What would YOU do?

[Mister Lamb]

• 2021 Jeep Gladiator Willy's w/ 20,300 miles (zero issues).
• 11 months left on LEASE.
• I have all remaining payments set aside so from here on out any saving is money towards this/next car
• Anticipating having $11k by end of lease
• Lease buyout $32k (original price $48k, purchased in thick of chip shortage)

Do I:

1. Put the $11k down and finance the remainder of my current Jeep?
2. Put $0-little down and use the $10-11k to cover half of my next Gladiator (a 2024-2025 Willy's) lease?

The only reason I'd like to potentially upgrade is because of the rear seat airbag upgrade being that I'm transporting precious cargo in 2 young ones pretty much daily.

I would also most likely be buying the next truck so if I do lease at similar payment I'd have time to save with the $10k to hold me over.


What would you guys do?

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[Janster]

What would I do? I’ve get out of the lease ASAP.
We did a lease one time many years ago and will never do It again.

The only time a lease really makes sense (in my opinion), if is you want a NEW vehicle every 2-3 years and don’t mind having monthly payments all the time.

You’re better off having a loan (to buy the vehicle) where you can shop around for lower interest rates. Whether it’s thru a bank of your choice, or the dealership. You have the option thru-out the term, to pay extra $$ towards the principle and reduce the amount of interest you’re paying. Ultimately…. Pay off the loan early and the jeep is YOURS to keep, trade, or sell.

Probably not what you wanted to hear…but…. That’s what we would do.

 

[swtrailboss]

It’s all about Equity! It seems cash wise making a purchase payment will not be an issue so it’s easy ! Try selling privately instead of trading in on a new purchase. Yes it’s “ more difficult “ to do that but that’s a great payday when you put out the effort based on your desire to purchase a new vehicle every 2-3 years. If you price it right when selling there will be someone with cash or even willing to go through the hoops for a good deal.
Some people can just be too impatient to make money.

“Rome wasn’t built in a day “

good luck!!!

 

[Rahkmalla]

What would I do? I’ve get out of the lease ASAP.

You start with this as your opening paragraph, then follow it up with details about why he shouldn't have leased to begin with.

That ship has sailed, and no amount of telling him it was a bad idea makes terminating the lease earlier a better idea. This advice you're giving is "two wrongs make a right" territory.

The amount of your monthly lease payment is subsidized by your down payment and a function of interest rates in the year of purchase (which were low). Paying off your 2021 lease to buy it out prior to the lease end date is like telling people to take out 7% HELOC money to pay off their 3.75% mortgage. Why drop a low rate loan to replace it with a higher rate loan?

Should he have leased to begin with? Well to your point, unless you want a new vehicle every 3 years: no. BUT since that's already done, getting out of the lease early solves zero problems while causing more.

IF OP wants to keep this Gladiator, he should keep it on the lease right up until the last payment is made (30 days prior to lease end) before he buyouts and finances.

Whether or not he should keep this Gladiator is a function of whether he can replace it with a similarly optioned model with similar mileage for less or not, and if he can find such an example for less, is the amount saved worth sacrificing the knowledge that you know how a vehicle was treated up to that point?

I'd just keep my own rather than buying an unknown unless the savings was at least 3k, and even then I'd have to think about it until we cross the 5k threshold.

 

[Stlrfan152]

I have a loan on mine, but I'm thinking the same about the airbags. It's not comforting knowing the rear passangers just have a door for protection.

 

[Mister Lamb]

I have a loan on mine, but I'm thinking the same about the airbags. It's not comforting knowing the rear passangers just have a door for protection.

Crash test videos for rear passengers is pretty disturbing if you haven't seen them. Heads basically smack against either the window and/or cross bar

 

[Mr._Bill]

• 2021 Jeep Gladiator Willy's w/ 20,300 miles (zero issues).
• 11 months left on LEASE.
• I have all remaining payments set aside so from here on out any saving is money towards this/next car
• Anticipating having $11k by end of lease
• Lease buyout $32k (original price $48k, purchased in thick of chip shortage)

Do I:

1. Put the $11k down and finance the remainder of my current Jeep?
2. Put $0-little down and use the $10-11k to cover half of my next Gladiator (a 2024-2025 Willy's) lease?

The only reason I'd like to potentially upgrade is because of the rear seat airbag upgrade being that I'm transporting precious cargo in 2 young ones pretty much daily.

I would also most likely be buying the next truck so if I do lease at similar payment I'd have time to save with the $10k to hold me over.


What would you guys do?

Go talk to your dealer. Ask them if you will get a better deal just buying a new truck, or involving the lease return in the purchase of a new one. See how their advice compares to what you get here. I think your best experience will be to just turn it back and then go buy a new truck.

A lease is just a long-term rental. It may get you a lower monthly payment, but they are only practical if you want to always be driving a new vehicle, or if you have the actual ability to deduct it as an expense on your taxes.

The leasing company knows the market and computes everything into the price you pay. Unless there is an anomaly in the market at lease end, or they offer a lower buy-out price, you don't come out ahead purchasing the leased vehicle. Save your money and use it as a down payment to purchase a new truck.

You have the time. Find the dealer that will give you the better price, and order exactly what you want to arrive just before the existing lease ends.

 

[Mister Lamb]

Go talk to your dealer. Ask them if you will get a better deal just buying a new truck, or involving the lease return in the purchase of a new one. See how their advice compares to what you get here. I think your best experience will be to just turn it back and then go buy a new truck.

A lease is just a long-term rental. It may get you a lower monthly payment, but they are only practical if you want to always be driving a new vehicle, or if you have the actual ability to deduct it as an expense on your taxes.

The leasing company knows the market and computes everything into the price you pay. Unless there is an anomaly in the market at lease end, or they offer a lower buy-out price, you don't come out ahead purchasing the leased vehicle. Save your money and use it as a down payment to purchase a new truck.

You have the time. Find the dealer that will give you the better price, and order exactly what you want to arrive just before the existing lease ends.

With only $11k to play with unfortunately a new truck purchase is out of the question. $700 payments with current interest rates are a little too rich for my liking. Looking at used 21' Willys the buyout doesnt seem too far off from the current market value but I also have another 11 months left which is obviously not in my favor. 25s will be out by the time this truck is due for return so hopefully I can snag a 24 at an OK price

 

[Mr._Bill]

With only $11k to play with unfortunately a new truck purchase is out of the question. $700 payments with current interest rates are a little too rich for my liking. Looking at used 21' Willys the buyout doesnt seem too far off from the current market value but I also have another 11 months left which is obviously not in my favor. 25s will be out by the time this truck is due for return so hopefully I can snag a 24 at an OK price

To keep the payments down where you are comfortable with them will keep you stuck in the leasing cycle. You can reduce the payment using the $11K you will have available, but that's not enough to make it affordable to purchase. Work with your preferred dealer to order what you want and have it there to start a new lease when you turn back the old one.

 

[MPMB]

Keep it, with this caveat - if the rates aren't down next year when it's time to "turn it back in" and the market value is less than what it'd cost you to buy it.

My niece just got out of her lease and bought her car. She's about $3k on the plus side.

Our JT has a great loan, so there's no reason for me to get out of ours, even for "the new hotness." The only thing that'd get me to move to a new JT would be a V8 or a 400+ hp V6.

 

[Minty JL]

I'd say roll the cash over into the '24 with the stupid deals on JTs. Right now and you get a new full warranty and additional safety features.

Ultimately, do what's best for the family

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