Sponsored

Leasing a Jeep Gladiator

Moonridge

Well-Known Member
First Name
Hayden
Joined
Feb 27, 2019
Threads
13
Messages
178
Reaction score
391
Location
Cincinnati, Ohio
Vehicle(s)
Jeep Gladiator Rubicon, Jeep Compass
Vehicle Showcase
1
So lets do some math...Lease for 36 Months (pick a number) some money down (pick a number) You have to guarantee not driving beyond a certain number (pick a number).. if all goes correctly your saying you get to "rent" the vehicle for that time.

At the end of that time ...IF you want to own the vehicle , now you have to take out another loan on the residual, plus the sales tax, for another 3,4 or 5 years.....

Now do the math for 6,7,8 years total ......

You really need some advice from Jay Leno and Suze Orman

https://www.cnbc.com/2017/06/29/jay-leno-and-suze-orman-agree-dont-lease-a-car-buy.html

https://jalopnik.com/the-one-time-jay-leno-was-wrong-about-cars-1790091121

BTW I work for a Billionaire he hates debt and If I leased a vehicle he would fire me....
The problem is that cars are a depreciating asset, you can put all the money you want in them, but you will never get that money back. Leasing just gives the option to purchase the vehicle for a lower monthly payment and lower cost investment (service, tires, brakes etc.) If you want to purchase and that works for you do it. If leasing makes sense for your lifestyle, do that. At the end of the day you are still investing money into nothing.
Sponsored

 

CaliJK

Well-Known Member
First Name
Michael
Joined
Nov 29, 2018
Threads
3
Messages
70
Reaction score
49
Location
Ontario
Vehicle(s)
Ram 1500
I was recommended to post this reply here. I do work for a Jeep dealer and hopefully this can explain a lease in more detail. For the people that are saying dealers push leases because we make more money, is a flat out lie. We rather have you finance the vehicle so we can get back end money from the banks.

How leasing works with Jeep dealerships is there are three leasing companies that we can use. Chrysler Capitol, US Bank, and Ally. Right now the main lease bank is most likely going to be Chrysler Capitol, because they have crazy high residuals. Leases are based off 3 factors: term, residual, and money factor.

Terms are 24, 36, 39, and 48 months. Your term depends on if going a longer term lowers payments, or if your vehicle you are purchasing has a "sweet spot." JL Wranglers have a great 39 month lease and a good 48 month lease.

  • Next factor is residual, which is based on the value the bank thinks the vehicle will be worth at the end of the term. Now I don't have the Chrysler Capitol rate sheets yet, but I assume at least above .70. Sports having your highest residual, Overland 2nd highest, and Rubicon the lowest. (I heard rumors of .80 which is crazy.) Take your MSRP (residuals aren't based on discounted prices or rebates) multiply by your residual and you get your residual value. Your residual value is the buyout price at the end of the lease, and that value stays the same from the beginning. Higher residual, better resale value, better payment. Lower residual, standard resale, worse payment, less you owe at the end of the lease. How do these cars have $200 leases you may ask? Well that is our final factor...
  • Money Factor, which is really a fancy term for interest rate. Just take your money factor .00175 for example. Multiply by 2400 and you get your interest rate 4.2%. Money factor is based on vehicle and credit. To make things simple, like JL Wranglers, Gladiators are not going to have an incentive based rate. So expect around that example I gave earlier.
The reason why I am choosing to lease, and why I recommend them is basically a lower start cost of ownership. GAP protection is included in a lease. You also get a very low monthly payment compared to a purchase payment. Potentially up to $300-$400 in savings per month. The things to watch out for is your driving miles 10k, 12k, or 15k and making sure you don't have any major damage on the vehicle in case you turn it in. (Chrysler is pretty accepting when it comes to damage repair, anything smaller than a softball is ignored.) Even if you are going to mileage out your lease, you can still get a great starting lease payment then buyout your lease at the end with no penalty from the bank. You can also sell and trade your lease if you want to make some money, if your in a good equity position.

Couple protips:

Don't try to roll negative equity in a lease, your negative will not go into the residual. It is one of the quickest ways to pay off negative equity if you can make the payments. Same thing with aftermarket parts it doesn't go into the residual, so you end up getting a much higher payment for something like a lifted Jeep from a dealership.

