Leasing a Jeep Gladiator

  1. steffen707

    steffen707 Well-Known Member

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    #1 Apr 14, 2019
    Last edited: Jun 3, 2019
    HA HA, this thread has come full circle for me and several others. @trez63 has created a great video you should watch if you've ever wondered about leasing ANY vehicle. I doubt he mentions Plywood in it, but oh well............ Check it out if you don't want to read through all 20 pages.




    OLD FIRST POST BELOW!
    So i'm the type that looks at all options, and i looked at the jeep.com lease on a Wrangler JLU Sport with Auto trans...
    HOLY CRAP, leases suck.

    I think i read somewhere on here that only suckers pay money up front for a lease. Is this true?

    Jeep wants $279 per month for 48 months (then you have to pay sales tax on each payment), plus $3499 "due at signing", plus a $395 disposition fee at end of lease.
    That's like $18,000 for a vehicle you could buy for, $36k after discount and taxes.

    I guess if you don't have the money, or are afraid to sell a car yourself a lease might make sense, but dang, pay 50% of the value of new in only 4 years.

    Any other reason somebody should consider a lease on a Jeep vehicle that holds like 70-75% of its value after 3-4 years?
     
  2. OP
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    steffen707

    steffen707 Well-Known Member

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  3. starrsRN

    starrsRN Well-Known Member

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    Literally throwing money away.
     
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  4. OP
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    steffen707

    steffen707 Well-Known Member

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    that's what it appears to me.
    maxresdefault.jpg
     
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  5. starrsRN

    starrsRN Well-Known Member

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    There’s absolutely no benefit to leasing a vehicle haha. If anybody tries to tell you there is they are missing something upstairs. You literally gain nothing during a lease agreement.
     
  6. ThirtyOne

    ThirtyOne Well-Known Member

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    Don't go by the lease packages they put together. Just like the other deals on this site if you do it right you can do much better than those offers.

    Wranglers have the advantage of high residuals but they use extremely high money factors to offset that.
     
  7. ZEN357

    ZEN357 Well-Known Member

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    Leasing is a horrible idea for the consumer and that's why the dealerships push it so hard, they make more money of leasing than selling.
     
  8. Dietruck

    Dietruck Well-Known Member

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    I wouldn't say that. It depends on the goals of the customer. If you are only looking at the monthly payment there are ways for the dealer to game you for both leases and buys. When you know the numbers behind the payment you can win out. Especially if don't care if you have the car long term. I know people that have brought out leases for 10 grand under the buyout price. Aka they paid less in the long run. The biggest change with a lease is the customer no longer holds the risk for resale value. They do paid a price for the removal of the risk. At the same time they have a way to dump the car at a known price. If the car is worth more you get to use that value on a new car. If it is worth less you can rework the deal or just walk away. If your goal is own the car for the long term then your right a lease is in most cases a bad deal.

    Also just because the dealer makes money doesn't mean it is a bad deal. The key find a way the dealer and you both get something from the deal. Everyone has different needs.
     
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  9. Dietruck

    Dietruck Well-Known Member

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    You are forgetting to break out the interest part of the payment. You are still borrowing someone else's money in a lease. Plus if the car is worth more at the end you can get that value back to use it on a new car or buy it out and sell it yourself.
     
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    steffen707

    steffen707 Well-Known Member

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    i'm confused what you mean about breaking out the interest part of the payment. Break it out to where? For what?
     
  11. Renegade

    Renegade Well-Known Member

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    They’re better on Wranglers than most. You have to use a negotiated selling price for a real calculation, not MSRP. There are people doing zero down leases on JL Sports for $350 a month...
     
  12. ralphjjr

    ralphjjr Well-Known Member

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    So... this is one of those topics that breaks the internet and divides homes.

    Leasing and Financing are both good options, you need to just figure out what your goals are, and what your budget is - and make a determination.
    So yes, leasing might be a horrible idea, for you - but financing may be a terrible idea for someone else.

    There is lots of math to do. Math that you should do long before you get to the dealership to actually purchase. One thing is for certain, just focusing on the monthly payment alone is a terrible idea - or even just focusing on the interest rate alone, is a terrible idea. Educate yourself, do the math, and determine what is best for you.
     
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  13. Dietruck

    Dietruck Well-Known Member

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    When you lease or buying with a loan, you pay interest. For a loan FCA is charging 4.46%. On the lease they are charging 5.208% (this is also call the money factor). This .62% difference is really the cost of removing the risk for you to them.

    For leasing and buying with a loan you paid interest (or a money factor) on the whole amount not paid up front. So for a $30,000 for 4 years that .62% equals an extra 381.29 you pay if you put nothing down.

    Also with a Lease you only pay sale tax on each payment not the whole price of the vehicle. Therefore if the value at the end is 15,000 (you need to check with the dealer what is really is) and your sale tax is 6%. Then that is $900 in sale tax you are not spending.

    So the at the end of the lease with the sale tax saving you are a head of the game. The reason people say lease are a bad deal is when you know you will buy the lease out. So after the lease is up if you got a loan at %4.62 for 4 years for the last 15,000. You would paid your 900 is sale tax plus $1415.27 of interest. It the end you paid an extra $1790.47 over 8 years. Let’s say you did an 8 year loan instead of a lease. You extra cost comes back to that $381.29.

    I am not looking to talk anyone into leasing. I am just looking to help people understand them. I have been doing a lot research in this area as I look at all options as well.
     
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  14. OP
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    steffen707

    steffen707 Well-Known Member

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    I wish fca had good loan rates like some of the other manufacturers. Are they really at 4.46% now? Ouch.
     
  15. Dietruck

    Dietruck Well-Known Member

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    Yeap. I pulled the number off the builter on the site. Use the logic above to work the numbers for the rates you can get outside FCA .

    My question is there lease companies out side FCA you can use? I know I can get a car loan in a few hours and walk into a dealer with a check. I haven't seen the same support for leasing. I might be not looking in the right place.
     
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