Bought my X 2-door and went out 60 months @ $375 a month with zero down.

 

Im in same boat as you. And I am also modifying and in 3 years my buy back is 20,000. I dont think that is that bad for a 3 year old fully loaded Rubi that I know was taken care of.

 

i leased mine, turned in my 04 TJ, i have crappy credit, didn't put any $ down,
my payment is $489/month

i know, i know lot of money....but i got the Rubi that i wanted..

now just wish for that much a month i didnt have to get rained on inside my Jeep:(

 

yeah i had no money down and am paying 452 a month....its not too abd, but i would love to be able to pay less haha...leasing was not an option cuz after under 4 months i have 13k on it, and modding it up.

 

I am in the same boat as many of the others. With Mods and Miles leasing was not an option. I hope to keep mine for a very long time.

 

You misspelled "crisis"

 

If you lease and decide to purchase at the end of the lease term, you can do whatever your little heart desires to your jeep. Mods and miles only become a problem if you don't decide to purchase at the end of lease term...

 

You can do any mods you want on a lease as long as you don't TURN it in at the end of the lease, If you TRADE it Fine, BUY it out fine just don't Turn it in.

Im in the car Business and unless you put huge money down or Keep it a long time you will almost ALWAYS be upside down,

I traded my TJ in that was an 84 mo. purchase and was upside down 7000.00 and they gave me book for it on trade. I then leased My 4dr Rubi for 72 mo. @ 550 per month inc. tax. Because I KNOW this is the perfect all around jeep for family and offroading and I will keep it til it dies and then put a Hemi in it and drive it some more.

 

No, you won't always be upside down. Yeah, anyone that enters into a 7 year purchase agreement with no/little money down, mod's there rig and trails it, is surely going to be in a negative equity situation for a long time. But that's not the only way to buy a Jeep.

When you purchase a new vehicle, you pay retail. When you trade it in, you receive wholesale for it based on its condition. That gap is what a down payment is for; it reduces the risk to the lender should they have to repo the vehicle, they can sell it at the wholesale auction and recoup their cost. Whether you put money down at the time of purchase or not, you will pay for the difference between wholesale and retail when you trade it in.

For every car payment, a portion pays the Interest, and the rest pays off the Equity. Auto loans are front loaded, which means that the payments made in the first 2/3's of the loan period are mostly interest rate. For an 84 month loan, you have to make payments for nearly 5 years before you break even.

If you trade that vehicle before that break-even point, you'll be upside down with negative equity. If you also didn't put money down on this loan, you'll be in an even worse position financially. The more trail scars you have, the farther away from positive equity you'll be, too.

If you intend using a vehicle as a trade in 3-4 years, purchase it as close to invoice as possible, use all rebates/dealer cash available, put as much money down as you can afford (shoot for $2k, with at least $500), and use a loan term as short as possible (6+ years won't be a good idea), keep the vehicle stock or return it to as-close-to-stock as possible before trading it in, and keep the trail damage to a minimum. Then you won't have a problem with negative equity when it comes time to trade.

If you mod and wheel a Leased Wrangler, do not count on Trading it in as a means of getting out of the lease without a financial hit for the depreciation. The contracted Residual Value you will have to pay the end of the lease is calculated based on a vehicle in a specific above average condition (clean, normal wear and tear, low miles). If yours is modded and trailed in rough condition with miles, you probably won't get clean book from the used car buyer, which means you'll still be forced to cough up the difference in cash. Taking out a loan for the Residual Value is the only way out.

Also, this is the best case scenario without allowing for emergencies over the next 3 to 7 years. If something happens in your life that forces you to get rid of your JK, you're more screwed with a Leased modded rig than one that you've purchased, because to get out of the lease you'll have to come up with the Residual Value plus all of the remaining payments due in the lease contract plus make up for the added depreciation.

Leasing a Wrangler that you're planning on modding and using offroad is a very risky proposition.

 

10K down, 900 per month & paid off in 2-years purchase baby