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Discussion Starter #1
So I have a deposit down on 2020 HSE pretty loaded. Waiting on dealer to do updates before competing deal. I assumed I would purchase but having second thoughts on maybe switching to lease . I assume EVs and even this model will be much better in 3 or so years . Might be better to more easily upgrade to next gen then and assume depreciation will be like first gen IPad

would appreciate views in general on this. Thanks !
 

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Yeah I think that's a great question. Personally I don't think you can go wrong with either option, it just really depends on your personal style.

I think EVs are going to be a slow evolution so in the foreseeable future no time will seem right to purchase ... but leasing comes with strings attached, which I personally don't like. My choice was to purchase and take good care of the car; outside and inside as much as possible, and keeping track of battery state. To be honest, the battery is the one thing that made me consider a lease but I think with proper care it will be ok for a decade or more.
 

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I say lease it. I wish I could have leased mine, to be honest. When the cars first came out lease options were horrible though.

I do think there will be other options in a few years and the reliability is really questionable. I'm also certain the resale value will be basically pocket change at this point...
 

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Predicting the future ain't easy. Factories are shut down right now. God knows for how long. At least with a purchase, it's yours for sure.
 

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Discussion Starter #6
Thanks all. I also have been considering Jsimon’s point. Both factories and development teams will be paused and presumably slow the development and release of newer models . Why might have been a 2020 release could get pushed to 2021 etc etc

Time2roll makes a great point . I’ve been searching and cannot say that anything announced for the next two years seems like a better fit or has better range except the Tesla’s. The New platform Porsche and Audi sports sedans/coupes look great but not what I need and more expensive . The new Mustang EV might be a closer fit .

Most automakers are on a ~5 year cycle so they won’t be updating new models too much including Jag . I might be looking at at least fours years before anything that is on a proven platform seems better.
Could it be that Jag is really leading the pack o/t Tesla at least in this segment ?
 

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4 years ago I was in the same bost. I wasn't sure how quickly battery tech would advance, or how an EV would suit me. I decided to lease a Tesla MS, accepting that it would cost me a few thousand over buying it. I generally like to keep cars as long as practical, so I haven't been a fan of leases. In retrospect, I now wish I had bought the car, but at the time it was probably the right decision to lease. It did cost me some money, but at the time I just kept thinking that there was a battery breakthrough right around the corner and I didn't want to be stuck with old tech. So, I passed on a really great deal to buy the car and leased it for a not so great deal. The lease return company REALLY nickeled and dimed me to the tune of $2,000+. I loved the MS and would have been happy keeping it for many years, so I was a bit upset with myself for just not buying it in the first place. The ridiculously high residual made it impossible to purchase after the lease period, which is OK because I ended up with my I Pace, which I like a whole lot more.
 

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I leased as the tax benefit a bit better than buying in my situation. I was also concerned about reliability in a new platform and Jags 1st EV. So far so good. I may buy it out at the end if it turns out to be reliable and tech hasnt significantly advanced.
 

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Discussion Starter #9
Thanks all. So the numbers suggest a diff of cash outlay of ~19k between full purchase and 36 mo lease payment

If you are a bit bored (as me) and interested in details :
If I purchase :
  • 89,600 list (2020 HSE w/performance seats, full leather, hud, 4 zone climate, a few odds/ends)
  • minus 5,000 Jag incentive and ~9,900 dealer discount
  • purchase price of 74,750
  • minus 11k trade-in allowance (fair I believe)
  • plus 5,250 mostly sales taxes and some dealer add ons (750), doc/title/other fees
  • net price to me : 69,000
  • minus 7,500 fed tax credit and 2,500 TX state incentive
Total cash outlay for purchase 59,000. Would cost a few K more if I financed

If I lease
  • I lose the 5k Jag incentive
  • Acq fee of 1k is added
  • higher sales tax
  • still do trade -in
  • net “price” for lease : 75,200
  • 36 mo lease of 1131/mo with no cash down yields 40,700 cash outlay over three years or 36 mo of 696/ mo with 15k down yields 40,050 cash outlay over three years
  • I lose ability to get Federal and state incentives
Total lease cash outlay: 40k to 41k. Assumed resident value at least 35k (does this make sense ?)

So I expend an extra say 19k to own and use the car beyond the three year lease . I assume depreciation would not be that bad

would appreciate views . I have never done a lease and usually own ICE cars at least 7 years. Thank you
 

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Remember that if you lease, the leasing entity gets the federal tax credit, and they should pass that on to you in the cost of the car (meaning, a $7500 discount on the price of the car). If they don't do that they are being very shady.
 

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Bob,

I would advise you to purchase any 2019 model as there are no differences from the 2020 model. I would use autotrader.com or cars.com as the baseline. They are giving anywhere between 20 to 23K. You can ask for more with the sales not going to be that great for the next few months for 2019 models. You can get that car shipped for less than $1500 depending on where you live. With Federal and State rebates you can get an HSE for around $62K. I did the above steps in Dec as what I had explained. If you want to enjoy a new car and new models I would recommend you to lease as hardware and software do change every few years. Best of luck with your purchase.
 

