Lease or Finance (1 Viewer)

[Mitchell0618]

Looking to get a 2014 Jeep Wrangler Unlimited

Trading in my Envoy and can get $10,000 for it

Lease - put $6,000 down 39mth lease 12k miles a year for $296/mth

Finance - put all $10,000 down 72 mth finance is $377

Thoughts?

 

[Mr. Ected]

I've always thought that whether to lease or buy depended largely on your mileage/year. If you drive a ton, you probably need to buy since the finance company will charge you a ton when you are done with the lease.

Also if you want to keep a car forever and not have a car payment, then buy. (Have not had a car payment in a couple years, and that is very nice!!!)

 

[eoMMan]

Don't focus on pmnt. Look at the total price. Is it fair? Is your trade in fair?

For most people who don't need a new car every few years, leasing usually ends up being a ton more expensive.

 

[belljr]

I buy only because I keep my vehicles 8 plus years

 

[Mitchell0618]

I kept my Envoy for almost 8 years now and would consider financaing the balance of the Jeep after the lease is up. I dont think I can swing the extra $50-$60 per month to finance

 

[Cliff Clavin]

Looking to get a 2014 Jeep Wrangler Unlimited

Trading in my Envoy and can get $10,000 for it

Lease - put $6,000 down 39mth lease 12k miles a year for $296/mth

Finance - put all $10,000 down 72 mth finance is $377

Thoughts?

Buyout price after lease? Are you buying it out?

Why are you putting down money on a lease, especially if you don't plan to buy it out?

 

[Ignoramus]

I dont think I can swing the extra $50-$60 per month to finance

Then I vote neither. Seriously.

 

[Bucky86]

Looking to get a 2014 Jeep Wrangler Unlimited

Trading in my Envoy and can get $10,000 for it

Lease - put $6,000 down 39mth lease 12k miles a year for $296/mth

Finance - put all $10,000 down 72 mth finance is $377

Thoughts?

Buyout price after lease? Are you buying it out?

Why are you putting down money on a lease, especially if you don't plan to buy it out?

It's almost always not worth buying out a lease.

Also, to the OP. The goal with leasing is to put down the least amount possible to get the payment you can afford.

 

[Mitchell0618]

I need to put $6000 to get under $300 for a lease and was planning on financing the residual. would put balance of trade $4000 to lower residual to about $18000 and finance for 4 years at approx 2.4%

I am leaning towards buying by putting all $10,000 down.

 

[Dentist]

Looking to get a 2014 Jeep Wrangler Unlimited

Trading in my Envoy and can get $10,000 for it

Lease - put $6,000 down 39mth lease 12k miles a year for $296/mth

Finance - put all $10,000 down 72 mth finance is $377

Thoughts?

if you can't afford a car in 36 months or less, you can't afford the car

1) why are you selling the envoy?

2) why can't you find a car good enough for what you need for 10k?

3) wrangler is a horrible choice for transportation anyway

72 months? seriously? 6 freaking years? geebus that's unreal... what's next 50 year mortgage? 10 year car loans?

 

[Dentist]

I dont think I can swing the extra $50-$60 per month to finance

Then I vote neither. Seriously.

this... if 50-60 bucks a month even remotely affects your budget you should never be in the market for a new car

 

[gianmarco]

Looking to get a 2014 Jeep Wrangler Unlimited

Trading in my Envoy and can get $10,000 for it

Lease - put $6,000 down 39mth lease 12k miles a year for $296/mth

Finance - put all $10,000 down 72 mth finance is $377

Thoughts?

My thoughts are that you need to make sure you're paying the same amount for the vehicle in both cases. And you need to check and make sure it's a good price for that car. You also need to make sure the $10k for your trade-in is fair and accurate. Then you need to check what the interest rates are for both terms. Finally, you need to see what the residual on the Wrangler is. If it's a lower residual, then it's probably not a good idea to lease.

Based on what you've provided and how you've worded your question, I'm not sure you know the answers to these. And this is how car dealerships make money.

