A Discussion of Differing Points of View: Is Jeep Leasing an Intelligent Choice or a Dumb One ??

[shade]

Said no Jeep owner ever.

I'm a Rubicon owner and I can not 100% agree. Dont try to persuade me with logic, either.

You, buy a Gladiator?

You already own the perfect Jeep model. Anything else can only hope to be almost as good as an LJ.

 

[MOguy]

Vehicle "Leasing" is an alternative method for vehicle financing.

Nothing More!

I disagree 100%.

You finace to buy and lease to use. Two completely different ways to get a vehicle and for different reasons.

I lease a 2019 Camay, in 3 years I will lease a 2022 something else, in three more years I will lease a 2025 something else... In 20 years I still plan on owning my 2001 Wrangler and my 1979 K30.

I want a new car for the wife and family adventures. I want it to have a warranty, I want a loaner if or when it breaks down, I don't even want to open the hood or check the oil. I don't want to own a new car because a week later it is not a new car. IF IF IF you change out a car every few years leasing could be the ticket. You lease the vehicle based on it residual value, not the car itself. You pay tax and finance charge on only a fraction of a vehicle. When you buy you pay tax and finance on an entire vehicle. That is money lost IF you trade vehicles every few years.

 

[vintageracer]

Buyer or Renting (Leasing) either way you entered a financial contract by signing on the dotted line and are still on the hook for the money you BORROWED TO BUY OR USE (lease) the vehicle. Both have PAYMENTS!!!

Just try and turn the lease vehicle in early and you will learn all about how much money you will OWE to get out of the contract. Just like the money you may OWE if you are upside down on a vehicle loan.

Leasing is STILL just an Alternate Method of Financing a vehicle you can't afford to pay for in total upfront or pay for in total upfront for the specific amount vehicle life you contract/finance to use!

By the way the automobile manufacturer's and the banking industry have you completely in their corner right where they want to be:

A LIFELONG PAYMENT BUYER!!!

 

[Dances with Wolves]

I disagree. Leasing is just paying for the depreciation over a given period of time. As MOguy so eloquently stated, it's a fixed expense and there'll be no additional out of pocket surprises. He gets to drive a new car every few years and have zero worries compared to driving an older vehicle that can nickel and dime you with repairs, wear & tear items and down time. And it will still be old.

My dad leased vehicles for the same reasons. For him, leasing was a good fit. He drove minimal miles, wanted a new vehicle every few years with no repairs and didn't want to jam up his credit with the full amount of buying. He also paid his leases up front so that got him a discount.

Leasing is a good option for some consumers but not everyone.

 

[AbleGuy]

A weird and fascinating constant found in so many of these Expo discussions is how incredibly quickly we all wind up moving wildly off thread from the OP’s chosen topic....and yet at the same time, how wonderfully interesting, informative, entertaining, strongly opinionated and often wryly humorous these great, wandering diversions become.?

Rarely a boring moment here...lots of great, creative posters chiming in.

(Thread Title Changed to Reflect the True Course of This Entertaining Debate)

 

[shade]

In an effort to support the title change, Spouse Leasing would seem to parallel the pros & cons of vehicle leasing.

 

[mobydick 11]

we need to answer your question with a question . What are you going to use it for? If you intend to modify and use it off road ,then its a bad idea. if its a tax rite off then yes its a good idea .

 

[shade]

I prefer keeping a Spouse stock, even if using one off-road. I say get what you want from the start, and perform maintenance regularly. Modifications may look nice, but can be costly, and can create more grief than they're worth.

Whatever the tax implications, an older, poorly maintained, modified model may not compare well with a new one in stock form. Maybe modifications are better done on a Lease, since you can always opt out if the end result is unsatisfactory. Better that if you like to always have a new one; maintaining two never seems to work out.

 

[86scotty]

I prefer keeping a Spouse stock, even if using one off-road. I say get what you want from the start, and perform maintenance regularly. Modifications may look nice, but can be costly, and can create more grief than they're worth.

