Jump Ship or What?

[FloridaLarry]

What type of Florida weather are we talking about here? Does Florida get snow? Why haven't I heard about this before??

Snow isn't the only slippery condition that exists. Plus this...

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[BMorgan]

I have a high payment that is going mostly to the vehicle which will buy down cost.

This and several other comments you’ve made say to me that you don’t really understand the significant differences between a lease and a purchase.

All of your payment is going into paying your lease, not a cent is going into the vehicle itself. Because you’re renting it not buying it. Your lease is fundamentally no different than a daily rental from Hertz, except you’re contractually obligated to pay 48 payments.

 

[caraholic]

This and several other comments you’ve made say to me that you don’t really understand the significant differences between a lease and a purchase.

All of your payment is going into paying your lease, not a cent is going into the vehicle itself. Because you’re renting it not buying it. Your lease is fundamentally no different than a daily rental from Hertz, except you’re contractually obligated to pay 48 payments.

That’s incorrect it is still paying down the vehicle, just at a lower rate due to the higher interest and high residual value. You can sell or buyout that vehicle whenever you like for your vehicle residual amount plus any remaining payments minus interest.

As for the op if you want a four door and five grand isn’t a big deal to you then buy it. I would order a new one from one of the big dealers for under invoice. Then once that comes in trade in your car to carmax or etc. you could also list it for sale a month prior to your vehicle incoming date to see if you could get more for it.

 

[HungryHound]

Ok so I leased my 2dr Rubi 2.0 almost 4 months ago. That was prior to finding this forum, filled with all you wonderful & knowledgeable Jeep brothers. So yeah I paid MSRP & definitely did not get a great deal. Anyway, starting to wish I got a 4dr instead for more practical reasons. By the way, my Jeep will never rock crawl or anything close. So yeah the Rubi is way over kill for my daily driver city needs. Plus honestly wish I had the all time 4 WD system for extra peace of mind for Florida weather. Called the dealer today that I purchased from & asked if he had any 4 doors on the lot… I know now , order for under invoice is the ticket! ( don’t roast me yet) thing is , I don’t have another vehicle to use in meantime. So he told me he has plenty coming in 2 weeks. So I asked how much off msrp is he willing to do for a return customer? His answer was MSRP is the best they can do now & I should go get a price from Carmax & he will try to come as close to that price as he can on my Jeep. So here is the question or questions, Went to Carmax today got offered 47k but I owe about $52k, safe to say 5k Negative. My MSRP was $54k nicely loaded Jeep… With the market being the way it is right now, Is this my time to jump ship? Will I be in a more neg situation after used car prices decrease or better because I have made more payments & brought down my payoff price? Or will my Jeep take a much harder price hit in months too come? Really on the fence about this any input is highly appreciated. I really don’t wanna get screwed that bad again. I’m still kinda soar! 1. sell to Carmax, cut the check for the difference & start a clean slate which will hurt a bit, 2. Trade into dealer for a 4dr & roll some negative into a new lease? 3. Private list it, just suck it up & keep it? Just to add, I will do some more shopping around as far as trying to get a better deal if possible on a new 4dr but dealerships here in Florida r tough to say the least.. Man , I would luv to order & spec it out! the way I want. But that’s probably not in the cards for me. Sorry for the long thread. What to do?

My JLUR has 4-auto, not sure why yours doesn't. I don't use it unless I'm on heavy gravel or sand, but you should have the same option in the 2-door.

 

[BMorgan]

That’s incorrect it is still paying down the vehicle, just at a lower rate due to the higher interest and high residual value. You can sell or buyout that vehicle whenever you like for your vehicle residual amount plus any remaining payments minus interest.

That’s the wrong mental model for a lease. Like calling a car an “investment” it’s just “not”. A lease is a rental. You’re paying for the use of the car, with cost calculated on expected residual value at lease end (depreciation in other words) plus profit (the “interest”). Your payment is best viewed as being burned up by the depreciation fire, not going into ownership of the vehicle. At lease end (48 months here) you return the vehicle and it’s gone and so are all your payments. Or you can buy the car for the residual amount at that time, even if it’s below or above fair market value on that day. This is what you should have wanted when you signed a lease - walk away at the end hands empty or buy it at a predetermined purchase price.

That my opinion you’re welcome to your point of view of course.

OP you should read your lease and see what your early buyout options are and what if any penalties or fees would be included. At 4 months into the lease you may be prohibited from an early buyout clause. Or you may have a formula for early buyout, which may include lower payments. Your lease is going to be more informative about your specific situation than us.

 

[guarnibl]

That’s the wrong mental model for a lease. Like calling a car an “investment” it’s just “not”. A lease is a rental. You’re paying for the use of the car, with cost calculated on expected residual value at lease end (depreciation in other words) plus profit (the “interest”). Your payment is best viewed as being burned up by the depreciation fire, not going into ownership of the vehicle. At lease end (48 months here) you return the vehicle and it’s gone and so are all your payments. Or you can buy the car for the residual amount at that time, even if it’s below or above fair market value on that day. This is what you should have wanted when you signed a lease - walk away at the end hands empty or buy it at a predetermined purchase price.

