any good number crunchers want to help me out?

[stiks511]

couple questions about a lease (and while i'm not sure of i will lease or buy, i know the pros and cons of both as they relate to my situation/business)

here goes:
2020 Willys 4 door
I am having katzkin leather added before pickup. in running the lease numbers I'm trying to figure out where the $1250 for the leather should be added. It's not added to the MSRP but should I pay it outside the lease or roll it in? Does it matter? I've been using Leashakr and it changes the numbers and the leasehackr score. any input appreciated. I have all the numbers.
MSRP 45885
Selling price 41796 (5% off invoice)
Leather 1250

with all the fees it would be $47815.20 out the door if i purchased - i do have a loan approval at 2.94%

lease numbers:
36/10 lease
RV: 75%
MF: .00189
down payment - undecided

thanks!

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[MDub51]

My opinion would be to roll it in. If you choose to pay for the leather outright, your lease payment would indeed be lower, but you'd be buying leather you would only be giving back to the bank at the end of the lease. By rolling it in to the lease, you'd only be paying a small percentage of the $1250. Only downside would be that you'd be paying interest on it.

 

[aldo98229]

How long do you plan to keep the Jeep? That may be a factor, too.

If you plan to buy it out at the end of the lease, I’d just finance it. You got a good loan rate —although you didn’t say how many months.

 

[stiks511]

My opinion would be to roll it in. If you choose to pay for the leather outright, your lease payment would indeed be lower, but you'd be buying leather you would only be giving back to the bank at the end of the lease. By rolling it in to the lease, you'd only be paying a small percentage of the $1250. Only downside would be that you'd be paying interest on it.

yeah, that's part of my thought - that i'd be 'buying" the leather but leasing the rest.

 

[stiks511]

How long do you plan to keep the Jeep? That may be a factor, too.

If you plan to buy it out at the end of the lease, I’d just finance it. You got a good loan rate —although you didn’t say how many months.

that was for a 60 or 72 month loan, with the idea that the interest rate is pretty low and i can pay it off early if i want but won't be tied to high payments in case something happens.

I'm also trying to figure out the sweet spot in buying if after a few years I want out of this jeep for any reason (either bc it has issues or personal). At point will i have enough equity in it that a trade or resale wouldn't screw me?

i think the RV is $34/35k at the end of a 3 year lease so i'm not sure it'd still be worth that?

 

[aldo98229]

Typically, on my past Wranglers I would start to build equity after only 10-12 months from purchase; on a 60-month loan. After 30-36 months I’d normally have $15,000+ in equity. Strong resale allows you to do that.

Of course it would take a little longer to build equity on a 72-month loan if you stick to the regular monthly payments.

 

[ptoemmes]

Roll the leather in for the reason(s) cited above. Also, you mentioned maybe having to "get out" due to unforeseen reasons. That can be expensive as you are liable to pay on the spot for all remaining lease payments and likely an early turn in fee.

I've never bought at lease end, but typically the lease company will sell at residual (not sure it's negotiable) so you know that already and from Willys history can estimate if you will be up or down equity at the time.

Little to no money into the lease (fees maybe) if the monthlies are OK. All you are doing is buying down the lease "financing". Residual stays the same.

 

[stiks511]

Roll the leather in for the reason(s) cited above. Also, you mentioned maybe having to "get out" due to unforeseen reasons. That can be expensive as you are liable to pay on the spot for all remaining lease payments and likely an early turn in fee.

I've never bought at lease end, but typically the lease company will sell at residual (not sure it's negotiable) so you know that already and from Willys history can estimate if you will be up or down equity at the time.

Little to no money into the lease (fees maybe) if the monthlies are OK. All you are doing is buying down the lease "financing". Residual stays the same.

thanks. i don't foresee having to quit the lease early, I'm just trying to account for different scenarios and figure out equity wise which way to go is best. I think after a couple years of payments I'd have equity from with buying, with leasing the RV seems high and if i decided to biuy it I think it would cost me more than it's worth?

I'm hoping to love this Jeep for a long time (which for me is about 3 years in other vehicles)

 

[TopDown2020]

Sorry for the hijack, but please tell me more about the leather and the Leaseshakr, I didn't know there was a leather option on the Willys.

 

[stiks511]

Sorry for the hijack, but please tell me more about the leather and the Leaseshakr, I didn't know there was a leather option on the Willys.

leather isn't an option from the factory, but you can get katzkin leather installed through the dealer.
leasehakr is a good lease info resource with a good lease calculator. https://leasehackr.com

 

[Salt1972]

Here's a lease calc worksheet that might help.

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