Worth it to buy out my lease?? - Jeep Wrangler Forum
Jeep Wrangler Forum

Go Back   Jeep Wrangler Forum > JK Jeep Wrangler Forum > JK General Discussion Forum

Join Wrangler Forum Today


Reply
 
Thread Tools

Please support our sponsors and let them know you heard about them on WranglerForum.com
Old 12-27-2015, 08:47 PM
Thread Starter
  #1
Jeeper
 
Joeydeee's Avatar
 
Join Date: Jun 2014
Posts: 15
Worth it to buy out my lease??

Have a 2014 jeep wrangler saraha 4d white with white hard top 29k miles. I love the jeep and i want to buy it my buyout is 34k .i have 1.5yrs left on my lease is it better to buy it early or wait until the end of the lease?
I want to add accessories

Thanks

Joeydeee is offline   Quote
Old 12-27-2015, 08:53 PM   #2
Jeeper
 
Join Date: Dec 2015
Posts: 113
Check kbb to get an idea of what your jeep is worth now, to decide if it's worth buying out for the 34k. Also, with a year and a half left you could do some bolt on easy to remove mods. If you decide when the lease is up you want to keep it, buy out then. Otherwise return to stock and turn it in.

JKTANK is offline   Quote
Old 12-27-2015, 09:01 PM
Thread Starter
  #3
Jeeper
 
Joeydeee's Avatar
 
Join Date: Jun 2014
Posts: 15
Will the 34k stay the same as buy out price or will that go down? Id hate to keep paying for the lease if its not going toward the principal. How does that work with a lease?
Joeydeee is offline   Quote
Sponsored Links
Advertisement
 
Old 12-27-2015, 09:03 PM
Thread Starter
  #4
Jeeper
 
Joeydeee's Avatar
 
Join Date: Jun 2014
Posts: 15
If i buy it for 34k now and pay it off for two yrs i think that 34 k can go down quite a bit, im confused on what im paying for now, im just excited im in a pretty sick jeep
Joeydeee is offline   Quote
Old 12-27-2015, 09:06 PM   #5
Jeeper
 
Join Date: Dec 2015
Posts: 113
No, every month you pay it will go down. Basically with a lease you pay on the depreciation only. You should be able to find your end of lease buy out price. It'll basically be whatever your payment is x18 subtracted from the 34k theyre offering now.
JKTANK is offline   Quote
Old 12-27-2015, 09:08 PM
Thread Starter
  #6
Jeeper
 
Joeydeee's Avatar
 
Join Date: Jun 2014
Posts: 15
Awesome thats what i thought thanks for the response
Joeydeee is offline   Quote
Old 12-27-2015, 09:31 PM   #7
Jeeper
 
bookem73's Avatar
 
Join Date: Apr 2015
Location: MA
Posts: 161
With a lease, whether you buy it out now or at the end, you'll still pay the same amount. If you have a low lease payment, you could pay extra to further lower your lease end buyout (residual value). But if you decided to turn it in you would most likely lose those extra payments.
bookem73 is offline   Quote
Old 12-27-2015, 09:52 PM   #8
Jeeper
 
ShutterBug's Avatar
 
Join Date: Sep 2013
Location: Cleveland, OH
Posts: 793
Your Jeep will likely be worth more than the buyout at the end of the lease. A friend of mine always leases his Jeeps and each time has traded it in for more than the lease buy out.
__________________

Check out my build progress
2014 Black JK Sport-icon - My Lil' Mule
ShutterBug is offline   Quote
Old 12-27-2015, 09:59 PM   #9
Jeeper
 
Join Date: Feb 2013
Location: Iowa
Posts: 240
On the paperwork you signed at the dealership there will be a buyout price at the end of the lease. If you buy earlier to take your monthly lease payment times however many months you have left and add that to the buyout price found in the contract.

If you're 100% certain you're buying at the end you can do whatever mods you want since it won't have to go through a final inspection.
hoopster3 is offline   Quote
Old 12-28-2015, 06:12 AM   #10
Jeeper
 
Gogogordy's Avatar
 
Join Date: Aug 2015
Location: Winchester, Ca
Posts: 639
This is a lot of heresay and speculation from forum members who DON'T know the deets about your individual lease.

