Financing question
#1
JK Freak
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Financing question
I was looking to lease an 08 Wrangler Unlimited X (base model). I went to the dealer the other day and they quoted me $330 (w/ 2200 down) on a 39 month lease. Whiched seemed fair to me. Keep in mind this is a true base model with almost no options (I got soft top, and airconditioning). The sticker on the car was 22K I think. It was also 4X2, which I really wasn't happy with.
After I left there I stopped at the Hummer dealer a couple doors down, just to see what I would get. Well, I was kind of surprised. I looked at the H3 base model, which came with 4X4 standard and a lot of other extras I wasn't getting. But the sticker was over 30K, so I figured I would be paying more. I was wrong. The lease they quoted me was $300 with 2200 down!
Can someone explain why a 30K 4X4 Hummer cost less monthly then a 20K JK 4X2? This is really bothering me because I really want the jeep, but I also really want to go wheeling and that isn't going to happen with the 4X2.
I'm so conflicted, any help here is greatly appreciated.
After I left there I stopped at the Hummer dealer a couple doors down, just to see what I would get. Well, I was kind of surprised. I looked at the H3 base model, which came with 4X4 standard and a lot of other extras I wasn't getting. But the sticker was over 30K, so I figured I would be paying more. I was wrong. The lease they quoted me was $300 with 2200 down!
Can someone explain why a 30K 4X4 Hummer cost less monthly then a 20K JK 4X2? This is really bothering me because I really want the jeep, but I also really want to go wheeling and that isn't going to happen with the 4X2.
I'm so conflicted, any help here is greatly appreciated.
#3
Leasing
I was unaware that leasing was a financing issue... its more of a long term rent...
Save your $ and buy it, if it was truely better to lease, from your end, they woudn't do it...
With the economy headed where it is car loan APRs are gonna head south...
Save your $ and buy it, if it was truely better to lease, from your end, they woudn't do it...
With the economy headed where it is car loan APRs are gonna head south...
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JK Enthusiast
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There is no free lunch. Go back to the Jeep dealer and ask these same questions. They will then know you're serious and not committed to a JK -- this will work wonders in the negotiating process.
BTW, consider buying your next vehicle, keeping it for a good long while (JKs have lifetime powertrain warranties), and skip the lease.
BTW, consider buying your next vehicle, keeping it for a good long while (JKs have lifetime powertrain warranties), and skip the lease.
#5
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My guess would be that the Hummer dealers are a little more desperate to get rid of their vehicles. Hummers have taken a hit or two with the fuel prices. Around here the hummers are the ones with the poor mileage stigma; much more so than Jeeps.
Because they are viewed by many as excessive, I would imagine that their sales have gone down and they are not able to get rid of them. JKs on the other hand are selling like crazy. Remember, to the masses a hummer is just another excessive SUV, but a Jeep Wrangler truly has it's own lifestyle.
Disclaimer: This is all personal speculation and may not have a single bit of fact in it. (other than hummers aren't as cool as Jeeps.)
I'll agree with what others have said. Buy, don't lease. You've already found the very dangerous JK-Forum. 36 seconds after you sign the papers you will be wanting to lift it and put bigger tires on the JK. Don't try that with a lease unless you want to deal with a mess.
Because they are viewed by many as excessive, I would imagine that their sales have gone down and they are not able to get rid of them. JKs on the other hand are selling like crazy. Remember, to the masses a hummer is just another excessive SUV, but a Jeep Wrangler truly has it's own lifestyle.
Disclaimer: This is all personal speculation and may not have a single bit of fact in it. (other than hummers aren't as cool as Jeeps.)
I'll agree with what others have said. Buy, don't lease. You've already found the very dangerous JK-Forum. 36 seconds after you sign the papers you will be wanting to lift it and put bigger tires on the JK. Don't try that with a lease unless you want to deal with a mess.
#6
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your jeep dealer is giving you the shaft. i pay 389/mo for my FULLY loaded sahara 4dr and i only put down first months payment.
all leases are based off of residual value(resale), which make it possible for higher price cars with great residuals to lease for less per month than some cheaper low residual cars.
jeeps actually make great vehicles to lease because of the residuals on them. if your like me and put very little miles on your vehicle and trade up every few years leasing is the way to go. you can even do what ever you want to it also.....well to a degree. if you paint it pink then your just asking to get bent over when u turn it in. But if you go with a lift and tires and bumpers you will be fine, 99% of leasing institutions dont care, as long as it doesnt hurt the resale value you should be fine. worst case scenario is you return it to stock when you return the vehicle or you can sell it out right as is to some joe blow. fact is most people believe they that doing a typical finance is better becasue they "own" the jeep and can do what ever they want. all i can say is lease or finance.........miss a couple of payments and then tell me who "owns" the jeep.
dont let these folks talk u out of leasing......as long as leasing is right for you, it will truely be a better financial decision. you need to know what you are getting in to. if you dont plan on keeping it for ever or you put on low miles then buying is wasting money , cars are not investments they are an expense.
-shaun h
all leases are based off of residual value(resale), which make it possible for higher price cars with great residuals to lease for less per month than some cheaper low residual cars.
jeeps actually make great vehicles to lease because of the residuals on them. if your like me and put very little miles on your vehicle and trade up every few years leasing is the way to go. you can even do what ever you want to it also.....well to a degree. if you paint it pink then your just asking to get bent over when u turn it in. But if you go with a lift and tires and bumpers you will be fine, 99% of leasing institutions dont care, as long as it doesnt hurt the resale value you should be fine. worst case scenario is you return it to stock when you return the vehicle or you can sell it out right as is to some joe blow. fact is most people believe they that doing a typical finance is better becasue they "own" the jeep and can do what ever they want. all i can say is lease or finance.........miss a couple of payments and then tell me who "owns" the jeep.
dont let these folks talk u out of leasing......as long as leasing is right for you, it will truely be a better financial decision. you need to know what you are getting in to. if you dont plan on keeping it for ever or you put on low miles then buying is wasting money , cars are not investments they are an expense.
