New 2014 Silverado: Lease or Purchase?

[Silverado Steve]

Have you found the whole housing Mortgage crisis to be an issue when buying rental properties? Since I am a veteran, I qualify for a VA loan which helps if you don't have a down payment of 20%. Of course you can't use a VA loan for rental properties, one thing I found when I refied my house in NJ was if you didn't have a 20% down payment, a lot of banks were very reluctant to give you a loan of any sort even with stellar credit. I am renting my house out in NJ, and find it to be a PITA......then again I bought right before the bubble bust, and owe a lot more than the house is worth. I thought of dumping a bug chunk of cash into it, but I realize i would never make that money back today....I'd be better off throwing $20K on the Roulette wheel....lol Luckily I've had a sound tenant who is paying me rent, albeit less than my mortgage for hte past 4 years on the house.

 

I know this is way off topic, but a worthy discussion none the less.

[KARNUT]

IF you have trouble renting try owner finance, they will have skin in the game keep up the repairs. I got one I did that way. If you can, add money to it pay it off early. Home finance is tricky, always pay more suffer early, rewards later. We hit it hard for 10 years never had it hard since, did some refinance bought another house easy sailing since. I hate to talk bad about the state I grew up in but hard to make anything work there.

[reldridg]

I have found that banks are pretty sticky about the 20% down with income property and if you are a small time player like me they do not want you to have more than 4 separate properties. You can get around some of the 20% financing by going in with some private funds but those rates will be around 8%+ and always seemed like I was going to get my knee caps broken when I was looking at it.

 

On the rental property discussion, owning rental property can be great and can be real craptastic.

 

One rental property I have (my first) has always paid for the mortgage plus some, easy caring tenants they only time they complain is when there is a major issue to take care of and they want to get it cleared with me first. I have had this place for 14 years, duplex, and have had only 5 tenants total.

 

Another place I owned I would have burnt down if I could. The ROI was ridiculous almost 30% I bought at the very bottom of the market but the tenants that I would get would come highly recommended take care of the place for about a month and the s**t on it, one of the tenants literally s**t on the floor. The saving grace of that place was that I was able to sell it quickly made some money and quit my job and started my own company.

 

I think of rental properties as a retirement fund that I pay into, they will be paid off around the time I retire and I will have a decent stream of income during retirement. I have family members that have lived very well by this premise and if you can use it to buy a few

[mike94silverado]

Just save $500 a month until you have what you need and you too can never finance a vehicle again. Being the banks bitch is very over rated.

You got that right! I'm finally going to NOT be theirs after about 30 payments.... I had enough cash down to be able to afford payments for 36 months on 30 grand..... I already have equity and will run this rig into the ground,

[mike94silverado]

Belive it or not I looked up Kelly blue book they don't show 14s yet but with Texas package I got 12/31/13 I would only be 2000 up side down at the 13 value. I buy them right . My way works for me may not be good way to do it but I manage to save a lot this way. I don't think ill buy anymore rent houses can be pain to deal with. Paying cash for a truck I just cant do it unless rates go up. Even finance guru says pay cash, that's the one thing I don't listen to Dave Ramsey about.

agreed. People can preach Dave Ramsey all they want but if I can have a low payment over a low term I'm fine with that too.... Seriously, Do the poster child Dave Ramsey people pay cash for their homes? probably not. so whats the difference with a truck?

[mike94silverado]

Years ago someone wrote a funny post about buying a new truck. It went something like "I can afford a $ 32,600 truck, but I cannot afford a $ 33,200 truck." It was obvious that he could not afford either.

there's a difference between "affording" it and drawing a line those dealers are so good at bumping you up... After I decided to not lease a new one as I could not afford 44k after rebates and discount I set my bar at 30 grand all in. The truck came in at 30,766. I walked. To me, if I went one dollar over 30 why not go to 35 why not go to 49 hell why not get that 14 and even though I could "afford" the payment I sure didn't want one that high or some long term. Dealer called 3 hours later and did the deal for 30

 

 

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[ram1067]

buying = stuck w/it after warranty runs out.

 

leasing = your able to give them their POS back and walk away!

[Silverado Steve]

What? Someone cant sell their truck after 5 years?

[steveo2155]

Thanks for all the advice - I do appreciate it. I have definitely been steered away from leasing. And while it is great for some people who want a new vehicle every 3 years, it sounds like it is not for me. I would like a new vehicle but I wanted to lease with the intent to buy at the end - but with the monthly payments not being much lower than purchasing and the amount of money it would cost to finally own the truck, I am not going to lease. I am also going to hold off buying for awhile. I have a 2011 ext cab Silverado right now that I financed about a year ago and am going to continue trying to pay more on this truck so that when the time comes to trade it in or sell it myself, I will have more of the loan paid off and get more out of it. The reason I am considering a new vehicle is that I would really like a 4 door.

 

Originally I was actually planning on selling my truck myself and looking for a 2004-2007 (the older body style that unlike some, I actually like) crew cab Silverado with around 50,000 to 75,000 miles. However for the price some dealerships are asking for trucks like these, I have been looking at new trucks also. Another reason I have been looking at new trucks is because I have always bought used one owner trucks and it would be nice to finally have a truck that I can be the first owner of and customize and keep for years to come. While I am still considering buying an older used one if a really good deal comes around, I am leaning towards saving up more and going for a new one. Here are some of my choices - maybe some of you could give me some input on these too...

 

1. New half ton crew cab 4x4 Silverado or sierra

 

2. new double cab 4x4 Silverado or sierra.

 

3. 2015 crew cab Colorado or Canyon - really curious to see what people think of these from what we know so far!

 

Any thoughts are welcome! Thanks again!