Leasing - help needed

[TheRaven]

Agree that it’s dumb to walk away from it at the end and, you are correct, any mods or beating it up won’t matter if you keep it. The problem is you will pay a lot more leasing first, then financing the residual at the end of the lease (assuming one does not straight purchase the residual at the end of the lease).

More expensive? Yes. A lot more expensive? Not really. You have to remember that while you lease at a rate roughly double that of standard financing in the case of the Wrangler, you are only paying that higher interest on a fraction of the total cost of the vehicle. So the effect is pretty small really. With vehicles other than the Wrangler you can often lease at a lower rate than you can finance. Add to that the fact that the money spent on higher car payments does not offer a return of any kind, while the money saved on lease payments will bring you interest, and that you can still buy out your lease and sell off your vehicle for a profit in some cases which can offset the cost and in rare cases even eliminate it entirely.

I think what it REALLY comes down to is this - are you the type of person who wants to buy your vehicle and keep it for the long term, pay it off and have no payments for a few years until it is no longer economical to keep it? Or would you rather just pay a smaller payment, all the time, for the privilege of driving a newer vehicle that's always under warranty? That's really the big difference. Heck in many cases the money saved on repair costs by always having a warranty (or on extended warranty costs by always having a factory warranty) alone can offset the extra cost of leasin.

Tsk-tsk. You assume I use standard financing products and my dislike for leasing is either through comparison of standard financing to leasing or some bad past experience with a lease. Neither is true. I'm good enough at math and finance to know that neither of these products are very good.

If you think leasing a Wrangler is a bad idea, you are NOT good at math.

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[GtX]

If you think leasing a Wrangler is a bad idea, you are NOT good at math.

Good/bad is relative to the options being compared. You missed the point of my post; there are better financing options than the two you're considering.

 

[conFUcius]

More expensive? Yes. A lot more expensive? Not really. You have to remember that while you lease at a rate roughly double that of standard financing in the case of the Wrangler, you are only paying that higher interest on a fraction of the total cost of the vehicle. So the effect is pretty small really. With vehicles other than the Wrangler you can often lease at a lower rate than you can finance. Add to that the fact that the money spent on higher car payments does not offer a return of any kind, while the money saved on lease payments will bring you interest, and that you can still buy out your lease and sell off your vehicle for a profit in some cases which can offset the cost and in rare cases even eliminate it entirely.

I think what it REALLY comes down to is this - are you the type of person who wants to buy your vehicle and keep it for the long term, pay it off and have no payments for a few years until it is no longer economical to keep it? Or would you rather just pay a smaller payment, all the time, for the privilege of driving a newer vehicle that's always under warranty? That's really the big difference. Heck in many cases the money saved on repair costs by always having a warranty (or on extended warranty costs by always having a factory warranty) alone can offset the extra cost of leasin.

All true statements but you’re acting on the assumption that (1) the average can buyout their residual without financing since rates on used vehicles are higher than brand new and (2) the individual is actually going to invest the difference in financing vs. leasing into something that accrues significant interest (probably unlikely for the average Joe).

 

[TheRaven]

Good/bad is relative to the options being compared. You missed the point of my post; there are better financing options than the two you're considering.

But if that's the point of your post then you missed the point of this entire thread. This thread is about the best way to lease. Obviously leasing isn't the best option for everyone, just as traditional financing isn't the best option for everyone either...and paying cash isn't the best option for anyone. This thread is about one specific option.

All true statements but you’re acting on the assumption that (1) the average can buyout their residual without financing since rates on used vehicles are higher than brand new and (2) the individual is actually going to invest the difference in financing vs. leasing into something that accrues significant interest (probably unlikely for the average Joe).

No i'm just laying out some options. When we discuss these things we often make the mistake of just assuming that getting the absolute best price is the best thing for everyone...but that's almost never the case for anyone. Getting the absolute best price ALWAYS comes with tradeoffs...things like having to travel a long distance to get it, having to wait a period of time before getting it, getting a different color or foregoing an option or two...etc. Most people actually knowingly and willingly pay more for a thing in order to avoid some or all of those tradeoffs. All I was saying is that those are some things one CAN do to help offset some of the tradeoffs of leasing.

I mean lets be honest here - the vast majority of people are just going to be happy with the lower payment of the lease and not care that it's actually costing them a bit more in the long run. Those people will get SOME of the benefits of leasing that I mention though - the money they don't spend on the higher monthly payment of traditional financing WILL accrue interest when it sits in their bank account and WILL bring them value when they are able to spend it on other things that they would not have been able to if they chose traditional financing...or if they are savers then it will bring them comfort by existing in their savings account as a larger cushion against the unknown.

