Lease quote questions...

[snowman44]

This is very interesting topic to me because I recently did my first lease to get out of my 08 silverado into a new 16 midnite edition. According to my math which could be wrong I think Im doing ok because I plan on purchasing vehicle (financing)at end of lease terms. Dont like the lease but just got a 03 z06 and in upstate ny I needed to unload my truck before rust kicked in.

[David Darby]

 

What does this even mean? You say you leased many vehicles and then in the same paragraph you save you have never leased a Sierra before and don't know what to expect? Its the same process, different vehicle.

 

Pricing wise

[Silvern Sentry]

 

1) the guy who has money to burn and wants to be in a brand new denali every 3rd year.

2) the stupid guy who can't figure out the math and doesn't care he is burning money.

 

 

3) Leasing really is not all that different from Financing (exact same price on the car). In fact I would say financing can be worse, the reason is that with financing you always pay the interest first so if you take a long term finance you can very easily end up upside down (you owe more than car is worth) and not reach that break even point until 4 or even 5 years. For me it make sense to lease because I did not ever want to be upside down (ever again on a car) and I just paid the entire lease upfront. No payment no interest for 2 years, coudl not afford to buy the truck outright but I could afford to buy the lease outright.

[fbachman]

 

3) Leasing really is not all that different from Financing (exact same price on the car). In fact I would say financing can be worse, the reason is that with financing you always pay the interest first so if you take a long term finance you can very easily end up upside down (you owe more than car is worth) and not reach that break even point until 4 or even 5 years. For me it make sense to lease because I did not ever want to be upside down (ever again on a car) and I just paid the entire lease upfront. No payment no interest for 2 years, coudl not afford to buy the truck outright but I could afford to buy the lease outright.

Uhhhhh, not quite. Almost all car loans are simple interest. No loading of interest up front.

 

 

 

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[Silvern Sentry]

All financing you pay the interest on the remaining balance per year, why else would they be financing you. Where I am at least. Works much like if not just like a mortgage loan so you can use one of those calculators to see how much of each payment is going to interest and how much to principle.

 

https://en.wikipedia.org/wiki/Annual_percentage_rate

[Imcrazy]

All I can tell you is leasing can be cheap and it can be a rip off. Some of the horror stories spread about leasing on the web have never been an issue for me and I've leased about 10 cars / trucks over the years for the Mrs. and myself. If your the kind of person who likes to keep a car for a long time obviously leasing isn't for you but, if you don't have the cash or trade in for a decent down payment it maybe the only way to get into a newer car for a payment that fits your budget. BTW the only way you can shop a lease is by the monthly payment, just always price your leases sign and drive.

 

in 2013 I wanted a pickup truck, I couldn't afford to buy a new truck with the specs I needed / wanted so I was looking at used trucks but, I could lease a new 2014 at the time for about $50 a month less, 36 month sing and drive vs. 72 month buy, zero down payment. I did the same again at the end of 2015 to swap into a new truck and keep my payment about the same, again no down payment, no deposit, no lease termination fee.

[Silvern Sentry]

Leasing also give you the option of deciding later if you want to keep it. If you buy it out you do not pay any more than if you had financed it fully and paid it off. Obligation(w/ tax)+Residual(w/ tax)=Out the Door(w/ tax) if you had financed anyway.

[Andy Seibel]

You lease-ers out there are willing to pay $350/ month forever. While I, on the other hand, have no monthly payments for as long as I keep my truck. You are only looking at the monthly cost and not the total cost of ownership.

 

That's why you can't afford to buy a new one.

 

I understand that you can get in a nicer newer vehicle for the same monthly cost TODAY, but after your 3 years are up, you sign another lease, and the cycle continues. Hence the burning money. So while you drive your brand new leased vehicle I am enjoying saving the money to buy some land and build a house.

[ram1067]

600-700 a mth = dumb

350-400 mth lease = smart then you can give them the POS back!

[Silvern Sentry]

You lease-ers out there are willing to pay $350/ month forever. While I, on the other hand, have no monthly payments for as long as I keep my truck. You are only looking at the monthly cost and not the total cost of ownership.

