Expenses are getting out of hand. Rent, groceries, gas—everything has increased in price in the last few years. Unfortunately, that also means cost-saving measures like leasing a car have gotten exorbitantly expensive.
Recently, TikToker Nicole Chmure (@readsandrescues) garnered over 538,000 views when she recorded a video laying out how her current Jeep lease of $460 is now a steal.
A car lease or apartment rent?
Nicole begins her video by asking her viewers, “What is your car payment?” She says she asks because when she recently went to get “an oil change and recall work” done on her current Jeep lease, the Jeep Wrangler Hybrid caught her attention. Curious about how much it would cost, she approached the front desk and asked about another lease. That’s when she learned that her lease of $460, a lot for most Americans, was a great deal.
According to Chmure, the front desk worker was shocked by how low her lease was and informed her that she wasn’t going to get a better deal than the one she had at the moment because leasing a new hybrid Jeep would be close to double her current monthly lease.
“He was like, ‘It’s probably going to be like $800.’ $800? $800 is half my rent. I can’t wrap my head around people paying $800 for a car,” she said.
Anxious about the thought of paying half her rent for a car she wouldn’t use all the time, she is now trying to extend her lease to maintain the price point for as long as possible.
According to the personal finance website Kiplinger, the Honda CR-V, “the most leased car in the first quarter of 2024,” has a three-year lease price of $500 a month. On the flip side, buying the car and paying it down with a 7.84 percent interest rate comes out to $700 a month.
Experian reports that the average auto lease for the second quarter of 2024 is significantly higher at $638 and points out that the difference between lease payments and auto loan payments has “narrowed from $54 in 2022 to a mere $17 in 2024.”
The high cost of leases now means that the only good reason to lease versus buy is if you enjoy switching vehicles every few years. Otherwise, the cost makes it too expensive for most to pay.
@readsandrescues Currently feeling very grateful for my current car payment and terrified for when my lease is up 🫠🫣 #lease #carpayment #financetiktok #financialfreedom #expensive #financialadvice #debtfreejourney ♬ original sound – Nicole Chmura
What do viewers think?
Many viewers suggested that she purchase a cheaper vehicle so she can avoid these payments in the future.
“You don’t HAVE to pay that. You can live within your means, buy a cheap, reliable, old car in cash and have 0 payment,” one said.
“Don’t buy new, buy used with lower miles and stop leasing,” another agreed.
“I make 90k, live in a small town in KY, and I drive a paid for 2015 Honda accord bc I’m not paying those payments. That’s insane,” a third shared.
Others shared their own experiences with being quoted for leasing a new vehicle.
“A dealer ship was trying to charge me $750 a month for 60 months on a $26,000 Subaru Crosstrek,” a viewer said.
“Was quoted $898/month today for a Grand Cherokee. I laughed at the guy. If I wanted to buy it? $1100/month. I have a 790 credit score and have been leasing jeeps for years,” a second shared.
One viewer said $800 a month for a Wrangler Hybrid is a reasonable price.
“The Wrangler Hybrid is a $52-$60k car so $800 for the lease isn’t unreasonable. If you want the lease payment to stay where you are stop looking at $50k+ cars,”
The Daily Dot reached out to Chmure via TikTok comment and Jeep via email.
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