Leasing a Jeep Gladiator

[Onebigyoshi]

Oh and BTW, she didn't reply after my last text all but admitting to me she messed up. Oh well, plenty of dealers around.

Sorry the answer might be buried in this thread but what kind of deal did you get from Spencer? I'm starting to have an open mind on leasing

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[steffen707]

Sorry the answer might be buried in this thread but what kind of deal did you get from Spencer? I'm starting to have an open mind on leasing

well the deal was presented when we all thought tread lightly affiliate pricing would count. We have no negoiating power with lease residuals and the "money factor", but we can negotiate the price. So we're probably looking at a 3% below invoice lease on a sport S. Don't know what the monthly pmts will be until the vehicle arrives and then we can check the residuals and "money factor".

 

[Onebigyoshi]

well the deal was presented when we all thought tread lightly affiliate pricing would count. We have no negoiating power with lease residuals and the "money factor", but we can negotiate the price. So we're probably looking at a 3% below invoice lease on a sport S. Don't know what the monthly pmts will be until the vehicle arrives and then we can check the residuals and "money factor".

Gotcha. I feel like I need to find a way to deduct the lease expense on my tax return in order for it to work in my favor..lol

 

[Dietruck]

Gotcha. I feel like I need to find a way to deduct the lease expense on my tax return in order for it to work in my favor..lol

Don't forget went you lease you pay sale tax only on your payment. So if MSRP is 60k, you residual is 40k and your sales tax is 6%. That is $2,400 you are not paying. Aka you don't pay sales tax on the residual value.

 

[Onebigyoshi]

I always thought that if I financed, and for whatever reason I had to sell it after 2-3 years, I would still come out top than leasing for 2-3 years, no? To give more context, I was planning to put 10k down on a 51k gladiator rubicon (rough estimate out the door price but includes 7% below invoice) and finance the 41k with around 3% interest rate.

*Edit to include more math* If I amortized the 41k @ 3% interest for 6 years, my total cost of the vehicle (including the initial 10k down payment) is $24,950.58 at 24 months and $32,425.87 at 36 months.

 

[Dietruck]

I always thought that if I financed, and for whatever reason I had to sell it after 2-3 years, I would still come out top than leasing for 2-3 years, no? To give more context, I was planning to put 10k down on a 51k gladiator rubicon (rough estimate out the door price but includes 7% below invoice) and finance the 41k with around 3% interest rate.

*Edit to include more math* If I amortized the 41k @ 3% interest for 6 years, my total cost of the vehicle (including the initial 10k down payment) is $24,950.58 at 24 months and $32,425.87 at 36 months.

You need to definite what being on top means to you.

If you put cash down and your payments are higher than you might get the extra money back in two or three years. Leasing you only pay to a set value. Payment are lower because you are only paying for the decrease value you are using.

If you buying out right you pay sale tax on the whole value. Leasing you only pay sales tax on each payment. Aka after the lease is up you only paid sales tax on the decrease value you are using.

Sale tax savings can be over a couple grand.

The short answer is no. Once you do the number and do a cost to cost compare. Leasing can many times come out ahead at a 2 or 3 year mark. Plus the resale value risk is not on you.

You have to do the numbers.

 

[Onebigyoshi]

You need to definite what being on top means to you.

If you put cash down and your payments are higher than you might get the extra money back in two or three years. Leasing you only pay to a set value. Payment are lower because you are only paying for the decrease value you are using.

If you buying out right you pay sale tax on the whole value. Leasing you only pay sales tax on each payment. Aka after the lease is up you only paid sales tax on the decrease value you are using.

Sale tax savings can be over a couple grand.

The short answer is no. Once you do the number and do a cost to cost compare. Leasing can many times come out ahead at a 2 or 3 year mark. Plus the resale value risk is not on you.

You have to do the numbers.

