Why NOT Lease JLUR?

Germansheperd

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Because the actual market isn't matching the residual values. Not even close. Go look at what trade-in values are right now based on actual auction transactions. Vehicles are losing 30 - 35% in just year one, and additional 3-4% in year two. Granted, the first two years are the hardest on depreciation, but the JL as of yet is not coming close to how well the JK held its value. There are thousands of unsold units sitting on dealer lots, and dealers are discounting them deeply. Secondary market values have to adjust accordingly.
So if what you are saying is correct then everyone should lease and dump at the end of the term? The residuals are high and the market is low on resale. Classic case of bad marketing by the leasing companies and great for the consumer.
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TXRubicon

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People have to do what's best for their situation. I'm only saying in this case, leasing with the intent to buy it out at the end probably will be a less than ideal situation and will cost a lot more than just financing the car and owning it outright. I'm a big fan of leasing if the situation is right for it. Sadly, many people get into leases without knowing the mechanics of the actual numbers and it puts them in a bad spot.

So if what you are saying is correct then everyone should lease and dump at the end of the term?
 

Germansheperd

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Also worth noting that you'll pay sales tax twice (at least a portion of it) if you buy your lease out. States like Texas especially are very tax unfriendly when it comes to leases because you end up paying full sales tax twice if you buy it out.
How so? That can only be if the dealer charges you a doc fee twice and you pay that and the tax on the doc fee. On a lease you pay tax on the doc fee, rebate, and monthly payment. On the buyout you pay tax on the buyout and the doc fee if charged twice. On a lease you only are paying tax on the portion of the vehicle your using-the lease payment. You aren’t taxed twice.
 

TXRubicon

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Not in Texas and a few other states. You pay full sales tax on the full capitalized cost, and again if you buy the lease out. Il just recently changed that but they were a full sales tax state as well.

How so? That can only be if the dealer charges you a doc fee twice and you pay that and the tax on the doc fee. On a lease you pay tax on the doc fee, rebate, and monthly payment. On the buyout you pay tax on the buyout and the doc fee if charged twice. On a lease you only are paying tax on the portion of the vehicle your using-the lease payment. You aren’t taxed twice.
 

Germansheperd

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People have to do what's best for their situation. I'm only saying in this case, leasing with the intent to buy it out at the end probably will be a less than ideal situation and will cost a lot more than just financing the car and owning it outright. I'm a big fan of leasing if the situation is right for it. Sadly, many people get into leases without knowing the mechanics of the actual numbers and it puts them in a bad spot.
Now you just completely changed the scenario. Yes leasing with the intent to buy AFTERWARDS is the worst way to go unless you are putting in a company name and depreciating it. There is nothing wrong with leasing per se and from what YOU said earlier everyone and their brother should be leasing and your an idiot if you don’t if the residual is high and the market is low afterwards. You’d have to be a moron to buy in that case.
 

TXRubicon

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Not changing the scenario, but answering one that the OP listed as a possibility. If he wants to own the car for several years, best to buy it outright. Change it after 3 years? Lease it. That's all.

Now you just completely changed the scenario. Yes leasing with the intent to buy AFTERWARDS is the worst way to go unless you are putting in a company name and depreciating it. There is nothing wrong with leasing per se and from what YOU said earlier everyone and their brother should be leasing and your an idiot if you don’t if the residual is high and the market is low afterwards. You’d have to be a moron to buy in that case.
 

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Here's another thought..... I leased, simply as it's my first jeep and wasn't sure if I'd love it.

Now I have to eat the cost when I buy it out at the end of lease, since I love it.
BTW.....it's always possible to sell to a carmax at the end of a lease and start off new in a few years.

As for modding...just keep the original parts and change them when you turn them in. Unfortunately you won't be able to save money up-front when moving by selling the original parts.

I think my biggest loss could come from the soft top and steel bumper I "had to buy".
Hopefully if I turn in at the end of lease the newer model will still use the same soft top. And I'll probably just put the old plastic bumper back on.
 

nypharm

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I leased my 2019 Jeep Rubicon unlimited with msrp of $51,710. The lease payment is $499 with 42 months 10k yearly and $1,600 due at lease. I prefer to lease cars as I get bored of them, don't want to deal with any potential mechanical issues that might arise, depreciation etc. That being said I considered to buy it. Just was not a smart decision for me. I would need to put larger chunk down and have to worry about it being dinged or hit and then potential loss of value. Leasing is easy, if you get a good lease, which is hard to come by with these jeeps. I have not seen a better lease deal than mine anywhere. If anyone needs help getting a lease and you live on east coast or are willing to ship it. Contact me I will help out. Helped few members lease their jeeps, as buying cars nowadays is not for everyone.
 

