Lease then purchase premium

So my question is, How much of a premium am I paying if I lease first then purchase?
Backstory: I’ve been considering purchasing a Jeep Gladiator Rubicon ($50K) which I plan on using 51% for business and 49% as an RV. I am not sure if it will be the right vehicle for what I want, hence the reason to lease first, then if happy purchase. I know Jeeps don’t lease real well. The other option is to purchase and if not happy resell in a few years, but I always seem to lose money when selling/trading in. So what are your thoughts? Thanks!

You are realistically not paying any premium at all if you negotiate the price and terms. What you are doing is giving yourself the freedom to not have to deal with the vehicle after two/three years, and having the option to purchase the vehicle if you wanted to.

Other than the acquisition fee, disposition/buy out fee, any differences in financing costs, and any differences in incentives. None of those are negotiable items.

Best option here is to calculate the total cost and see. Sometimes this will cost you a lot. Sometimes it’ll be cheaper than just buying.


There is an obvious cost associated with utilizing a vehicle, I am making a generalization, that in the grand scheme of things vehicle leased for three years vs. vehicle purchased and owned for three years. Depreciation incurred and lease cost would be marginally different.

They can be thousands of dollars different, depending on how the programs are aligned.

The answer to the OPs question is “it depends.” One needs to run the numbers on a case by case basis.


It does indeed depend on the deal, incentives, etc

… But for most cases, if you buy the car after your lease you’ll pay more than just buying the car upfront.

Caveats for special situations…

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Thanks, here’s what I’ve found.

To lease $58.5K for 42/10: 2K DAS, $712 mo inc tax, 61% RV

Purchase: $56K includes TTL

You might want to post your lease quotes in a separate thread but this is horrible.


If you are paying 98% of the purchase cost to lease, you are doing it wrong

Please keep your questions / deal check here in this thread.

I was incorrect on the lease payment, it’s actually $661mo. BTW, the numbers came from the Marketplace section in this forum.

Am I figuring this correctly???

The cost of leasing then purchasing vs just purchasing…
total leasing costs are $30K with $36K residual. Then get a loan ($36K + $3K tax) $39K for 48 mo @5% = $43K total. 43+30 = $73K total cost over 90 months

Total cost to purchase… $56K loan for 84 months at 8% = $73K

So for a similar term, the total cost is equal.

Now obviously, if I were to put significant money down or get a better interest rate for a shorter term loan, my total cost would go down.


im confused, you want to pay 73k to buy a 50k jeep

73k includes interest and fees given the term and rate of the loan.

That is the right kind of analysis to see the potential cost of both options.

The interest rates you’re using for the 48/84 mo loans seem way high though, even for so so credit. 84 mos @ 8%, good grief.

For example, I can get an 84 mo loan at my credit union at 3%. Substitute that for the 8% loan in your scenario and the total cost to just buy the truck drops to $62k. So more realistically you’ll prob be paying $7-$10k more to lease then buy.

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What deal offered on MarketPlace are you specifically using as reference?

Can you post it here?

Like many have already mentioned purchase rebates are usually larger then lease incentives (or same). Purchase rate is “usually” better then lease let alone lease rate plus used car rate. Acquisition fee is a given as well as most change a fee for lease buyout.

Its almost always financially bad deal to lease then buy out.

There is one more thing I might throw into consideration here other than the overall deal, as mentioned by others.
For me, I like the lease option because I take very good care of my vehicles and I know where it’s been during the lease. If I want to purchase at the end of the lease, I have one of the best condition vehicles already and I know exactly how much it’ll cost me without a ton of back and forth with a dealer. Sometimes this option also depends on if there was a serious refresh on the vehicle or not. If not, I might opt to buy out and keep it for 2 more years until the refresh has been out a year and can get good incentives or switch manufactures on a new lease.

Whats killing him is the 8 percent interest over an 84 month term


This is from Jeff_BeachCitiesAuto
Jeep Gladiator Rubicon
on a $58500 MSRP
$2000 due at signing
10k annual miles
On approved credit

36 month - $737 tax included (62% RV)
42 month - $661 tax included (61% RV)

Stinger is probably a worse example. It definitely one of those cases where it’s better to just buy the car. Has large lease incentives but huge MF as well

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The Stinger is the worse to lease and then buyout at the lease-end term. If you really want the Stinger, you should be leasing to get the huge incentives, then buying out right away to avoid the terrible MF.