That my opinion you’re welcome to your point of view of course.

OP you should read your lease and see what your early buyout options are and what if any penalties or fees would be included. At 4 months into the lease you may be prohibited from an early buyout clause. Or you may have a formula for early buyout, which may include lower payments. Your lease is going to be more informative about your specific situation than us.

Also to add -- if he does trade into the dealership there might be potential tax savings there on a new vehicle purchase (none if he leased again). This assumes they match (or are very close to) the offer of Carmax, etc, of course. I still think it's a bad idea to go this route though and get something on the lot where you'd be paying sticker again.

Therefore, and given the market conditions and continued chip shortage into foreseeable future, it's best to order under invoice (i.e., 6-8% under) and when the new one shows up, drop it off at Carmax or whomever gives the best offer. This should negate OP's negative equity, at minimum. While it's true that we've seen some prices trend downwards, I don't think you'll see a large material difference in offers over the next 60-90 days. Also, buying off the lot means instant depreciation as '22s are now orderable.

Overall there are very few scenarios where leasing makes sense. It's mostly when the manufacturer is fudging residual values to keep lease numbers deflated, or there are business tax implications. Sometimes though when you see that, combined with a dealer trying to get a vehicle off the lot, the savings can be huge entering into a lease that you have no plans on buying out. There were folks paying in the high $600's incl. tax with no drive off for BMW M5's that stickered around $110k. You take that all day long. You'd be stupid to buy at that point.

 

[MountiesNGamecocks]

I’ve had luck with kbb.com instant offer. Then go to the dealer and have them look at the car and see if they’ll up the value.

That said I’d try several dealers. You can usually text pictures and get offers. One of the others is much more likely to beat msrp too.

 

[Heimkehr]

Plus honestly wish I had the all time 4 WD system for extra peace of mind for Florida weather.

I was stationed in Florida, and I lived through all of its weather with a RWD sportscar. My barracks roommate got by with a Jetta.

With no disrespect intended, Sunny, it seems you're in Want, not Need.

The Wrangler you're driving now is well-configured. Yes, the 48 month lease imposes a leash that is going to be costly to slip. As others have suggested, enjoy the vehicle for what it is. The Wrangler's enduring popularity is not accidental.

 

[rallydefault]

It's a tough situation for sure.

My advice would be stick it out if you can. The cost to get out of a young lease like that is probably gonna leave a sour taste in your mouth even if you can get the jeep you now want.

Then again, as much as it pains me to say this for a hunk of metal, the heart wants what it wants. Most people will just do what they want to do regardless of the logical consequences, and let those without fault be the first to criticize (won't be me lol).

 

[grim]

I’ve face planted into the same situation personally. You got a vehicle that seemed great at first but now you are second guessing that decision. 4 years is a long time to rent. Personally, I would custom order what I want and pay the difference for the current Jeep to get out of it…if you have the cash. Don’t roll over negative equity. It will sting at first but life is short…who knows if we will all be here in 4 years.

 

[dshark1]

I was stationed in Florida, and I lived through all of its weather with a RWD sportscar. My barracks roommate got by with a Jetta.

With no disrespect intended, Sunny, it seems you're in Want, not Need.

The Wrangler you're driving now is well-configured. Yes, the 48 month lease imposes a leash that is going to be costly to slip. As others have suggested, enjoy the vehicle for what it is. The Wrangler's enduring popularity is not accidental.

Thx for your input. Definitely agree with U that my Rubi is more then sufficient for Florida rain. As most rwd cars & suv”s are. I just prefer having a awd vehicle if I had to pick, is all. To me awd feels more stable to zipping down the highway in rain. however, that was with my other cars & suv”s I owned. I actually never drove a Jeep with the all time 4wd or selectrac. If or whenever I would purchase another Jeep I would definitely order that option. Just my personal preference of course. Main reason I was considering selling was for more cargo room without having to remove a rear bench. The awd would just be a plus. Thx again

 

[dshark1]

I’ve face planted into the same situation personally. You got a vehicle that seemed great at first but now you are second guessing that decision. 4 years is a long time to rent. Personally, I would custom order what I want and pay the difference for the current Jeep to get out of it…if you have the cash. Don’t roll over negative equity. It will sting at first but life is short…who knows if we will all be here in 4 years.

Very well said. I am definitely going to weigh out my options. Thx

 

[Grace213]

givemethevin.com two coworkers sold their vehicles to him (John Clay Wolf.)

 

[Windshieldfarmer]

I’ve had luck with kbb.com instant offer. Then go to the dealer and have them look at the car and see if they’ll up the value.

That said I’d try several dealers. You can usually text pictures and get offers. One of the others is much more likely to beat msrp too.

Just a reminder, in most states when you buyout a lease, sales tax must be paid on the buyout amount and is something you must factor…

 

[Strommen95]

Snow isn't the only slippery condition that exists. Plus this...

What about "this?" 4WD is not needed there at all.

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