To put money down or no?

Ask the Hackrs
1

Alright folks, time to pull the trigger. My current lease ('20 Silverado\GM Financial) goes up in a month but the final payment was made already. Got a couple of quotes from local dealers and sitting around $6k equity (all within $100). One option I am looking at is leasing a Wrangler 4xe although some of the deals are dwindling as 23s start to sell out in TX. At least with the color\options that I want. So, if I were to go this route, would it be worth it to throw the equity in my truck plus a little extra down to bring cap costs down on a 4xe, then turn around and finance it. My thought is to start at the lease because there are still some decent incentives including the $7.5k EV credit. Or better to not put money down, finance and then just payoff a good chunk of the Jeep with my down payment?

Thoughts or comments welcome.

2

I’d go with this.

But are you making sure you’re not going to get taxed twice ?

3

For the lease option part of it, I was going to try to get taxes rolled into the payment so that I am not paying them up front.

4

It doesn’t matter. Rolling them in just means your lease payoff will be higher.

Paying 6.25 + 6.25 = 12.5% of a car’s price as tax is really punitive.

1 Like
5

Then what would be the best solution to not get double taxed?

6

Buy a gas vehicle, finance it right from the get-go.

7

I guess it ccomes down to the math and discounts given. Depending on whether the EV rebate is bigger or smaller than the taxes.

8

It’s more than that. PHEV trims usually come at a huge premium over the gas models.

9

Havent shopped around for Jeeps lately I take it.

10

Let’s discuss numbers

11

Sure thing. Wrangler Willys 4xe or gas around here go from 58-61k MSRP (using most common price). About the same on pretty much any trim in my area regardless of PHEV or gas. Even with 10% off of MSRP on a gas model wont equate to the EV rebate on the 4xe.

12

You’ll have way higher depreciation on a 4xe than you will on a gas.

13

Thanks. And was wondering about that. I know that EVs depreciate like a mother. Wasnt sure if that was the case for the 4xe as well since it is primarily gas and only a small battery.

So, going by the depreciation, would it matter on the 4xe in 10 years? Really plan on keeping the vehicle a few years after it is paid off.

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