Leasing a Jeep Gladiator

[Tortooga Custom Works]

If you lease are there restrictions travelling to Mexico or Canada?

I've never seen travel restrictions - just mileage restrictions.

Sponsored

 

[Tortooga Custom Works]

Another thing I was looking at is if I lease with eventually wanting to buy the truck with the lower payments I can save back and have probably alot more cash saved back so I can put down 8k or so when I buy the truck after lease Which will make payments even lower. Main thing I see with doing this is a way lower payment and being able to have fun with the truck now instead of waiting. And being able yo stash more cash for the truck when the time comes for the lease to be up to snatch it back. PS ...do leasing companies always give you the option to buy after lease is up?

You always have the option of buying it. Actually you could even buy it in the middle of the lease. There's typically a payout quote you can get. But, read the fine print. They'll have different stipulations about when, how much, fees, etc. Like buying in the middle may generate a fee. Usually there is a lease termination fee, sometimes you'll get charged that fee if you don't go into a new lease, or if you buy it out using a different company. But again, given your overall approach, that fee may not be a big deal.

Here's a specific, related, example, the last lease I terminated, which was with Chrysler Capital for my wife's 2014 Jeep Grand Cherokee, had a stipulation of no down payment on the buy out at the end. So, in my case, if I wanted to buy that vehicle, I would have had to take the Chrysler loan, and then after 2 months (I think that was the minimum wait time), refinance with a different bank so I could bring the interest and principal down. In my particular situation, I didn't even want to keep that car. But I thought, well, I'm over miles, it will be a lot, I may have to keep it and sell it myself later. But after doing some math I realized, nope, I'm just going to pay the overages and get into a 2017 Jeep Grand Cherokee. For our budget, and life, that worked out better. Trying to sell the car privately was going to cost me more time and effort than the mileage loss.

But again, it's so important to know the terms and to do as much math ahead of time as you can.
Another example, not of a lease, but of a finance. You could get a longer term loan and have lower payments, and you could even pay more money than your monthly payment. If that added money gets sent to the principal, you're overall cost will go down because you will pay less interest. But knowing the fine print is important, most banks don't just apply extra funds to the principal - you might need to call to set that up. I've even heard examples of needing to call and make a separate payment for it to go to the principal.

 

[Rex3rd]

You always have the option of buying it. Actually you could even buy it in the middle of the lease. There's typically a payout quote you can get. But, read the fine print. They'll have different stipulations about when, how much, fees, etc. Like buying in the middle may generate a fee. Usually there is a lease termination fee, sometimes you'll get charged that fee if you don't go into a new lease, or if you buy it out using a different company. But again, given your overall approach, that fee may not be a big deal.

Here's a specific, related, example, the last lease I terminated, which was with Chrysler Capital for my wife's 2014 Jeep Grand Cherokee, had a stipulation of no down payment on the buy out at the end. So, in my case, if I wanted to buy that vehicle, I would have had to take the Chrysler loan, and then after 2 months (I think that was the minimum wait time), refinance with a different bank so I could bring the interest and principal down. In my particular situation, I didn't even want to keep that car. But I thought, well, I'm over miles, it will be a lot, I may have to keep it and sell it myself later. But after doing some math I realized, nope, I'm just going to pay the overages and get into a 2017 Jeep Grand Cherokee. For our budget, and life, that worked out better. Trying to sell the car privately was going to cost me more time and effort than the mileage loss.

But again, it's so important to know the terms and to do as much math ahead of time as you can.
Another example, not of a lease, but of a finance. You could get a longer term loan and have lower payments, and you could even pay more money than your monthly payment. If that added money gets sent to the principal, you're overall cost will go down because you will pay less interest. But knowing the fine print is important, most banks don't just apply extra funds to the principal - you might need to call to set that up. I've even heard examples of needing to call and make a separate payment for it to go to the principal.

