@JeepLeapIs there a penalty on a leased Jeep if we remove any stickers/decals from it? Anyone know?
What kind of stickers/decals are we talking about here? Dealer-specific ones I wouldn't worry about those at all. If there are any dealer decals on mine I peel them off the minute I get home - owned or leased.Is there a penalty on a leased Jeep if we remove any stickers/decals from it? Anyone know?
Except, on a lease, you have a locked in residual value that you can purchase the vehicle at lease end (or trade it) and recapture the equity.For the life of me, I don't understand why anyone would Lease a Jeep Wrangler. The resale on them is so high, you will recoup much of what you have paid into it. A lease on the other hand, is like renting an apartment. Zero equity when you move out.
Ok, I will put this Lease Thing into the most elementary description as possible.Except, on a lease, you have a locked in residual value that you can purchase the vehicle at lease end (or trade it) and recapture the equity.
Realistically, leasing is an insurance policy against depreciation. If the vehicle is worth less than the Residual Value at lease end, you turn it in and walk away from the negative equity. If it's worth more (likely the case in most situations with full size trucks and Wranglers), you would never "turn it in."
This is why everyone leases German vehicles (MB, BMW). The RVs are subsidized by the manufacturers, so it reduces the contract depreciation that you finance below the real life depreciation. With the possible exception of this crazy market, it is litterally cheaper all in to lease one than to buy it and take the actual depreciation hit.
In the case of the Wrangler, where the actual value at lease end is more than the bank's residual value, it can be a tax and cash flow game. You can reduce your cash cost over, say, 36 months, compared to a longer financed purchase and still either buy and finance or sell to regain any equity at the end.
As leasing and financing/cash have their own benefits and the value of leasing is dependent on the specific vehicle, it's important to analyze the difference on a case by case basis. As a general rule, if you can't lease a vehicle with no money down for near or less than 1% of MSRP per month it's likely better to purchase.
Ok Dave Ramsey, did you even read my post? You're basing your analysis on an uniformed oversimplified version of how leasing works.Ok, I will put this Lease Thing into the most elementary description as possible.
Say you lease A Wrangler every three years, for 21 years of your life. At the end of those 21 years, you have NOTHING.
Say you buy a Wrangler every 5 years, at the end of 21 years, you will own 4 Wranglers, paid off. If you buy inexpensive Wranglers at $35,000 each, you would have spent $140,000. Say the Wrangler holds a value at 80% ? That you give you $112,000 in cash, in your pocket.
At the end of 21 years of leasing, you have nothing, not even a Wrangler. Maybe you own the decals you put on the Wrangler, that is all.
How much more simple can this be??
I try to explain leasing to millenials, but they usually can only think in the Short Term money way of thinking, and investing.
Ok Dave Ramsey, did you even read my post? You're basing your analysis on an uniformed oversimplified version of how leasing works.
As I stated above, you DO NOT abandon equity with a lease, that's one fatal flaw in your analysis. That, and your 21 year old wrangler will not be worth 80% of it's original value.
You may want to do some research before preaching to any more "millennials".