Lease vs. Purchase, Never leased before. HELP

[laroo]

I just picked up my Rubi 4xe. Leased for a few reasons, mainly because I'm worried about Jeep hybrid reliability. But the Jeep price was near 10% under MSRP, and the $7500 tax rebate was applied to the capitalized cost. Different terms, but my lease payment is similar to yours with $0 down on a $61k vehicle. The 4xe lease deals are great right now. With a lease, I'm kicking the can down the road 3 years, so there's definitely risk involved. Odds are decent that my Jeep will be worth more than the residual, but that really depends on when Jeep comes out with the EV-only version.

Edit to add... and with a similar lease deal with 0 down, you can pocket your current equity.

Sponsored

 

[thedonkeyslayer]

You can use the site I link below to calculate what you should expect to pay on a lease using "today's number" and plugging in your specifics like zip code, MSRP, purchase price etc.

https://leasehackr.com/calculator?make=Jeep

I just sold my 2011 Odyssey to Carvana for $3k over what I was offered in trade from any dealer (went to multiple).

I'm planning on paying off the 3-year/30k lease with a one-time payment at delivery (Van sale covers it 100%). The reason I'm choosing to lease (my first time doing so) is because I ordered a 4xe and do not trust the longevity of the batteries or all the quirks with that powertrain yet. I want an "out" if I have a lot of issues. Plus you get the $7500 up-front. I have seen a lot of posts about issues with FORM, and charging, especially in cold weather regions.

I do not drive a lot should be able to use very little gas (as long as it functions correctly) which is the only reason I went with the 4xe. Previously had a 2015 JKUR.

Good luck with your decision, opting for the 4xe is the only reason I'm leasing.

 

[GATORB8]

Did they do a credit check? They're marking up the MF to add $64/month. Looks like standard MF is .00144 (APR 3.46%), and they are charging you .00235 (APR 5.64%).


Should be:
https://leasehackr.com/calculator?make=Jeep&miles=12000&msrp=49050&sales_price=49869&months=48&mf=.00144&msd=0&dp=10565&dealer_fee=250&acq_fee=595&disp_fee=395&taxed_inc=0&untaxed_inc=0&rebate=0&resP=62&reg_fee=95&sales_tax=7.5&demo_mileage=0&memo=&totalLeaseTax_radio=true&bmw_demo_25=true

Their quote:
https://leasehackr.com/calculator?make=Jeep&miles=12000&msrp=49050&sales_price=49869&months=48&mf=0.00235&msd=0&dp=10565&dealer_fee=250&acq_fee=595&disp_fee=395&taxed_inc=0&untaxed_inc=0&rebate=0&resP=62&reg_fee=95&sales_tax=7.5&demo_mileage=0&memo=&totalLeaseTax_radio=true&bmw_demo_25=true

EDIT: I missed that they are waiving the aquisition fee and charging you more than first month's payment. Probably should be $20 less (for that $595+ $363 extra first payment/48)

 

[GATORB8]

Some more info if you're considering ordering. Here's invoice:

With Tread Lightly, you should be able to get ~1% under invoice
With a discount dealer from the forum, you should be able to get a little more, closer to 4% under once you count higher doc fees.

With good credit, it would look like a lease for the same vehicle with TL, using your equity of down payment, would be around $250/mo.

 

[court.brink]

Some more info if you're considering ordering. Here's invoice:

With Tread Lightly, you should be able to get ~1% under invoice
With a discount dealer from the forum, you should be able to get a little more, closer to 4% under once you count higher doc fees.

With good credit, it would look like a lease for the same vehicle with TL, using your equity of down payment, would be around $250/mo.

Ooooohh that's encouraging. I just emailed the dealer I purchased my current Wrangler from and I'm going to look into this with him and check out my options. It would be nice to customize and get relatively everything that I would like! Thanks for laying that out for me, I will definitely be checking this out. And to answer your question from the previous post, the hadn't run a credit check just yet. My credit is solid so if that is the case do you think the MF would go down? Or is it possible the dealer is trying to take advantage?

Thanks so much!!

 

[Pinky Tuscadero]

They're right, this is a very, very expensive sport model and you should start there for sure
This is easily Willys Extreme Recon territory at this price which anyone would want more than this, the crap this dealership picked out.... let him get stuck with it
I didn't know about the 7,500 on the 4xe coming off a lease at a dealership but, yeah, do that if leasing, a 4xe is awesome as well
Doesn't look like your really big on "paying ahead" on your last one so... remember at the end of your lease you own nothing... you'll need to pick up a bus pass if you don't fix this situation by then.
Perhaps set your sights a bit lower if you really, really want "new", strip away every single thing you don't need and order that one to get your "buy price" as low as your "lease price" right now and you'll sleep much better and I promise you won't miss a thing. Use the guide that came out earlier this month on here by Jay and "choose wisely"

 

[GATORB8]

Ooooohh that's encouraging. I just emailed the dealer I purchased my current Wrangler from and I'm going to look into this with him and check out my options. It would be nice to customize and get relatively everything that I would like! Thanks for laying that out for me, I will definitely be checking this out. And to answer your question from the previous post, the hadn't run a credit check just yet. My credit is solid so if that is the case do you think the MF would go down? Or is it possible the dealer is trying to take advantage?

Thanks so much!!

The standard MF would be top tier. It’s not unusual for them to try to mark it up.

 

[The Last Cowboy]

You should really consider that your 2018 has low miles and that it can not be replaced for even the high value it has. All you are accomplishing with this trade is losing your equity and going to a long term rental. Leases have paid off well in the last few years in a way that many would not have been able to foresee. But 3 years is a lot of time and things are changing fast in the economy.

