Lease or Finance?

[Anonymous]

Long time follower,  Question- Despite the usual pro/con arguments on the merits of leasing and financing, is it better from the standpoint of reliablity to Lease or Finance a Range Rover, and the same applied to a BMW? In terms of underwritting, although I am aware Chase is the "Captive" lender for Land Rover, do they differ. much on underwritting? Thanks in advance

FICO 9 EXP 

787

FICO 9 EQX

762

FICO 9 TU

795

[sccredit]

I would only lease most luxury brands. Some have no issues after warranty but way too many do. 

[Shooting-For-800]

completely depends on the deal.

[lhcole77]

@Anonymous  I have financed, I have leased, and I am about to buy at the end of my current lease.

If you do lease, make sure you negotiate out the door price FIRST on the vehicle. Do not get sucked in to "How much do you want your monthly payment to be?"

Get the price of the vehicle down, and the monthly payments take care of themselves.

[joshk4u]

I would like to know what you wound up doing.  

Lease or Buy ? What did Chase run your score under what Fico Auto version? 

I'm in the process of buying a 2021 RR also. 

[bondsandloan]

Lease a BMW. Always! The salvage values are so good (high!) that the in-built payments of a zero down lease never leave any equity in the car.

Just get the MSRP down & negotiate your MF and get a great monthly price. 

[Anonymous]

In my experience, BMW reliability and maintenance cost is not as expensive as the internet portrays and most other BMW owners I know would agree with me. Land Rover on the other hand still has a bad track record with electronics, which tend to be the more expensive or difficult parts to replace. Both brands, however, suffer pretty extreme depreciation in the first few years. If you are set on purchasing new I would consider a lease to be your best option. If you are open to used CPO is a great choice, especially if you drive many miles as the CPO warranties for luxury brands are often unlimited mileage. I would consider a purchase of a used BMW (that is not certified) but not of a used Land Rover, too much maintenance/repair risk for me.

With high 700 scores you should instantly qualify for tier 1 rates with both BMW and Land Rover. The only thing that could be a detriment for an approval would be limited credit history or insufficient income compared to the reqsted loan.

[Anonymous]

I leased a 2017 Jaguar in 2016, for 24 months, a F-Type, I didn’t care for the MF, my scores, and history was strong even in 2016, yet they wanted 5000 down on the 93,000 car, even though I had prior auto loans, and CC limits combined equaled 200K. That gave me a bad taste, and after finding out the RR was via Chase for captive lending it gave me pause. I am leaning toward the BMW X7, and I agree with other posters on working on MSRP first and foremost and not get caught up in the ridiculous payment game with the dealer. The model I am thinking is 81,087, but if they could give it for 78,000 and a good MF-along with the fact I am a prior BMW lease even though it was joint with an ex-I can get an additional 1,000 off! Payments should be around 900ish, 

Income 297k

All high 700s FICO

19yr oldest account

AAoA 6yrs 9months

CL 7 Cards 334k 

Utl 0%

3 Prior Leases no lates

The only thing I am a bit worried about was I recently consolidated my law school loans, I have paid half of it down-from 300k, and the new consolidation account makes my credit look newer according to the other forums. But no lates, no debt, own house, and decent CL and length of accounts. Is BMW picky? Odd since I did cosign for an ex, but that was in 2015....Hopefully in the next few days I will have the car. Lease is honestly what I am leaning toward since I don’t keep my cars and I get bored of them fast.

[4sallypat]

---

@Anonymous wrote:

In my experience, BMW reliability and maintenance cost is not as expensive as the internet portrays and most other BMW owners I know would agree with me. Land Rover on the other hand still has a bad track record with electronics, which tend to be the more expensive or difficult parts to replace. Both brands, however, suffer pretty extreme depreciation in the first few years. If you are set on purchasing new I would consider a lease to be your best option. If you are open to used CPO is a great choice, especially if you drive many miles as the CPO warranties for luxury brands are often unlimited mileage. I would consider a purchase of a used BMW (that is not certified) but not of a used Land Rover, too much maintenance/repair risk for me.