-shaun h
Last edited by awdspider; 01-20-2008 at 06:53 PM.
#7
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A lease is based on tow factors other than the selling price; the residual value and the money factor.
The residual is the value at the end of the lease term. They are probably comprable depreciated amount between the H3 and the JK.
The money factor is the interest rate on the lease. I am sure that the H3 eiher has a 0% or similar money factor whereas the JK is probably around 9%.
Check on Jeeps website under special offers because the have a $299 4x4 lease with similar money due at signing as you are talking about.
The residual is the value at the end of the lease term. They are probably comprable depreciated amount between the H3 and the JK.
The money factor is the interest rate on the lease. I am sure that the H3 eiher has a 0% or similar money factor whereas the JK is probably around 9%.
Check on Jeeps website under special offers because the have a $299 4x4 lease with similar money due at signing as you are talking about.
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#8
JK Freak
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your jeep dealer is giving you the shaft. i pay 389/mo for my FULLY loaded sahara 4dr and i only put down first months payment.
all leases are based off of residual value(resale), which make it possible for higher price cars with great residuals to lease for less per month than some cheaper low residual cars.
jeeps actually make great vehicles to lease because of the residuals on them. if your like me and put very little miles on your vehicle and trade up every few years leasing is the way to go.
dont let these folks talk u out of leasing......as long as leasing is right for you, it will truely be a better financial decision. you need to know what you are getting in to. if you dont plan on keeping it for ever then buying is wasting money , cars are not investments they are an expense.
-shaun h
all leases are based off of residual value(resale), which make it possible for higher price cars with great residuals to lease for less per month than some cheaper low residual cars.
jeeps actually make great vehicles to lease because of the residuals on them. if your like me and put very little miles on your vehicle and trade up every few years leasing is the way to go.
dont let these folks talk u out of leasing......as long as leasing is right for you, it will truely be a better financial decision. you need to know what you are getting in to. if you dont plan on keeping it for ever then buying is wasting money , cars are not investments they are an expense.
-shaun h
My guess would be that the Hummer dealers are a little more desperate to get rid of their vehicles. Hummers have taken a hit or two with the fuel prices. Around here the hummers are the ones with the poor mileage stigma; much more so than Jeeps.
Because they are viewed by many as excessive, I would imagine that their sales have gone down and they are not able to get rid of them. JKs on the other hand are selling like crazy. Remember, to the masses a hummer is just another excessive SUV, but a Jeep Wrangler truly has it's own lifestyle.
Disclaimer: This is all personal speculation and may not have a single bit of fact in it. (other than hummers aren't as cool as Jeeps.)
I'll agree with what others have said. Buy, don't lease. You've already found the very dangerous JK-Forum. 36 seconds after you sign the papers you will be wanting to lift it and put bigger tires on the JK. Don't try that with a lease unless you want to deal with a mess.
Because they are viewed by many as excessive, I would imagine that their sales have gone down and they are not able to get rid of them. JKs on the other hand are selling like crazy. Remember, to the masses a hummer is just another excessive SUV, but a Jeep Wrangler truly has it's own lifestyle.
Disclaimer: This is all personal speculation and may not have a single bit of fact in it. (other than hummers aren't as cool as Jeeps.)
I'll agree with what others have said. Buy, don't lease. You've already found the very dangerous JK-Forum. 36 seconds after you sign the papers you will be wanting to lift it and put bigger tires on the JK. Don't try that with a lease unless you want to deal with a mess.
I'm heading to both dealers tomorrow to work this out and try to get to the root of it. Thanks for all the responses.
#9
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My wife went to look at the H3s a few months back. They have all these commercials and banners at the dealership saying 299/month lease. Once we ran the numbers the actual payments were much higher. Afterwords the salesguy says no one can really qualify for those leases. They include ALL incentives like student, military, loyalty, first time buyer, senior, and some others. So you have to be a senior citizen, in the military and in school, and have purchased a GM before BUT also be a first time buyer.
The whole time we were there ALL he wanted to de is get a VIN and run numbers. I kept telling him forget the VIN... if I get a vehicle with a sticker of "such and such" what will the lease payment be. He disappears for 30 minutes and comes back with a truck. He said he got it from another lot ( up the highway ). Finally we just randomly chose a truck to run numbers... the lease turned out to be almost 500 a month ( this truck had a 299/month tag hanging from the mirror ). My wifes credit is perfect and mine is better.
The whole time we were there ALL he wanted to de is get a VIN and run numbers. I kept telling him forget the VIN... if I get a vehicle with a sticker of "such and such" what will the lease payment be. He disappears for 30 minutes and comes back with a truck. He said he got it from another lot ( up the highway ). Finally we just randomly chose a truck to run numbers... the lease turned out to be almost 500 a month ( this truck had a 299/month tag hanging from the mirror ). My wifes credit is perfect and mine is better.
#10
JK Freak
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both terms were 39 months.
The same deal they quoted me is on the hummer website. Click specials, then H3 and it will show you the terms. The funny thing is that Jeep has a lease special showing on their web site as well. The lease is for $269 with $1999 down. When I asked about this special they said it was a bare bones 4 door JK. No top, no a/c...nothing. There is no way anyone can buy it that way. Just wait till it rains .