Lease experiences/prices

[BringTheRain403]

There are several other banks offering leases in addition to Ally. My lease is through US Bank. I also have something that cost me an extra $10/mo that allows for $5000 in wear and tear type things when I turn the lease in. Basically i could turn it in with bald tires or a huge scratch and it won't cost me a dime as long as the cost doesn't exceed $5000...

[Shahar]

I figured I would update the topic for the benefit of others. Although I haven't finalized a deal as of yet, I have found out some details on what incentives are available if leasing. Currently, there is $1000 Consumer Cash and a $500 incentive for the SLE/SLT Value Package. These are only available if you purchase the vehicle-they are not available if you want to lease. Other offers, such as from USAA, AAA, etc would be applied if leasing and if you are eligible for them from what I understand.

 

The residual value on the SLE and SLT 2WD Crew Cabs are 60% for 36 months and 12k miles per year. The residual is 62% for the 4WD models. The base interest rate (money factor) is 2.95% (.00123). Dealers can-and will- mark this up a bit for their own additional profit (one dealer I was working with marked it up to 3.4%).

 

If anyone else has any experiences to add then please do so.

I have leased the 2014 1500 SLT Sierra crew cab short box 2x4 with leather black on black, front and rear sensors, rear view camera, Bose sound system, bucket seats MSRP around $45k I was able to negotiate to $41. I have trade in my old about-to-die 1999 f150 and got $1500 for it, $1000 down $430/m 48 months 10k m/yr

[egiles]

I did make the deal yesterday and took delivery of the truck late yesterday afternoon. Here is what I bought and how my deal came out:

 

2014 Sierra Crew Cab Short Box SLT 2WD with SLT Value Package MSRP $42,650

Negotiated cap cost (Includes $1000 competitive lease conquest cash since I lease my wife's car) $38,570

Cap Cost reduction $500

Residual 36 months/12k miles per year 62%

Money factor/interest rate 3.4%

Acquisition fee $595 I paid this upfront. If you let them roll it into the lease (which is what they normally do) you will be paying interest and tax on that for 36 months. Better to pay it upfront in my opinion.

 

Base payment: $426 for 36 months 12,000 miles/year

 

What an amazing truck...hard to believe the improvements from the previous generation. This really is a big step up in interior quality and features.

[GMC-AT]

So, I guess the question is .... why would anyone want to buy? Seems with leasing the monthly payments are about 35%-40% less...

 

what am I missing?

[pezboy]

 

So, I guess the question is .... why would anyone want to buy? Seems with leasing the monthly payments are about 35%-40% less...

 

what am I missing?

 

 

Because at the end of your lease you have nothing. If you are planning on keeping your vehicle for a long time it is better to purchase. If you are planning on buying a new vehicle every few years it may make more sense to lease. Same pros and cons to owning a home and renting a home.

[GMC-AT]

and I guess if you buy the truck.. you can mod it... do whatever you want without thinking about it... unlike a lease.

[clayp]

   

Same pros and cons to owning a home and renting a home.

not a good comparison. You cannot expect to buy out your rental home at the depreciated value. Homes don't follow the trends of cars at all. If you are renting a $100,000 house you won't be able to buy it in 3 years at $60,000. It will likely be worth $100,000+ in 3 years, so all your rent payments won't get you any closer to buying that house.

 

Renting vs leasing a truck - Lets say you can get the same interest rates for both the lease and the traditional loan.

 

In a 36 month lease you are paying for the interest and the depreciation on the truck. If the truck is $50k and in 36 months in the residual value is 60% the truck will be worth $30k. So in the lease your payments will be $20k (the depreciation) plus interest. At the end of the lease if your truck is worth $25k you can walk away from the lease and the bank eats the $5k loss in value. If your truck is worth $35k then you can sell it, pay off the bank and pocket the additional value $5k. Or you can buy it from the bank at $30k.

 

The same truck if you financed it you are paying the whole cost of the loan plus interest. All the risk of accelerated depreciation is on you - if the truck was damaged and repaired, if the market decides its not as good as other newer trucks, if the economy takes a huge dump, etc. If you were planning on keeping it forever no big deal, but most people change vehicles every few years regardless

[blckthree]

A lease would be great if you only put 10-12000 miles per year on a truck. I am closer to 18-20000 miles per year, sometimes more. A lease would have a lousy price factoring in those extra miles up front and even worse if you paid for them at the end.

 

Mike

[Shahar]

I did make the deal yesterday and took delivery of the truck late yesterday afternoon. Here is what I bought and how my deal came out:

 

2014 Sierra Crew Cab Short Box SLT 2WD with SLT Value Package MSRP $42,650

Negotiated cap cost (Includes $1000 competitive lease conquest cash since I lease my wife's car) $38,570

Cap Cost reduction $500

Residual 36 months/12k miles per year 62%

Money factor/interest rate 3.4%

Acquisition fee $595 I paid this upfront. If you let them roll it into the lease (which is what they normally do) you will be paying interest and tax on that for 36 months. Better to pay it upfront in my opinion.

