Who's leasing? Please step inside!

[StuntmanMike]

I'm wanting to jump into the JL pool, but sticker shock has me a little hesitant. I see that people are getting some decent lease deals, so I've started thinking about that as a way to get into one a little cheaper.

Not sure if it's right for me though.

Some background... been wanting a JKU for a few years now. Been saving and getting all my other ducks in a row. Originally was thinking of buying new, but I just do not want a 600-ish a month car payment, Looking used, not a great selection right now, and prices are nuts. I feel like JKU prices have gone UP since I was looking last year.

I knew the JL was coming out, but didn't want the new model. However, the more I look at them, the more they appeal to me. Of course they're even more $$ than the JK's are, so I still do not want that big car note.

I also drive about 20k a year, and I realized that I do not want to buy a new/newer Jeep and proceed to mile it out in 5 or 6 years. I notice high mile Jeep are not like 4Runners or Land Cruisers, they just sit on dealer lots as it seems nobody wants to touch a Jeep with over 100k.

Enter the thought of leasing. I get a (much?) lower payment than if I were to buy, potentially pay less in sales tax (I need to find out if RI taxes on the whole price of the vehicle, or just the total of the lease payment amount), and I'm able to just turn it in after the 3 years if it's become a headache or I'm just not into it.

I've been reading a little bit about it, and buying at the end of the lease does not seem like a smart idea with these, as the residual is so high.

I have a 2nd car, my current DD ('07 Volvo) Though it just hit 211k, it's in great shape, and super reliable. It doesn't cost me a lot to keep it on the road, so I'm thinking I can still use that for most of my commuting duties (60 mile round trip to work) and use the JLU for everything else. I figure if I get a 12-15k/36 month lease on the JLU, I'll have an easy time doing that. I average about 20k/year, and 8k a year or so on the Volvo should be easy.

Plan would be to put down as little as possible, and keep the payment at or below the mid 300's range (if this is even possible) I'm tier 1 credit, btw. I can rationalize 300-350/month for the Jeep that I do not own simply as an entertainment cost, but a 600 note is much harder to justify.


Is this a dumb move, or does it make any sense at all? Jeep would be used for road trips/mountainbiking/camping, winter wheeling, and cruising around the beach (I live on the RI seashore).

From what I gather, the higher the residual at time of lease the better, as that minimizes depreciation costs.

I also gather that putting a lot of money down is generally considered not necessary? If I were to buy, I'd put at least 5k down. If I were to lease, I prefer to keep that in the bank.

And lastly, as far as leasing from FCA, what does one do with it at end of lease? I know you can buy it or turn it in, but is it possible to trade it in to another dealer on another vehicle? For example, if the dealership I'm leasing from wants 30k for a buyout, but another Jeep dealer will give me 32k in trade, can I trade it in to them to get 2k to go towards the next vehicle?

Ok, sorry for the novel.

Thanks for any info!

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[LeaN69]

So go lease a JK, there are some leftover that dealer want gone.

If you lease to buy you will pay significantly more:
MF - money factor on lease same as APR on finance.
Bank Fee - varies by bank
Aquisition - $6-700 if im not mistaken.
Disposition - payed if you dont buy out or lease another using same bank.

BANK - Chrystler Capital has crappy MF (high charge to borrow money) Popular alternatives are Ally / USBank / Affinity FCU

-Dealer does not own a leased car, they sell it to the bank who then rents it to you (lease). So if youre lease is with USBank, USBank owns your car.
-You can return your lease to any dealer who does business with your lender.
-You can sell or buy out a car at any point of time during the lease.
-Some banks allow you do to lease transfers, some have limitations like you cant transfer during first/last 6 months

If you 100% want to buy after leasing, buy it now because in the end it will cost you thousands of $ less.

 

[StuntmanMike]

So go lease a JK, there are some leftover that dealer want gone.

If you lease to buy you will pay significantly more:
MF - money factor on lease same as APR on finance.
Bank Fee - varies by bank
Aquisition - $6-700 if im not mistaken.
Disposition - payed if you dont buy out or lease another using same bank.

BANK - Chrystler Capital has crappy MF (high charge to borrow money) Popular alternatives are Ally / USBank / Affinity FCU

-Dealer does not own a leased car, they sell it to the bank who then rents it to you (lease). So if youre lease is with USBank, USBank owns your car.
-You can return your lease to any dealer who does business with your lender.
-You can sell or buy out a car at any point of time during the lease.
-Some banks allow you do to lease transfers, some have limitations like you cant transfer during first/last 6 months

If you 100% want to buy after leasing, buy it now because in the end it will cost you thousands of $ less.