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Thanks all. So the numbers suggest a diff of cash outlay of ~19k between full purchase and 36 mo lease payment

If you are a bit bored (as me) and interested in details :
If I purchase :
  • 89,600 list (2020 HSE w/performance seats, full leather, hud, 4 zone climate, a few odds/ends)
  • minus 5,000 Jag incentive and ~9,900 dealer discount
  • purchase price of 74,750
  • minus 11k trade-in allowance (fair I believe)
  • plus 5,250 mostly sales taxes and some dealer add ons (750), doc/title/other fees
  • net price to me : 69,000
  • minus 7,500 fed tax credit and 2,500 TX state incentive
Total cash outlay for purchase 59,000. Would cost a few K more if I financed

If I lease
  • I lose the 5k Jag incentive
  • Acq fee of 1k is added
  • higher sales tax
  • still do trade -in
  • net “price” for lease : 75,200
  • 36 mo lease of 1131/mo with no cash down yields 40,700 cash outlay over three years or 36 mo of 696/ mo with 15k down yields 40,050 cash outlay over three years
  • I lose ability to get Federal and state incentives
Total lease cash outlay: 40k to 41k. Assumed resident value at least 35k (does this make sense ?)

So I expend an extra say 19k to own and use the car beyond the three year lease . I assume depreciation would not be that bad

would appreciate views . I have never done a lease and usually own ICE cars at least 7 years. Thank you
From the perspective of someone who always "buys" and has never "leased", I think you have done all the calculations that you can. The bottomline is that if in 3yrs time you are aching for the next "best thing" you probably should lease because depreciation will be dramatic on a 3 yr old I-Pace. If on the other hand you like the drive and feel of the I-Pace and keep it 7+ yrs, you win. (A test drive or two will answer that) Remember you have a 5yr warranty, and the car won't drop dead on its 5th bday.
I personally will be amazed if any EV comes on the market in the next 3-5 yrs that is significantly a better drive at a comparable price. You will get marginally better range, but the cars will be targeted to the mass market meaning cheaper less luxury etc. If you are waiting for true autonomous driving that is probably a decade or more away - not for the technology, but legal acceptance.
I purchased a 2019 FE back in Sept last year and feel it is the best car I have either owned or driven, and aim to keep it for many years.
 

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Discussion Starter #14
Many thanks to the sage replies . Certainly leaning toward full purchase as I am not a frequent car switcher. If not for increasing the downside mechanical issues, I’d still think my 2012 BMW X3 is like new
 

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I only lease when i know I'm going to want to switch out. Like the Fiat 500e and Spark EV. Or when the deal is screamingly good. I did buy a truck and keep it for less than two years, but I'd have been miserable with another year of lease, and a bought car is easier to get out of than a lease. I don't like how the ipace has depreciated, but it doesn't matter if we have it for 7-10 years. I think it's a keeper, like my FRS.
 

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I always lease EVs when I can. I learned from having Teslas that some great new feature that I want will come out and the hardware in my car won't support it. In 2013 I bought my first Model S because Tesla didn't have consumer leasing available yet, but I always planned to sell it in 3 years, which I did but it was a hassle listing it and finding a buyer. In 2016 I got a new Model S with Autopilot on a new hardware platform, and by then consumer leasing was available so still knowing I'd want the next new thing in 3 years I leased it so I wouldn't have to resell it. In 2019 I leased my I-Pace because several other EVs, like the Lucid Air and Audi e-tron GT will be out in the next year or 2, and I want one of those to be my next car after this.

I do not want to keep an EV past its warranty or when battery degradation starts decreasing range. Like all technology, these get obsolete in just a few years. For that reason I think leasing is the best option, at least for me.

I'm not sure where you are but in California you don't give up the state incentive by leasing. I've taken the $2500 state rebate on both my leased EVs, and as was pointed out in a post above the federal tax incentive is passed on as a $7500 reduction in the price on your lease which is actually the better deal if you may not have a $7500 federal tax liabillity that year.
 

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I leased mine a month ago, even though the residual value is not brilliant.

Although I believe the I-Pace to be the best car out there, I do believe that, in 3 years from now, not only will their be a wide range of good electric cars to choose from, I believe that technology advances will see a range of 4-500 miles as the norm, along with much shorter charging times, compared to what we have now.

I like the fact that, at the end of my lease I can just walk away.

Hope this helps.
 

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Discussion Starter #18
Thanks Rodgerdoger. Could you message me with the lease terms you received ? Would like to see how it stacks vs what the dealer offered . Thanks
 

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As a finance guy - who didn't have a business I could use to write off the lease - I always purchased last year's model car, new, and held it for 10+ years. Now that I'm retired and have some money, I intend to lease cars so 1) I have less maintenance worries, and 2) cars are changing so quickly these days - they have more electronic technology than mechanical. So I leased a new 2019 HE I-PACE at the end of the model year and got $7,500 off the sticker right there. The dealer applied the federal energy rebate to the sales price (but I still had to pay CA sales tax - ouch!! - on the before-rebate price). I also got a CA state rebate of $2,500, but that is no longer available for cars over $60K. So my post-rebate price was around $67K, plus state tax, which is bundled into the lease payment.

Since the banks have little idea what the resale values of this all-new EV will be in one year, the lease payments aggressively cover depreciation. My lease payment is ~$1,000/mo. At the end of 3 years the residual will be ~$35K. That actually sounds at this point like a good price. If I like the car I can spend the $35K and keep it. If they're going for much more, and I want a new car, I can buy it, sell it online, and get some $ toward a new lease.

That's my thinking. Hope it helps the discussion.
MK
 

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To lease or buy... Thats an old question for a new gen car. 1. If you are a driver ie more than 15K miles per year AND with the numbers you listed, Id buy. Look at it this way. With the outlay in 4 years, you will be in the black on your trade and have value into the next vehicle without concern for violating a lease mileage agreement. The tax incentives and packaging are great . I have a 2020, I don't expect major changes till 2022-2023 with the next gen. This is a fine looking car and there will and are plenty people with 25K-30K to put into your 4 year old used vehicle especially with the 8 year battery warranty ( 4 remaining) . It will be the only luxury EV in the market space used. This will get you a good trade in value and into your next one!
 
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