Leasing updates - buy out v. turning it in

[PsyRN]

Mine is up within the year and I'm thinking of buying it out. This truck has been a solid, reliable performer. I'm afraid if I turn it in and get another, the new truck won't be as problem free. Plus I don't see any significant "upgrades" beside color choices on newer models than my 2020. I got mine at 5% below invoice, leasing brought it down to a reasonable payment as opposed to buying at the time, and I got the options I wanted from ordering it. To buy mine out is the cost of residual, ~$36k and any left over payments ~$4k at this point. So essentially I'm buying my now "used" Rubicon for $40k. I'm thinking that's a pretty decent price, since I see Sports going for almost that price. The other thing is that I know its history, and it has all the options I want.

Now that we're going onto the 3+ year of this truck being out, I'm guessing many of us have leases about to expire. Who's keeping and who's turning it in? and why?

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[Rahkmalla]

Jeeps more than a lot of other brands seem to have bad batches. If yours is running great and the buyout is less than replacement cost, buy it out.

I currently have a leased gladiator as well, but mine was a special deal put together by my bronco dealer as a makeshift long-term loaner meant to bridge the gap until my bronco arrived. Well 4 months into my 1st gladiator (took home dec 2021) and i wasn't interested in the bronco anymore so i ordered another gladiator (didn't want to drive an automatic for 8 years and the loaner lease deal was only available on automatics). So while I love the gladiator, I have zero interest in keeping my current one long term, which is why i'm going from a 22 WIllys automatic to a 22 Mojave manual ordered mar '22 with an expected ship date from the factory in 3 days

 

[Labswine]

Bought mine out. Love it and want to keep it a LONG time. Took delivery 19 July, 2019, bought out the lease in December of 2021. It's really nice to not have a car payment again. I was car payment free for like 7 years before that.

Remember, you will also have to pay residual sales tax owed to the DMV when you transfer the title from the leasing company to your name.

In PA, tax is built into the lease payment so you only pay a portion of the total sales tax every month. Kind of like a use tax.

When I bought out my lease, I was surprised as to how little equity was build up over the time of the lease. But, like the OP, leasing enabled me to get into the car I wanted for a LOT less per month than taking a 6 year note. It would have been like $760/month for the loan vs. $390/month lease payment. Plus, to purchase (unless I rolled it into the financing) I would have had to come up with the sales tax up front. In PA it's 6% so I would have needed over $3,000 in sales tax.

 

[DailyMoparGuy]

If it were me, I’d probably buy it out…especially if you’ve added mods to it. Like you said, you’d be buying a used Rubicon that you’ve been using for $40k. I think that’s a good way to look at it in this market.

 

[Garemlin]

I still have a few years to decide on mine. If they don't come out with Chief Blue for the Gladiator in that time, or if they haven't drastically improved the quality of the Bronco by then I'll be buying mine out. Unless of course I start having issues with it. I've been 14k miles trouble free so far.

 

[Mister Lamb]

Bought mine out. Love it and want to keep it a LONG time. Took delivery 19 July, 2019, bought out the lease in December of 2021. It's really nice to not have a car payment again. I was car payment free for like 7 years before that.

Remember, you will also have to pay residual sales tax owed to the DMV when you transfer the title from the leasing company to your name.

In PA, tax is built into the lease payment so you only pay a portion of the total sales tax every month. Kind of like a use tax.

When I bought out my lease, I was surprised as to how little equity was build up over the time of the lease. But, like the OP, leasing enabled me to get into the car I wanted for a LOT less per month than taking a 6 year note. It would have been like $760/month for the loan vs. $390/month lease payment. Plus, to purchase (unless I rolled it into the financing) I would have had to come up with the sales tax up front. In PA it's 6% so I would have needed over $3,000 in sales tax.

The way cars are made nowadays, the $3-4k I'm spending more than I would've over buying outright is well worth the 3-year test drive.

 

[dcmdon]

You are missing one option.

Buy it out and sell it.

If book value is a lot higher than the purchase price, often a dealer will work with you and give you some cash at the end of the least. But if they won't, you have the option of buying it and then flipping it.

A friend of mine just got $10k on his Porsche Cayenne at turn in. NADA retail was about 16K more than his purchase option price. The dealer played dumb. He told them that he would flip it if they didn't come up with something. They offered him $10k and he took it.

 

[PsyRN]

You are missing one option.

Buy it out and sell it.

If book value is a lot higher than the purchase price, often a dealer will work with you and give you some cash at the end of the least. But if they won't, you have the option of buying it and then flipping it.

A friend of mine just got $10k on his Porsche Cayenne at turn in. NADA retail was about 16K more than his purchase option price. The dealer played dumb. He told them that he would flip it if they didn't come up with something. They offered him $10k and he took it.

I thought about that, but again: will another vehicle be as reliable as this one? It's been a solid runner, and given what seems a crap shoot of sorts on getting something as reliable...

Also if I buy and then sell it to put towards another vehicle, will I really get anything better? If I buy it at $36K, sell if for say $45k, what am I going to get at $45k that would be better? At best I think I would only be making a lateral move(with risks), and no real upgrade.

 

[dcmdon]

I thought about that, but again: will another vehicle be as reliable as this one? It's been a solid runner, and given what seems a crap shoot of sorts on getting something as reliable...

Also if I buy and then sell it to put towards another vehicle, will I really get anything better? If I buy it at $36K, sell if for say $45k, what am I going to get at $45k that would be better? At best I think I would only be making a lateral move(with risks), and no real upgrade.

I get it. I wasn't advocating one way or the other. Its just another option.

One thing that I've figured out on this site is that some people seem to get a "good one" and others seem to have nightmares. So far mine has been good. If it were a lease and had given me minimal trouble, I' don't know if I'd want to part with it.

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