Why NOT Lease JLUR?

[Go Outside]

Indeed, reliability of the little italian turbo 4 had some bearing on my decision to lease.
I just should have waited to see what the new Bronco was going to be.

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[Rylotze]

Suppose I were to lease a 2020 Jeep Wrangler for three years and you plan on owning one one day. Finish the lease for those three years and then turn it in, and then buy a used one of the same year, would that be a better idea to eventually owning one?

I leased a 2012 Mazda Mazda3 hatchback, then got a load to buy it out and am about to finish my last payment in the next 6 months. I work in the valet department at the hotel I work at, and man they are fun to drive.

 

[guarnibl]

Suppose I were to lease a 2020 Jeep Wrangler for three years and you plan on owning one one day. Finish the lease for those three years and then turn it in, and then buy a used one of the same year, would that be a better idea to eventually owning one?

I leased a 2012 Mazda Mazda3 hatchback, then got a load to buy it out and am about to finish my last payment in the next 6 months. I work in the valet department at the hotel I work at, and man they are fun to drive.

No crystal ball, but as others pointed out -- previously it made sense to buy as the JK held it's value very well. Those days are over. Some states still don't make sense to lease in most situations (Texas being one of them), but if you're in a lease friendly state (most are), you should consider it if you plan on keeping the vehicle for 4 years or less. If you are going to keep it long term, there's really no point in leasing in any situation (minus certain business use cases).

It's less risky to buy if you're not optioning the vehicle above ~10% of original MSRP. I.e., let's say Rubicon is $45k -- keep the sticker under $50k. Options statistically lose 80% of their value very quickly, and there's a lot of boxes to check with the new JL.

I wanted a heavily optioned one, so I leased. I pay $500/month and did not put any money down. This was on a $60,000 MSRP (agreed sale price was $52,250) JLUR, 48 month term, 15,000 miles a month. I'm betting that my overall out of pocket cost from a depreciation/finance cost standpoint is less than if I had bought and exited in the same time period.

If I bought this, trade value would have to be above $32,000 (including the calculated 2.9% interest over 48 months on $52k) for me to break even after exiting after 4 years with 60,000 miles vs leasing. Trade value today is already high 30's only 9 months after taking possession of the vehicle. So yeah, it's not even gonna be close. My guess is that leasing saves me $10k over that time period vs buying. Hope I'm wrong and it's a closer result, but that's the bet I took. But if I'm right there's going to be a lot of upset Wrangler owners in a few years that want to trade theirs into a dealership.

 

[four low]

How do taxes figure in to these calculations ? When buying, sales tax is owed on the purchase amount, adjusted for trade , if any ; are you taxed on the amount you pay for the lease, which would be about $24,000 for the 4 years ? Of course, the fees attached to leases vary by state, so we'll stick to your state, Arizona. At 3 years out, 45,000 miles, no more Bumper to Bumper Warranty ; would uncovered repairs drive up that cost of ownership ?
The idea of leasing an expensive to own outright vehicle has its appeal, but so does equity in ownership. As prices climb,along with extended warranty costs, leasing becomes more attractive for the higher option vehicles, but probably not for the base Sport models.

 

[guarnibl]

How do taxes figure in to these calculations ? When buying, sales tax is owed on the purchase amount, adjusted for trade , if any ; are you taxed on the amount you pay for the lease, which would be about $24,000 for the 4 years ? Of course, the fees attached to leases vary by state, so we'll stick to your state, Arizona. At 3 years out, 45,000 miles, no more Bumper to Bumper Warranty ; would uncovered repairs drive up that cost of ownership ?
The idea of leasing an expensive to own outright vehicle has its appeal, but so does equity in ownership. As prices climb,along with extended warranty costs, leasing becomes more attractive for the higher option vehicles, but probably not for the base Sport models.

Taxes are not calculated here since you would get it back after trade in AZ ( many states differ ) and only pay the difference on the delta— or for leasing, on the payment.

Warranty would be a concern irrespective of leasing or buying. I was given the option to extend it for the term but declined. Power train lasts whole term anyway so not concerned.

I agree on a low option Sport S or a low option Rubicon assuming a four door and bought well.

Total cost of ownership is the only thing that really matters I think, equity is important only when you get rid of it.

 

[Revolution_322]

Everyone is buying jeeps now so their value will be substantially less in the used market in years to come vs. jk era...

 

[ekohn00]

Everyone is buying jeeps now so their value will be substantially less in the used market in years to come vs. jk era...

possibly.
But if your buying and hanging on to it for 5-7 years, that might create used market for the off-lease models that are only 3-4 years old.

 

[texascrane]

I financed through banks until I learned how to begin self financing. I would never consider a lease in my situation. There simply is no reason to include financial institutions and pay them for services that have no value to me.

OK I've got to ask. What is "self-financing"? Is that just paying cash?

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