This is why I lease

[Beewdawg]

My wife liked to trade every 2.5 to 3 years - always a Grand Cherokee. This time may be her last because FCA screwed up on the Grand Cherokee for 2021 1/2 model year. So this 2021 WK2 may be her last trade for a while. She likes paying cash but before we could do that it was always pay as much down as we could afford, make payments for a while - pay ahead, then pay it off after a couple of years or less. Her last trade was so clean, and low miles (2.5 years old, 13,000 miles) she got a crazy good deal.

She hates payments, so these current Jeeps were paid for before we left the dealership with them.

Leases are great for some - I prefer to own things and have them on my own balance sheet. Always been that way. It's just more simple that way.

I know what you mean about owning vs leasing.
Before getting my JT, I haven't had a vehicle payment in 20 years.
I put about half the purchase price down on my JT and financed the rest at 0% for 3 years. I'm still tempted to just pay it off early though.

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[ALVagabond]

I know what you mean about owning vs leasing.
Before getting my JT, I haven't had a vehicle payment in 20 years.
I put about half the purchase price down on my JT and financed the rest at 0% for 3 years. I'm still tempted to just pay it off early though.

I financed about half of mine after trade and cash down. I planned to have it paid off after 2 years, but I got lucky and got it done in one year. Now its mine, free and clear.

 

[Beewdawg]

I financed about half of mine after trade and cash down. I planned to have it paid off after 2 years, but I got lucky and got it done in one year. Now its mine, free and clear.

It's just something about have that note hanging over my head that bugs me, but it'd be kinda silly to pay off a 0% loan early.

 

[Jeeperjamie]

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.

You can write it off as a business expenses either way, lease or buy. I write all 3 of my vehicles off as a business expense. Leasing is ok if your not building a jeep but if your planning on building it and taking it off road then a lease isn't going to be for you. On a side note I put 137,000 miles on my JKU in 7yrs of ownership and sold it to the dealership I bought my gladiator from for $11,000 with a pretty beat up body, no AC working and 2 inches of water in all floorboards. I only paid $23,900 for it in 2013 with 22,000 miles on it. The way these things hold their value it's almost just as smart to buy. They almost always yield a good return when you sell them.

 

[slowstang305]

I modify everything I own so I could not live with a lease. Cars become part of the family as I'm very attached to them. I know lease works for some people.

 

[Wicked1]

The market is funny now that people can trade in their vehicles and get great value, but that hasn't always been the case.

I lease vehicles and the terms have always varied, but in the end I never hold onto a vehicle until the end of term. I've returned vehicles after a year without any penalty and even got some money back. During the pandemic I've had 4 new vehicles (all jeeps of course).

So I'm returning my Overland (which I used mostly as truck) and am picking up this Rubicon on Tuesday. It was shipped on Wednesday and showed up at the dealer today. Really excited for the Rubicon and I've always wanted this green. The dealer gave me $3,000 equity from the Overland and EP on this one. I was told that only about 5-8% of Gladiator production makes it into Canada so I'm really happy with this deal and the vehicle.

Leasing isn't for everyone, but it's always worked in my favour.

I thought about leasing but not knowing too much about it I didn't do it because I thought that I'm not able to mod the Jeep at all unless I want to give up all the parts after the lease.

 

[arneb04]

I put too many miles on to even entertain a lease, but I guess if you have the money to burn and your only concern is driving the newest version of whatever then it’s right for you. To me it’s just long term possession of a rental car. Someone else owns it, you get to pay to use it on their terms and when you’re done you do it all over again. I get anxiety renting a car for a week on vacation, I can’t imagine what doing it for a few years would do to me lol

 

[Jeeperjamie]

I put too many miles on to even entertain a lease, but I guess if you have the money to burn and your only concern is driving the newest version of whatever then it’s right for you. To me it’s just long term possession of a rental car. Someone else owns it, you get to pay to use it on their terms and when you’re done you do it all over again. I get anxiety renting a car for a week on vacation, I can’t imagine what doing it for a few years would do to me lol

Another reason I don't lease, the miles. Have never put less than 16,000 miles on one in under 12 months. I just turned 31,000 on my JT in 16 months on ownership.

 

[TrainMan]

I've never leased, nor have my parents. We typically keep our vehicles until they begin fall apart. That being said, my aunt & uncle have almost always leased. They typically keep a vehicle no more than two years, usually much less. Now, most of that influence is my uncle who has never been happy with any of his car purchases.

 

[Rocco-1]

I've leased vehicles for 40+ years. I learned a valuable lesson on my first lease and haven't made it since. I keep on top of the market/timing, and keep my vehicles in primo condition inside, and out. So, any dealer that gets a look at my vehicle starts to salivate. The best reason is I can write off a good portion of my lease expenditure for business use.

 

[Jeeperjamie]

I've leased vehicles for 40+ years. I learned a valuable lesson on my first lease and haven't made it since. I keep on top of the market/timing, and keep my vehicles in primo condition inside, and out. So, any dealer that gets a look at my vehicle starts to salivate. The best reason is I can write off a good portion of my lease expenditure for business use.

That's hard to do when your leasing a Gladiator or Wrangler when you plan on taking it off road. Your not going to keep it in primo shape if your doing that.

 

[Cripton805]

That's hard to do when your leasing a Gladiator or Wrangler when you plan on taking it off road. Your not going to keep it in primo shape if your doing that. It doesn't matter if you trade it in or buyout. You only get penalized for miles, condition, or mods if you turn it in at the end of your lease term.

 

[Jeeperjamie]

It doesn't matter if you trade it in or buyout. You only get penalized for miles, condition, or mods if you turn it in at the end of your lease term.

That's what the Op is saying, he turns it in at the end. If your planning on not turning it in and buying it then why lease in the first place.

 

[Cripton805]

That's what the Op is saying, he turns it in at the end. If your planning on not turning it in and buying it then why lease in the first place.

OP Said:
"in the end I never hold onto a vehicle until the end of term"

You can also do a trade in. You will receive the benefits of positive equity, like the op. You also avoid paying the taxes on 40k+. You only pay for the taxes on the leased amount instead of the entire cost of the vehicle. With a lease, you can also return the car at the end of your term if it's a complete lemon while having cheap affordable payments during the term. With a purchase, you are stuck with a car without any idea what it's going to be worth after a few years. You are locked into a contract with a guaranteed residual value. If the Gladiator was a complete failure and depreciation took a massive 50% and our residual was high. Then you could just return it or vice versa. Some states might have low tax, but in CA it will cost me thousands of dollars to purchase and trade in right away vs. a lease.

When I leased my Wrangler, I wanted to try it out for an extended period of time. I also knew I was going to drive it hard offroad. I ended having super low payments, 3 people crashed into me, I had warranty issues, paint issues, clutch issues.

Even with 3 accidents and all of those problems. I still traded it in and got 2k on top toward my Gladiator that I purchased because they offered 15% off with a low interest rate. It made more sense to purchase vs. lease on this one.

You have to look at your needs and do the math.
Time of ownership / Depreciation / Taxes / Fees.
One vs. the other will save you money.

 

[Falcor]

We have leased my wife's last 4 cars (1 kia, 3 subaru's) and for me it's nice to know she is in a safe fairly new car with a full warranty that I do not have to work on. I'm still trying to decide if I will do a lease or finance my next vehicle. It really depends on what vehicle I decide on.

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