This is why I lease

[Horde]

Let's make it clear. None of these people turned in their leases.

They "traded" their lease. If you were to turn in a lease at the end of your term. You wouldn't get anything back. A trade in will result in a dealer making you an offer. Essentially buying your lease and paying you the difference if there is any positive equity. Only someone extremely uneducated about leases would turn in a lease with positive equity. The only time you should turn in a lease is when you have negative equity and you are within the mileage limits. You can also sell your lease at any time to anyone or a dealer. You get a payoff quote from your lender and get offers from the buyer. Same thing as selling a car that is financed. The best thing about leases is that you don't pay taxes upfront. You pay the taxes every month on top of the principal. You pay the same amount of taxes if you were to ride out the entire lease. If you finance / buy a car, you get hit with all of the taxes upfront. So you're already thousands of negative equity for the taxes, extras, doc fees, +any depreciation for being used.

With a lease. You only pay the taxes on the leased amount. Not the entire cost of the car.

It's all about the numbers, residuals, money factor rate, etc....

An experienced buyer can and will come out on top. Un-experienced buyers will get ripped off. Dealerships will tell you ZERO interest on a lease and that is true, but there is a money factor "aka rental" fee they don't tell you about.

I buy new cars almost every year. I've learned all of the shady salesman tricks and financing loopholes.

I highly encourage anyone to get educated about leases before they commit and do the math vs. a purchase.

Sure they bought my lease, and gave me extra cash to do it multiple times. And yes, you could call it traded but I’ve been doing this for 20 years and have always been ahead of the game. I once leased an F-150 for a two year term. Kept it the entire time and at the end of the lease they gave me an additional $2,500 in equity towards my next lease, plus an additional discount on the new vehicle I leased. Mind you leasing for me is great because Incan write it off as a business expense.

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[sypeck]

Let's make it clear. None of these people turned in their leases.

They "traded" their lease. If you were to turn in a lease at the end of your term. You wouldn't get anything back. A trade in will result in a dealer making you an offer. Essentially buying your lease and paying you the difference if there is any positive equity. Only someone extremely uneducated about leases would turn in a lease with positive equity. The only time you should turn in a lease is when you have negative equity and you are within the mileage limits. You can also sell your lease at any time to anyone or a dealer. You get a payoff quote from your lender and get offers from the buyer. Same thing as selling a car that is financed. The best thing about leases is that you don't pay taxes upfront. You pay the taxes every month on top of the principal. You pay the same amount of taxes if you were to ride out the entire lease. If you finance / buy a car, you get hit with all of the taxes upfront. So you're already thousands of negative equity for the taxes, extras, doc fees, +any depreciation for being used.

With a lease. You only pay the taxes on the leased amount. Not the entire cost of the car.

It's all about the numbers, residuals, money factor rate, etc....

An experienced buyer can and will come out on top. Un-experienced buyers will get ripped off. Dealerships will tell you ZERO interest on a lease and that is true, but there is a money factor "aka rental" fee they don't tell you about.

I buy new cars almost every year. I've learned all of the shady salesman tricks and financing loopholes.

I highly encourage anyone to get educated about leases before they commit and do the math vs. a purchase.

Exactly I’ve been doing this since 2001 always come out ahead just leased a jeep grand Cherokee Overland with a 5.7 in January no money down there was a ton of incentives at the time decided not what I wanted traded it in June 15 $8000 equity put that $8000 towards a 2021 Mojave ! Happy now…if you watch the value of the car And get the dealer to purchase your lease out from bank as a trade you get the positive equity it works for me I wouldn’t do it any other way. PS I might add that I highly modify all the vehicles that I lease knowing that I will be “trading the vehicle not turning in the lease so whatever I do to the vehicle technically doesn’t matter because I will never be turning in the lease I will be trading And they will be purchasing. I also did this with three Dodge Challenger’s the third one being custom-made to my specifications just watch the value and when it’s at that sweet spot head to the dealer trade up!

 

[Binfordtools]

Two of the Wrangler leases we had both had lifts, tires, and a few other modifications and the dealer didn't give a rats-a$$ about it. As long as we were leasing something new, they were fine.

 

[2TH MVR]

Mind you leasing for me is great because Incan write it off as a business expense.

That's the difference. A business write-off. I've leased many cars through my practice. According to my acct .... a lease is simpler to write off as opposed to calculating depreciation, mileage, maintenance, etc. etc. on a purchased asset (car/truck).

 

[brianinca]

A buddy of mine switched from leasing Lincolns to M-B ten years ago, his wife didn't like their Navigator so he switched them to a GL right before a long trip. Never looked back. She's happy, so he's happy, every two years the M-B dealer is happy.

However, HIS daily driver is a Dodge RAM, and his hunting ride is a 4x4 Hemi RAM. Exactly as you point out, different situations and different solutions.

With leases the end user is paying for the depreciation on the asset at hand. That's why Jeeps have excellent lease rates because the residual value at turn-in time will be high. Leases get a bad rep because some people max out a lease payment to get in to a vehicle they couldn't otherwise afford.

On the flip side, vehicles like luxury cars are often leased by affluent customers that simply want to drive a car that's completely covered by factory warranty for the duration of their possession. They don't care about "ownership" because they know in 2-3 years they'll want the newest version with a full warranty. So they pay for the portion of the vehicle they use to have that peace of mind and no complications when the lease is done. Hand keys over, get new vehicle, drive away happy. If you fit in this bucket it's possible a lease is a solid option for you. There are far more lease terms available than the one Jeep promotes, which is usually just trying to entice people with a crazy low payment.

