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Lease deal

BaldEagle

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Wrangler847

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Reason? im just trying to figure out why? how would I of benefited more not putting 4k down and adding it to my payments. isn't it 25 extra bucks in a monthly payment for every 1k
 

ThirtyOne

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Reason? im just trying to figure out why? how would I of benefited more not putting 4k down and adding it to my payments. isn't it 25 extra bucks in a monthly payment for every 1k
Yes. This conventional wisdom on down payments on leases has always puzzled me.

- The basic reason behind the conventional wisdom is that no matter how much you put down the residual is the same so people think you shouldn't put money down up front.

- People say that if you drive off the lot and total your Jeep you won't get any of that money back.

- There is an assumption that if you are leasing you are basically not financially responsible and you probably have credit cards at 27% interest and you should use that money to pay down your credit cards instead.

This is mostly nonsense. I don't want to kick off another lease vs buy debate so I will stop there.

There is a financial benefit to putting money down on a lease because of the way the interest is calculated and because the money factors are higher on Wrangler leases. it actually has more impact on the payment and the interest cost than it would on a loan.

My bottom line advice is always the same - understand what you are doing and how leases work and make an informed decision about what to do with your money.
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