Thanks for the info. I agree, if I decide to buy, I'll just do it now. If I were to lease, even if I wanted it at the end, I would not buy, I'd just start over with another one. 3 year of lease plus another 5 year loan to pay off the 30k residual would be nuts. Might as well just take out an 8 year loan to start, which is bonkers.

As far as the JK's, I'll look into that. I really don't have anything against the JK, in fact from certain angles I think they look better than the JL. I'm just not seeing dealers near me marking them down by significant amounts yet. In fact, prices of USED JK's seem to be going UP! Despite that though, wouldn't the JK's residual be a bit lower? I know they have crazy high resale now, but after a few years of the new model being out I can see it going down a bit.

 

[LeaN69]

Thanks for the info. I agree, if I decide to buy, I'll just do it now. If I were to lease, even if I wanted it at the end, I would not buy, I'd just start over with another one. 3 year of lease plus another 5 year loan to pay off the 30k residual would be nuts. Might as well just take out an 8 year loan to start, which is bonkers.

As far as the JK's, I'll look into that. I really don't have anything against the JK, in fact from certain angles I think they look better than the JL. I'm just not seeing dealers near me marking them down by significant amounts yet. In fact, prices of USED JK's seem to be going UP! Despite that though, wouldn't the JK's residual be a bit lower? I know they have crazy high resale now, but after a few years of the new model being out I can see it going down a bit.

My speculation is JK resale will go down in few years when used JLs hit the market. They will be much less desirable by the general used Jeep shopper.

It all depends on what you're trying to get. I think a JL or JLU Sport is very doable at $350/mo. with just TTL DAS

 

[MAPC]

I am in the process of ordering and leasing a JLU.

Some things that I learned in the process that may be helpful to you:

1. The unlimited has a much higher residual then the two door Jeep and therefore is actually less expensive to lease on a monthly basis.

2. The residual is highest on a sport S and it’s much lower on our Sahara. Therefore, leasing a Sahara becomes a double hit in terms of a more expensive car with a lower residual value.

3. What is probably hurting you the most in terms of lease payment is your need for 20,000 miles per year. I have been looking at sport S unlimited’s with MSRP is around $42,000 and I am getting lease payments including sales tax of approximately $325 per month with $5000 down total drive away cost based on 12,000 miles per year.

 

[ember_season]

I'm wanting to jump into the JL pool, but sticker shock has me a little hesitant. I see that people are getting some decent lease deals, so I've started thinking about that as a way to get into one a little cheaper.

Not sure if it's right for me though.

Some background... been wanting a JKU for a few years now. Been saving and getting all my other ducks in a row. Originally was thinking of buying new, but I just do not want a 600-ish a month car payment, Looking used, not a great selection right now, and prices are nuts. I feel like JKU prices have gone UP since I was looking last year.

I knew the JL was coming out, but didn't want the new model. However, the more I look at them, the more they appeal to me. Of course they're even more $$ than the JK's are, so I still do not want that big car note.

I also drive about 20k a year, and I realized that I do not want to buy a new/newer Jeep and proceed to mile it out in 5 or 6 years. I notice high mile Jeep are not like 4Runners or Land Cruisers, they just sit on dealer lots as it seems nobody wants to touch a Jeep with over 100k.

Enter the thought of leasing. I get a (much?) lower payment than if I were to buy, potentially pay less in sales tax (I need to find out if RI taxes on the whole price of the vehicle, or just the total of the lease payment amount), and I'm able to just turn it in after the 3 years if it's become a headache or I'm just not into it.

I've been reading a little bit about it, and buying at the end of the lease does not seem like a smart idea with these, as the residual is so high.

I have a 2nd car, my current DD ('07 Volvo) Though it just hit 211k, it's in great shape, and super reliable. It doesn't cost me a lot to keep it on the road, so I'm thinking I can still use that for most of my commuting duties (60 mile round trip to work) and use the JLU for everything else. I figure if I get a 12-15k/36 month lease on the JLU, I'll have an easy time doing that. I average about 20k/year, and 8k a year or so on the Volvo should be easy.

