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This is why I lease

Garemlin

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I've leased my last three vehicles. 2017 F-150, 2019 Grand Cherokee and my current 2021 Gladiator. The previous two I traded in early before the end of the lease with no negative equity to worry about. So some could say I threw the money away on lease payments. But at the end of the day what's the difference between that and having to roll negative equity into a new loan and end up doing the same the next time since you will still be upside down?? Yeah you can prevent negative equity by putting down a huge down payment. But that's a gamble. You'll never know what your trade in value will be until that time comes. So again you could be throwing money away.
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TwelveGaugeSage

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I don't lease for the same reason I don't play competitive poker despite being good enough to always come out ahead in blackjack. It's a whole different game and if you don't know all the ins and outs, you are just going to lose more money.

Well, that and tend to own my cars for a long time. I owned my '03 TJ from '09 until last month. Before that I had an XJ for almost 10 years.
 

WXman

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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.

Gladiator.jpeg
Exact same here. I never go full term, and always go above "allowed" miles, and leasing works great.

Lots of people dump money into hobbies. I don't, I just enjoy driving a new truck every couple of years.
 

rr11

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I don't lease as I normally keep vehicles long term. My 03 F250 and my wife's 05 TJ are examples. A friend of mine leased a Dodge PU in the late 80s one day he told me he had to turn in the lease that weekend. Monday he was still in the truck. When I ask what happened he said 5,000 to buy 9,000 to turn it in.
 

dcmdon

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I'm curious about that color.

Is that not available in the US??
 

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Horde

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I'm curious about that color.

Is that not available in the US??
Sarge Green. Should be available in the U.S. I'd be surprised if it isn't
 

bleda2002

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I’ve never found it fiscally advantageous to lease despite noodling on the numbers well over a dozen times. I too go through vehicles quickly, it’s actually a problem hah, but yeah. It seems so absurd to me to lease but it’s likely ignorance on my part. I’ve never been upside down on a vehicle beyond my very first over 20 years ago. I get a great interest rate, put down enough to max out the down payment cap before incentivized rates are a no-go (no more than 25% with FCA) and because I typically order, I never pay close to MSRP or even invoice. My JT was just shy of 7% off invoice. EP pricing is horrendous.

So you lease and put X down and pay X a month with a mileage and condition agreement on turn-in. In most cases you pay on return but even if jeep handed you back a few grand, you’d still leave thousands on the table.

Last time I was in the finance box I was told that 95% of the folks that walk into a dealership are monthly payment buyers, meaning they are so strapped that they can only grasp what X amount means to their livelihood per month and they shoot for the moon. It’s at that time leasing (if credit permits) starts to be viable.

What is the scenario where leases make sense financially? I’m asking honestly, I have a son who just started driving and I’ve told him to stay away from credit cards, leases, lottery and 30 year mortgages. I lump them all together.

Am I just an old school simpleton?
In some ways yes. How much you put down should really be a function of market conditions and interest rate (assuming monthly payment isn't a factor). Market typically returns 3-6% or more lately so if your interest rate is well under that you'd actually save more by putting down less and stretching the payments longer while having the money invested. The put as much down as possible makes more sense when you have poor credit or have interest rates above or at the market return rate and you don't have other higher interest debt you could pay off instead. Current conditions with interest rates makes it very unattractive to put more down than needed as you are leaving money on the table.
 

bleda2002

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I have looked into leasing, for the two new cars I bought last year the sum of the payments at the lease end were much higher than the depreciation the vehicles would have at the end of the lease term.
If a car is worth more at the end of the lease than the buyout you can recoup that money by trading it in or buying it for the cheaper price and then selling it yourself. The real cost of the lease is the fees and the interest rate but it comes with advantages such as if you have an accident you don't get diminished value against you at the end and can just turn it in if it's worth less than what you agreed to.
 

dcmdon

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Sarge Green. Should be available in the U.S. I'd be surprised if it isn't
Interesting. It looked different than Sarge. It must be my computer. Or my eyes. Ha.
 

Labswine

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I leased mine...both my 2020 Gladiator, got in July 2019 and my 2019 GC Ltd. For me it was an easy way to get into a new car with payments I could afford plus, I was planning on buying them when the leases ran out. When I got my JTO, it was $50K out the door and I put down $9.5K. Payments are ~$390/month. My wife's GC was $45K, I traded an '11 GC Hemi Overland for it and got $8K (had over 120,000 miles on it) and another $7.5K in dealer incentives so leasing that came to ~$352/month. Financing either for 6 years would have been around $690+/month, each. So, for me leasing made sense. Both vehicles gotten within a week of each other have around 15,000 miles on them.
 

Maximus Gladius

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I’ve never found it fiscally advantageous to lease despite noodling on the numbers well over a dozen times. I too go through vehicles quickly, it’s actually a problem hah, but yeah. It seems so absurd to me to lease but it’s likely ignorance on my part. I’ve never been upside down on a vehicle beyond my very first over 20 years ago. I get a great interest rate, put down enough to max out the down payment cap before incentivized rates are a no-go (no more than 25% with FCA) and because I typically order, I never pay close to MSRP or even invoice. My JT was just shy of 7% off invoice. EP pricing is horrendous.

So you lease and put X down and pay X a month with a mileage and condition agreement on turn-in. In most cases you pay on return but even if jeep handed you back a few grand, you’d still leave thousands on the table.

Last time I was in the finance box I was told that 95% of the folks that walk into a dealership are monthly payment buyers, meaning they are so strapped that they can only grasp what X amount means to their livelihood per month and they shoot for the moon. It’s at that time leasing (if credit permits) starts to be viable.

What is the scenario where leases make sense financially? I’m asking honestly, I have a son who just started driving and I’ve told him to stay away from credit cards, leases, lottery and 30 year mortgages. I lump them all together.

Am I just an old school simpleton?
If you own a business, (in Canada) the business portion of the lease payment of the vehicle is the portion you write off toward your taxes. If however you still have that business but you took out a loan for the vehicle, the portion of business use on the “interest” of the loan is your write off.
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