 

[shadyridr]

Looking to get a 2014 Jeep Wrangler Unlimited

Trading in my Envoy and can get $10,000 for it

Lease - put $6,000 down 39mth lease 12k miles a year for $296/mth

Finance - put all $10,000 down 72 mth finance is $377

Thoughts?

if you can't afford a car in 36 months or less, you can't afford the car

1) why are you selling the envoy?

2) why can't you find a car good enough for what you need for 10k?

3) wrangler is a horrible choice for transportation anyway

72 months? seriously? 6 freaking years? geebus that's unreal... what's next 50 year mortgage? 10 year car loans?

Depend what the int rate is IMO. If its something like 1.9%, I wouldnt go crazy worrying about the length

I dont think I can swing the extra $50-$60 per month to finance

Then I vote neither. Seriously.

this... if 50-60 bucks a month even remotely affects your budget you should never be in the market for a new car

Agreed

 

[belljr]

Yeah I got a zero down 0% rate... 5 years was fine

 

[Patriotsfatboy1]

For the lease, you need to know the lease factor and the residual.

The lease factor is essentially the interest rate that you are paying and the residual is the expected trade in value of the car at the end of the lease. If the lease factor is similar to the interest rate that they are offering on the purchase, then that is a wash, but it is likely that the lease factor is higher.

You should be able to compare the trade in value of similar vehicles to determine how well they hold their value (I think that kbb and Edmunds track this for you). If that residual is better than what you think will happen based on your mileage, then it may be worth it.

Neither is right or wrong IMO.

 

[=Smackdown=]

Finance

I prefer to have an asset I can control after making payments. Plus I drive a lot and own cars for more than 5 years at a time.

 

[(HULK)]

I kept my Envoy for almost 8 years now and would consider financaing the balance of the Jeep after the lease is up. I dont think I can swing the extra $50-$60 per month to finance

Keep your Envoy another couple of years then.

 

[George Jefferson Airplane]

Doesn't seem like you can afford either option from what I've read. Plus have you seen the type of people driving jeeps? Don't be that guy.

 

[Kanil]

Looking to get a 2014 Jeep Wrangler Unlimited

Trading in my Envoy and can get $10,000 for it

Lease - put $6,000 down 39mth lease 12k miles a year for $296/mth

Finance - put all $10,000 down 72 mth finance is $377

Thoughts?

if you can't afford a car in 36 months or less, you can't afford the car

1) why are you selling the envoy?

2) why can't you find a car good enough for what you need for 10k?

3) wrangler is a horrible choice for transportation anyway

72 months? seriously? 6 freaking years? geebus that's unreal... what's next 50 year mortgage? 10 year car loans?

I plan to take out a 50 year mortgage on my 95th birthday!

 

[dickey moe]

I dont think I can swing the extra $50-$60 per month to finance

Then I vote neither. Seriously.

this... if 50-60 bucks a month even remotely affects your budget you should never be in the market for a new car

/thread...though I doubt he will heed the advice.

 

[Dentist]

Looking to get a 2014 Jeep Wrangler Unlimited

Trading in my Envoy and can get $10,000 for it

Lease - put $6,000 down 39mth lease 12k miles a year for $296/mth

Finance - put all $10,000 down 72 mth finance is $377

Thoughts?

if you can't afford a car in 36 months or less, you can't afford the car

1) why are you selling the envoy?

2) why can't you find a car good enough for what you need for 10k?

3) wrangler is a horrible choice for transportation anyway

72 months? seriously? 6 freaking years? geebus that's unreal... what's next 50 year mortgage? 10 year car loans?

I plan to take out a 50 year mortgage on my 95th birthday!

:money:

 

[CGRdrJoe]

honestly if you don't plan on putting too many miles on the jeep then leasing and then private selling at the end of your lease is the way to go. My buddy does this every 4 years with bmw's, basically the buy out amount at the end is usually around 16k for his car and he winds up selling privately for around 18. Rinse and repeat but he probably puts on about 4-6k miles on his car per year so the car doesn't depreciate too much.