Jeep Garage  - Jeep Forum

Jeep Garage - Jeep Forum (http://www.jeepgarage.org/forums.php)
-   Grand Cherokee - WK2 - (http://www.jeepgarage.org/f73/)
-   -   Buy out my lease or not? (http://www.jeepgarage.org/f73/buy-out-my-lease-or-not-52786.html)

VANT4GE 01-12-2013 08:08 AM

Buy out my lease or not?
 
Hey Guys,

I just wanted some feedback to see if my Jeep is worth buying at lease end.

I have a 2011 Jeep Grand Cherokee Laredo 4WD 4dr SUV. No Nav, cloth seats and no extras. I will have around 60,000 miles at the end of the lease.
MSRP $32,995

My lease total was $17,300 ($401 x 36/Months) $3700 down.
Buy out option is $20,300

Is this a good deal?

SnoFire 01-12-2013 08:21 AM

Re: Buy out my lease or not?
 
Are you having to finance that amount, if so how long? I'd say trade up

VANT4GE 01-12-2013 08:27 AM

Re: Buy out my lease or not?
 
Yes, I would have to finance the remaining $20,000 for 36 months. After interest looks like i'm around $39,000 total for a $33,000 truck. Seems to high.

SnoFire 01-12-2013 08:37 AM

Re: Buy out my lease or not?
 
That will happen, you basically are just financing it for 72 months. Maybe look into a 2013 or 14 and then lease one of those. Why not trade up if you have the chance.

Hacksaw 01-12-2013 10:24 AM

It depends...are you over mileage on your lease ? If you are you need to factor in that cost on the trade up and you may find its cheaper to buy it out and trade it in or sell it outright to avoid paying both the over mileage and financing costs.

Think Outside !- No Box Required.

FAUEE 01-12-2013 12:39 PM

Re: Buy out my lease or not?
 
The question is if you'd like to keep making payments forever, or if you'd like to eventually own it outright.

If you were to try to buy your truck on the open market, you'd pay more than 20k for it. So buying yours out is the right decision if you'd like to keep it and eventually own it out right.

With 60k miles though, you're probably going to get killed on the mileage issue.

bill_de 01-12-2013 12:59 PM

Re: Buy out my lease or not?
 
I realize you are currently paying interest, but you're talking about paying $37,600 for a $33,000 vehicle. I guess, depending where you live, there is sales tax in the $17,000 and will be more on the $20,000.

If you want to keep it, first try to negotiate a lower buy out. Also, while there are still some around, try to make a deal on a '12 or '13. These are going for well under invoice with all the incentives, and probably at a better interest rate. And you'll be starting at 0 mileage.

plynn7 01-12-2013 01:40 PM

Re: Buy out my lease or not?
 
Did you lease thru Ally and if so are they charging you the 10% fee to buy the lease? If so then add $2000 to that $20,000 buyout price.

VANT4GE 01-12-2013 03:25 PM

Re: Buy out my lease or not?
 
Yes, I leased through Ally, I checked my agreement and do not see anything about an additional 10%, might be included in the 20,000.

I think i will try to negotiate the buy out or see if I can find a really low rate on a 2012 or 2013.
The only reason i don't want to keep it is because of the high miles.

Thanks for everyone's feedback.

Hacksaw 01-12-2013 06:14 PM

High miles ? It's not even broke in yet !

Think Outside !- No Box Required.

Knightrider03m 01-12-2013 06:23 PM

Depending on how much you are over mileage it maybe cheaper to buy it outright or trade it in. However the apr in a buy may or may not be that good seeing as you are more than likely asking the bank for a lot more money then what the car is worth.

Sent from my nexus 7 tablet while I'm away from my real computer

Jamesla30 01-13-2013 12:16 PM

Re: Buy out my lease or not?
 
You have to be WAY over the mileage... standard leases are 12,000 miles per year, maybe you have 15,000 per year if you paid extra. Considering a $.20 average fee that means you are going to owe $3,000-$4800 just in mileage charges. In the case, buy the car, and drive it until it dies. Leasing cars every 3 years is pretty dumb in my opinion, unless you have the money and don't mind flushing it down the toilet. Leasing a car for 3 years, and then buying it outright with cash on the other hand, can be advantageous.


All times are GMT -5. The time now is 11:20 PM.

Powered by vBulletin® Version 3.8.8 Beta 4
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
Copyright 2012 - JeepGarage.Org
The Jeep Grand Cherokee Owners Community