We always talk about what's "smart" as what costs us the least...but I think what's "smart" is what makes and keeps us happy in the long run. That's different for everyone.

 

[GtX]

But if that's the point of your post then you missed the point of this entire thread.

I did not. First post. Question 6.

 

[Notorious]

There is a negative stigma around leasing that has existed for decades

People can buy, they can lease but then there’s a third, hidden option that’s high risk and may not yield favorable results.

That’s right, I’m talking about sleeping with the dealership GM. That’ll get you into any Jeep (multiple ones?) on the dealer’s dime and dollar.

I warned you it was risky and didn’t say it would work. Do what you will with that.

 

[calin]

But if that's the point of your post then you missed the point of this entire thread. This thread is about the best way to lease. Obviously leasing isn't the best option for everyone, just as traditional financing isn't the best option for everyone either...and paying cash isn't the best option for anyone. This thread is about one specific option.



No i'm just laying out some options. When we discuss these things we often make the mistake of just assuming that getting the absolute best price is the best thing for everyone...but that's almost never the case for anyone. Getting the absolute best price ALWAYS comes with tradeoffs...things like having to travel a long distance to get it, having to wait a period of time before getting it, getting a different color or foregoing an option or two...etc. Most people actually knowingly and willingly pay more for a thing in order to avoid some or all of those tradeoffs. All I was saying is that those are some things one CAN do to help offset some of the tradeoffs of leasing.

I mean lets be honest here - the vast majority of people are just going to be happy with the lower payment of the lease and not care that it's actually costing them a bit more in the long run. Those people will get SOME of the benefits of leasing that I mention though - the money they don't spend on the higher monthly payment of traditional financing WILL accrue interest when it sits in their bank account and WILL bring them value when they are able to spend it on other things that they would not have been able to if they chose traditional financing...or if they are savers then it will bring them comfort by existing in their savings account as a larger cushion against the unknown.

We always talk about what's "smart" as what costs us the least...but I think what's "smart" is what makes and keeps us happy in the long run. That's different for everyone.

TheRaven, question for you, when you buy from another state, will the dealer do the registration for your own state? if not they give you temporary plates, and you register the car on your own?

 

[TheRaven]

TheRaven, question for you, when you buy from another state, will the dealer do the registration for your own state? if not they give you temporary plates, and you register the car on your own?

They're supposed to. Up until just this month, I have never had to do anything special for registering a vehicle I bought out of state...normally the dealer takes care of everything. They give you a temp registration from their state, and then two weeks later, you get a permanent registration for your state in the mail. This was the case for my Challenger that I purchased in October. However, I was just notified by Criswell on Tuesday that they would be sending me my title paperwork so I can register my Wrangler locally myself. They are also refunding me the "registration" portion of the fees I paid them. Apparently they are unable to do it.

 

[Chupacabra]

I've leased and bought a number of cars over the years. I didn't consider a lease on the Wrangler for a couple of reasons. If I mod it, then that gets tricky at the end, and if I put some off-roading tattoos on it, that'll hurt at the end of the lease as well.

There's no right answer for every situation but for me I decided to purchase the Wrangler this go-round.

 

[Edge Hawk]

for my 2021 eco diesel rubicon, edmunds says
Standard MF
67%/62% residual for 24/36 mo, 15K/yr

I'm debating leasing since the diesel is new, i love and could keep my 2014 JKUR also for camping/overlanding/off-roading , and the Bronco would be out for a good amount of time by the time my lease is up.

MSRP is 63855 and the sale price is 55140. OTD would be 59853.

So if i wanted to buy it at the 2yr end, 67% of the selling price, correct?

 

[calin]

for my 2021 eco diesel rubicon, edmunds says
Standard MF
67%/62% residual for 24/36 mo, 15K/yr

I'm debating leasing since the diesel is new, i love and could keep my 2014 JKUR also for camping/overlanding/off-roading , and the Bronco would be out for a good amount of time by the time my lease is up.

MSRP is 63855 and the sale price is 55140. OTD would be 59853.

So if i wanted to buy it at the 2yr end, 67% of the selling price, correct?

is 67% of the MSRP, always, never the selling price, why OTD is $4K higher?

 

[Edge Hawk]

is 67% of the MSRP, always, never the selling price, why OTD is $4K higher?

Taxes, tags and doc fee (for if wanting to compare financing option)

 

[calin]

Taxes, tags and doc fee (for if wanting to compare financing option)

4k seems a lot for that....you paying all the lease taxes upfront? if yes you shouldn't, you should include it in the monthly payments, there are no savings for paying upfront

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