Thanks for the imput. When your on the final stages of the agreement buying process do you get to compare how much it will be to lease vs buy?. Sorry for all the questions, I always buy used and I'm completely dumb when it comes to buying new

 

[Tortooga Custom Works]

Thanks for the imput. When your on the final stages of the agreement buying process do you get to compare how much it will be to lease vs buy?. Sorry for all the questions, I always buy used and I'm completely dumb when it comes to buying new

No worries. Questions are good. I’ve had to ask all of the same ones, and more then once.

In my experience, they won’t just give it to you.
You have to ask for the comparison. And for the details: cost of vehicle, money factor/interest for a loan, term, residual if it’s a lease.
But most dealerships have nice computer systems that will just print it out like a comparison.

This is why it’s good to know ahead of time what you want all those parameters to be.
Most dealership sales people are going to get you into a conversation of what you want your monthly payment to be. Usually, they can tweak all the parameters to get you that monthly payment. But that doesn't mean it will work for you. “Oh you want your monthly payment to be $400? Yes we can do that with a 10 year loan and an interest rate of 8%!”

Stay away from those conversations as much as possible. They're a bit of a waste of time. In my experience and opinion anyway...

Go in having done your research. First and foremost, know what you are willing to pay for the vehicle. The actual cost.
For us here it's easy. You know wherever you go it CANNOT be above invoice - because we have such great deals. Realistically, it shouldn't even be above 4-5% above invoice.

Once you have the options, and that cost. Then do your math on financing and leasing. Leasing numbers are sometimes hard to get without being at the dealership. But, perhaps, you can start with the numbers in the builder/calculator. That may help you derive the money factor and all that. Financing is easier to calculate. You can look through lots and lots of banks and see what their terms are and interest rates for those terms.

Also, it may mean that you will go to the dealership a few times to gather the info you need. Convince yourself not to pull the trigger until you’ve gathered all the info and have had time to digest it.
Granted, you may be able to do all the research at home, without ever going to the dealership. That may be the case for most of us here, since we are traveling.

As a kudos to our resident dealers here - sometimes the hardest part is negotiating the price of the vehicle. With the dealerships here, you won’t need to do that. Huge deal. Huge! That means you can go right into finance vs lease calculations and negotiations.

 

[steffen707]

This is what i was told, " Jeep has released lease information on the Gladiator; however, they have not launched a national ad for base lease payments yet. I can configure a lease on the specific build you choose; however, that residual is likely to change by the time your Gladiator arrives as you will be using the residual value at the time of the lease beginning."

Can you guys tell me if Jeep launches a national ad for base lease payment, and then I contact a dealer about a specific build I want, sign paperwork and commit to the lease, will the price be set at that time or is it still based off residual and when the build shows up the payments could change?

 

[steffen707]

As a kudos to our resident dealers here - sometimes the hardest part is negotiating the price of the vehicle. With the dealerships here, you won’t need to do that. Huge deal. Huge!

These dealers have tremendous deals! Nobody has deals like these! Believe Me.

 

[trez63]

So much hate for leasing on this post.
I almost strictly opt for leasing any chance I get. Here's why:

1) I never keep a car more than 3 years. And I don't have to worry about selling it on the used market.
2) I get really great money factors when I lease so it is not a matter of financing vs leasing being a big differentiation in how much interest you pay.
3) I only pay the tax for the 3 years that I'm using the car, rather than on the full purchase price
4) Depreciation on ICE vehicles is almost always more than what is calculated as the residual these days. Jeeps maintain great value, but that should be factor'd into the lease so the lease payment should be a lot lower too because of it. If it's not then purchase might make more sense.

5) I saved the best for last. I write off 75% of my car leases against the business without having to worry about a messy depreciation schedule. Living in CA I need to have as much business expense as I can muster and a lease is a very simply itemized expense each month. Depreciation though would have to be on business asset only and based on a specific schedule and you'll have to repay it if you sell the car to recoup any of the depreciated value. Total mess.

In the end though, to each his own. I personally think people who buy cars are wasting their money, and they think I'm wasting my money by leasing. Here's a little secret. We're both right.

