[Mllcb42]

And I don't know what the guy above is talking about you have to put down some type of Down payment. He clearly has never leased BMW of benz

You certainly do not. Hell, you can do a sign and drive with ccap where not only do you not have to put anything down, ccap will pay your first month's payment in exchange for bump to the mf.

Even on bmw or mb leases, you can almost always do just first month's payment due at sale. Dealers just love to push big downpayments as a psychological tool to make the payment look more palatable. People balk a lot more at an extra $100/mo than $4k das.


I will disagree with using if you're planning on keeping it long term as being a reason to put money down on a lease though.

 

[Mllcb42]

so $0 out the door.

Just to be clear, this is not $0 out the door. This is $6366 out the door, you're just paying for it in trade equity.

 

[Mllcb42]

But $18k down correct?

That value they're showing is inclusive of the incentives.

 

[Mllcb42]

The quality of the deal comes down to a couple things here:

You have a pre-incentive discount of 3.4%. That's fairly low compared to what you can get with some dealers. Wranglers can be had with much bigger discounts than that.

Have you comparison shopped your trade vehicle to establish if that's a reasonable offer or not? Be sure to get quotes from several different buyers.

Are they marking up the rate at all? That 3.4% discount may be a good bit lower if they're making up for it on the back end up a marked up mf.

 

[Mllcb42]

If I didn't put anything down you are looking at a 700 a month payment.

You're essentially trading off the risk of the loss of money for the reduction in rent charge on that down payment value. The effective monthly payment doesn't change all that much. With a higher mf lease, some thought should go into the cost of risk mitigation.

For the most part, you're paying the cost either way... if $700/mo with no money down seems unaffordable but $600/mo with $4000 down seems fine, you're fooling yourself.

 

[Mllcb42]

I would not lose money as I'd be going to court if someone totaled my vehicle. Family of attorneys and also work at a Huge corp law firm. I never put more than 2k down on a lease. But if I was not at fault I promise you I'd make up the down payment plus some.

And if you were at fault?

 

[Mllcb42]

If I am worried about a few thousands I shouldn't be purchasing a 60k plus car.

It's a cost/benefit thing. If you can protect yourself from potentially losing thousands of dollars for next to no cost, why wouldn't you? As rates go up, next to no cost turns into an actually noticeable cost, and now the cost/benefit starts to not make much sense.

I do think it's a rule of thumb that gets overstated in many cases, especially in the days of higher interest rates, but it's a real risk that people should be aware of and understand how to mitigate.

 

[Mllcb42]

It also varies a lot by lease contract. Many brands have their contracts written such that if there is an insurance overage (that is, market value is higher than the adjusted cost balance of the lease), you agree that the overage goes to the lessor. In that case, it wouldn't matter how high of a value you convince the insurance company to pay, as you agreed that it goes to the bank, not you.

 

[Mllcb42]

Not if I am hurt or inconvenienced in any way from the wreck.

Your personal injury claim would, but not the insurance payout on the vehicle. If you didn't put a downpayment down, you'd get both.

 

[Mllcb42]

I'd be out that money on the resale if I financed.

We're not talking about financing though.

It's put money down on a lease or don't put money down on a lease.

 

[Mllcb42]

I'd lose money regardless, so yeah I am using that as an example.

But it's totally irrelevant to the discussion. We're talking about the implications of money down on a lease. What happens in a finance situation is of no consequence to the specific comparison.

I appreciate that you may be well versed with liability and insurance when it comes to a purchase, but there are some nuances here specifically regarding leases that are not well known or understood.

 

[Mllcb42]

Side note, if your gonna do BMWs look for a state that allows MSDs (multiple security deposits), HOME RUN

Bmw fairly recently lowered the mf reduction per msd they give killing the value of them. For other brands, it still makes a lot of sense though.

 

[Mllcb42]

There is No way you are driving a 80k car with zero down and paying $650 absolutely NO way the number do not add up.

I'm at $388/mo effective(I did a single pay, so thats the equivalent monthly) on my $66k wrangler lease. And my timing wasn't the best it could be.

One could easily hit $650 with $0 das on a gc 4xe with the right timing/right deal/right situation.

 

[Mllcb42]

For 80k? okay.... I still don't see how you have a 388 month payment. No tax title fees first month payment 595 fee dealership fee here in SC there is no way you are walking out the door with that price. Not where I live.

Plenty of dealers across the country that will offer aggressive discounts. Rarely will it happen by just going in to your local dealer and asking them how much they want you to pay.

 

[Mllcb42]

I talked with 5 in the state. I do my research. I am also not driving across the country for a car.

Shipping isn't that expensive, especially when it means a dealer giving thousands more in discounts.

 

[Mllcb42]

I preferred the all down and zero monthly approach personally, but there's no one right answer.

I definitely didn't get nearly as good of deals as others. I know someone with a similarly equipped 21 as my 22 that's at about $300/mo effective on his one pay.


It's worth adding that you're not going to get a $3-400 lease on a $65k wrangler with the current programs, although they are heading back in the right direction. Programs are currently much better on the GCs than the wranglers.

 

[Mllcb42]

I always went to dealers with that number in mind

One should never base what a good lease value is on arbitrary percentage of msrp rules. They're like a stopped clock...occasionally they're correct, but they're useless for actually determining what a good deal really is.