Leasing (with intention of keeping) payments question. 2023 Jeep Grand Cherokee L Limited

Hey everyone. I have a leasing question that im hoping to get some suggestions/clarification on. Im in the market for a Grand Cherokee L Limited with some options. I plan to keep the vehicle. My plan is to lease the vehicle first then keep it after lease end on the buyout. My plan is to put down a large out of pocket sum (perhaps 10-15k) to lower the monthly payment for the life of the lease. Ive been told this is not a good idea and also that it is. Any info would be appreciated. Thanks.

Bad idea bc if it’s totaled (no matter who is at fault) it’s gone. With Chrystal Capital, you are better off going OnePay for a lower MF and the money is kept in escrow essentially and used to pay off the monthly amount.

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If youre going to put a large amount down, youd be better putting the entire lease down and doing a one pay. Youll save thousands in rent charge. Otherwise, there probably isnt a good reason financially to lease and then buy out. Occasionally, the programs are such that it makes sense to do that. Right now, not so much.

Not to Hi-jack here, just a question on one pay, if the car is totaled, do you get back your one pay money?

Yes, a prorated amount comes back. It is not treated the same as a large cap cost reduction.

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This is the first time im hearing about OnePay… is that something is requested at the dealership? I cant seem to find any direct info on it…

Theres lots of discussion of one pays/single pays on here. A large amount of us with 4xe or frontier leases have one pay leases.

With the dealer, you simply tell them you want to do a one pay.

For example, Would that large upfront payment to onepay HAVE to be the total of the amount for the lease term or the amount you want to put in?

Yes it must be the total for the onepay lease. The calculator on the site has options for it. On my recent GC 4XE lease I did the math and it ends up being a 6.5% annualized return on the way pay investment for what I save vs monthly payments. I took that deal.

Completely random to the main question and have absolutely no idea where it came from or why you’d want to do it.

If you got a OnePay option, could you take that number and go to an outside bank/credit union and get an auto loan against it?

I highly doubt it especially since it’s being drawn down over the course of the lease and no easy way for them to recoup the money in the event of a default.

Why not just finance it and put that $10 - $15k as a down payment?

A purchase may be best, If you’re in the SoCal area I see Arrowhead credit union has 84 months at 2.99% APR.

If you’re trying to lease it because of additional rebates. You can always lease it as $0 down and capture those rebates then in 30 days refinance it with your credit union at a low rate. food for thought

In theory, yes, but now you’re paying interest on interest.

Yeah it was merely a random thought that popped into my head. Now that I read some comments and thought about it more I don’t think it would make sense or be possible. Cause assuming you could, wouldn’t the bank want to put a lien on the title which you wouldn’t have since its a lease. My only thought to it was its a lower amount they are financing so maybe the payment would be cheaper.

I’m not clear what the collateral would be in this scenario… it’s not the car and it’s not the funds as CCAP wouldn’t release them to anyone unless the lease is terminated and they are were paid in full.

A balloon loan seem like a better option if you are trying to keep the monthly payment down.

You would pay 3% on money that reduces your interest by 1%? That’s going to take some serious math to see if it pays out

I agree, this was merely a random thought. As an option to have a lower payment dependent on the interest rate you could get from a different lender. But there are clearly lots of other issues that could arise even assuming the math worked out and it was a cheaper option.

Your best option is to finance to the vehicle on day one.

Your lease-to-buy plan will waste a ton of money on

  1. Acq fee
  2. lease rent charge followed by used car loan APR.
  3. purchase fee (if any)
  4. Second title/reg

Leasing with intention of keeping. What a concept!