So, I’ve got a solid year left on my lease but I’m always thinking. Plus I found myself at the dealer today.

My intent when I leased it was to seriously consider purchasing if I liked it. And I do.

I’ve also considered a RRS and now the new Defender. The dealer mentioned today that LR has stopped bringing in diesels for both the RR and RRS. Anyone else hear this? My dealer doesn’t ever stock any diesels as they claim no demand here. (I picked up mine out of state) Who knows, at some point soon mine may be a bit of a unicorn, lol.

So as I think about a post lease purchase, I can’t help but think about a warranty. My dealer will work the buy in such a way that they can CPO it ( for a cost). My question is whether or not a CPO warranty (up to 100k miles) is better than third party warranties. I’ve never had any experience with them. I assume getting an extended warranty is a good idea.

Anyone have ave any thoughts/experiences?

 

I don’t know if any third party warranties for a TD6 Disco. I looked back when I bought my CPO and no place would warrant it.

 

According to my LR dealer it is almost the same as the factory warranty.

 

That's what I found when I checked after buying our new one a couple if months ago (gasser)... I wanted to compare to what JLR had offered for extended warranties... after 3 calls to the major players in after market extended warranties, I did find one place that would... but they said that they didn't want to offend me and tell me how much... i persisted and I think it was like 11k... we both laughed and I stopped looking for anyone else. JLR said I could add it after the fact but I'm not too worried about it.. I've barely broken even on extended warranties even with our previous twin turbo Lincoln.

 

I could be wrong, but I remember trying to do this with an Audi I had years ago. The dealer said they would CPO it for a cost, but the way they needed to work the transaction was basically a sale of the car by me to them and then a buy transaction in order for it to be considered a CPO by Audi. That would have resulted in me paying sales tax on the “purchase” back of the vehicle.

 

I think you have to pay sales tax in Texas when you buy the car at the end of the lease as here it is charged per transaction, so you pay it at the start on the new value and again at lease buy out on the residual, a double hit.

 

I'll have double check my paperwork. I know in the state I previously lived in, the lease was set up really like a balloon payment. This meant that "buying it out" was really just paying off the loan early.

 

I’ll be in the same position as you in 18 months when I have to decide whether or not to keep what will be an extremely low miles D5 by buying it out for the pre-agreed residual, or just hand it back and start again on a custom order Defender. Financially the former makes more sense so I’ll be interested in knowing if sales tax dies apply for you should you go down that route...

 

I'm 6 months away from my lease end as of yesterday on my 2018 Disco (33 month lease started in Sept 2018); LR sent me an email indicating that they created a customized 'End of Lease' options website for me. I was originally excited as I thought it would have specific information around buying out my car, ending lease early for another LR or some other interesting options. Instead, it was a generic website with a link to an end of lease checklist. Disappointing, but somewhat par for the course based on my experience with LR.

I really like my car, but it has been at the dealer far more than any other car I have owned in the past (my dealer is 30 minutes away, which adds some pain). I have had the leaky windshield (that was successfully remedied) and a bunch of electronic issues with the car. Fortunately, no mechanical issues, which is a good thing and the car still feels relatively tight (no rattles, squeaks, etc.). That being said, my end of lease purchase option in the contract is ~$45k, which seems to be $4k - $5k too high based on market pricing. I haven't put as many miles on the car because of Covid, but I don't think that will justify the premium. I may be resigned to paying the $450 end of lease fee and looking elsewhere for a car. Does anyone know if the purchase price of the leased car is negotiable?

 

JLR Finance own the vehicle and will want the best deal from: contract price, Dealer processing the return or auction. The challenge is (and I forget the commercial language) JLR aren't allowed to sell to you directly, the need to do it through the dealer. The dealer has minimum margins, invariably means no deal for you. What you might be able to do is trade in the "equity" unused miles onto something else? Good luck either way.

FWIW I had a Volvo lease return once where the buyout was $13k over market and no one wanted to deal. I left the brand and thanked them for subsidizing my lifestyle.