Plan would be to put down as little as possible, and keep the payment at or below the mid 300's range (if this is even possible) I'm tier 1 credit, btw. I can rationalize 300-350/month for the Jeep that I do not own simply as an entertainment cost, but a 600 note is much harder to justify.


Is this a dumb move, or does it make any sense at all? Jeep would be used for road trips/mountainbiking/camping, winter wheeling, and cruising around the beach (I live on the RI seashore).

From what I gather, the higher the residual at time of lease the better, as that minimizes depreciation costs.

I also gather that putting a lot of money down is generally considered not necessary? If I were to buy, I'd put at least 5k down. If I were to lease, I prefer to keep that in the bank.

And lastly, as far as leasing from FCA, what does one do with it at end of lease? I know you can buy it or turn it in, but is it possible to trade it in to another dealer on another vehicle? For example, if the dealership I'm leasing from wants 30k for a buyout, but another Jeep dealer will give me 32k in trade, can I trade it in to them to get 2k to go towards the next vehicle?

Ok, sorry for the novel.

Thanks for any info!

I have a lease with 15000 miles a year to keep the payment lower and have a daily driver as well that I use for most of the driving to work and back or other menial things. I do just fine. But buying at the end of the lease would be the more expensive way to go if you think you might keep it, so is the option to give it back to the dealer or keep it after 3 years worth the extra costs? Maybe. Keep your down payment low, but it really doesn't matter as much as people like to say. You can buy it, sell it, or trade it in at any point. What you owe on the jeep is you remaining lease payments and the residual value at the end of the lease. If you can get more than for it, than you can do it. Otherwise just give it back and start fresh.
If you plan on modding it up and putting lots of money into it, then don't waste your money by leasing, because you'll be giving it all back at lease end (unless you keep all the original parts and put them back on, but then what to do with all those parts you keep?)

 

[StuntmanMike]

My speculation is JK resale will go down in few years when used JLs hit the market. They will be much less desirable by the general used Jeep shopper.

It all depends on what you're trying to get. I think a JL or JLU Sport is very doable at $350/mo. with just TTL DAS

I should have been more specific, I'd be looking at a JLU Sport S. I can't deal with not having keyless entry or power windows on a 4 door.

 

[StuntmanMike]

I am in the process of ordering and leasing a JLU.

Some things that I learned in the process that may be helpful to you:

1. The unlimited has a much higher residual then the two door Jeep and therefore is actually less expensive to lease on a monthly basis.

2. The residual is highest on a sport S and it’s much lower on our Sahara. Therefore, leasing a Sahara becomes a double hit in terms of a more expensive car with a lower residual value.

3. What is probably hurting you the most in terms of lease payment is your need for 20,000 miles per year. I have been looking at sport S unlimited’s with MSRP is around $42,000 and I am getting lease payments including sales tax of approximately $325 per month with $5000 down total drive away cost based on 12,000 miles per year.

Thanks.

Definitely want a Sport S Unlimited. I don't hate the Saharas, but the extra $$ doesn't seem worth it to me as of now.

I could prob make 12k miles a year work, as long as I keep my current DD in good shape. As of now it runs great so I can see it lasting for another 3 years of reliable service. I wouldn't really want to put 20k a year on the Jeep either way, seems like kind of a waste to put that many highway miles on it. I'd prefer a15k a year, as I could probably work up a surplus of mileage over the first year then not have to worry about it so much afterwards. But if 12k is significantly cheaper, I could do it.

I'll have to pick a dealer and have them run some numbers. At this point I think I'm in a 2019, as from what I understand the 2018 residuals are dropping as they're getting "older".

 

[StuntmanMike]

I have a lease with 15000 miles a year to keep the payment lower and have a daily driver as well that I use for most of the driving to work and back or other menial things. I do just fine. But buying at the end of the lease would be the more expensive way to go if you think you might keep it, so is the option to give it back to the dealer or keep it after 3 years worth the extra costs? Maybe. Keep your down payment low, but it really doesn't matter as much as people like to say. You can buy it, sell it, or trade it in at any point. What you owe on the jeep is you remaining lease payments and the residual value at the end of the lease. If you can get more than for it, than you can do it. Otherwise just give it back and start fresh.
If you plan on modding it up and putting lots of money into it, then don't waste your money by leasing, because you'll be giving it all back at lease end (unless you keep all the original parts and put them back on, but then what to do with all those parts you keep?)

Thanks for the info!