 

Base payment: $426 for 36 months 12,000 miles/year

 

What an amazing truck...hard to believe the improvements from the previous generation. This really is a big step up in interior quality and features.

Egiles, congrats on your new truck, I think you've got a great deal! I just got my new sierra last weak and I love it!

[Shahar]

My old truck broke on me and I had to get a new one. I decided to do a lease to have as low payments as possible right now, I might end up buying it so I don't mind the mileage and it gives me 4 years to come up with the money.

[pezboy]

 

not a good comparison. You cannot expect to buy out your rental home at the depreciated value. Homes don't follow the trends of cars at all. If you are renting a $100,000 house you won't be able to buy it in 3 years at $60,000. It will likely be worth $100,000+ in 3 years, so all your rent payments won't get you any closer to buying that house.

 

Renting vs leasing a truck - Lets say you can get the same interest rates for both the lease and the traditional loan.

 

In a 36 month lease you are paying for the interest and the depreciation on the truck. If the truck is $50k and in 36 months in the residual value is 60% the truck will be worth $30k. So in the lease your payments will be $20k (the depreciation) plus interest. At the end of the lease if your truck is worth $25k you can walk away from the lease and the bank eats the $5k loss in value. If your truck is worth $35k then you can sell it, pay off the bank and pocket the additional value $5k. Or you can buy it from the bank at $30k.

 

The same truck if you financed it you are paying the whole cost of the loan plus interest. All the risk of accelerated depreciation is on you - if the truck was damaged and repaired, if the market decides its not as good as other newer trucks, if the economy takes a huge dump, etc. If you were planning on keeping it forever no big deal, but most people change vehicles every few years regardless

 

 

What would the total amount paid be for a vehicle (say $55,000) if you leased it for 3 years and then bought it out on a loan for the remaining amount vs buying the entire vehicle on a loan from the beginning? I know this can vary a lot but could you approximate it?

[BringTheRain403]

Figure 62% as the residual value and 2.9% for the money factor for a 39 month 12K/year lease

 

55,000 X .62 = $34,100 residual value at the end of the lease

 

Lease payment would be about $643.05 (that's with nothing down, no rebates, and paying a full MSRP of $55,000). For every $1000 in rebates, down payment, trade-in equity, etc. you put down your lease payment will drop about $30/month.

 

Now current interest rates for a 72 month used car loan is about 3.19% on a 3 year old vehicle. That would mean if your lease ended today your payment on the remaining $34,100 over 72 months would be about $521.01.

 

Hope that helps...

[pezboy]

Figure 62% as the residual value and 2.9% for the money factor for a 39 month 12K/year lease

 

55,000 X .62 = $34,100 residual value at the end of the lease

 

Lease payment would be about $643.05 (that's with nothing down, no rebates, and paying a full MSRP of $55,000). For every $1000 in rebates, down payment, trade-in equity, etc. you put down your lease payment will drop about $30/month.

 

Now current interest rates for a 72 month used car loan is about 3.19% on a 3 year old vehicle. That would mean if your lease ended today your payment on the remaining $34,100 over 72 months would be about $521.01.

 

Hope that helps...

 

Not going into too many details it seems that you will pay the same amount for a lease that you buy out as you would for a new vehicle. Not too bad if you aren't sure if you will want to keep the vehicle or not. Assuming you don't go over the 10,000 miles a year or damage the vehicle too much. Thanks for the info.

[Imcrazy]

Between the wife and I we have leased 4 out of our 5 last vehicles. Sometimes it makes sense sometimes it doesnt. For us this time it did, I paid $40 a month less to lease a '14 Sierra that I would to have purchased a '10 w/ 36k miles on it. The buyout at the end of the lease is good and I got everything I wanted on the truck. The MSRP was approx. $38,900, and my payment is $380.00 w/ tax for 36 mos 36k miles total, no cash at signing. I will probably buy the truck at the leases end, the buyout is $25,000 and change which is less than the used trucks I was looking at this time around. Yeah I wind up paying a little more for a little longer in total but, it makes the new Sierra fit my monthly budget a whole lot better.

 

Another MAJOR factor for me in this instance was the HUGE improvment in the '14 GM trucks over the previous generation.

 

Leasing isn't for everyone, if you put very few miles per year, IE 6000 or a ton of miles, 15k + it probably doesn't fit your situation all that well. For me I do right around 12k a year, so I got 12k per year and odds are I'll trade it in 3-4 months before the lease is out on another truck or I'll buy it either way if I'm over mileage it won't matter.

 

What doesn't make sense to me is when people lease vehicles for the same monthly payment as they could do a 72 month buy at, if that was the case I'd be doing a buy on my truck but, it was at least 100 more a month to buy it.

[TxAg98]

Just picked up a '14 Silverado LTZ Crew Cab 4x4. Sticker was a hair over $45k. Did a 36 month/ 20k mile a year, TTL (OK you pay tax up front) and first month payment down. $540/month.