Buy Or Lease?

agrats84 · August 2, 2011

I've been in this cycle of wanting a new truck every 2.5-3 years. I hesitantly leased my last truck only because I couldn't afford to buy it with all of the options I wanted. I saved enough money during my lease to make a downpayment for buying my current truck. I have the itch now for a new truck and am stuck again in the quandary of buying vs. leasing.

The most significant reason I prefer to buy is for financial security. It is (or will be mine) and I can make any changes I want to it without having to worry about handing it back in. I also don't have to worry about mileage. I can always use it as a downpayment for my next vehicle.

The reason I am considering leasing is because I can get a more nicely equipped vehicle for less. I will only lease for 3 years with 45,000 miles and I always work in a deal that it is covered bumper to bumper for those 45K miles.

Did you buy or lease your current vehicle?

SouthCo · August 2, 2011

If you like a stock truck and can stay within the mileage allowed... lease on, but you never really own the truck. If you modify it your throwing money away.

GasHog369 · August 2, 2011

My current truck, I leased / smart buy it... AS soon as the lease was up i took out a loan and bought it...

Yes i am paying on it longer now, and i'm paying a little more $ to do it this way ... But i was in the same predicament as you.. I couldnt afford a 37k truck , and then on top of that the 2k or so penalty of turning in my previous lease early...

I had a 2004 colorado. Could not stand the mid size at the end there.. held onto the lease for 2.5 years or so, and had to get out. dealer helped me out with 3 payments or so, but i had to eat 6..

This truck i modified it from day one like i wanted. Didnt do to much crazy stuff until warranty was almost gone, but still made it mine.

I'm happy with the way i did it..

tyhuck · August 2, 2011

I should probably lease because Ive never had a truck that I was making payments on for more than a few years. But, like ealier mentioned, I can mod any way I want and drive as many miles as I want.

If the deal is getting a better equipped truck for less, why not look into a lightly used truck. I bought an 06 in 08 that was very nicely equipped. It had everything except leather and OnStar. My dad was driving an 05 that he bought new. His was stripped down except for the aftermarket power window kit. It didnt even have floor mats. Other than the trim levels they were the same (mine a Sierra 2500, and his a Silverado 2500). I was paying half of what he was.

So, my vote is to go with a used truck. Maybe a trade from one of those guys that buys a new one every year to get the greatest and latest.

Silverado4x4 · August 2, 2011

When leasing a vehicle you never feal like its yours and feals worse when you look at the title as it says your leasing companys name first and then in care of your name.

Never put money down on a lease your really just throwing it away to get cheaper payments and then turn the vehicle in so then they can make even more money on the resale.

If you lease a vehicle solely because you cant afford it then you shouldnt get it.

Stevens03 · August 2, 2011

Buy... Nothing good ever comes from leasing

jdubub · August 2, 2011

Buy , just do not get something you cannot afford

shocktop · August 3, 2011

If you bought the truck now, would you keep it for more than three years?

Leases are good for those folks that like a new vehicle every three years, IMHO. The only thing is that you have a car payment forever.

I prefer to buy a vehicle and drive it for a long time. Also, I have bought new vehicles a couple of times and don't see myself doing that again. I can totally understand being the ONE owner of a vehicle, but I can't justify the hit you take driving a new vehicle off the lot anymore.

So, my final answer is, I just bought a used truck that was pretty much exactly what I wanted. I will have a payment for a little while, then I will own it, and then drive the wheels off it.

My recommendation is take your time, find a used truck that is very close, or exact, to what you want, buy it, and then make it exactly what you want. That way it is YOURS.

wavery · August 3, 2011

Take the time to get your financial act together. Suck it up and buy an older truck for cash, drive it for 3 years and pay yourself the $500 a month. After 3 years, buy a 2-year-old truck for cash and start over again. In 3 years, you should have enough to pay cash for your new truck, using the truck that you own for the difference.