Call the lessor (whom you pay each month) and get firm quotes on either/any scenario you are considering pursuing, then decide.
Gogogordy is offline   Quote
Old 12-28-2015, 06:30 AM   #11
Jeeper
 
willys_bob's Avatar
 
Join Date: Sep 2015
Posts: 418
You just need to do the math. Your lease agreement shows what you'll pay to buy it at the end of the lease. You can determine what the Jeep is worth now from various online sources (but I would cut a couple of thou off whatever numbers those sources show because they are usually not valid in the real world).
willys_bob is offline   Quote
Old 12-28-2015, 04:15 PM
Thread Starter
  #12
Jeeper
 
Joeydeee's Avatar
 
Join Date: Jun 2014
Posts: 15
My buyout at the end of my lease is $23,800.
Joeydeee is offline   Quote
Old 12-28-2015, 04:22 PM   #13
Jeeper
 
Hexxum's Avatar
 
Join Date: Feb 2010
Location: Indy
Posts: 689
When I had a lease with my Jeep, there was a penalty for early buy out, if I didn't fulfill the lease contract. You may want to be sure there isn't anything in your contract spelled out like that. i would also recommend contacting the leasor to find out your options. Get everything in black and white to determine what you want to do.
__________________
2016 Hard Rock Wrangler Unlimited
Retired 2005 LJ Wrangler Unlimited
Hexxum is offline   Quote
Old 12-28-2015, 04:34 PM   #14
Jeeper
 
DenverDucati's Avatar
 
Join Date: Oct 2015
Location: Denver
Posts: 349
There are lots of things to consider here.

- What is your current payment and how many payments are left on the lease?

- How many miles are allowed on the lease, how much is the over-mileage charge per mile, and do you think you will go over on miles?

- What is the money factor on your lease (basically the interest or finance charge)? If you bought out your lease right now, how would you pay for it?

- If loan, will the interest charge be less than what's imputed on your lease now? What kind of terms could you get on a loan and how much more/less will it cost over the whole period you're paying on it? If cash, could you not earn a better return on that much money instead of avoiding paying the interest/finance charge on the lease?

- Is there a prepayment penalty on the lease?

- Will you pay a disposition fee at the end of the lease if you decided to turn it in?

- Are the mods you want to do easily reversible so you can go ahead and mod it now then return it to look factory at the end of the lease?

Leases can be very tricky, so you have to be careful you understand the terms fully before you make any decisions. It's also important to consider the credit report ramifications of closing a fairly new trade line and opening a new one if you take out a loan which will lower your average age of accounts, cause at least one additional hard pull on your credit, and potentially show a short loan history to future lenders. I can think of about 50 more questions, but answering those will really help you figure out if it's wise to change anything at this point.
__________________
2012 JKUR - 3.5" AEV, 37" KO2, AEV Saltas, JW Speaker Evo J/6145 fogs/279J tails, ARB bumper, Superwinch, Teraflex HD tire carrier, AEV diff cover
DenverDucati is offline   Quote
Old 12-28-2015, 06:26 PM   #15
Jeeper
 
terpsmandan's Avatar
 
Join Date: Dec 2009
Location: Penn Yan, NY
Posts: 2,053
And in NY if you buy out your lease early you will end up paying tax a second time on the amount from the buyout (payoff) to the residual.
terpsmandan is offline   Quote
Old 12-28-2015, 07:51 PM   #16
Jeeper
 
Join Date: Jul 2011
Location: North Texas
Posts: 344
Lease conditions and restrictions vary by state. Find your contract and review it. Once you have it in front of you, then ask your questions. Otherwise, we cannot give you any truly sound advice.
rev2red is offline   Quote
Old 12-28-2015, 07:58 PM   #17
Jeeper
 
Join Date: Oct 2013
Location: SoCal.
Posts: 1,216
Quote:
Originally Posted by Joeydeee View Post
My buyout at the end of my lease is $23,800.
Never buy out a lease earlier than two months prior to the lease end. $24K will be a cheap price for your 14 4dr Sahara in a few years. Try finding a used 2012 or 2013 4dr Sahara or even Sport S with an auto trans, 3.6 engine with reasonable miles/condition for under $24K.
Hivedr is offline   Quote
Old 12-29-2015, 08:50 AM   #18
Jeeper
 
ocd_dave's Avatar
 
Join Date: Jan 2014
Posts: 1,678
Quote:
Originally Posted by Hivedr View Post
Never buy out a lease earlier than two months prior to the lease end. $24K will be a cheap price for your 14 4dr Sahara in a few years. Try finding a used 2012 or 2013 4dr Sahara or even Sport S with an auto trans, 3.6 engine with reasonable miles/condition for under $24K.
X2....Wait.
__________________
2014 Rubicon X - Granite Crystal Metallic
6 Speed - Dual Tops - Auto Climate Control - MyGIG 430N - 4.10's
ocd_dave is offline   Quote
Old 12-29-2015, 10:37 AM   #19
Jeeper
 
