Cancelled my '14 Denali Order

[Joe_K]

That's certainly possible. It'll be interesting to see what they do. Other than putting a blower on one of their gas engines, I don't know what they would do. Their 6.2 could come close or beat the GM 6.2 in peak HP with some work, but it'll still have nothing for torque below 3500 RPM in comparison which for a truck engine is pretty important.

 

Little birdy told me the 6.2 will be discontinued in the next generation of F-150's. This is the same person with Ford that told me the 2015 Mustang GT will weigh the same as the outgoing 2014 model, turns out he was right.

[Joe_K]

Maybe its different in NY, but in FL, GAP insurance costs me $8 a YEAR on my wife's leased 2012 Tahoe. And the interest paid on a lease will depend on how well you negotiate the lease....many people are unaware that its not uncommon for dealers to jack up the interest rate/money factor as much as they can get away with but still make the lesee happy with the payment....most leases that are well negotiated can be had for 2% or less. And I understand your point of holding on to your money but its hard to find a place to keep that gives you a strong rate of return but still allows for liquidity. Most money markets and even CD's are paying one half of one percent! And if you have GAP insurance whether on a lease or a loan, the insurance company will pay the difference between what you owe and what the car is worth, should you be upside down - at least that's how it works in Florida. Good points all around and something to consider for those that only keep their vehicles for a short time or even those that drive them forever.

 

I don't think you're understanding what I was saying, I had a financial advisor explain this to me. Forget about interest rates, lets work with easy numbers. On a 24 month lease, let's say you have two options, pay $12,000 up front with zero monthly payments, or pay zero up front with $500 monthly payments. Keep in mind, either way you don't own the truck, the leinholder owns the truck.

 

Scenario one, you payed $12,000 up front, and you total the truck 12 months into the lease. You are out the $12,000, and insurance pays the lienholder for the balance of the truck. Now you have to get another vehicle to drive, you're not getting any of that $12,000 back towards another lease. You just paid $12,000 for 12 months and now you don't have a vehicle.

 

Scenario two, you make monthly payments of $500 a month, and you total the truck 12 months into the lease. The insurance pays the lienholder for the balance of the truck, and now you have to get another vehicle, but you only spent $6,000.

 

Does that make sense? That's what was explained to me, and I was advised to never put any money up front on a lease.

[johnnyz71]

Like you said, you have to do what works for you.

[Ron.s]

Funny after reading about all these problems I don't have any with my Denali...yet. You aren't safe waiting or switching brands. Maybe help the odds, but a percentage of all vehicles will have issues. See consumer reports-the F150 doesn't rate well even in its final year of production.

[Hspore]

I don't think you're understanding what I was saying, I had a financial advisor explain this to me. Forget about interest rates, lets work with easy numbers. On a 24 month lease, let's say you have two options, pay $12,000 up front with zero monthly payments, or pay zero up front with $500 monthly payments. Keep in mind, either way you don't own the truck, the leinholder owns the truck.

 

Scenario one, you payed $12,000 up front, and you total the truck 12 months into the lease. You are out the $12,000, and insurance pays the lienholder for the balance of the truck. Now you have to get another vehicle to drive, you're not getting any of that $12,000 back towards another lease. You just paid $12,000 for 12 months and now you don't have a vehicle.

 

Scenario two, you make monthly payments of $500 a month, and you total the truck 12 months into the lease. The insurance pays the lienholder for the balance of the truck, and now you have to get another vehicle, but you only spent $6,000.

 

Does that make sense? That's what was explained to me, and I was advised to never put any money up front on a lease.

What you say DOES make sense, however where I reside, and I did confirm this with my insurance company, that if I have GAP coverage, I would not be out the entire $12K if I were to total the truck...it would be pro-rated on the time that I leased it... so if after 12 months of a 24 month lease it was a total loss and I had paid up-front, I would be reimbursed $6K since the lease company already received their end of the deal up-front. If I did not have the GAP coverage, you would be correct that I would likely be SOL. For approx $10 a year I am covered and I save roughly $600 in interest expense because it is a lump some payment as opposed to a 2 year term where interest is factored in. Putting $ up front on a lease is not for everyone...no doubt....for me leasing financially works out well for tax purposes and allows me to drive a new car every couple of years and rarely, if ever have a maintenance issue that is at my expense.

[Joe_K]

Funny after reading about all these problems I don't have any with my Denali...yet. You aren't safe waiting or switching brands. Maybe help the odds, but a percentage of all vehicles will have issues. See consumer reports-the F150 doesn't rate well even in its final year of production.

 

The F-150 never did, I used to work at a Ford dealer and it always amazed me how well they sold. 15 years of garbage mod motors with a laundry list of problems and the sheep kept showing up.

 

What you say DOES make sense, however where I reside, and I did confirm this with my insurance company, that if I have GAP coverage, I would not be out the entire $12K if I were to total the truck...it would be pro-rated on the time that I leased it... so if after 12 months of a 24 month lease it was a total loss and I had paid up-front, I would be reimbursed $6K since the lease company already received their end of the deal up-front. If I did not have the GAP coverage, you would be correct that I would likely be SOL. For approx $10 a year I am covered and I save roughly $600 in interest expense because it is a lump some payment as opposed to a 2 year term where interest is factored in. Putting $ up front on a lease is not for everyone...no doubt....for me leasing financially works out well for tax purposes and allows me to drive a new car every couple of years and rarely, if ever have a maintenance issue that is at my expense.

 

That makes sense, I didn't know GAP insurance covered that.

[mzodarg]

Here's my Theory on Gap insurance. I realize there are those who need it, either because 1. They have no negotiation skills, 2.They were upside down due to a trade (refer to number 1) 3. They did decent on 1 and 2, but did not realize they didn't need it as they actually got a decent deal. You know the FI guys pitch, if you ever get in an accident this GAP with cover what you owe versus what it's worth, in fact a lot of them will draw up the purchase contract and have it added, hoping you don't notice. More money in the FI guys pocket.

 

Do your research, outright sell your trade, learn the art of negotiation, If one dealer won't negotiate, head to the next one. Most of all be patient- Most people go into a dealership wanting but not needing!

 

I learned my technique years ago as I sold lifestyles for the US Army (recruiter) .

 

JME,

 

Mike