Whatever the tax implications, an older, poorly maintained, modified model may not compare well with a new one in stock form. Maybe modifications are better done on a Lease, since you can always opt out if the end result is unsatisfactory. Better that if you like to always have a new one; maintaining two never seems to work out.

Probably the best post ever made. Cheers! And thank you!

 

[MOguy]

Leasing is STILL just an Alternate Method of Financing a vehicle

If you can't understand how wrong that is you can NEVER understand why leasing could be a benefit.

My 2019 Camry is over 30K to buy. I would have to pay tax and interest on that entire loan if I buy it. I will pay about 16K for the lease and only pay finance charge and tax on 16k if leasing. That is a decent amount of money saved. there is no way I will tie up over 30k in a depreciating asset/liability.

You should lease with the thought you will NEVER own and only use it for a limited time. Some peoples needs change, some don't want to deal with maintainance and want a trouble free car (me). Some just want something new all the time.

You think of a vehicle as a something to enhance your life, not a $$$ investment, your not coming out ahead $$ wise on a new car. You just look for ways to loosed less$$$.

The top three are my vehicles, the bottom one the wife/Family car. I will drive a vehicle until the wheels fall off and then slap them back on. I will use JB weld if necessary. But when it comes to the family / wife car. I want something modern and I don't even want to open the hood.

 

[MOguy]

As far as money, I will not hesitate to trade money for my family's safety and well-being.

What is more valuable money or peace of mind?

 

[jadmt]

I do not live in a state that has sales tax so not sure how it works but say my current vehicle is worth $40000 on trade and it is paid off and I trade it in on a $50000 vehicle so the difference is $10000 do I pay tax on $50000 or $10000? If on the $50000 I guess I could see leasing if you are short on cash but if on $10,000 I would think it would be a break even affair at worst as if you buy you are gaining equity as long as you are not foolish and buying above your means. Leasing for me has never made a lot sense, but I have always had a paid off vehicle that I sold or traded in. Bought my first new vehicle in 1977 (1974 if you count motorcycles).

 

[MOguy]

I do not live in a state that has sales tax so not sure how it works but say my current vehicle is worth $40000 on trade and it is paid off and I trade it in on a $50000 vehicle so the difference is $10000 do I pay tax on $50000 or $10000? If on the $50000 I guess I could see leasing if you are short on cash but if on $10,000 I would think it would be a break even affair at worst as if you buy you are gaining equity as long as you are not foolish and buying above your means. Leasing for me has never made a lot sense, but I have always had a paid off vehicle that I sold or traded in. Bought my first new vehicle in 1977 (1974 if you count motorcycles).

The variable with leasing is residual value. It's hard to compare Vehicles based on what the vehicle is itself you have to compare residual values. When it comes to the money side of leasing, the vehicle itself is really irrelevant, it is the residual value that you have to concern yourself with.

 

[jadmt]

The variable with leasing is residual value. It's hard to compare Vehicles based on what the vehicle is itself you have to compare residual values. When it comes to the money side of leasing, the vehicle itself is really irrelevant, it is the residual value that you have to concern yourself with.

I would think the vehicle itself has everything to do with residual value. Any desirable vehicle most likely will have higher residual value no? Again in a state that has taxes if one has a trade what portion is taxed the entire msrp or is it negotiated price or just the difference? What about modifications? can a person modify a leased vehicle (mostly asking about jeeps as what other vehicle would be modified )

 

[MOguy]

I would think the vehicle itself has everything to do with residual value. Any desirable vehicle most likely will have higher residual value no? Again in a state that has taxes if one has a trade what portion is taxed the entire msrp or is it negotiated price or just the difference? What about modifications? can a person modify a leased vehicle (mostly asking about jeeps as what other vehicle would be modified )

yes the vehicle does matter but you don't pick it based on its capabilities and limitations you pick the vehicle based on the residual value.

when you buy a vehicle, you plan on keeping, you picked up vehicle based on its capability and limitations in accordance with your needs,you don't concern yourself as much at the resale or residual value.