I currently lease a 2016 Land Rover LR4 HSE. I pay $740/month, which includes maintenance and the tire/wheel package.
I have had the car for 3 years, it is due back in June.
I put on very low miles - the lease is for 10K a year, but in 3 years I only have 24K miles.
The buyout is $39,500 or so plus tax, which is roughly $43,000 total. I expect it to have 27,500 miles on it at the time.
I would normally just return the lease, but I love the car, and they discontinued this model. All of the Land Rovers are now rounded and not the same in my opinion. Also, like the 2014 FJ cruiser I had previously, this car is the last model year of this body style and might have some future cult value.
With that said, what should I do?
Buy a 3-4 year old car for $40K? Buy the extended warranty with it? In this situation, I’d be paying about $800/month with a 60 month finance.
Or is that crazy to spend so much on an older vehicle? Should I just return it, suck it up and find another car?
Question I’ve asked in the past but now the time has come.
I am leasing a 2016 LR4. The lease was 42 months as is due back in June. I am 10,000 miles under what I should be. My buyout is $38,500 from US BANK. The car is valued at around 39,500 or so.
The problem is, US Bank will not sell it to the dealer at anywhere near this number.
Another problem is that I need tires. They are $1200 new or $450 used. And I have to pay $400 dispo return fee.
So…
Do I buy the car out myself and continue to drive it? I’d have to pay 8% tax. The warranty is for 6 more months and I can purchase an extended warranty for about $3000. I like the car a lot, but I’d be paying $45000(with tax, tires and extended warranty) or so for a car that is 4 years old that will need brakes and such in the coming years.
Or
Take the hit on the tires, dispo fee, etc. Get out and get into something new?
Well that’s certainly a drag! What exactly would the extended warranty cover?
I just did a quick search and saw that most LR4s with 25k-30k miles are listed for $40k-45k, so it looks like your buyout is actually right around market value, once you add in tax, tires, etc.
Will your driving habits/car needs be staying roughly the same for the next 3-4 years?
I drive about 7500 miles a year. Will stY the same. Extended warranty will cover bumper to bumper for 4 years or 100k miles which I won’t hit.
At the end of 4 years, it’ll be worth 15-17k or so. I’ll need brakes and tires again about $1000 each.
So I’ll pay 45-46k cash for a 4 year old car, drive it 4.5 more years, sell for 15,000. Costs me 585/month. I can lease a 74k brand new XC90 for 649/month just first month DAS 36m/10k year.
Personally, I’d go for this option - way less to worry about if you ask me. Is that what you’ve negotiated or is that just the advertised deal? I’d run numbers at both 7,500 miles and 10k miles to see if it would be cheaper to just pay for overage miles (if you go over 7,500).
I had a 2010 LR4 lemon that was replaced with a 2011 LR4 and also had a 12 RRS. The maintenance on the cars as they age is just excessive. Even if things don’t break just keeping it going is going to be a constant money pit. I would never recommend buying one out of warranty or post lease. Especially if you now need tires and brakes which will be a 2k+ repair. Get a different car. We have had 12+ Volvo’s and love them.