ColorowJeep's Avatar
 
Join Date: Sep 2015
Location: Golden, Colorado
Posts: 90
I leased my '15 JKUR with the total intent to buy at the end. I have leased at the lowest mileage (1200) to get the lowest monthly price. They told me the payoff when I started the lease. I have a garage full of mods just waiting on the $ to buy the tires and wheels. Once I have it all in, I am going to mod this thing as if it is purchased. If you just commit and plan on it...it is what it is. No need to even worry about the miles or the fact that it is a "lease". I have just found I can afford much more expensive vehicles doing it this way. Maybe in the life of the vehicle, you pay more...but it sure makes monthly payments manageable. If you are like me, you don't look at what you will end up paying for your car or house at the end of the loan....you just look at what you can swallow monthly. I am content with the fact that I will always have a car and house payment. Just facts of life in my world. Maybe when I approach retirement, I will change my tune. For now...I will keep modding and enjoy my "toys".
ColorowJeep is offline   Quote
Old 12-29-2015, 11:52 AM   #20
Jeeper
 
Join Date: Jan 2011
Location: Eastern Iowa
Posts: 1,086
Quote:
Originally Posted by bookem73 View Post
With a lease, whether you buy it out now or at the end, you'll still pay the same amount. If you have a low lease payment, you could pay extra to further lower your lease end buyout (residual value). But if you decided to turn it in you would most likely lose those extra payments.
This is not correct. Any early buy out computation includes the loss due to early termination of the investment tax credit the lessor received. It is almost always better to wait until the end of the lease and decide based on the buy out listed on your original agreement. Taxes will likely be due along with a purchase fee possibly set by the dealer but often negotiable.

I would wait.
Silverton34 is offline   Quote
Old 12-29-2015, 12:25 PM   #21
Jeeper
 
Join Date: Oct 2013
Location: SoCal.
Posts: 1,216
Quote:
Originally Posted by colorowjeep View Post
i leased my '15 jkur with the total intent to buy at the end. I have leased at the lowest mileage (1200) to get the lowest monthly price. They told me the payoff when i started the lease. I have a garage full of mods just waiting on the $ to buy the tires and wheels. Once i have it all in, i am going to mod this thing as if it is purchased. If you just commit and plan on it...it is what it is. No need to even worry about the miles or the fact that it is a "lease". I have just found i can afford much more expensive vehicles doing it this way. Maybe in the life of the vehicle, you pay more...but it sure makes monthly payments manageable. If you are like me, you don't look at what you will end up paying for your car or house at the end of the loan....you just look at what you can swallow monthly. I am content with the fact that i will always have a car and house payment. Just facts of life in my world. Maybe when i approach retirement, i will change my tune. For now...i will keep modding and enjoy my "toys".

+1^^^
Hivedr is offline   Quote
Old 12-29-2015, 12:41 PM   #22
Jeeper
 
Redheaded Stepchild's Avatar
 
Join Date: Oct 2015
Posts: 23
Let it go back!! I just bought a fully loaded 2014 Rubicon with 15k miles for $35,500. That's only $1500 more than your payout and you get less miles and every option available including both a hard and soft top.
Redheaded Stepchild is offline   Quote
Old 01-02-2016, 05:53 PM   #23
Jeeper
 
Join Date: Feb 2013
Location: Iowa
Posts: 240
Quote:
Originally Posted by Redheaded Stepchild View Post
Let it go back!! I just bought a fully loaded 2014 Rubicon with 15k miles for $35,500. That's only $1500 more than your payout and you get less miles and every option available including both a hard and soft top.
His payoff at the end is $23,800...not $33,800. Quite a bit of difference there.
hoopster3 is offline   Quote
Old 01-02-2016, 05:58 PM   #24
Jeeper
 
