Lease or Buy?

"The Dummy Gummy" (dummygummy)
06/28/2016 at 09:32 • Filed to: F Pace, Jaguar

Probably going to buy the F Pace when it becomes available because the Q5 just isn’t doing it for us anymore. All signs are pointing to leasing being the better option than buy.

Reasons why leasing seems better to me:

I put less than 10k miles a year on the car

It is a new car and could have reliability issues (as you do with Jaguar)

Would normally keep the car 4-5 years but from the above, 3 year lease seems more worth while?

Depreciation on luxury is insane (I know it get’s captured in your lease payment), but any extensive reliability issues will further exacerbate the issue.

Reasons why I don’t like leasing:

Higher insurance?

Maybe it is a car I’d like to own longer?

This is all dependent on their leasing/depreciation valuation. Would you lease or buy? Can anyone recommend a Jaguar dealer in the tri-state area? The last Jaguar was purchased in Florida. Ray Catena is where I’ve gotten other cars, but their Jaguar dealer is in Edison....no thanks.

DISCUSSION (26)

Vicente Esteve > The Dummy Gummy
06/28/2016 at 10:00

I’d say lease. There is the reliability concern, when the lease finishes you’re done. If you liked it so much you’d want one for a long time buy a nicely depreciated CPO.

Rico > The Dummy Gummy
06/28/2016 at 10:05

Do some googling but right now is a terrible time to lease an F Pace. They don’t have their own financing company and are using Chase which seems fine but from what I’ve read has been a nightmare for everyone. Dealers are making up numbers as they go as far as interest rates and obviously there is no discount at all on these as stock is very limited. I say give it some time for things to round out.

Tripper > The Dummy Gummy
06/28/2016 at 10:20

I intend to lease any car that I’m not certain that I will be keeping for a long time as a car payment is built into my budget at this point. Personally I would lease an F Pace because they are a new model, and I have never owned a Jag. So it would be nice to just make the payment and see what, if anything goes wrong during the lease period. If I was in love with it I would buy it off the lease. Which can be an expensive way to buy a car, but at least you know the previous owner.

Tripper > Rico
06/28/2016 at 10:24

I have financed with Chase before, not as smooth as manufacturer financing but my interest rate was good. I have other accounts with chase and they all link to the same login id which is nice. However that was a purchase, I’m not sure what leasing would look like through a 3rd party. As I type this I’m remembering that the car’s country of origin is in a little bit of an unsure place at the moment haha, which is probably the heaviest factor at the moment.

FTTOHG Has Moved to https://opposite-lock.com > The Dummy Gummy
06/28/2016 at 10:44

when it becomes available

I’m already seeing them all over town in San Antonio, so I assumed they have been available for a month or two now... have they all been pre-ordered?

The Dummy Gummy > FTTOHG Has Moved to https://opposite-lock.com
06/28/2016 at 10:47

They weren’t there a few weeks ago, maybe they are now there. I haven’t called back. I was going to go this weekend.

FTTOHG Has Moved to https://opposite-lock.com > The Dummy Gummy
06/28/2016 at 10:48

I think they’ve been rolling in pretty good over the last few weeks. Definitely call and see what they have - they are pretty damn good looking crossovers. I’m happy to be seeing a lot of them and XC90's hitting the streets.

BBlades > The Dummy Gummy
06/28/2016 at 10:52

Either way you are going to get hammered by it being new. Money factor and residuals sucks on brand new models, whereas on purchase you won’t get much of a discount.

Leasing or cpo is the way to go on luxury cars. Either way you are going to pay a premium to be an early adopter.

The Dummy Gummy > FTTOHG Has Moved to https://opposite-lock.com
06/28/2016 at 10:58

Love the xc90, just too high ha. Now a V90......

The Dummy Gummy > BBlades
06/28/2016 at 11:00

I’ve accepted my fate haha

TysMagic > The Dummy Gummy
06/28/2016 at 11:05

I’ll be looking in to leasing one next year around this time when my wife’s MKC lease is up. If it’s possible, I’ll be doing an advance pay lease again. If this is something you can swing it helps lower the factor and you’re car payment “free” for the term of the lease. I also vote leasing since this is a brand new British car model...I love Jag, but let’s be real here.

The Dummy Gummy > TysMagic
06/28/2016 at 11:10

How does that work out if your car is totaled first month in? Do you lose that money? I was always taught to reduce the money out front because if you leave the lot and get smashed by another car and your car is deemed total you are out all that money.

TysMagic > The Dummy Gummy
06/28/2016 at 11:34

even if the car was totaled you’d be contractually obligated for the pay off on your lease. With an advance pay it would just be your end balance versus the balance of your lease sub any payments made prior to the end of your contract. No different than if there’s a balance remaining on your car loan and it’s totaled.

