Lease or Buy?

[passingnotes]

as i get older, i have less interest in leasing and swapping out - just buy exactly what i want and ride it into the ground, or sell it (which can be a hassle, but whatever).

because people do so much custom work on jeeps, it strikes me as one car that makes little sense as a "leased vehicle" - unless you have zero interest in anything other than factory options and imagine you'd get sick of it in a couple of years, or want a newer version.

i plan to purchase and then slowly sink money into changes. curious to know if most people on here are also planning to own, or if they tend to lease. this does not factor in the cost of your build, nor how much you might spend after, nor how much you might or might not change factory options - it's just about owning or renting.

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[The_Phew]

The lease APR of ~4.59% and lack of a Multiple Security Deposit program rules out leasing a Wrangler for me. I always consider both, but the numbers don't work out in this case.

I leased a BMW 3-series, and came out ahead because the lease residual was like $3k more than it was worth when I turned it in. That's unlikely on a Wrangler. BMW also does MSDs, so I bought down the money factor by about a third, and you get those deposits back at the end (no-brainer).

My wife is leasing a Toyota Sienna, and it was a great deal because the money factor was nearly zero, making it cheaper than financing even after the "acquisition fee". We plan to buy out the lease at the end of the term, because it's worth at least $2k more than the lease residual. If the money factor was better, that's probably the best way to handle a Wrangler lease.

The best thing about leasing, IMHO, is that it's basically just insurance against unexpected loss of value (due to accident, recalls, market forces, whatever).

 

[StuckinNC]

I never lease. I buy what I really want and keep it forever. Then I buy more stuff.

 

[tatarin]

Lease is a waste of money in general, especially for a wrangler. Wrangler is one of the top highest resale value vehicles. Drive it for few years, take care of it and sell it if you get tired of it!

 

[ThirtyOne]

a lot of jeep owners buy because they like to mod and keep the Jeep for a long time.

I actually will probably lease this time.

I always just say do the math and make an informed decision.

One thing that is objectively bad for a Wrangler is to lease-to-buy. The combination of high money factors and high residuals makes this very expensive in the long run.

 

[Nate]

Permanent test drive, for the win!

 

[RussJeep1]

The general rule is that buy and hold is the more financially savvy play.

It's more so, as mentioned, with a vehicle that not only holds its value, like the Wrangler, but one you want to customize.............like the Wrangler.

But some people like new cars every few years (and can afford it/are willing to pay for this.) In that case leasing may be better financially, if not more convenient than "sell and buy."

Still others can write off lease expense to a business.

I could see mall crawlers, and I'm not judging them, better off leasing. I'll loosely define mall crawlers as a demographic less likely to customize their rig, who might not even know or want to take the top/doors off, or windshield down (which is fine--to each their own.)

 

[Specter491]

Leasing only makes sense in a few specific instances:
1. You absolutely need/want a particular car and need cheaper monthly payments for the next x amount of years
2. You get an awesome deal on the price of the car AND money factor. Only getting a good deal on one or the other sucks because you'll be paying extra money for no reason. If you get an awesome deal on vehicle price and money factor, it could make sense to buy it out at the end. The "rent" you paid on the lease would have been minimal if you got a good deal on the money factor
3. You love having new cars
4. Sometimes it's better for businesses to lease than buy (I'm not an accountant)

 

[ThirtyOne]

Leasing only makes sense in a few specific instances:
1. You absolutely need/want a particular car and need cheaper monthly payments for the next x amount of years
2. You get an awesome deal on the price of the car AND money factor. Only getting a good deal on one or the other sucks because you'll be paying extra money for no reason. If you get an awesome deal on vehicle price and money factor, it could make sense to buy it out at the end. The "rent" you paid on the lease would have been minimal if you got a good deal on the money factor
3. You love having new cars
4. Sometimes it's better for businesses to lease than buy (I'm not an accountant)

I don't like the term "only". These are some good examples but there are others.

For example on another thread there was a young woman who had a low credit score because she did not have a credit history. She was offered a lease payment on a Sahara around $425. No credit card debt and could afford the payment. Take the lease for a few years and build up a credit history. And drive a really nice vehicle in the process for a good monthly payment.

There may be other examples as well.

 

[ThirtyOne]

The general rule is that buy and hold is the more financially savvy play.

It's more so, as mentioned, with a vehicle that not only holds its value, like the Wrangler, but one you want to customize.............like the Wrangler.

But some people like new cars every few years (and can afford it/are willing to pay for this.) In that case leasing may be better financially, if not more convenient than "sell and buy."

Still others can write off lease expense to a business.

I could see mall crawlers, and I'm not judging them, better off leasing. I'll loosely define mall crawlers as a demographic less likely to customize their rig, who might not even know or want to take the top/doors off, or windshield down (which is fine--to each their own.)

I was with you until the top down/doors off comment. Not sure why that would impact a lease or be in conflict with an on-road driver.

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