If you stay in the cycle that you are in now, you'll never own your own vehicle.

johnnyz71 · August 3, 2011

I have to comment on this thread--this is definitely becoming one of those "I saw it on the internet" threads. There is some very wrong information/advice being given on this topic. Here is what the truth is:

1. Leasing--if you want a new vehicle every 3 years & you don't drive more than 15,000 miles a year--THEN LEASE! They have lease programs for 10K, 12K & 15K miles per year, so you have options on how many miles you drive. Cars are a depreciative item, they lose the most of their value in the first 5 years. Leasing gives you the option to have a new vehicle every 3 years with a factory warranty. A lot of people like the idea of this & it doesn't mean that they can't afford to buy the vehicle.

2. Buying--if you are going to keep the vehicle longer than 5 years, than buy it. But you also shouldn't take out a vehicle loan longer than 3 years in my opinion. Paying on a vehicle for 5 years is not that smart because of all the interest you will pay on it. IF the deal is one of the GM 0% for 60 months offers, than take that deal--0% interest is great in my book.

Mod the truck up if you lease it as well--just take the mods off before you turn it in. You turn in the truck and you get some money back on the mods. If you buy a vehicle & you trade it in, dealers don't care about your mods--you'll lose the money there. Also, if you sell private, it is very rare that you get MORE money for the vehicle because of the mods. Most people sell the vehicle with the mods just to get it sold, so you don't make out much there either. At least with leasing, you can still sell the mods you did and try to recoup the money.

Personally, I lease & I buy. I like a new vehicle every 3 years, so I lease. My wife doesn't drive a lot and she keeps her vehicles an average of 7 years. I leased my '11 Silverado & I bought her '11 Equinox. I can afford to buy both vehicles, but I don't feel like losing my butt on the truck after 3 years. I have done the match, it is cheaper for me to lease my vehicles. My financial advisor & accountant both agree.

redjewel2ss · August 3, 2011

NEVER fleece, i mean lease a car!!! you are throwing money away, and you build no equity in an already bad investment (b/c new cars go down in value). the reason why dealerships try to push leasing so much is because they make more profit off of a lease than someone financing. here is a good link on how leasing really works for the car company and why its a bad idea:

http://www.daveramsey.com/index.cfm?event=...entItemId=10367

leases are for people who can't afford to buy, and therefore shouldn't be at the dealership in the first place. don't look at how much your monthly payment is going to be, if you negotiate on that, the dealership will win everytime. know how much you can afford for a vehicle and negotiate that. here is a good link to car buying tips:

http://www.daveramsey.com/article/car-buyi...ey_automobiles/

why would you want to upgrade from a 2009 to a 2011 or 2012 truck anyway? they are almost the exact same vehicle!

if you continue to always lease or finance cars, your just throwing money away in interest and dealer fees. check this link out, it really opened my eyes on owning a vehicle and to this day i will never finance or lease a car again. i have 3 brand new cars all paid for with cash by following this plan. my truck, my camaro, and my wife's SRX

http://www.daveramsey.com/media/flash/elea...ree/player.html

johnnyz71 · August 3, 2011

NEVER fleece, i mean lease a car!!! you are throwing money away, and you build no equity in an already bad investment (b/c new cars go down in value). the reason why dealerships try to push leasing so much is because they make more profit off of a lease than someone financing. here is a good link on how leasing really works for the car company and why its a bad idea:
http://www.daveramsey.com/index.cfm?event=...entItemId=10367

leases are for people who can't afford to buy, and therefore shouldn't be at the dealership in the first place. don't look at how much your monthly payment is going to be, if you negotiate on that, the dealership will win everytime. know how much you can afford for a vehicle and negotiate that. here is a good link to car buying tips:

http://www.daveramsey.com/article/car-buyi...ey_automobiles/

why would you want to upgrade from a 2009 to a 2011 or 2012 truck anyway? they are almost the exact same vehicle!