Always get a pre term inspection scheduled by Chrysler at your house or work. For some reason the reps will tell you that you don't need it, just take it to a dealership. You can get blindsided by the cost a of small repair that you could of taken care of for half the price Chrysler Capitol charges.

Sorry about the blog post, talking about leasing makes me a little long winded.

So, in your opinion, it's bad to roll an outstanding finance in to a lease?

I bought a truck on a long term 7 year finance, thinking I'd have it for at least 5 years, and trade in would be higher than balance. 2.5 years in, I want to go back to a Jeep. The trade in value of my truck is $24,500, the outstanding balance on truck is $39,500, final price of the JLU is $50,000. In your opinion, is it worth a lease? I'm in Canada, so I can't buy from you, sorry.

Now, I do have the financial means at this time to buy out my balance, and pay cash for the Jeep. I just want to do a low monthly payment, with as little spent up front because I want to keep my liquid cash available for a business project.

The plan was to have short term JL and then move to a gladiator when pricing comes down and or first year issues have been resolved. It would be a 39 month lease.
 

LeadUtensil

Well-Known Member
Joined
Feb 15, 2019
Threads
4
Messages
65
Reaction score
61
Location
SoCal
Vehicle(s)
RX350L
So lets do some math...Lease for 36 Months (pick a number) some money down (pick a number) You have to guarantee not driving beyond a certain number (pick a number).. if all goes correctly your saying you get to "rent" the vehicle for that time.

At the end of that time ...IF you want to own the vehicle , now you have to take out another loan on the residual, plus the sales tax, for another 3,4 or 5 years.....

Now do the math for 6,7,8 years total ......

You really need some advice from Jay Leno and Suze Orman

https://www.cnbc.com/2017/06/29/jay-leno-and-suze-orman-agree-dont-lease-a-car-buy.html

https://jalopnik.com/the-one-time-jay-leno-was-wrong-about-cars-1790091121

BTW I work for a Billionaire he hates debt and If I leased a vehicle he would fire me....
I would fire you too. Why would you ever NOT lease a BMW, Mercedes, Audi, Maserati? They plummet like crazy lol
 

Moonridge

Well-Known Member
First Name
Hayden
Joined
Feb 27, 2019
Threads
13
Messages
178
Reaction score
391
Location
Cincinnati, Ohio
Vehicle(s)
Jeep Gladiator Rubicon, Jeep Compass
Vehicle Showcase
1
So, in your opinion, it's bad to roll an outstanding finance in to a lease?

I bought a truck on a long term 7 year finance, thinking I'd have it for at least 5 years, and trade in would be higher than balance. 2.5 years in, I want to go back to a Jeep. The trade in value of my truck is $24,500, the outstanding balance on truck is $39,500, final price of the JLU is $50,000. In your opinion, is it worth a lease? I'm in Canada, so I can't buy from you, sorry.

Now, I do have the financial means at this time to buy out my balance, and pay cash for the Jeep. I just want to do a low monthly payment, with as little spent up front because I want to keep my liquid cash available for a business project.

The plan was to have short term JL and then move to a gladiator when pricing comes down and or first year issues have been resolved. It would be a 39 month lease.
Depends on if you can handle the situation. The negative equity doesn't go into the residual so $15,000 into 39 months would be about an extra $384 a month. The negative would be gone in 39 months.
 

CaliJK

Well-Known Member
First Name
Michael
Joined
Nov 29, 2018
Threads
3
Messages
70
Reaction score
49
Location
Ontario
Vehicle(s)
Ram 1500
I
Depends on if you can handle the situation. The negative equity doesn't go into the residual so $15,000 into 39 months would be about an extra $384 a month. The negative would be gone in 39 months.
I see what you mean. Yea, I had hoped to avoid a large down payment, but I did figure if I pulled the trigger, I'd try and put down the difference, $15,000, and go from there .
 

Sponsored

41Willys

Well-Known Member
First Name
Bill
Joined
Apr 9, 2019
Threads
5
Messages
75
Reaction score
70
Location
Metairie, LA
Vehicle(s)
'17 Honda Pilot, '16 Kia Sorrento, '07 Toyota Tundra
I was coming here to post this. This is a great idea on their part. Wow.
Saw that. Interesting, but I have always looked negatively on leasing. I got out of leasing an apartment as soon as I could put a down payment on a house. You never get that rent payment back, none of it.

However, after spending about half of what I paid for a Sienna and a Sequoia on mechanical repairs. I seriously considered it.
 