6 months from now, if you need to get out of your Jeep for any reason, you have equity on yours. If you lease a new one, you will be stuck for awhile. If you buy a new one, and put your equity down, you will have some equity right away. You at least won't be upside down.

My opinion is to find a way to be happy with what you have, assuming you can afford it. If you are just trading to try to reduce a payment, you are making a poor decision.

 

[Bowhunter23]

Lots of great info already stated here. I was in the same boat as you in December. After much research and striking out constantly with local dealerships who wanted MSRP or a couple K more (just a couple hours south of you) I ended up going through an out of state dealership and placed a custom order for exactly what I wanted and got around 10% below MSRP.
If you are set on staying local, look into Crown. At least back in Dec/Jan when I was looking they were below invoice. But there are even better deals out there if you are willing to travel for pickup.
You have the perfect opportunity to custom order and get exactly what you want on your Jeep and not pay for anything the dealership happened to put on that you'll end up paying for whether you want it or not. You are happy in your current JK and no issues. So you can wait (and wait you will no matter what Jeep Chat promises).
Per a few recommendations here, the 4XE makes a great lease option but factor in a much higher MSRP to start with but depending on your daily commute and charging ability, could be something worth looking into.
I'm still on the fence between lease/purchase as you are but have some time to finalize that before mine is delivered. But I'm leaning heavily on leasing.
JLU's residuals are some of the best of any vehicle so that helps. Just have to factor in if you can keep to the mileage and just how extensive the mods will get.

 

[kj11]

buying the car outright at an inflated number

At a 62% residual that's probably not a bad price for a lightly used Wrangler in 4 years. No?

 

[Some Random Guy]

I 100% agree that you should cash out if you go lease and put minimum down. You’re a good candidate for it, and as long as you understand terms going in a lease is not the bad financial move it was 10-30 years ago. Make sure the terms allow you to cash out at any time (aka, buy it out). Bonus points if a dealer is allowed to buy it out because you’ll save sales tax that way. Not all leases allow this. Some don’t allow buyouts anymore, and some restrict them to the leasee only (meaning you pay tax if you buy it out, even with a dealer executing it on a limited power of attorney).

IF you are looking to capitalize on your current equity on a purchase, I strongly recommend keeping to a purchase that reduces your loan balance. Since you’re going Wrangler to Wrangler, it sounds like your needs have not changed. It’s a bad financial move to trade an asset that’s already been through depreciation for a new asset that will “cost” you more in depreciation while also increasing your debt in either principal balance or loan term. This is how people get trapped in bad circumstances when life throws them a curveball.
Now, if you have a major life change that’s a valid reason to take on a more expensive vehicle and the accompanying debt. Kids, different commute, work vehicle requirement, etc. just in case someone else is reading I wanted to throw this in here.

 

[sk00pie]

I've emailed a few local dealers about factory order. Best I could get was $1000 off MSRP. I'll be applying tread lightly discount when it finally arrives.

That was your first mistake, emailing local dealers! The best part of this forum and community is everyone has done the hard work for us already. Have you seen the sticky thread showing dealers who sell under MSRP? Long story short there are dozens of dealers through the US that sell not only under sticker, but under invoice. Often you simply email or call them, mention you're on the forum, and that's it. For example I used Criswell in Maryland. Simply emailed Leon, and instantly gives you a quote typically 12% under sticker. And yes, factory orders are usually cheaper than what they have on the lot. I have no problem guiding you if you want to shoot me a DM.

 

[sk00pie]

That's what I was thinking. Here is the link if you want to check it out. IF I'm going to consider this I would definitely need them to come down somewhere on the price, but I wasn't sure what would be a fair price?

https://www.caldwellchrysler.com/new-Columbus-2022-Jeep-Wrangler+Unlimited-Sport+S-1C4HJXDG5NW165336




This is interesting to me because I've always figured factory ordering would be more, but why the price cut? Do you think it would be better to factory order to lease or purchase?

I thought the same until I dove into these forums. It's typically way cheaper to custom order. 10%+ under sticker is very common. Look at the dealer under MSRP sticky thread for a full list by location and % off. Most are super easy to deal with. You literally email the dealer and they say ok we do 12% under sticker, heres your quote, 10 week wait time.

 

[thedonkeyslayer]

I thought the same until I dove into these forums. It's typically way cheaper to custom order. 10%+ under sticker is very common. Look at the dealer under MSRP sticky thread for a full list by location and % off. Most are super easy to deal with. You literally email the dealer and they say ok we do 12% under sticker, heres your quote, 10 week wait time.

Agreed on this. I was able to get a better price ordering. Having the Tread Lightly affiliate code will get you a MAX price of 1% under invoice, my dealer was willing to give me 3.5% under invoice (~8.5% off MSRP) on my order.

 

[court.brink]

You should really consider that your 2018 has low miles and that it can not be replaced for even the high value it has. All you are accomplishing with this trade is losing your equity and going to a long term rental. Leases have paid off well in the last few years in a way that many would not have been able to foresee. But 3 years is a lot of time and things are changing fast in the economy.

6 months from now, if you need to get out of your Jeep for any reason, you have equity on yours. If you lease a new one, you will be stuck for awhile. If you buy a new one, and put your equity down, you will have some equity right away. You at least won't be upside down.

My opinion is to find a way to be happy with what you have, assuming you can afford it. If you are just trading to try to reduce a payment, you are making a poor decision.

You're absolutely right. Even going to the dealer yesterday I was imagining that could be my last day with my Wrangler and it hit me. I truly do love it, i mean it's my very first (of many) Wranglers. Maybe I wait a bit and slowly look at options and weigh our the pros and cons more. I've went back and forth having my mind made up either way about 10 times just since being at the dealer yesterday. I'm quite indecisive so I'm sure i'll change my mind many more times before actually making a decision. You guys are all making really good points though that are helping!

Sponsored