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Hi everyone! Based on what I have been reading, I realize there’s a serious shortage of 4xe’s and prices are fairly high. I went to my local dealer and was offered the following for a 36 month lease for a fully optioned High Altitude with trading in my GTI. It seems high to me, but I am moving to the Tahoe area this winter and I’m not sure it’s worth it to wait until 2022 models roll out. I am also waiting on a quote on a Rubicon (MSRP $64,300), which is my ideal choice.
1684
 

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I wouldn’t say you’re getting ripped off but you can save more money.

Agree with Huntid: You can always get more selling it yourself (that’s if you have the time, though; otherwise consider the price difference as paying for the convenience of someone else disposing of your GTI).

10,000 miles per year is low (that’s only 27 miles per day). Unless you roll into the dealership 3 years later with exactly 30,000 miles on the odometer, you’ll pay more for extra mileage or have overpaid (for mileage you didn’t use.)

In general, leasing always costs more than financing. You’re basically renting the 4xe. In three years you’ll have zero equity (unlike the equity you have now in your GTI.)

Also, the extra cost of the High Altitude isn’t justified in my opinion. It’s mostly unnecessary cosmetic differences.

As for waiting, you may end up paying more for the same 4xe. There’s already been 2 price increases, presumably because of demand but inflation will definitely put pressure for more increases in MSRP.
 

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Looks about right to me, I'm seeing the $7500 Fed Tax Credit being used as a cap adjustment right up front, and it looks like you're getting a net $7500 for your trade ($18.5K value with an $11K payoff), plus $2500 OOP. I mean, that's a $63K vehicle (with no discounts) you're getting for ~$400 month (I assume those payments are final / post-tax as applicable).

For hoots, you should at least run your VIN through Carvana and/or a few others, see what's doing with their offers.

You'll know about your own mileage, 10K might be plenty - I put 3600 miles on my GT convertible in 2 years ...


In general, leasing always costs more than financing. You’re basically renting the 4xe. In three years you’ll have zero equity (unlike the equity you have now in your GTI.)
That's not the case at all, I don't want to get into a whole peeing content (as Linda B. would say ...), but I I've done dozens of lease vs. finance analyses, and what makes more sense is very highly dependent on the details. Our $400/month lease with the equivalent cash outlay vs. a finance would've been $200 a month more, and while you might be generating more equity, that's $7200, now look at the equity difference in payoff of their GTI, it's about $7500, so you've spent more monthly to have an effective equity of about the same at 3 years.

And just because it's a lease it doesn't mean you can't take advantage of "market equity", and they can use that to their advantage just like we did back in April. DD/RT came off lease, we opted for a buyout and turned right around and resold it to Carvana, made $10K.

But if the market for a 3 year old DD/RT had collapsed, we simply hand over the keys and walked away.

If you're looking at short-er time ownership, 24-36 months, and you don't want to gamble on value, and you always want to move to a new car that has the OEM warranty, a lease is an outstanding mechanism.
 

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At first glance, this is a horrible deal. Truly. And there is a lot of missing info on that dealer's sheet - what's the actual selling price? Money factor? What's the "service fee"? How much are taxes? And you're getting hosed on your trade in, too. As others have said, check with Carvana or Carmax - they are desperate to buy used inventory right now.

If my math is correct, after taking out your trade value ($7500), they are essentially quoting you close to $700/mo at $0 down - and I'm guessing that is before taxes, since I don't see them itemized on your sheet. For reference, others are paying for similar MSRP 4xe's under $500/mo with $0 down and without a trade-in. That's the range you want to get to, but you might not be able to get there with this dealer.

I'd highly recommend spending a few hours reading through the Leasing 101 guide and form posts over on LEASEHACKR. You'll learn a lot and save a ton. My advice, if you have the time, would be to do a custom order (running about 1-2 months for delivery) and find a dealer that will offer a discount. Good luck!
 

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Tummy...I just did a lease 3 weeks ago on almost the same sticker price as yours (High Altitude as well). Here are my details, not sure if it was a great deal and don't really care. Mine hit the dealer lot on a Wednesday and I signed a lease on that Friday morning before it was gone. I put $2,500 down with the $7,500 rebate (or whatever you want to call it), 36 months 10k miles a year ( I average 6,000 miles a year on my cars). Out the door with taxes and all the bs fees came to $550 a month. I absolutely love my 4xe, the looks of the High Altitude are awesome (inside and out), and the fact I have only filled the tank once in 3 weeks is the kicker!
 

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Looks about right to me, I'm seeing the $7500 Fed Tax Credit being used as a cap adjustment right up front, and it looks like you're getting a net $7500 for your trade ($18.5K value with an $11K payoff), plus $2500 OOP. I mean, that's a $63K vehicle (with no discounts) you're getting for ~$400 month (I assume those payments are final / post-tax as applicable).

For hoots, you should at least run your VIN through Carvana and/or a few others, see what's doing with their offers.

You'll know about your own mileage, 10K might be plenty - I put 3600 miles on my GT convertible in 2 years ...




That's not the case at all, I don't want to get into a whole peeing content (as Linda B. would say ...), but I I've done dozens of lease vs. finance analyses, and what makes more sense is very highly dependent on the details. Our $400/month lease with the equivalent cash outlay vs. a finance would've been $200 a month more, and while you might be generating more equity, that's $7200, now look at the equity difference in payoff of their GTI, it's about $7500, so you've spent more monthly to have an effective equity of about the same at 3 years.

And just because it's a lease it doesn't mean you can't take advantage of "market equity", and they can use that to their advantage just like we did back in April. DD/RT came off lease, we opted for a buyout and turned right around and resold it to Carvana, made $10K.

But if the market for a 3 year old DD/RT had collapsed, we simply hand over the keys and walked away.

If you're looking at short-er time ownership, 24-36 months, and you don't want to gamble on value, and you always want to move to a new car that has the OEM warranty, a lease is an outstanding mechanism.
I can relate to what you say. Leasing vs Financing is all depends on the details / individual. Many factors needed to be considered on top of financial aspect such as whether you like to own your car for long term or like to change new car every 2 to 3 yrs, driving distance, self employed which you can put your leased car as company’s car and get tax deductions, etc.
Btw for cars, more suitable term will be residual value instead of equity since depreciation play big part / determine its value year over year.
 
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