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-   -   I tried to get my bro-in-law into a WK2 but... (http://www.jeepgarage.org/f73/i-tried-to-get-my-bro-in-law-into-a-wk2-but-14076.html)

QBNKID 10-17-2010 09:53 PM

I tried to get my bro-in-law into a WK2 but...
 
But he wanted to lease it, and the Jeep lease programs are not as attractive as from other car companies.
He is now looking at a Toyota Highlander (same price as the WK2) even thou he likes the Jeep much more, but comparing apples to apples the Toyota was about $150/mo less on the payments.
The monthly payments were cheaper financing it than leasing it lol. Still it didn't work out for him.

I wonder why Jeep doesn't have better lease programs on the WK2... It would be to their advantage to be more competitive with other brands. Even one of the Jeep sales managers admitted they can't compete with Toyota on their lease programs. That sucks!

Bmwister 10-17-2010 10:24 PM

Re: I tried to get my bro-in-law into a WK2 but...
 
Per your leasing complaint, the rates for buying right now are excellent. Lease residuals were estimated very low initially on the 2011 so their lease rates where not very good. However, I believe the (resale price) of the WK2 is going to hold quite well and some dealers are just now (this week) adjusting lease rates to account for the better residual value at the end of a lease. So, watch for lease rates dropping very soon; dealers are motivated to keep the aged inventory low.

IMHO, leasing has all the disadvantages of owning a vehicle but without the benefit of actually owning it. By "benefit" I mean buying provides one the complete flexibility to do whatever they want whereas by leasing you're simply financing the initial (high) depreciation for 1-3yrs use and then have nothing to show for all those payments when you turn it in. Everyone I know who leases gets dinged for mileage at turn-in time and that should be a prime consideration.

FWIW, I've run the numbers on leasing for years and have always ended up buying then selling/trading after a few years where I make out better financially than by leasing. Admittedly, sometimes the difference was only $1000 in my favor (by buying) but mostly it was a few thousand. It all depends on what the rates are if there are crazy lease deals. Whatever you do, put as little as you can down up front for the lease; $0 down plus tax, title would be the goal.

JoeSchmoe007 10-17-2010 10:35 PM

Re: I tried to get my bro-in-law into a WK2 but...
 
Quote:

Originally Posted by Bmwister (Post 286317)
Per your leasing complaint, the rates for buying right now are excellent. Lease residuals were estimated very low initially on the 2011 so their lease rates where not very good. However, I believe the (resale price) of the WK2 is going to hold quite well and some dealers are just now (this week) adjusting lease rates to account for the better residual value at the end of a lease. So, watch for lease rates dropping very soon; dealers are motivated to keep the aged inventory low.

IMHO, leasing has all the disadvantages of owning a vehicle but without the benefit of actually owning it. By "benefit" I mean buying provides one the complete flexibility to do whatever they want whereas by leasing you're simply financing the initial (high) depreciation for 1-3yrs use and then have nothing to show for all those payments when you turn it in. Everyone I know who leases gets dinged for mileage at turn-in time and that should be a prime consideration.

FWIW, I've run the numbers on leasing for years and have always ended up buying then selling/trading after a few years where I make out better financially than by leasing. Admittedly, sometimes the difference was only $1000 in my favor (by buying) but mostly it was a few thousand. It all depends on what the rates are if there are crazy lease deals. Whatever you do, put as little as you can down up front for the lease; $0 down plus tax, title would be the goal.

So what is the "optimal" number of years to keep new vehicle that you purchased? Say you paid 100% cash and no financing involved.

GR33N D3M0N 10-17-2010 10:53 PM

Re: I tried to get my bro-in-law into a WK2 but...
 
Quote:

Originally Posted by Bmwister (Post 286317)
Whatever you do, put as little as you can down up front for the lease; $0 down plus tax, title would be the goal.

my brother got a 2008 nissan altima 2.5SL(i think retail was ~25) $0 down, paying $265/month 39months/39000 miles....not too bad...

Bmwister 10-18-2010 08:53 AM

Re: I tried to get my bro-in-law into a WK2 but...
 
Quote:

Originally Posted by JoeSchmoe007 (Post 286344)
So what is the "optimal" number of years to keep new vehicle that you purchased? Say you paid 100% cash and no financing involved.

Typically I sell at 2yrs/30,000 miles or 3yrs/45,000 miles or hang on for 6+yrs depending on how I feel; it makes it easier to sell at a good price if there's factory warranty left on the vehicle but I watch what the selling market is doing. Most depreciation is in the first year and in the case of 2011s being sold in mid-2010, it works even better to buy in 2010. This "rule" I follow depends upon the known lifecycle of the vehicle at the time of purchase (i.e. I would not have purchased a 2010 JGC knowing about the redesign in 2011).

tkln 10-18-2010 02:55 PM

Re: I tried to get my bro-in-law into a WK2 but...
 
I know I'm paying too much for my lease, but I couldn't wait any longer to get into the WK2. I'm sure the numbers will get better in the next couple of months. I do have the added advantage though that for me the lease is a tax write off.


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