early lease termination

[Bleda2002]

You will have to pay for any overage on mileage at the time it is traded or turned back in.

Only turned back in, not traded. If you trade or buy out then the extra miles don't matter nor the condition mods etc. In a trade you are basically doing a buy out then putting it towards a new car (useful if you have positive equity).

With the extra 3500 credit on 4xe's the best way to buy is to lease and then exercise the buy out to get the free 3500 bucks. Also useful if you make too much to qualify for the tax credit.

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[TheRaven]

assuming no overage on miles and no damage to the vehicle needing payment then isn’t a lease a good option IF you’re someone always wanting a new vehicle? A lot of leases can be had with 0 down. Where’s the negative?

A lease IS a great option in many cases, don't let the old guys yelling at clouds tell you otherwise.

The trick with leasing is that you absolutely MUST do your homework and understand what you are getting into. If you aren't willing to do that, then stay away from leasing. The numbers work very differently from financing. That said, with high residual vehicles like the Wrangler, unless you are the type who likes to buy a vehicle and keep it until the wheels fall off (which isn't the recommended approach for the JL), leasing is OFTEN a better option than buying or financing.

 

[DaltonGang]

From what I have observed. Leases are good, if you can right them off as a business expense, for your taxes.
What leases are now is for those people who want "Instant Gratification" with a vehicle that they cannot afford. These same people feel the need to trade every 2-3 years, to get the next newest thing out there. I liken it to the IPhone generation. They must have the newest IPhone on the market. In reality, most cannot afford to buy them outright, so they make payments, and upgrade every year or more, signing new contracts, locking them into longer payments.
I teach my kids to live within their means(finances). But sadly, many adults don't have control, therefore don't teach financial responsibilities to their kids. These same people usually carry large debts, credit cards, car leases/loans, boats, too much house, etc.
If you are one of these "Instant Gratification" people, well the truth sometimes is a hard pill to swallow.

 

[JSFoster75]

From what I have observed. Leases are good, if you can right them off as a business expense, for your taxes.
What leases are now is for those people who want "Instant Gratification" with a vehicle that they cannot afford. These same people feel the need to trade every 2-3 years, to get the next newest thing out there. I liken it to the IPhone generation. They must have the newest IPhone on the market. In reality, most cannot afford to buy them outright, so they make payments, and upgrade every year or more, signing new contracts, locking them into longer payments.
I teach my kids to live within their means(finances). But sadly, many adults don't have control, therefore don't teach financial responsibilities to their kids. These same people usually carry large debts, credit cards, car leases/loans, boats, too much house, etc.
If you are one of these "Instant Gratification" people, well the truth sometimes is a hard pill to swallow.

Well said. My biggest issue with current leases is that I drive 25,000+ miles per year, so a lease is not a good option for me. My second issue is that I rarely keep a vehicle longer than 18 months, although I'm really enjoying driving my Venza and when I pay it off (about 5 years early), may keep it and buy something else...

 

[TheRaven]

From what I have observed. Leases are good, if you can right them off as a business expense, for your taxes.
What leases are now is for those people who want "Instant Gratification" with a vehicle that they cannot afford. These same people feel the need to trade every 2-3 years, to get the next newest thing out there. I liken it to the IPhone generation. They must have the newest IPhone on the market. In reality, most cannot afford to buy them outright, so they make payments, and upgrade every year or more, signing new contracts, locking them into longer payments.
I teach my kids to live within their means(finances). But sadly, many adults don't have control, therefore don't teach financial responsibilities to their kids. These same people usually carry large debts, credit cards, car leases/loans, boats, too much house, etc.
If you are one of these "Instant Gratification" people, well the truth sometimes is a hard pill to swallow.

Again, all things that apply exactly the same to standard financing.

 

[BXFXJeep]

Canada has something called lease take over, basically you can get someone to take over your lease.

You have to pay a small fee to facilitate the process.

Not sure if the same is available in the US.

 

[TXSquid78]

A lease IS a great option in many cases, don't let the old guys yelling at clouds tell you otherwise.

The trick with leasing is that you absolutely MUST do your homework and understand what you are getting into. If you aren't willing to do that, then stay away from leasing. The numbers work very differently from financing. That said, with high residual vehicles like the Wrangler, unless you are the type who likes to buy a vehicle and keep it until the wheels fall off (which isn't the recommended approach for the JL), leasing is OFTEN a better option than buying or financing.

Another consideration are the current interest rates. Lease rate on a Wrangler is probably higher than a loan depending on other factors. Also with some vehicles, you get lease rebates that you dont get with a purchase.

 

[TheRaven]

Another consideration are the current interest rates. Lease rate on a Wrangler is probably higher than a loan depending on other factors. Also with some vehicles, you get lease rebates that you dont get with a purchase.

Yes very good point, I didn't mention that. Interest rates are high which means lease MF's might be stupid. I don't know what they are currently but that's a very important consideration (another reason why I said you really do have to know what you are doing before you sign for a lease).

 

[AdamG]

Yes very good point, I didn't mention that. Interest rates are high which means lease MF's might be stupid. I don't know what they are currently but that's a very important consideration (another reason why I said you really do have to know what you are doing before you sign for a lease).