if you continue to always lease or finance cars, your just throwing money away in interest and dealer fees. check this link out, it really opened my eyes on owning a vehicle and to this day i will never finance or lease a car again. i have 3 brand new cars all paid for with cash by following this plan. my truck, my camaro, and my wife's SRX

http://www.daveramsey.com/media/flash/elea...ree/player.html

Owning your vehicle is great if you want to keep it a long time. Leases are cheaper than car payments, so why wouldn't you lease if you only wanted to keep it 3 years? Is it because people like Dave Ramsey & Suzy Ormond say it's stupid? The payments on a lease for 3 years is cheaper than me buying it and then selling it 3 years later. Remember, vehicles depreciate--they depreciate very fast in the first 5 years. The first 3 years is the biggest hit.

Also, "people that lease can't afford the car" is the stupidest, most ignorant comment I have read. The more expensive the vehicle, the more expensive the lease payment. Obviously you have to have the income and credit score to lease the vehicle.

tyhuck · August 3, 2011

Owning your vehicle is great if you want to keep it a long time. Leases are cheaper than car payments, so why wouldn't you lease if you only wanted to keep it 3 years? Is it because people like Dave Ramsey & Suzy Ormond say it's stupid? The payments on a lease for 3 years is cheaper than me buying it and then selling it 3 years later. Remember, vehicles depreciate--they depreciate very fast in the first 5 years. The first 3 years is the biggest hit.

Also, "people that lease can't afford the car" is the stupidest, most ignorant comment I have read. The more expensive the vehicle, the more expensive the lease payment. Obviously you have to have the income and credit score to lease the vehicle.

Well, leasing is a good option if you meet ALL of the following criteria. But, you can not compromise.

1. you want a new car every few years

2. you want a low monthly payment

3. you want a full factory warranty

4. you want the satisfaction of knowing that there was no previous owner doing who-knows-what to the vehicle

5. you dont drive very many miles per year (less than 12000-15000 per year depending on the lease terms)

6. you are happy with a stock vehicle or bolt-on mods. Remember some mods require modification of the frame, running gear, etc. that is not reversable. Things like leveling kits, body lifts, wheels and tires are easily returned to stock. But, things like custom exhaust and many internal engine modifications are not easily removed if they are even removable at all.

Leases arent all that bad, IF you can keep within the terms of the agreement. Most people's problem with leasing is that they dont like being told what they can and cant do with their vehicle.

Honestly, I would probably lease if I was able to keep to the terms. Problem is, most people in the country live further away from stuff, so they rack up more miles just making a living and running daily errands. But, since I bought my truck and am currently making payments, Im gonna run it till it dies if at all possible.

sw6416 · August 3, 2011

Take the time to get your financial act together. Suck it up and buy an older truck for cash, drive it for 3 years and pay yourself the $500 a month. After 3 years, buy a 2-year-old truck for cash and start over again. In 3 years, you should have enough to pay cash for your new truck, using the truck that you own for the difference.

If you stay in the cycle that you are in now, you'll never own your own vehicle.

imagine that pay yourself a car payment ............... but wait thats to simple! Most people cant delay pleasure, however I completely agree with you!

johnnyz71 · August 3, 2011

Take the time to get your financial act together. Suck it up and buy an older truck for cash, drive it for 3 years and pay yourself the $500 a month. After 3 years, buy a 2-year-old truck for cash and start over again. In 3 years, you should have enough to pay cash for your new truck, using the truck that you own for the difference.

If you stay in the cycle that you are in now, you'll never own your own vehicle.

imagine that pay yourself a car payment ............... but wait thats to simple! Most people cant delay pleasure, however I completely agree with you!

But who cares if you own your vehicle? Many people prefer to lease so that they can have something new and something under warranty. If you like to buy your vehicles and keep them for a long time, that's good for you. Don't try to slam people that like to have something new every few years as being stupid. The stupid ones are those who buy the vehicles and then keep trading/selling them every 3 years---they are losing HUGE!