 

[Tortooga Custom Works]

I personally think people who buy cars are wasting their money, and they think I'm wasting my money by leasing. Here's a little secret. We're both right.

My favorite part. So true

 

[Blown7]

So much hate for leasing on this post.
I almost strictly opt for leasing any chance I get. Here's why:

5) I saved the best for last. I write off 75% of my car leases against the business without having to worry about a messy depreciation schedule. Living in CA I need to have as much business expense as I can muster and a lease is a very simply itemized expense each month. Depreciation though would have to be on business asset only and based on a specific schedule and you'll have to repay it if you sell the car to recoup any of the depreciated value. Total mess.
.

Great advice.. Next question whats your yearly salary??
With your list of vehicles I'd say it's high.

All your arguments are great if your a successful business owner.

Most people aren't ...me I'm a working stiff....a well payed stiff .......but a stiff none the less...Most people on this forum are working men and women that still live paycheck to paycheck.

My boss also uses taxes to his advantage........ but he's a Billionaire, we bought 4 multi million dollars planes last year.... and many more this year... all and all taxes will be nil...to run the personal jet this year will cost him NOTHING after all bills are paid.....and myself have been around this country twice in the last month.......... first class all the way.

My boss also has a great argument...... he's successful. But guess what??? He still pays cash for all his vehicles.. he hates debt. Your never going to out think a successful investment banker....

 

[steffen707]

Great advice.. Next question whats your yearly salary??
With your list of vehicles I'd say it's high.

All your arguments are great if your a successful business owner.

Most people aren't ...me I'm a working stiff....a well payed stiff .......but a stiff none the less...Most people on this forum are working men and women that still live paycheck to paycheck.

My boss also uses taxes to his advantage........ but he's a Billionaire, we bought 4 multi million dollars planes last year.... and many more this year... all and all taxes will be nil...to run the personal jet this year will cost him NOTHING after all bills are paid.....and myself have been around this country twice in the last month.......... first class all the way.

My boss also has a great argument...... he's successful. But guess what??? He still pays cash for all his vehicles.. he hates debt. Your never going to out think a successful investment banker....

That corporate tax loophole to get tax write offs for million dollar planes is real eh? Yay for the middle class. Lol

I would be doing the same if I were in your bosses shoes, but the system is broken currently.

 

[trez63]

Great advice.. Next question whats your yearly salary??
With your list of vehicles I'd say it's high.

All your arguments are great if your a successful business owner.

Most people aren't ...me I'm a working stiff....a well payed stiff .......but a stiff none the less...Most people on this forum are working men and women that still live paycheck to paycheck.

My boss also uses taxes to his advantage........ but he's a Billionaire, we bought 4 multi million dollars planes last year.... and many more this year... all and all taxes will be nil...to run the personal jet this year will cost him NOTHING after all bills are paid.....and myself have been around this country twice in the last month.......... first class all the way.

My boss also has a great argument...... he's successful. But guess what??? He still pays cash for all his vehicles.. he hates debt. Your never going to out think a successful investment banker....

My effective tax rate is 62%. Yes. 62%. So it’s a f-big joke. Definitely not in your boss’a league. But I disagree with you that most on this forum are living paycheck to paycheck. Because if you’re not living paycheck to paycheck then buying a brand new truck that gets at best 17mpg and is likely to cost you thousands more in year one is just a horrible decision. Certainly some members are that but most I hope are not.

Your boss’s situation is different in that he likely doesn’t get his income on a W2 or a K1 like the rest of us mere mortal plebeians. Good for him.

Realistically though, if you’re the kind of guy who wants a new car every three years, leasing is almost always the better choice regardless of your tax situation. Those first 3 years of car ownership is a depreciation cliff that is hard to justify if you decide to sell at 3 years.

Your boss hates debt and buys in cash. But you are financing so you have debt. Leasing and financial are both debt. Btw, most billionaires I know (I know 2), absolutely love debt. That’s how they got to be billionaires. But that’s not the sort of debt we plebes are talking about.

