There is a lot of talk about the 1% rule of thumb. But I wonder if that really applies now when leases are just generally not so attractive. I have been looking at leasing a Jaguar F-Pace, and the current offer is certainly not close to 1%, but if I add all the costs of leasing plus residual, it comes out to slightly less than purchasing outright. Doesn’t mean it’s a good lease?
It depends on the make and model. If you are talking specifically about the F-Pace, it’s a new model that is extremely popular. There are no incentives, because they can sell and lease without them. Purchasing and leasing is apples and oranges. You are talking about financing the entire cost over 4-7 years versus just paying the depreciation plus interest over 2-3 years. Leases on similar SUV’s are going to be better.
Thanks. Think I’m sold on this vehicle, plus the competition costs a lot more.
At the end of the day you’re driving the car. I would rather be above the 1% rule and enjoy the car instead of hating one just because it beat the rule.
Enjoy the negogations, get the best deal that you are comfortable with and enjoy the car!