My wife leased a Lexus NX in 2021, 3yrs was up, went and looked at a new one. Liked it, all new, etc etc. OK what are the numbers? 15% increase in vehicle price lead to 75% increase in lease cost, all due to interest/MF. Old lease was 0.5%, new one was 7.5%, so we paid the residual and now have a low-mileage car she still likes that was financed at near 0 for the first 50% and just paid cash to buy it out.

Leasing is not some magic way to deceive people, it’s just math. We may pay a little more with registration and insurance and whatnot, but we can afford it, and for her it’s worth it to have the latest tech and generally not have to worry about out-of-warranty repairs.

 

[DaltonGang]

My wife leased a Lexus NX in 2021, 3yrs was up, went and looked at a new one. Liked it, all new, etc etc. OK what are the numbers? 15% increase in vehicle price lead to 75% increase in lease cost, all due to interest/MF. Old lease was 0.5%, new one was 7.5%, so we paid the residual and now have a low-mileage car she still likes that was financed at near 0 for the first 50% and just paid cash to buy it out.

Leasing is not some magic way to deceive people, it’s just math. We may pay a little more with registration and insurance and whatnot, but we can afford it, and for her it’s worth it to have the latest tech and generally not have to worry about out-of-warranty repairs.

I'm glad it worked Out for you two. But, not having to worry about out of warranty Repairs, on a 3 yr lease as a reason?? You do realize when you "Purchase" a new Lexus they come with a pretty good warranty.
Taken off the internet:
New Lexus owners benefit from the company’s bumper-to-bumper basic warranty coverage, which lasts for up to 4 years or 50,000 miles, whichever comes first. New Lexus vehicles also come with 6 years or 70,000 miles of powertrain coverage, as well as a 1-year parts warranty

 

[AdamG]

I'm glad it worked Out for you two. But, not having to worry about out of warranty Repairs, on a 3 yr lease as a reason?? You do realize when you "Purchase" a new Lexus they come with a pretty good warranty.
Taken off the internet:
New Lexus owners benefit from the company’s bumper-to-bumper basic warranty coverage, which lasts for up to 4 years or 50,000 miles, whichever comes first. New Lexus vehicles also come with 6 years or 70,000 miles of powertrain coverage, as well as a 1-year parts warranty

Ok…? The Lexus has a 1-year longer warranty but not the previous Ford or the GMCs. And it was financed at 0.5%, which was lower than the purchasing financing, had a guaranteed residual, had more incentives for leasing, and most importantly, was what she wanted. So if it turned out to be a piece of junk, no worries, we give it back. If it got totaled or stolen, no worries, we had no down payment (which you should never do on a lease) and gap insurance was included for the life of the lease.

The 2 GMCs we leased at a monthly price that would have taken 11 years to pay off due to a god-knows-how-they-calculated-it super high residuals. It was like free money,

 

[TheRaven]

I'm glad it worked Out for you two. But, not having to worry about out of warranty Repairs, on a 3 yr lease as a reason?? You do realize when you "Purchase" a new Lexus they come with a pretty good warranty.
Taken off the internet:
New Lexus owners benefit from the company’s bumper-to-bumper basic warranty coverage, which lasts for up to 4 years or 50,000 miles, whichever comes first. New Lexus vehicles also come with 6 years or 70,000 miles of powertrain coverage, as well as a 1-year parts warranty

But what about year 5? In a purchase, i'm out of warranty. If i'm leasing, I traded up two years ago so i'm still in warranty.

 

[jav_eee]

In reality, most cannot afford to buy them outright, so they make payments

What's wrong with making 0% monthly payments on a phone? The answer: NOTHING.

 

[TheRaven]

What's wrong with making 0% monthly payments on a phone? The answer: NOTHING.

Well...I get what you're saying in principal...but i'm assuming you are at least smart enough to understand how the phone subsidy thing works. A lot of people do not understand it at all and do not realize that they are paying $1000+ for a phone...furthermore most carriers do their payment plans over three years now instead of two, and phones aren't really built to last that long. So a big part of the millennial and younger contingent who use their phones constantly can get into big trouble when their phone won't hold a charge at month 22, and they go to get a new phone only to realize that they still owe $400 on that old phone.

Yes, that's down to the individual being stupid...but it's the same kinda phenomenon that gets people into trouble with leasing. They don't take the time to understand how it works and then their story becomes the one that some old guy uses on some car forum to cite why leasing is "da devil".

 

[Ratbert]

Well...I get what you're saying in principal...but i'm assuming you are at least smart enough to understand how the phone subsidy thing works. A lot of people do not understand it at all and do not realize that they are paying $1000+ for a phone...furthermore most carriers do their payment plans over three years now instead of two, and phones aren't really built to last that long. So a big part of the millennial and younger contingent who use their phones constantly can get into big trouble when their phone won't hold a charge at month 22, and they go to get a new phone only to realize that they still owe $400 on that old phone.

Yes, that's down to the individual being stupid...but it's the same kinda phenomenon that gets people into trouble with leasing. They don't take the time to understand how it works and then their story becomes the one that some old guy uses on some car forum to cite why leasing is "da devil".

My wife has a plan like that. It's a no interest two year plan. She ends up getting the latest iPhone every year since that's just about free after you deduct how much they give for the trade-in of her one year old phone.

It's unlikely that she'll ever pay it off if that continues, but it's interest free and she always has the latest phone. She obviously doesn't suffer from the "phone won't hold a charge at month 22" issue that you reference.

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