 

[Tortooga Custom Works]

Great advice.. Next question whats your yearly salary??
With your list of vehicles I'd say it's high.

All your arguments are great if your a successful business owner.

Most people aren't ...me I'm a working stiff....a well payed stiff .......but a stiff none the less...Most people on this forum are working men and women that still live paycheck to paycheck.

My boss also uses taxes to his advantage........ but he's a Billionaire, we bought 4 multi million dollars planes last year.... and many more this year... all and all taxes will be nil...to run the personal jet this year will cost him NOTHING after all bills are paid.....and myself have been around this country twice in the last month.......... first class all the way.

My boss also has a great argument...... he's successful. But guess what??? He still pays cash for all his vehicles.. he hates debt. Your never going to out think a successful investment banker....

Billionaires and millionaires can pay for things cash. Because they have it. You and I don't have it... plain and simple. Or maybe I should say, I don't have it, maybe you do. I have to borrow money for big purchases. Financing and leasing are two forms of borrowing money for allowing a person to acquire a vehicle. I like financing for some cases, and I like leasing for others.

If you don't want to borrow money, that's fine. Don't borrow money. But just because other people decide to borrow money doesn't mean they're doing something wrong, or that it's a bad idea.

Personally, I prefer to hold on to my cash as long as possible. Even if I have the cash to pay for something, I'll put it on credit. I won't pay interest on small purchases, if it's a huge purchase, I'll analyze how much the interest is and look for the best deal. But, again, that's me. I'm a thousandaire. I wish I was a tens-of-thousandaire or a hundreds-of-thousandire. But I'm not. So I'll hold on to my money as long as I can.

 

[steffen707]

LMAO, so many people working for and knowing billionaires.

Billionaires, the new millionaire?

My next thread is going to be a sad dose of reality compared to you guys.

If I had an effective tax rate of 62% (BTW, not sure how you got that high, do you mean combined marginal?) I would just finance the JT and move on.

 

[Dietruck]

Great advice.. Next question whats your yearly salary??
With your list of vehicles I'd say it's high.

All your arguments are great if your a successful business owner.

Most people aren't ...me I'm a working stiff....a well payed stiff .......but a stiff none the less...Most people on this forum are working men and women that still live paycheck to paycheck.

My boss also uses taxes to his advantage........ but he's a Billionaire, we bought 4 multi million dollars planes last year.... and many more this year... all and all taxes will be nil...to run the personal jet this year will cost him NOTHING after all bills are paid.....and myself have been around this country twice in the last month.......... first class all the way.

My boss also has a great argument...... he's successful. But guess what??? He still pays cash for all his vehicles.. he hates debt. Your never going to out think a successful investment banker....

The problem with your posts is that you are using other poeple's decisions as an reason not to do something. You haven't done the math yourself. You haven't looked at the risk level of each option. You haven't factored in other needs/wants.

The piont that many on here keep making is do research yourself for your situation. Do the math. Look at the numbers. Make a decision base on your situation with all options on the table.

A successful person doesn't make decisions based on what others do. They look for the angles to make the rules work for them. Having money doesn't mean your smarter than others.

 

[Blown7]

Financing and leasing are two forms of borrowing money for allowing a person to acquire a vehicle.

Thats a statement I don't understand.


Both are forms of borrowing? I can understand financing, def of (my interpretation only)

"Borrowing money from some entity to finance a purchase with the end result of full ownership of an item".

But leasing is basically renting something long term.

After the term ends the renter or leasee no ownership or equity in that item.

And the item has to be returned in a pre stated condition or is subject to further charges.. like the guy who at 30 months has to park a vehicle that has 36 thousand miles on it, and walk for 6 months to not add any moremiles before the turn in. Yep I met a guy that did just that......

But hey I get involved everyday with leased aircraft so I do know what leasing is intimately....

Sponsored