Tortooga Custom Works

Well-Known Member
First Name
Ralph
Joined
Nov 29, 2018
Threads
80
Messages
1,704
Reaction score
1,619
Location
Central NJ
Vehicle(s)
2020 Jeep Gladator Launch Edition | 2017 Jeep Grand Cherokee Limited
Human's. We love giving advice, and, sometimes, blindly taking it...

It's nice to talk to others and get "expert" opinions - but none of that is a substitution for your own research.

I like Suze Orman. I also like Jay Leno. However, neither of them can relate to my life, nor can I relate to theirs.

Not leasing, or not being in debt are NOT the reasons people become billionaires or millionaires. I have 0 debt - and I am FAR, like lightyears FAR from being a billionaire or a millionaire.
If I was a billionaire, or a millionaire I probably would not be on this forum at all. I'd have minions trolling forums for me - and minions for my minions. Actually, no, I wouldn't even know about forums. I'd be talking to the Mark Allen's and Michael Manley's of the world directly. I'd have minions building my wants...

But, I'm going to go out on a limb and say that few of us here are millionaires or billionaires. So here we are talking about leasing and financing because most of us need to borrow money to buy what we want/need: homes, cars, boats, etc.

Buying something outright with cash has it's pros and cons, financing, borrowing money from someone has it's pros and cons, and leasing/renting has it's pros and cons.

Don't accept someone else's list for the pros and cons. Take those lists, but do your own math, your own research. Make your own list.
What works best for your income? your budget? your needs? your lifestyle? your family?

Take all that research, and make your decision.

That's a lot better than trying to convince someone whose income you don't know, whose budget you don't know, whose needs you don't know, whose lifestyle you don't know and whose family you don't know, that one option is "better" than another...
 

41Willys

Well-Known Member
First Name
Bill
Joined
Apr 9, 2019
Threads
5
Messages
75
Reaction score
70
Location
Metairie, LA
Vehicle(s)
'17 Honda Pilot, '16 Kia Sorrento, '07 Toyota Tundra
Human's. We love giving advice, and, sometimes, blindly taking it...

It's nice to talk to others and get "expert" opinions - but none of that is a substitution for your own research.

I like Suze Orman. I also like Jay Leno. However, neither of them can relate to my life, nor can I relate to theirs.

Not leasing, or not being in debt are NOT the reasons people become billionaires or millionaires. I have 0 debt - and I am FAR, like lightyears FAR from being a billionaire or a millionaire.
If I was a billionaire, or a millionaire I probably would not be on this forum at all. I'd have minions trolling forums for me - and minions for my minions. Actually, no, I wouldn't even know about forums. I'd be talking to the Mark Allen's and Michael Manley's of the world directly. I'd have minions building my wants...

But, I'm going to go out on a limb and say that few of us here are millionaires or billionaires. So here we are talking about leasing and financing because most of us need to borrow money to buy what we want/need: homes, cars, boats, etc.

Buying something outright with cash has it's pros and cons, financing, borrowing money from someone has it's pros and cons, and leasing/renting has it's pros and cons.

Don't accept someone else's list for the pros and cons. Take those lists, but do your own math, your own research. Make your own list.
What works best for your income? your budget? your needs? your lifestyle? your family?

Take all that research, and make your decision.

That's a lot better than trying to convince someone whose income you don't know, whose budget you don't know, whose needs you don't know, whose lifestyle you don't know and whose family you don't know, that one option is "better" than another...
Very well said.
 

Sponsored

Tortooga Custom Works

Well-Known Member
First Name
Ralph
Joined
Nov 29, 2018
Threads
80
Messages
1,704
Reaction score
1,619
Location
Central NJ
Vehicle(s)
2020 Jeep Gladator Launch Edition | 2017 Jeep Grand Cherokee Limited
Saw that. Interesting, but I have always looked negatively on leasing. I got out of leasing an apartment as soon as I could put a down payment on a house. You never get that rent payment back, none of it.

However, after spending about half of what I paid for a Sienna and a Sequoia on mechanical repairs. I seriously considered it.
Checkout the episode "adam ruins home ownership" of adam ruins everything. He goes to an extreme - but I think it illustrates that "better" is really something that is relative to the observer...