No, I would definitely NOT keep it at the end. Even rough calculations on that show it is a horrible way to go. I know I'd be better walking away from it and just getting another.

Is that your plan at the end?

You bring up a good point about mods. I think though that a lot of mods can easily be returned to stock at the end, and then sold or installed on the last Jeep.

I don't think I'd mod much (famous last words, lol), except for wheels and tires. I have to say, other than the Rubicon, all the other wheel and tire choices are pretty lame. If I could, I'd get a Sport S with the base Sport el cheapo steel wheels, those are the best looking non-Rubi wheels.

 

[MAPC]

I have a lease with 15000 miles a year to keep the payment lower and have a daily driver as well that I use for most of the driving to work and back or other menial things. I do just fine. But buying at the end of the lease would be the more expensive way to go if you think you might keep it, so is the option to give it back to the dealer or keep it after 3 years worth the extra costs? Maybe. Keep your down payment low, but it really doesn't matter as much as people like to say. You can buy it, sell it, or trade it in at any point. What you owe on the jeep is you remaining lease payments and the residual value at the end of the lease. If you can get more than for it, than you can do it. Otherwise just give it back and start fresh.
If you plan on modding it up and putting lots of money into it, then don't waste your money by leasing, because you'll be giving it all back at lease end (unless you keep all the original parts and put them back on, but then what to do with all those parts you keep?)

I ordered a Sport S the other day. 72% residual so hard to imagine that the 2019's could be much higher. If they ARE higher, I will cancel and get the Sahara....but only so that I can get the Power Sky Roof (otherwise I wouldn't get the Sahara). With the Sahara residuals so much lower, it is painful...but if they pop up a bit, I could move into Sky Roof territory!
.

 

[Jlb1177]

For perspective, I had 472 per month with 472 down on a 53600 msrp Rubicon. If I were you maybe consider an entry level rubi as there residuals are also high. And that price is also with a -2k trade deficit included.

 

[ember_season]

Thanks for the info!

No, I would definitely NOT keep it at the end. Even rough calculations on that show it is a horrible way to go. I know I'd be better walking away from it and just getting another.

Is that your plan at the end?

You bring up a good point about mods. I think though that a lot of mods can easily be returned to stock at the end, and then sold or installed on the last Jeep.

I don't think I'd mod much (famous last words, lol), except for wheels and tires. I have to say, other than the Rubicon, all the other wheel and tire choices are pretty lame. If I could, I'd get a Sport S with the base Sport el cheapo steel wheels, those are the best looking non-Rubi wheels.

Yeah I'm kind of thinking the same, that ill want to get another new one in 3 years. It is nice to be able to do that, and I only plan on getting new wheels and throw on some decals and that's it.

 

[StuntmanMike]

For perspective, I had 472 per month with 472 down on a 53600 msrp Rubicon. If I were you maybe consider an entry level rubi as there residuals are also high. And that price is also with a -2k trade deficit included.

Wow, that's actually not that bad. How long, and how many miles? I'd be looking for a 36month/36k mile lease.

And 53k buys a nice Rubi! My "reasonable" dream Rubi comes out a little under 49k.

 

[TJ3]

For perspective, I had 472 per month with 472 down on a 53600 msrp Rubicon. If I were you maybe consider an entry level rubi as there residuals are also high. And that price is also with a -2k trade deficit included.

wow. thats a great lease. I am turning in a lease on a 2015 Altitude Grand Cherokee and I am getting quotes all over the board. My buyout is $19k and I have been offered 23k and 25k so far. In my area they are selling around 27 -29k.

Unfortunately - I was quoted $739 / month for 36m/15k with $0 down for a JL Sahara. I can lower the monthly to $573 a month if I did 42 months and applied $3,250 of equity from my last lease. This was for a Sahara MSRP $52,335.

How did yours end up at $472? Does the Rubicon lease out that much cheaper?

 

[ember_season]

wow. thats a great lease. I am turning in a lease on a 2015 Altitude Grand Cherokee and I am getting quotes all over the board. My buyout is $19k and I have been offered 23k and 25k so far. In my area they are selling around 27 -29k.

Unfortunately - I was quoted $739 / month for 36m/15k with $0 down for a JL Sahara. I can lower the monthly to $573 a month if I did 42 months and applied $3,250 of equity from my last lease. This was for a Sahara MSRP $52,335.

How did yours end up at $472? Does the Rubicon lease out that much cheaper?

Is that payment off of MSRP?

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