Lease or Buy?

[horatio8]

Land Rover in recent times has been very aggressive in their financing rates, but their leases have been very expensive. That's because they use very low residuals. I've been comfortable financing because the LR4 has really held onto its value. I've traded in a LR4 at a value near 65% of MSRP after 3 years. Of course that could change when there is a major model revision.

Make sure you get a good spreadsheet to crunch the #s on the lease, and compare it to financing (I have my own if you need it). I think you'll see financing is much cheaper. If you do choose to lease, make sure you know the real Chase money factor, so you'll know if the dealer is marking it up for extra profit.

 

[Fozzy325]

I just sent back my lease LR2 and bought a new LR2.
Lease for 4 years =
Comfort of mind any thing breaks you get a new one
you get a new vehicle every 4 years

Buy = try to pay off asap and start to build your trad in price and change every 4 years as LR warranty runs out.
You can mod you vehicle without any problems or payment back to the leasing company.

 

[horatio8]

I just sent back my lease LR2 and bought a new LR2.
Lease for 4 years =
Comfort of mind any thing breaks you get a new one
you get a new vehicle every 4 years

Buy = try to pay off asap and start to build your trad in price and change every 4 years as LR warranty runs out.
You can mod you vehicle without any problems or payment back to the leasing company.

I agree that leasing is not for those who like to do mods to the car. I also agree with your thinking in principle, but if the lease, for example, costs you 7% and financing costs you 1%, then you're paying a lot for the peace of mind (in financial terms, the put option you own to sell the car back to Chase at the residual can be rich or cheap). Your numbers might have been much better, but people tend to talk about leasing in philosophical terms when it should be more of a financial calculation. I have a personal bias towards leasing, but Land Rover has pushed me into financing with a 0.5% rate, while the lease money factor was > 5%. The high real world residuals have, so far, made it a very good choice.

 

[Fozzy325]

I agree that leasing is not for those who like to do mods to the car. I also agree with your thinking in principle, but if the lease, for example, costs you 7% and financing costs you 1%, then you're paying a lot for the peace of mind (in financial terms, the put option you own to sell the car back to Chase at the residual can be rich or cheap). Your numbers might have been much better, but people tend to talk about leasing in philosophical terms when it should be more of a financial calculation. I have a personal bias towards leasing, but Land Rover has pushed me into financing with a 0.5% rate, while the lease money factor was > 5%. The high real world residuals have, so far, made it a very good choice.

I totally agree with what you say.

I had a 2012 LR2 HSE on a 2 year lease value which was 52.999,00
I put 7000 down to get the finance lower
I paid 20 months @ 750

I wanted to buy the vehicle as i had only done 18k as I ride a motorcyle in the summer. It would have been around 40k if I didnt ride. so I wanted to buy at the of the lease but landrover wanted 43k as a buyout.

They gave me an offer to buy new.
LR2 2013 HSE Lux
+2000 for Loyalty bonus
+2000 for end of year deal
-500 winter tyres (1500 normal price)
-500 LUX Pack as I didn't want the LUX package (1500 on top of purchase price normally) they didn't have anymore HSE only vehicles
2013 came with 18 inch rims dealer purchased my LR2 and swapped the 18 for the 19 and bought the new 18's back from me with the old 19 inch tyres

Total price for the LR2 was 360 bi monthly for 84 months

total price of vehicle before mods
54.999,00

So Lease was 750 per month with nothing at the end of 2 years
Purchase is 720 per month and its mine. ( looking at double payments to pay off asap) I will look at selling at 5 years if the KM's are massive but i don't see this with riding so much

Extras I have purchased for the car
3m protection kit - 1500
diamond kit - 1500 (5 free windscreens over 5 years)
roof rack (LR) - 750
support bars (LR) - 450
explorer roof rack (LR) - 550
Mudguards (LR) - 550
1.5ltr fire extinguisher - 150
emergency flare kit - 70
EFlares - 10x75 = 750
Winter emergency kit - 150

I wanted a winch and brush bars/roo bars/Bull bars as I do a bit of off roading.

 

[horatio8]

Fozzy325 - Sounds like you got a great deal on your purchase - congrats. The only thing I'll add is that I never pay cash up front on a lease. The reason is that if you total the car, the insurance pays off the lease, not the full value of the car - so you're taking the risk of losing your capitalized cost reduction (upfront cash).

 

[AxelR]

Fozzy325, are we actually talking about a LR2 or LR4?
Almost $53k for a LR2 seems really high to me... Maybe I misread something.

 

[Fozzy325]

Fozzy325, are we actually talking about a LR2 or LR4?
Almost $53k for a LR2 seems really high to me... Maybe I misread something.

Yes it is correct asa LR2 but please understand its Canadian dollars

 

[AxelR]

Yes it is correct asa LR2 but please understand its Canadian dollars

Oh ok. I know that cars and trucks are priced pretty high up in Canada.
Same with gas, I just spent a week between Quebec and Montreal and each fill up was pretty painful.

 

[neezer]

Looks like there's been quite a reversal since 2014 folks. LR residuals are stellar, so leases are way better now. I definitely took advantage!