I've never owned a home, and that's the best decision, for me. Renting is great, for me, at this stage of my life. Perhaps I'll buy a house soon... but I still haven't decided exactly where. :blush: In the meantime, I like renting - and actually, I'm not at all wasting money. I've loved every neighborhood I've lived in... and gotten out of it what it could give me. So it's been a sound investment.
 

Dietruck

Well-Known Member
First Name
Scott
Joined
Mar 7, 2019
Threads
0
Messages
294
Reaction score
261
Location
Philly area
Vehicle(s)
2020 Gladiator LE, 2004 Z06, 2021 Model Y
Saw that. Interesting, but I have always looked negatively on leasing. I got out of leasing an apartment as soon as I could put a down payment on a house. You never get that rent payment back, none of it.

However, after spending about half of what I paid for a Sienna and a Sequoia on mechanical repairs. I seriously considered it.

I was in the same boat. I always look down on leasing. I also always drove too many miles for a lease to make sense. Now that am only putting only 8000 miles a year on my daily. I started doing the research and found a lot of benefits. I watch the videos that say leases are rippoffs. They are very misleading and only tell half the story. They also assume you want the car in 10 or so years. I have brought 5 cars that I told myself I would never sell and I sold each and every one of them. Once you do the math it makes more and more sense. In the end cars are getting too expensive. I would rather have a off ramp in 3 or 4 years. If are able to have a new car for two years and only have to pay for 10% of the value. Wow... That is a great deal.
 

CaliJK

Well-Known Member
First Name
Michael
Joined
Nov 29, 2018
Threads
3
Messages
70
Reaction score
49
Location
Ontario
Vehicle(s)
Ram 1500
. I have brought 5 cars that I told myself I would never sell and I sold each and every one of them
Same here. Would never sell my YJ, then my JK, then my new JK. Now all 3 are gone, and I'm anxious to get me next one. Buying/financing a new Jeep means I'm in it for the next 5-7 years. I just feel a lease gives me more options in 3 years. Might it cost a bit more to have those options? Yes. But for the little bit it might cost you, I'll take those options.

Nothing is better than just buying it outright, and its actually yours, but life doesn't always leave us in that position.
 

Blown7

Well-Known Member
Joined
Oct 18, 2018
Threads
3
Messages
125
Reaction score
79
Location
CT
Vehicle(s)
1977 Hellcat powered CJ7..... 2007 Jeep SRT8...2018 Trackhawk
Human's. We love giving advice, and, sometimes, blindly taking it...

It's nice to talk to others and get "expert" opinions - but none of that is a substitution for your own research.

I like Suze Orman. I also like Jay Leno. However, neither of them can relate to my life, nor can I relate to theirs.

Not leasing, or not being in debt are NOT the reasons people become billionaires or millionaires. I have 0 debt - and I am FAR, like lightyears FAR from being a billionaire or a millionaire.
If I was a billionaire, or a millionaire I probably would not be on this forum at all. I'd have minions trolling forums for me - and minions for my minions. Actually, no, I wouldn't even know about forums. I'd be talking to the Mark Allen's and Michael Manley's of the world directly. I'd have minions building my wants...

But, I'm going to go out on a limb and say that few of us here are millionaires or billionaires. So here we are talking about leasing and financing because most of us need to borrow money to buy what we want/need: homes, cars, boats, etc.

Buying something outright with cash has it's pros and cons, financing, borrowing money from someone has it's pros and cons, and leasing/renting has it's pros and cons.

Don't accept someone else's list for the pros and cons. Take those lists, but do your own math, your own research. Make your own list.
What works best for your income? your budget? your needs? your lifestyle? your family?

Take all that research, and make your decision.

That's a lot better than trying to convince someone whose income you don't know, whose budget you don't know, whose needs you don't know, whose lifestyle you don't know and whose family you don't know, that one option is "better" than another...
Well what do I know.????????

Well been divorced three times.... been bankrupt once..bet the family farm once and lost.

Came close to living in my car several times...

Then read a couple books on gaining wealth.. followed solid rules....laid down by smarter people before me... like don't borrow what you don't have in hand cash.. never lease..

And now my cash on hand is more than most average people make in a year, have over a million in equity...have a pretty good stock portfolio own my own home outright. own anything I want within reason. Wife is happy. All in 20 years.

And still borrowed a little on the latest vehicle to keep my credit number up, even though i could have paid cash.

Yea don't listen to me....Math never lies.. however I have met more than my fair share of car dealers who do.....
Sponsored

 
 



Top