Clueless potential 1st-time Jeep buyer, desperate for advice

[markleone22]

Quick background: 46 year-old male, not a car guy, not a Jeep guy, terrible at buying cars and figuring out how not to get ripped off, terrible with money ... always deeply in love with Jeeps from afar, especially in love with the Gladiator, now have the means to lease-to-own one.

Spent a day at a dealership over the weekend. Now positioned to get a Sport S in Gator, with 18-inch wheels, all-terrain tires, sprayed bed, step rail, 2-in lift added. Looking at a 39-month lease, $800 total down, $429/month. Want to eventually purchase it after the lease is up (can't afford a $600-700 payment a month at this time).

Now that I've just gotten naked in front of you all, and at the risk of looking completely ignorant, would someone kindly tell me A) am I getting fleeced? 2) will I get fleeced when I am ready to purchase at the end of 39 month?, 3) how not to get fleeced 4) what will I be looking to pay for the vehicle after 39 mnths? Sorry people, car buying is clearly not my wheelhouse. (But damn that Gladiator is sweet and I really want on!)

Thanks.

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[Jay Gatsby]

Good info here...
https://www.jeepgladiatorforum.com/forum/threads/leasing-a-jeep-gladiator.15530/

 

[Rokon]

Your out $17,531 after 39 months. Whats the sticker price? Seems you nearly paid half of it at that point.... Finance it longer term and buy it now. Pay down extra when you can.

 

[BLK HOLE]

If you're bad with money (leasing being one bad option) then I recommend that you don't buy one. That said, you're likely going to do it anyway...@ 17-18K in overall payouts...we don't know enough. Whats the MSRP of the vehicle? Whats your interest rate?

 

[giskard]

Leasing is not automatically a bad option. Like any other form of financing you just need to be aware of what you're getting into. The trickiest bit can be determining the interest rate which is typically expressed as a money factor. If you multiply the money factor by 2400 it should give you the equivalent APR. With a lease you're only paying for the expected depreciation of the vehicle over the term of the lease. This means a lot less sales tax as one potential benefit. Typically you'll be given a buyout number with the lease quote that represents the max you'll pay at the end to buy it. Assuming, of course, you want to do that in 39 months (you can always just turn it in at the end, too).

 

[markleone22]

Leasing is not automatically a bad option. Like any other form of financing you just need to be aware of what you're getting into. The trickiest bit can be determining the interest rate which is typically expressed as a money factor. If you multiply the money factor by 2400 it should give you the equivalent APR. With a lease you're only paying for the expected depreciation of the vehicle over the term of the lease. This means a lot less sales tax as one potential benefit. Typically you'll be given a buyout number with the lease quote that represents the max you'll pay at the end to buy it. Assuming, of course, you want to do that in 39 months (you can always just turn it in at the end, too).

Appreciate the feedback thus far. I am waiting for specific numbers on selling price/buyout amount/money factor from the dealership. I was at the dealership in person once, the rest of the back-and-forth has been through text message with the salesperson. Because I want it in gator, nothing has been ordered and no money has been handed over. I'm hoping to educate myself and counter for a better offer because I'm sure I'm about to get raped. Standby ...

 

[OL1970]

Wait 2 years, let the vehicles depreciate...find a garage queen with 10k miles on it and buy it. In the mean time, save $600 a month to put towards the purchase. I've found that if I really want something that bad it is worth waiting for.

 

[Jowen]

A lease has mileage limits so many miles per year, then so much for the mileage over your limit, that can be very costly in the end, read the fine print, then run like he'll after you do the math.

 

[bgenlvtex]

Bad with money?

Jeep is exactly what you need to finish you off.

 

[markleone22]

A lease has mileage limits so many miles per year, then so much for the mileage over your limit, that can be very costly in the end, read the fine print, then run like he'll after you do the math.

I am aware of how the leases work with mileage limits, and it doesn't matter because I fully intend to purchase the thing after the lease is up. I just can't do an enormous payment on the front end in a finance. That's ridiculous, isn't it?

 

[markleone22]

If you're bad with money (leasing being one bad option) then I recommend that you don't buy one. That said, you're likely going to do it anyway...@ 17-18K in overall payouts...we don't know enough. Whats the MSRP of the vehicle? Whats your interest rate?

Selling cost: $42,435
Residual value: $31,262.00
Money factor: .001200

 

[BLK HOLE]

Would still need MSRP numbers.

 

[markleone22]

Would still need MSRP numbers.

$44,660

 

[BLK HOLE]

You did ok on the buy price although you probably could have gotten them to 42k-43k OTD.

That said l, if I’m reading it right...

You toss 17.5k at it for a lease, then borrow another 31k...already 48k in the hole for a 42k vehicle and you still have 32k worth of interest you’ll be paying on. My guess is you’ll end up paying 53k-55k - all in.

Sounds like an awful deal, most lease are tho. I’d never pay more than a few Gs in interest, if anything.

 

[markleone22]

You did ok on the buy price although you probably could have gotten them to 42k-43k OTD.

That said l, if I’m reading it right...

You toss 17.5k at it for a lease, then borrow another 31k...already 48k in the hole for a 42k vehicle and you still have 32k worth of interest you’ll be paying on. My guess is you’ll end up paying 53k-55k - all in.

Sounds like an awful deal, most lease are tho. I’d never pay more than a few Gs in interest, if anything.

That's helpful, thank you. Again, I haven't committed to anything as I sit here, and I can't do anything if I wanted to until Gator is released, so I have time to rethink this.

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