Leasing a Jeep Gladiator

[Happycoop]

Correct. Throughout the year while it is the newest model year, the residual won’t change. As soon as the next model year comes out, the previous model year decreases in RV. My main point was dealers cannot change the residual value of a vehicle like they can inflate the money factor.

This is not accurate; the residual value can, and often does, drop throughout the year, regardless of whether it is the newest model year or not. As the vehicle's estimated value changes in the market (which happens throughout the year), the RV will adjust to reflect those changes. Long story short, the RV is a dynamic number, but not one that the dealership can change in terms of trying to add profit. You are, however, correct that many dealers will try to pad profit by using an inflated money factor.

Sponsored

 

[steffen707]

Long story short, the RV is a dynamic number,

and can change multiple times per month with USBank, and problably FCA Bank too.

 

[Rex3rd]

Okay I need opinions. My idea is to lease a very light optioned Rubi (around 49k) around February put around 3k to make the lease payments lower for 48 months. During those 48 months save back a good amount of money and when the time comes buy the gladiator throw the cash I've saved on the new loan and have a low loan payment. What are my odds that this will work out? I know it might cost me a little more in. A long run but I'd rather have low payments on a lease then be miserable stuck paying 800 a month. Another question is if I did 10,000 miles year and actually went under that number by the time the lease was up would my truck be worth more so they will try to sell it to me for more money? Will I still get 4 to 6% off leasing. Is 48 too long or should I be looking for a shorter number to lease? I'm just trying to look at my options. Worst case scenario is I buy mid next year but when is the cutoff for 2020 year until they start 2021? I might very well end up with next year it.

 

[Renegade]

Your residual value is fixed at lease inception, so it will not increase based on your lower mileage scenario. You should still negotiate a discounted selling price before agreeing to your lease terms. This will keep your payment lower because the residual is based on a percentage of MSRP.

 

[steffen707]

Okay I need opinions. My idea is to lease a very light optioned Rubi (around 49k) around February put around 3k to make the lease payments lower for 48 months. During those 48 months save back a good amount of money and when the time comes buy the gladiator throw the cash I've saved on the new loan and have a low loan payment. What are my odds that this will work out? I know it might cost me a little more in. A long run but I'd rather have low payments on a lease then be miserable stuck paying 800 a month. Another question is if I did 10,000 miles year and actually went under that number by the time the lease was up would my truck be worth more so they will try to sell it to me for more money? Will I still get 4 to 6% off leasing. Is 48 too long or should I be looking for a shorter number to lease? I'm just trying to look at my options. Worst case scenario is I buy mid next year but when is the cutoff for 2020 year until they start 2021? I might very well end up with next year it.

Negotiate the lowest buying price of the truck. I think doing a 36-39 month lease gives you the best deal (i think I remember reading this, but don't hae proof, sorry)

If you have low miles on it, it'll be worth more, but as @Renegade said, your residual buying price of your JT is set when you sign the lease. So if you have low miles the dealer may want that truck from you and you could get something newer, or just be happy you're getting to keep your JT for a lower price than its really worth.

I think leasing for 3 years so you can afford to buy it later is a good plan. Its my same plan actually. It would have been tight for me to buy my Jt outright now. Yeah it'll cost me more in the long run, but i'm willing to pay more so I can enjoy it longer/sooner.

 

[Rex3rd]

Negotiate the lowest buying price of the truck. I think doing a 36-39 month lease gives you the best deal (i think I remember reading this, but don't hae proof, sorry)

If you have low miles on it, it'll be worth more, but as @Renegade said, your residual buying price of your JT is set when you sign the lease. So if you have low miles the dealer may want that truck from you and you could get something newer, or just be happy you're getting to keep your JT for a lower price than its really worth.

I think leasing for 3 years so you can afford to buy it later is a good plan. Its my same plan actually. It would have been tight for me to buy my Jt outright now. Yeah it'll cost me more in the long run, but i'm willing to pay more so I can enjoy it longer/sooner.

Thanks! I knew you would come to the rescue. What tools or lease calculators did you use again? Are they simple to use?

 

[Blown7]

Yeah it'll cost me more in the long run, but i'm willing to pay more so I can enjoy it longer/sooner.

Welcome to the new way of thinking. .have it now...pay alot later.
Good financial strategy.

 

[steffen707]

Welcome to the new way of thinking. .have it now...pay alot later.
Good financial strategy.

Dude be gone with your negatively. There's more to life than what makes the absolute most financial sense.

Ive skimped and saved and done what's financially "responsible" my whole life. Now I'm treating myself.

For all you know I've got CANCER. For all we know @Rex3rd has cancer.

 

[Jake]

Hey @steffen707 you and your lady need to enjoy a t-bone or lobster tonight with my complements. And add some fine wine to the menu. Cheers!!!!

 

[Rex3rd]

Dude be gone with your negatively. There's more to life than what makes the absolute most financial sense.

Ive skimped and saved and done what's financially "responsible" my whole life. Now I'm treating myself.

For all you know I've got CANCER. For all we know @Rex3rd has cancer.

I've got gladiator fever and it's pretty severe and I'll die if I don't have one lol... anyway the way I look at it is if I want to throw 5k into the wind to lease a jt with intentions of buying it later well who should care because it's my money. People blow money on stuff they don't need all the time. Why would this be different. Everyone is in a different financial situation. Unless the haters are paying my lease payment I don't want to hear it. What I want to hear is options not negativity

 

[steffen707]

Thanks @Jake and @Rex3rd I'll post some more stuff to help you figure your lease options, might have time at lunch or else tonight.

 

[WhiteJT8541]

I posted this in another thread. Look at the net present value of a lease versus buy. Compare your lease payments with tax each month, money down, security deposit, and residual value at the end of said lease with what it would cost you to finance it for what ever term you want. Do not forget to calculate in any type of return you may receive based on money saved on monthly payments on a lease versus a loan. If you want, use the attached file and crunch some numbers yourself. Be educated going into the deal and do not let them tell you any differently.

 

[Raven]

I posted this in another thread. Look at the net present value of a lease versus buy. Compare your lease payments with tax each month, money down, security deposit, and residual value at the end of said lease with what it would cost you to finance it for what ever term you want. Do not forget to calculate in any type of return you may receive based on money saved on monthly payments on a lease versus a loan. If you want, use the attached file and crunch some numbers yourself. Be educated going into the deal and do not let them tell you any differently.

What are you saying? The lease will always be cheaper if you know what you’re doing

 

[WhiteJT8541]

What are you saying? The lease will always be cheaper if you know what you’re doing

No, unfortunately that’s not the case and is a blanket statement. Net Present Value for lease versus a buy allows you to compare leasing, with a buyout at the end, to a traditional loan and if would cost the same/less/more in the end when you finance the buyout of said lease. If it will be the same/less than a buy option and the monthly payments are lower, you can take that extra $$ and either invest it or pay for mods.

Hope that made sense.

 

[steffen707]

No, unfortunately that’s not the case and is a blanket statement. Net Present Value for lease versus a buy allows you to compare leasing, with a buyout at the end, to a traditional loan and if would cost the same/less/more in the end when you finance the buyout of said lease. If it will be the same/less than a buy option and the monthly payments are lower, you can take that extra $$ and either invest it or pay for mods.

Hope that made sense.

LMAO, made me think of this for the doubters. Thanks for explaining how this "could" work.

Sponsored