mmcbeat

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I considered leasing my 2019 JLUR. A Wrangler is an excellent lease vehicle because the resale value is strong. I decided against it because of the sales tax. Texas sales tax on a new car is terrible. But it you trade in on the new vehicle, you only pay sales tax on the net amount. My trade in covered well over half the cost of the Wrangler.
 

ekohn00

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I leased my 2019 Jeep Rubicon unlimited with msrp of $51,710. The lease payment is $499 with 42 months 10k yearly and $1,600 due at lease. I prefer to lease cars as I get bored of them, don't want to deal with any potential mechanical issues that might arise, depreciation etc. That being said I considered to buy it. Just was not a smart decision for me. I would need to put larger chunk down and have to worry about it being dinged or hit and then potential loss of value. Leasing is easy, if you get a good lease, which is hard to come by with these jeeps. I have not seen a better lease deal than mine anywhere. If anyone needs help getting a lease and you live on east coast or are willing to ship it. Contact me I will help out. Helped few members lease their jeeps, as buying cars nowadays is not for everyone.
Maybe Slightly better, my sticker was $54K on a Sahara with 15k miles @ $515 no money down. But it’s also timing on the MF.... I’m with you, I was thinking of purchase, but being my first Jeep didn’t want to risk a much larger payment over more time. I just hope the model I replace it with uses the same soft top so I don’t have to buy it again.
 
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It's true. It is generally cheaper to buy upfront versus leasing and buying later, especially if you plan to keep the vehicle long term. But it's also cheaper to just pay cash versus buying with a loan. The fact is, unless you want to buy used, and you are simply looking for a manageable monthly obligation, leasing with an option to buy at the end could be a way to finance these $50-60k machines over a longer period of time than just 5-7 years if that's all you can afford to do.

Lease for 3-4 years at $500/mo, which is only the depreciation and interest. Buy at the end of the lease with a loan at $500/mo for another 5-6 years. Of course you could buy used and skip the first 3-4 years and hope that the previous owner took good care of the rig.. and hope you find a rig built to your exact specs..

All this means you are paying a lot more for the vehicle in total, but it's just another financing strategy. It may not make sense to do this with a nissan sentra that you don't plan to keep for 10-15 years. A well-engineered machine that you intend to keep - possibly for generations - might make more sense. To simply say it's a bad decision to not buy it upfront at $800-900/mo is as narrow-minded as saying you should never finance a vehicle and always pay cash.

To summarize - DO WHATEVER YOU WANT! :)
 

Mikefly562

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I just started a 39 Month (39,000 miles allowance) Lease on a Sting Gray 2020 Wrangler 4-Door Willys (with 2.0L Automatic, Cold Group, Convivence Group, and Trailer/Tow Group) for $1300 down (Which is the Registration and License Fee, Doc Fee, and First Month Payment), and monthly payments with tax is $480. Where I live, Registration is really expensive in nature in Seattle. I decided to lease this Jeep to supplement my 2013 Lifted 2-Door Jeep that I own, as I'll use the 2013 for more rugged trails and modifications, while I'll be using the 2020 Willys as more of a daily driver, carrying my RC Airplanes, or when the roads become really treacherous and need the benefit of a longer wheel base. I don't plan to buy after the lease, but instead, most likely lease (or buy) another one in 2023.
 

Go Outside

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I took a 2020 Willys 4door last month for $2000 down, $420/mnth for 48months, 10K miles/yr and $30,000 residual. The dealer played numbers with me and convinced me that in the end taxes and financing made leasing about the same as buying. When I got home I did my own calculations and in the end, after 48 months if I buy at $30k I will end up paying $6,000 more than if I had financed.
That's why you dont lease to buy.
On the other hand, I can not afford an $800 monthly car payment. And thats why I leased it. Because I didnt have the sense to keep driving my completely reliable, fully payed off Honda Element for another 2 years.
 

Mikefly562

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Generally, leasing, then buying your leased vehicle does cost more that straight up financing it from the beginning. What's nice about leasing though, I reducing the risk associated with long term ownership, especially on new models that may not have all the issues resolved. I feel its still too early to see how the 2.0L engines hold up (mine was built in Italy), but its nice to know that I will not need to worry about expensive repair work during a lease. I own a lifted 2 Door wrangler and that is my true offroader and one that I can mod as desired, while my 2020 Willys 4-Door will be more of my daily driver, bad weather/snow driver (due to longer wheelbase), a vehicle to carry my RC airplanes in, and I'll still take it on fire / logging roads, etc. Depending how well this 2020 Willys holds up, meaning that if it holds up well overall, then maybe in 2023, instead of leasing a new wrangler, I'll buy a new wrangler.
 
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