With high 700 scores you should instantly qualify for tier 1 rates with both BMW and Land Rover. The only thing that could be a detriment for an approval would be limited credit history or insufficient income compared to the reqsted loan.

---

+100 @Anonymous  I have done both: BMW leases & financing AND Land Rover lease and finance.

For the past 20+ years, I have to say that BMW has done a lot better over time in terms of reliability and committment to quality.

My daily driver is a 2014 528 which was a lease buyout. It's been a solid workhorse - never anything major - normal maintenance like my Honda.

Land Rover, well that's a another big bag of doo doo...

LR4 finance - was a lemon from the start - cancelled contract after 2 months after getting AAA/ACSC involved.

Discovery Sport lease - was a pain - in the service dept for over a year out of 3 years lease.  Did get to drive a Jaguar F Pace which is nothing like a Land Rover but at least no miles on the Discovery.

Now that I have reliable daily drivers, I am looking at financing the new Defender 110 as a weekend car and off road fishing vehicle.

Not looking forward to typical Land Rover telematics, air suspension, and electronics issues which are 90% of the repairs under warranty...

The only reason I return to Land Rover: stock off road ability.  

I have taken the LR4 and Discovery Sport on Land Rover's Experience center in Monterey, CA for a day of off roading and I have to say - it beats the pants off a stock Jeep, 4WD truck or anything made off the assembly line!

Here's a video of me in the Discovery at their off road course in Carmel with 2 wheels on the ground!

https://vimeo.com/manage/videos/256717272 

[Anonymous]

---

@Anonymous wrote:

I leased a 2017 Jaguar in 2016, for 24 months, a F-Type, I didn’t care for the MF, my scores, and history was strong even in 2016, yet they wanted 5000 down on the 93,000 car, even though I had prior auto loans, and CC limits combined equaled 200K. That gave me a bad taste, and after finding out the RR was via Chase for captive lending it gave me pause. I am leaning toward the BMW X7, and I agree with other posters on working on MSRP first and foremost and not get caught up in the ridiculous payment game with the dealer. The model I am thinking is 81,087, but if they could give it for 78,000 and a good MF-along with the fact I am a prior BMW lease even though it was joint with an ex-I can get an additional 1,000 off! Payments should be around 900ish, 

Income 297k

All high 700s FICO

19yr oldest account

AAoA 6yrs 9months

CL 7 Cards 334k 

Utl 0%

3 Prior Leases no lates

The only thing I am a bit worried about was I recently consolidated my law school loans, I have paid half of it down-from 300k, and the new consolidation account makes my credit look newer according to the other forums. But no lates, no debt, own house, and decent CL and length of accounts. Is BMW picky? Odd since I did cosign for an ex, but that was in 2015....Hopefully in the next few days I will have the car. Lease is honestly what I am leaning toward since I don’t keep my cars and I get bored of them fast.

---

Your past history and income looks like a perfect candidate for a lease. The Money Factor is set by the Brand, not the bank behind them. Jaguar/Land Rover are under the same parent company. I think the BMW is going to have a better money factor than the Land Rover. Have you considered working with a broker? They charge a $500-$1,000 fee if you purchase a vehicle through them, but they can get you a guaranteed strong discount (probably higher than the discount you were hoping for) and make sure you aren't being charged a marked up money factor. They can also offer input and make sure you are looking at the model(s) with the best incentives and lease structures.

Alternatively, if you have the time and interest in doing the research and negotiation on your own you can utilize resources like Edmunds and LeaseHackr to get the base money factor, residual values, and any rebates for your zip code as well as get an idea of what discounts others are getting from dealerships. Then you can do the leg work and try to get a dealer to match that discount. Takes more time and patience, but doesn't cost you money and you MAY get a better deal than going through a broker.