CaptainNapalm's Avatar
 
Join Date: Oct 2014
Location: Toronto, Ontario, Canada
Posts: 424
None of the money you're paying into the lease is going towards the principal because at the end of your lease you are not obligated to take (buy out) the vehicle so a lease is interpreted as rent only. However, your buy out at the end of the lease will certainly be less than 34K because at that point the vehicle will be older and have more mileage. If it were me I would probably wait until the end of the lease to decide what I want to do, there are 2017's coming to the market soon which you might like more.
CaptainNapalm is offline   Quote
Old 01-02-2016, 06:45 PM   #25
Supporting Member

WF Supporting Member
 
SoCalRubicon's Avatar
 
Join Date: Jan 2014
Location: In a handbasket...
Posts: 2,964
Quote:
Originally Posted by ColorowJeep View Post

Maybe in the life of the vehicle, you pay more...but it sure makes monthly payments manageable. If you are like me, you don't look at what you will end up paying for your car or house at the end of the loan....you just look at what you can swallow monthly.
Quote:
Originally Posted by Hivedr View Post
+1^^^

Wow, just wow.

__________________
Not all who wander are lost...
SoCalRubicon is offline   Quote
Old 01-02-2016, 09:23 PM   #26
Jeeper
 
Join Date: Oct 2013
Location: SoCal.
Posts: 1,216
Quote:
Originally Posted by SoCalRubicon View Post
Wow, just wow.

REALLY? I could say them same for folks that drop 10-20-25% down and still have 72-84 month payment plans at $500 a month. The only folks that have it right are the ones that pay in full. Even then that may not be the smart money move depending on going interest rate promotions.

Your lack of understanding of American car/truck buying habits is laughable. ~80% of Americans never pay off a vehicle loan and trade in prior to the end of the payment contract for another vehicle. On average Americans trade in for a "new" vehicle every 4-5 years(48-60 months) but have 6-7 year (72-84 month) payment plans. So in effect those of Americans will always have a vehicle payment. Some of us understand and accept that a vehicle payment and house payment are always going to be and we plan accordingly.

Leasing has a number of advantages over buying, but one needs to take the time to learn and understand the possible pit fails as well. Is it cheaper? Sometimes, sometimes not.
Hivedr is offline   Quote
Old 01-02-2016, 10:11 PM   #27
Jeeper
 
kentoe's Avatar
 
Join Date: Mar 2015
Location: Massachusetts
Posts: 535
Just to chime in from another leaser. Currently am leasing and modding with the intent on keeping the vehicle after the lease is over.

End of lease for me is about exactly half of what the vehicle is worth. The dealership first gave me wrong information (or lied) saying I could pay more than the lease monthly payments to pay it off sooner. Dead wrong, bank said otherwise and that you could only pay 3 months advance or pay out the entire principal.

Currently saving for either paying the principal out or just enough for the lease is over to buy it out. Haven't decided yet.

To answer your question OP it's really up to you, you aren't alone in that process and like a couple others have said they're doing the same.

Sure, financially there may be a smart aspect game that you can play with depreciation of how much the car is worth and/or if you want to switch to a new model / another lease. But it's literally up to how much it's worth it to you in terms of if you'll ever do the permanent mods you want and if you want to play that game. For me personally, I'd rather not play that game of "well in a couple years this is worth that and you could sell that and trade it in. But then what if I want this option instead of x"

Just thinking about it reminds me of selling my old car / buying a car process. Makes me so frustrated
__________________
2015 Jeep Wrangler Unlimited
Sport 23s 6-Speed Manual

My Build Thread
kentoe is offline   Quote
Old 01-02-2016, 11:31 PM   #28
Jeeper
 
bookem73's Avatar
 
Join Date: Apr 2015
Location: MA
Posts: 161
A lease is all about Options. I am currently leasing my 2016 Black Bear and have already added a lift, tires and some cosmetic mods. I Think I will buy out the lease in the end, but if something happens, I have options. Lets say the new body style comes out and I have to have it, or I get in an accident and the jeep is never quite the same after. I always have the option to buy a used car from myself that know everything about, or just drop it off and get a new one!
bookem73 is offline   Quote
Old 01-03-2016, 06:48 AM   #29
Jeeper
 
Jumby's Avatar
 
Join Date: Jun 2015
Posts: 1,581
The dearth of financial acumen displayed in this thread is frightening. In my opinion, leases do not make financial sense for most people. If you don't already have a CPA helping with your finances and taxes, you probably would not benefit from leasing. There are just too many variables to fully discuss here.