The Dummy Gummy > TysMagic
06/28/2016 at 11:48

Insurance would pay it. There is a big difference, on a car loan insurance eats the cost not you. In this scenario, you’d be eating the amount.

TysMagic > The Dummy Gummy
06/28/2016 at 12:25

What I mean by the remaining balance is that if your car is worth X and you owe Y. But Y>X so you still have a balance left.
And you wouldn’t be eating the amount as the pay off at lease end is different than the pay off at the start of your lease. So you’d be paying the same in the case of a total loss.

The Dummy Gummy > TysMagic
06/28/2016 at 12:31

I wonder how insurance would view that. I’ve never heard this before and was always recommended against it.

TysMagic > The Dummy Gummy
06/28/2016 at 13:50

theoretically, you could probably “make” your payment by investing the lump some of money in something with a strong return and just do that too. If we wanted to go out in to hypothetical land haha.
Something else you touched on, our lease insurance (full coverage through USAA, idk the coverage amounts off the top of my head) wasn’t too different in cost than our prior auto with a lean on it (same full coverage).

Either way, I’m right there with you on considering a lease for an f pace. To me it makes sense for what it is

The Dummy Gummy > TysMagic
06/28/2016 at 14:01

I think where I’m getting lost is, the money is in the dealers hands and your outstanding balance is already paid. I’d just be curious to how the insurance company would view this. Given they find a way to weasel out of payments I’d be fearful of them just washing your hands and now I’d be out all that money.

I think the point I was trying to get across was getting lost. It is confusing to myself.

Here’s what I’m thinking:

!!! UNKNOWN CONTENT TYPE !!!

So if I was smashed the instant coming out of the dealership the upfront payment I’d assume would be lost unless you really argued against the insurance company. (The numbers are arbitrary and made up, but had to put something in to try to clarify my point.)

TysMagic > The Dummy Gummy
06/28/2016 at 14:51

ahhh yes I get what you’re saying here.
So the difference I’m think of would be the pay off you’re using for insurance. The insurance co would pay what the car is worth, you’ve prepaid the pay off down with the lease so if the value of the car is greater than the pay off (which it should be as your pay off or purchase price at the end of the lease should be the projected value several years down the road) you will get money back. However depreciation is a bitch so it would most likely be less than you put in.
I think we’re close to the same page now?

The Dummy Gummy > TysMagic
06/28/2016 at 14:55

Yea, which is where it gets even more dicey because gap insurance and all that. I never thought much of it until our conversation ha. I normally just buy my cars outright.

TysMagic > The Dummy Gummy
06/28/2016 at 15:04

I work for Ford Credit (ford bank more or less) so I look at it pretty much every day...over and over again.
My wife is the PRIME lease customer. We’ve got the lowest possible mileage per year option (10.5k) and she hasn’t even used that, 3k less in fact. Combined with the lowered factor for the advance pay, it was stupid cheap.
She really likes the MKC so we’re mixed on what exactly we’ll do at the end of the lease. Buying it (that will probably depend on the used car market), the f pace, or curve ball here, she’s driving my loaner fiat 500t while my Abarth is in the shop...she has fallen in love with it.

Arrivederci > The Dummy Gummy
06/29/2016 at 14:04

I’ll be looking to buy one of your off-lease vehicles as CPO in about three years :). Please get some decent colors and options! LOL.

The Dummy Gummy > Arrivederci
06/30/2016 at 07:51

If I like the ride and get it (don’t see why I wouldn’t), I’ll probably get dark sapphire blue (although the british racing green is unreal) exterior and jet taurus leather interior because I’m too afraid of spilling something in there.

yamahog > The Dummy Gummy
08/10/2016 at 07:48

If you’re so concerned about accusing others of breaking rules, perhaps check out the ones on shitstirring and callout posts while you’re at it. Sent to drafts. You already have one strike from a few weeks ago, please don’t earn another.

The Dummy Gummy > yamahog
08/10/2016 at 07:58

A call for reform isn’t shit stirring. It is highlighting a double standard. A significant portion of the community isn’t happy with what is happening in oPPo. It was very apparent when discussing with around 30 other users.

yamahog > The Dummy Gummy
08/10/2016 at 08:08

The degree of your ignorance in this matter is absolutely laughable.

You want to talk about a double standard? Look how people respond to my moderation compared to the same thing, if not harsher, from any other mod. Every ban and warning issued is only done once we all discuss it, yet if it comes from me, people will cry and snivel like goddamn children.

You want to talk about reform? Last year I received a ban for no reason, no warning, and no record of it ever being discussed among the mod team. We instated new policies to prevent this from ever happening to anyone else. I wonder why no one cared about mod reform back then.