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The payment on borrowing $60k for a preowned Sport HSE is roughly $900/mo over 72 months. It seems one can lease a brand new one for roughly the same payment of even a bit less. A payment this large I probably wouldn't keep it for more than three years anyway. So in this case does it make better sense to just lease it given these numbers?

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2016-2018 Range Rover MkIV / L405
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Disagree, if you only keep it 3 years, you will still owe the same or more than what the car is worth on a trade, especially on a 72 month loan. And if you don't trade it in you have to deal with trying to sell it, which is a PIA. If you can get in that price range on a lease with minimal down, then lease.
 

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At end of lease you have ZERO. At end of loan you have an asset value. You decide if you want an asset or nothing .
Agree 100%.

But---these types of questions are always difficult to answer because it's not a "Range Rover" specific question more than it is a banking/financial question. It's more a matter of your personal finances and what your household can afford. You shouldn't be swayed in either direction by strangers on the Internet (including me) who know nothing about your individual situation. One lesson that I have learned as a "car guy" is that I would never buy a vehicle that I couldn't pay at least 50% to 60% of the price upfront and finance as little as possible. Financing cost you money. I wouldn't want a car loan for that much money sitting over my head. It's a depreciating asset. Leasing it isn't any better. You're basically renting a car and in the end have zero equity and could get further dinged if you don't maintain it properly or exceed the mileage.

I know that I didn't answer your question, because neither option sounds good to me. Now if you said, "I found a vehicle for $60K and am pondering putting down 50% on it and the financing the rest" then I would vote that direction. I hate to recommend to people to finance things thereby paying banks extra money. The other option that you could take is to finance that amount and pay-off the loan as quickly as possibly. Double to tripple the payments and chissle-away at it aggressively. That is something that I could vote for, too. But not keeping a loan that size for 72 months.
 

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I turned my lr4 lease in two months early last June and rolled the $9300 I had in equity into my 2015 RRS HSE lease.
That's what dealerships call a "lease pull-ahead". They allow you to end a lease early and jump into another lease so they can move inventory. Not all places will allow you to do this, but it is common. I think they also do this when the vehicle is worth more than the residual value or it has fairly low mileage and they can sell it on the lot easily. But it's a case by case thing. At times this is a good option if you go from lease to lease.
 

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I don't know why one would pay 50-60% of a car's value when you said it's a depreciating asset? Unless it's a collector car where you will just garage it. The best would be zero down, zero or the lowest interest finance.


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I don't know why one would pay 50-60% of a car's value when you said it's a depreciating asset? Unless it's a collector car where you will just garage it. The best would be zero down, zero or the lowest interest finance.


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That wasn't what I meant. Let me explain. We aren't talking about the value of the vehicle. We're talking about the amount of the loan.

If you walk into a Land Rover dealership today and pick out a new/used vehicle you aren't going to get a 0% loan. No chance of that happening. The typical rate for a new vehicle for someone with an outstanding credit score will fall between 2.9% and 3.9%. On a $60K loan you are going to pay somewhere around $180 to $210 per month in interest and finance fees on those amounts. If you shop around on your own and find a 0% loan then that makes sense. But that probably isn't what we are talking about here. For a used vehicle the rates could be as high as 8%.

What I am saying is that if I would never enter into a $60,000 auto loan without putting down a sizeable down payment so that I was only financing the minimum. For most people the smart move is to put down at least 20% to knock-down the amount that they are paying interest on. Financing as you know isn't free money. Paying it back with interest and fees costs money. Yeah, some dealerships offer that "zero down and zero interest" package for "qualified" customers but that is very rare. However, if one can swing that then it makes sense---in this scenario.

If one is going out and buying a $60K or $70K vehicle and they can't afford to put down at least 20% on the initial loan, then they are buying above their means. That's just my personal opinion, and I know this went a bit off topic. I'm certainly not trying to ruffle anyone feathers. I know discussions like this can go sideways fast.

Just trying to get the OP to think through the deal. Good discussion. As I said, YMMV.
 
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