 

That's why you can't afford to buy a new one.

 

I understand that you can get in a nicer newer vehicle for the same monthly cost TODAY, but after your 3 years are up, you sign another lease, and the cycle continues. Hence the burning money. So while you drive your brand new leased vehicle I am enjoying saving the money to buy some land and build a house.

 

 

This is wrong.

 

1) You pay the same regardless a lease does not cost any more. There is no scam

2) I plan to buy mine out after 2 years and will owe 21k on a truck worth more than 30k. But I have the choice to keep it or return it and get ~9-10k back. I can take that cash and pocket it or let it ride on a new lease on any car from any dealer from any brand. I am not locked in.

3) I could have paid 20k down on a finance instead of paying a lease up front and would have had to make payments for 2 years instead of saving for my buyout. 2 years of no interest and no payments vs 72-84 months interest and payment .... not a tough call in my book.

 

4) That is nice you are saving to build a house. Now go online and check the housing prices in Vancouver and Vancouver Island and let me know when you have 1.5-3million saved for a single family house purchase. Not everyone in every location has that option, if I lived in Alabama or Wisconsin or wherever sure that would be easy.

 

*I leased mine because what I really wanted was a slightly used truck with low mileage, in great condition for a good price. But such a think is the unicorn of the auto world and it does not exist and if it did it would be snapped up so fast it would make your spin. So instead of trying to look in the forest for a mythical unicorn I decided to make it myself by doing a lease then buyout. Sure it cost me more but I got exactly what I wanted and know exactly how it is cared for.

[ram1067]

X2

 

 

 

This is wrong.

 

1) You pay the same regardless a lease does not cost any more. There is no scam

2) I plan to buy mine out after 2 years and will owe 21k on a truck worth more than 30k. But I have the choice to keep it or return it and get ~9-10k back. I can take that cash and pocket it or let it ride on a new lease on any car from any dealer from any brand. I am not locked in.

3) I could have paid 20k down on a finance instead of paying a lease up front and would have had to make payments for 2 years instead of saving for my buyout. 2 years of no interest and no payments vs 72-84 months interest and payment .... not a tough call in my book.

 

4) That is nice you are saving to build a house. Now go online and check the housing prices in Vancouver and Vancouver Island and let me know when you have 1.5-3million saved for a single family house purchase. Not everyone in every location has that option, if I lived in Alabama or Wisconsin or wherever sure that would be easy.

[Silvern Sentry]

I leased mine because what I really wanted was a slightly used truck with low mileage, in great condition for a good price. But such a thing is the unicorn of the auto world and it does not exist and if it did it would be snapped up so fast it would make your head spin. So instead of trying to look in the forest for a mythical unicorn I decided to make it myself by doing a lease then buyout. Sure it cost me more upfront but I got exactly what I wanted and know exactly how it is cared for.

 

Fact is trucks make good leases because North Americans love their trucks and they hold their value better than any other automobile here. Just try going online and finding a truck with under 30k miles you will see tons of cars and SUVs but will be lucky to see a single truck and if you do it probably just got sold in the time it took to load that webpage. I know I tried

[ram1067]

2-3 year old CC w/50k going for $32-36 + tax etc.....

 

Hell i can lease one for for damn near the same mth payment then roll it and make 2-4k i've done this many times with wifeys cars.....

 

I just kept the truck cuz leases where shitty when the GOVERNMENT got involved....started to turn around now

 

unless you're paying cash but that's another story

[njk4o5]

trucks around here start rusting after about 6 years. seems to me leasing is a better option. only thing that scares me still is the "wear and tear" charge when you go to return the vehicle after the lease period. I have 2 vehicles so im not too worried about mileage

[KARNUT]

If I drove less enough miles I would lease. I one of those that gets a new ride evey 3 years max. So I buy,I buy vehicles with the best discounts. I put 40-60k miles a year on them, so breaking even is my goal. My payments usually run just shy of 500 per month. I'm cheap every other way so my splurg is my ride.