Coming out on top for me means ultimately at the end of 2nd or 3rd year, I pay less for the ownership of the vehicle. Now I don't plan to sell it in 2nd or 3rd year unless Gladiator comes out with the rumored inline 6 turbo engine WITH manual transmission or turbo diesel with manual. If it doesn't, I'm definitely going to keep my Gladiator. I'll probably end up buying and keeping the Gladiator and slap a supercharger or turbo and be done with it

 

[Dietruck]

Coming out on top for me means ultimately at the end of 2nd or 3rd year, I pay less for the ownership of the vehicle. Now I don't plan to sell it in 2nd or 3rd year unless Gladiator comes out with the rumored inline 6 turbo engine WITH manual transmission or turbo diesel with manual. If it doesn't, I'm definitely going to keep my Gladiator. I'll probably end up buying and keeping the Gladiator and slap a supercharger or turbo and be done with it

It me put it another way. If you did a 3 year lease and took the payment savings and put in the bank instead.

If you decide at year 3 you wanted to keep it you take that bank money as a down on a new loan. You extra cost will be in the hundreds. It could be only a couple hundred or less once you account for the interest you could get.

If you decide you want out. You can turn the car in and use the money in the bank as a down for what you want. Due to not paying sale tax on the whole car. Your savings is in the thousands. (I am in PA with 6% sales tax)

So you need to balance the likely hood of keeping it and spending a few extra hundred. Vs. getting something else and saving a few thousand.

Do the numbers. Be realistic. It will surprise you.

 

[Onebigyoshi]

It me put it another way. If you did a 3 year lease and took the payment savings and put in the bank instead.

If you decide at year 3 you wanted to keep it you take that bank money as a down on a new loan. You extra cost will be in the hundreds. It could be only a couple hundred or less once you account for the interest you could get.

If you decide you want out. You can turn the car in and use the money in the bank as a down for what you want. Due to not paying sale tax on the whole car. Your savings is in the thousands. (I am in PA with 6% sales tax)

So you need to balance the likely hood of keeping it and spending a few extra hundred. Vs. getting something else and saving a few thousand.

Do the numbers. Be realistic. It will surprise you.

Yes I agree, you and @steffen707 opened up the possibility of leasing where I would have never considered it before. Thanks for the wise advice

 

[Dietruck]

Yes I agree, you and @steffen707 opened up the possibility of leasing where I would have never considered it before. Thanks for the wise advice

Once I realized the sale tax benefit, that you still can get the value over residual out, and that you can negotiate the buy out ( negotiating is not something to count on but is not uncommon) leasing adds a whole new level options.

It isn't evil, it is just another tool. If you don't use it responsibly, it will hurt you. If used responsibly it will do the job without any harm.

 

[rbeck2]

Leasing can be beneficial, tax wise,to those who rely on a retirement income having to pay taxes on a smaller down payment upfront as versus the taxes due with a larger down payment/investment via a traditional purchase.

 

[Tortooga Custom Works]

It me put it another way. If you did a 3 year lease and took the payment savings and put in the bank instead.

If you decide at year 3 you wanted to keep it you take that bank money as a down on a new loan. You extra cost will be in the hundreds. It could be only a couple hundred or less once you account for the interest you could get.

If you decide you want out. You can turn the car in and use the money in the bank as a down for what you want. Due to not paying sale tax on the whole car. Your savings is in the thousands. (I am in PA with 6% sales tax)

So you need to balance the likely hood of keeping it and spending a few extra hundred. Vs. getting something else and saving a few thousand.

Do the numbers. Be realistic. It will surprise you.

This is a good explanation

 

[Tortooga Custom Works]

I probably should have posted here, but check this out:

https://www.jeepgladiatorforum.com/forum/threads/interesting-article-on-the-lease-deal-change.16414/

 

[Dietruck]

I probably should have posted here, but check this out:

https://www.jeepgladiatorforum.com/forum/threads/interesting-article-on-the-lease-deal-change.16414/

Nice. Great read.

 

[ZEN357]

My dad's 1996 gmc Safari bumper rusted off. The radiator support was holding everything up, just clicked over 400,000. My 08 caravan only has 235k, I'm giving it to my dad when I get my JT. It should make it to 270k

It's a great feeling when you defy the odds on the life of a vehicle.

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