However, I do have a simple plan for the open-minded among you that would like to get off the car-payment-merry-go-round. You don't have to live a lifetime of car payments. Like anything of value in life, its not easy and it's not free, but very much worth the effort in my opinion.

- Choose your vehicle. Choose a vehicle with a reputation for quality and longevity as well as a forecast of fewer repairs. Make sure it will serve your lifestyle for the next 10 years.

- Save your down payment. Be prepared to put down at least 10%. The more the better.

- Shop for your financing. Credit Unions, being member owned, often have the best rates and terms. Many people have access to a credit union through the workplace. Do this before visiting the dealer. Get pre-approved for the shortest term loan with the best interest rate you can afford.

- Sell your trade. This is one of the dealers easiest ways to cloud up the deal. If you trade in your old vehicle, you will NEVER know what you really paid for the new vehicle. I you can't sell privately, sell it to Carmax.

- Negotiate your best deal. Spend some time on the web, read a book, etc. to understand the process. Dealers have a huge advantage over the purchaser here. Most numbers thrown around are meaningless. MSRP, Dealer's invoice, % off this or that. Meaningless. What you want at this point is easy -- The lowest number. There is nothing else to talk about. Reject any add-ons at this point, extended warranties, undercoating, scotch guard etc. etc. You know from this forum there is nothing under the sun that YOU can't do or add to your vehicle cheaper AND better than the dealership. Beware the F & I guy. He is there to squeeze a few more bucks out of you.

- Now, enjoy that new vehicle! And take good care of it. You're going to be driving it for a long time. Be sure to make your payments on time. It's best to have the payments drafted from your account monthly automatically. That way you will never miss a payment AND it sets you up for the real magic.

- At the end of your loan term, you've paid it off! Hooray! No more car payments. Time to trade for new one right? WRONG. This is when you summon that discipline hidden deep inside you. There are two more things to do. Keep driving the vehicle AND keep making the payments. Yes, keep making the payments, only to yourself now. This is much easier if you have been having your payments taken automatically. You just arrange to have the same monthly amount transferred to a separate account to accumulate for your next vehicle. You won't even miss the money because you've been doing it for years now.

- Continue to drive and save for the next 3-5 years until you have enough money in your vehicle saving account to pay CASH for your vehicle. Congrats. Now you've done it. No more car loans. Ever! You're off the merry-go-round and in better control of your finances. You have developed a savings habit that will serve you well for the rest of your life. Drive your cash-paid car for about 10 years while continuing to save. The next time to buy a vehicle you will have MORE than enough saved cash to buy that next new vehicle. A small slice of financial freedom.

A worthwhile plan if you can summon the discipline. Good luck!
Jumby is offline   Quote
Old 01-03-2016, 01:17 PM   #30
Jeeper
 
zhelmer's Avatar
 
Join Date: Dec 2015
Location: Los Angeles
Posts: 60
^^^^ sound advice. I've turned down some fun trips here and there in my 20s but honestly being debt free at 29 is magical! Some of my collage class mates are still 100k deep in student loans and I couldn't be more thankful my parents drilled a debt free mindset into me growing up.

Also a credit union is the way to go. I got a 1.4% auto loan when the dealer was offering a 3.6% for the same term.

__________________
Faith | Hope | Love
zhelmer is offline   Quote
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off






All times are GMT -5. The time now is 01:14 AM.


Powered by vBulletin® Version 3.8.8
Copyright ©2000 - 2020, vBulletin Solutions, Inc.
Search Engine Optimization by vBSEO 3.6.1
User Alert System provided by Advanced User Tagging v3.1.0 (Pro) - vBulletin Mods & Addons Copyright © 2020 DragonByte Technologies Ltd.
vBulletin Security provided by vBSecurity v2.2.2 (Pro) - vBulletin Mods & Addons Copyright © 2020 DragonByte Technologies Ltd.

Jeep®, Wrangler, Liberty, Wagoneer, Cherokee, Gladiator, Mopar and Grand Cherokee are copyrighted and trademarked to FCA US LLC.
Wranglerforum.com is not in any way associated with FCA US LLC.