Clearly any type of financing can be abused/used incorrectly.


Think of it like tools. A screwdriver is a useful tool for tightening/loosening screws. It's a terrible tool for scraping paint. Can a screwdriver scrape paint off? yes. Is is the best option? no. Conversely many things can technically tighten a screw, but the purpose built screw driver will do it better and more efficiently.

 

[j.o.y.ride]

You didn't do anything with your lease that you couldn't with a purchase.

 

[5JeepsAz]

Some people purchase because `never a borrower or lender be` and also pay full taxes because civic duty.

And some don't.

 

[OldButStillJeeping]

Lot's of good posts on here.
If you want to drive a new car every few years, or it's a business expense, leasing is usually a no brainer.

I usually purchase because I typically own vehicles for 10 to 15 years more. I purchased my JTM


Although I did lease a BMW diesel for my wife in 2014 because I didn't trust it's longevity, and BMW maintenance and repair costs. And after calculating the lease vs purchase cost I would lose nothing by leasing it and could bail out of it at the end.
As it turned out the car was excellent for the lease term of 3 years, and my wife still loved it. So at lease end, I bought the car.
The next year the turbo and transmission had issues. Fortunately the over $9K in repair bills, BMW covered.
But wifey was done with the car and I lost about 5K overall and got rid of it.
So, there's a right situation and s wrong situation to lease.
She now wants another beemer. And I'll do it for her, as a lease only.

 

[sypeck]

Lot's of good posts on here.
If you want to drive a new car every few years, or it's a business expense, leasing is usually a no brainer.

I usually purchase because I typically own vehicles for 10 to 15 years more. I purchased my JTM


Although I did lease a BMW diesel for my wife in 2014 because I didn't trust it's longevity, and BMW maintenance and repair costs. And after calculating the lease vs purchase cost I would lose nothing by leasing it and could bail out of it at the end.
As it turned out the car was excellent for the lease term of 3 years, and my wife still loved it. So at lease end, I bought the car.
The next year the turbo and transmission had issues. Fortunately the over $9K in repair bills, BMW covered.
But wifey was done with the car and I lost about 5K overall and got rid of it.
So, there's a right situation and s wrong situation to lease.
She now wants another beemer. And I'll do it for her, as a lease only.

Exactly I’ve been doing this since 2001 always come out ahead just leased a jeep grand Cherokee Overland with a 5.7 in January no money down there was a ton of incentives at the time decided not what I wanted traded it in June 15 $8000 equity put that $8000 towards a 2021 Mojave ! Happy now…if you watch the value of the car And get the dealer to purchase your lease out from bank as a trade you get the positive equity it works for me I wouldn’t do it any other way. PS I might add that I highly modify all the vehicles that I lease knowing that I will be “trading the vehicle not turning in the lease so whatever I do to the vehicle technically doesn’t matter because I will never be turning in the lease I will be trading And they will be purchasing. I also did this with three Dodge Challenger’s the third one being custom-made to my specifications just watch the value and when it’s at that sweet spot head to the dealer trade up!

I might add my wife loved her 2017 wrangler chief so much at the end of the lease she decided to write a check and buy it out right as it is her (forever car) we still made out on that ad the buy out was about 8k under kbb

 

[Deleted member 30519]

I hated my lease on my 18 JL. Probably because I knew nothing about leases at the time and the residual and buyout I never negotiated. I also put 4k down

 

[OldButStillJeeping]

I hated my lease on my 18 JL. Probably because I knew nothing about leases at the time and the residual and buyout I never negotiated. I also put 4k down

Yeah, it can have it's downfalls.

As someone else had mentioned, some people shop payments and not financial wisdom. Young folks who are just getting established couldn't afford that shiny new car, unless they lease it. One can get burned real bad, because at lease end they have nothing to show for it.

Also, Many people don't take into account that at lease end, the contract is up. It's over. So you can buy the car at whatever you negotiate at that point. The lease end purchase price on the lease contract is null and void.
For example, on the lease contract for my wife's car a few years ago was around 28,500 end of lease purchase price.
The lease had ended. And I offered 22,500 and we had a deal.

 

[Slojo]

Kinda depends on what is going on too. In 2008 CJDR was offering lifetime powertrain and engine warranties as standard on a new purchase. So I bought a JKU and still have it. It is re-inspected every 5 years to maintain the warranty.

 

[mmatthie]

Rule of thumb with the lease...

Aren't you trying to get your total lease payments over the term + residual payoff to equal close to the selling price outright?

 

[OldButStillJeeping]

Rule of thumb with the lease...

Aren't you trying to get your total lease payments over the term + residual payoff to equal close to the selling price outright?

Yes. And use whatever means to get you the car / Jeep you want at what is either affordable or financially wise.

For instance, a young couple could in essence, finance their dream Jeep for 9 Years.... Thru a 3 year lease and then a 6 year purchase loan at lease end. A Jeep they otherwise could not afford.

At lease end it comes down to 'fair market value'. The dealers live this.

Theoretically, one could lease a car like a Dodge Demon or Ford GT500. The lease contract may state 'end of lease purchase price is $40,000. But at nearing lease end the car is worth say 65,000. You'd be diligent to buy the car before lease end at the lease contract price.
The dealer won't like it but you'll get your car at cheaper than market price.
There is a risk and gamble, but if one researches and keeps up to date on market values. And reads the lease or purchase fine print to avoid loosing money. A lease can be a financial gain.

 

[BLK HOLE]

Leasing is the most expensive way to own/operate a vehicle but if you can afford it then so be it. Not my money.

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