buying the same Jeep for $42K.

I understand their are other factors at work here - some non-economic - but it seems as if all the options have not been explored.

Also I thought 4xe's where selling for a steep discount to MSRP. I would imagine if this is the case that the discount would increase as we go into the model year change-over in August/Sept (or whenever they start having '25's on the lot...)

This is my reasoning for asking the question... majority of the advice is purely the bottom dollar but there are more factors than that to consider for me if I return this vehicle.

 

[azjl#3]

You probably saved a few hundred per month on the lease vs if you bought and financed.
So the money you saved as a lease is now coming home to roost.
The dealer is going to put that on his lot for 50k.

well, maybe not, im seeing new 4xe for $55k, lots and lots of them.

 

[azjl#3]

In less catastrophic situations, the full-float read axle is a good upgrade to have if you tow. It's the reason we went with the Rubicon over the Willys.

I know its a great new axle, but honestly, how many axles have you heard blowing up, other than on the trail doing some pretty hard/stupid stuff? Me, none.

 

[azjl#3]

This is my reasoning for asking the question... majority of the advice is purely the bottom dollar but there are more factors than that to consider for me if I return this vehicle.

You understand the lease buyout at end of lease is their guess to make money in years. Hit them with reality of what like jeeps at like age in your zip are going for off carguru. Then decline to buy theirs if unreasonable. As long as I can get the service writer to pull up the vin and check history, with a carfax, and vin check, I worry not to much about someone else's used unless it smells like cat liter or dead fish.

 

[krayjay]

There's the performance upgrades like the full floating rear axle. The big upgrades, other than cosmetic, is the addition of full side airbags along the roll bar. I consider that a massive upgrade for the safety

Infotainment situation is a huge upgrade IMHO. Wireless Android Auto/Apple Carplay also big for me. Supposedly also tighter steering, reduced road noise, new Gorilla Glass windshield with integrated antenna. I went from 2021 to 2024 and feel like it's easier to drive, handles better, has tighter steering too, but I am not sure if it's just because it's new and/or I have convinced myself it's better. Also front axel disconnect removed (not sure if it's for all models, right?), at least on mine.

Airbags are a massive upgrade too. I agree.

 

[hamiamham69]

I gotcha. Given the other factors you gave mentioned I would just pay the $42K and buyout the lease. You like the Jeep, you know the entire history, and you have the warranty.

 

[cripton805]

I gotcha. Given the other factors you gave mentioned I would just pay the $42K and buyout the lease. You like the Jeep, you know the entire history, and you have the warranty.

But if the new one could be had for about 42k. Why would you buy out?

-Zero History
-New Warranty Coverage
-New model updates, Fixed Recalls, Etc.
-Mileage at 0
-Skip the maintenance coming up

 

[hamiamham69]

I don’t know; can a new one be had for $42K? I doubt it given the pricing that the OP has been mentioning…

 

[cripton805]

I don’t know; can a new one be had for $42K? I doubt it given the pricing that the OP has been mentioning…

This is within a 200 mile search. I haven't done my own research and whether this excludes / includes dealer accessories. I am also not familiar with this dealership.

I know 4xe deals are kind of crazy right now and maybe if you shop hard enough. You can get them at these prices.

Sponsored