Fast forward a few years, our combined annual income has tripled, but my wife wants to keep the same low lease payment of $400-$500/mo. We’re on the fence about buying it out or ordering her a new F-pace R-Dynamic or SVR (she loves the satin green). I like having her drive nice vehicles, so I am being biased towards ordering a new car. Ordering a new car in this market is against my better judgement.
The buyout of her Jag is $25,500 (Nov 2022) which we can easily write a check for. The trade-in value according to NADA and KBB is right around $40,000, retail $46-$49k. I haven’t talked to any dealers yet, but the new F-PACE MRSP will be around $85,000 - $100,000. If we throw all of the equity from her current car into the new lease, the payment would be in the $300-$400 range if I am doing my math correctly.
Is buying out the lease the best option right now, and wait for the car market to stabilize in a few years? I am having anxiety over the possibly of actually paying MSRP + a possible ADM on a car, which I swore I would never do.
The other cars she is looking are at are: Aston Martin DBX, AMG G-wagon, S63 AMG. IF we can get a deal on one of these, we may change directions.
Check the remainder of the warranty to see the amount of coverage remaining. If what you are saying is correct, a buyout of the vehicle would probably be the most economic way of owning a luxury vehicle for the foreseeable future.
None of these cars will be any kind of “deal.” The monthly payment will probably be close to 5-6X the amount you paid for the Jaguar of you can find a dealer willing to sell you one at MSRP.
I get the appeal of seeing that $500 payment every month, but taking $15000 of equity and throwing it into a new lease as a down payment is such a bad idea. Keep the cash in the bank and use it to fund the higher payment each month if you go that route.
F-pace discussion seems moot because no one has any idea what the RV and MF will be.
Throwing down a ton of money to keep the payment low is just gymnastics, only mental. In what other aspect of your life do you allow yourself to be deluded into thinking something cost a lot less than it actually did.
The G wagon might have the highest ADM of any vehicle in the entire country.
The other two sink, i.e. depreciate, so rapidly they make an aircraft carrier’s anchor look slow.
There’s no question at all in my mind. A used E-pace should not be on anyones list of nice cars. Heck, a Wrangler has more character and a 22 QX60 has more luxury and better materials.
No question that cashing out is the only way to go with the E-pace.
Only question remains whether you’re ready to buy something $175K+ or not. If not there are way better alternatives than a used E-pace.
The question in my mind is do we want to step up to the nice cars now, or wait it out a few years?