Lease pricing....

[Silverado Steve]

Haha, youre not the only one who researches a purchase. I maen when you are dropping 40 large, its a big commitment.

 

I admit i'm not the expert on leases. I have only heard opinions on the internet, read most major financial experts how they are bad, and heard from dealers on how they are the best thing since the balloon mortgage (sarcasm). I've known people burned by leases, whether going over the mileage or because of dents and dings incurred from driving. I agree, if the oremise of the lease is to lay the depreciation value of the truck over a oeriod of time, one would wonder why a Crew Cab costs more in lease payments versus a double cab, when the Crew Cab is the more sought after model. It seems from posts in leases, the Denali is the way to go in regards to a good lease deal.

 

I was hoping no one would notice....trust me, I'm a geek, lots of research whenever I buy anything....it just took me 6 weeks to buy a TV. I exhaust every possible piece of research I can find before making a purchase.

 

The lease vs. buy debate is always a fun one....I like the lease options sometimes....other times I think the buy route is the best. I was just confused on why the double cab leases so well and the crew cab they kill you on. If I'm paying a lease payment that is close to a buy payment, its a no brainer, but the lease route can be nice when they run specials on some of the nicer trucks. There is one dealer I saw in michigan running a $397 a month lease on a denali crew cab, no way you are getting into a crew cab on a purchase close to that price, and at the end of 3 years if you want to buy the truck there is a good chance the purchase price is cheaper than any 3 year old truck you will find for sale and you know the history of the truck, if not you hope to be sitting in a good spot to purchase new/used or lease again. I like the comfort of knowing when i lease my trucks are basically always under warranty.

[Back in a Bowtie]

 

And this is what is wrong these days. You can't afford something you shouldn't "stretch it" and take the more expensive option (especially on something as long as a mortgage), you should find something within your budget. The whole have to have exactly what I want RIGHT NOW is not a good mentality.

 

edit: This was the mentality that made balloon payment mortgages seem like a good idea and really wrecked a lot of people financially.

and let me ask you, what do you know about me and my personal situation? please enlighten me more with your wisdom. Whats right for some isn't right for all. It was the best move for me at the time and looking back now 3 years later I wouldn't have changed a thing. except maybe have got a 6.2 =P

[KARNUT]

In the 40 plus years I've been driving I've bought many cars and trucks. I owned very few, I'd probably been better off leasing. Never really checked it out, should have probably would've saved thousands in payments.

[CFRED70]

Here is how I looked at leasing in my current situation:

 

2015 DC SLE All-terrain sticker was down to 39 at start of lease: I lease for 394 a month, 0 down, for 39 months. If you were to buy the 39k truck on a 60 month purchase you are looking at close to $700. At the end of 60 months you own your truck and lets say you keep it another 5 years, therefore your payments would now be more like you have paid 350 a month and in 10 years lets say your truck is worth $5000. You have owned the same truck, out of warranty, probably at least replaced tires at a minimum ($1000). So now you have "paid" $350 a month, and have $4000 over me, thats if nothing else has gone wrong with your vehicle. I lease for $394 a month for the next 10 years, I've paid a little more, driven 3 brand new vehicles and been under warranty basically all 10 years. I think the argument can be had either way, but thats how I see leasing vs. buying.

 

Buy - out of pocket 43K plus any expenses, but have a vehicle that is worth x dollars once owned.

 

Lease - out of pocket 40K over 10 years with no additional expenses, but nothing to show for it.

[Silverado Steve]

I think your math is a bit off in this example. $394/mo for 10 years=120 months which comes out to $47,280.

Lets say you buy the same truck over 10 years, essentially the balance point would be if you expect to lose $8,000 in repairs to come out even. Even in 10 years, lets just say your truck is worth $5K, you still come out ahead. I think you can expect to buy a set of tires if you lease a truck for 36-39 months too. Also, how many lease deals don't require you to put money down?

 

Here is how I looked at leasing in my current situation:

 

2015 DC SLE All-terrain sticker was down to 39 at start of lease: I lease for 394 a month, 0 down, for 39 months. If you were to buy the 39k truck on a 60 month purchase you are looking at close to $700. At the end of 60 months you own your truck and lets say you keep it another 5 years, therefore your payments would now be more like you have paid 350 a month and in 10 years lets say your truck is worth $5000. You have owned the same truck, out of warranty, probably at least replaced tires at a minimum ($1000). So now you have "paid" $350 a month, and have $4000 over me, thats if nothing else has gone wrong with your vehicle. I lease for $394 a month for the next 10 years, I've paid a little more, driven 3 brand new vehicles and been under warranty basically all 10 years. I think the argument can be had either way, but thats how I see leasing vs. buying.

 

Buy - out of pocket 43K plus any expenses, but have a vehicle that is worth x dollars once owned.

 

Lease - out of pocket 40K over 10 years with no additional expenses, but nothing to show for it.

[BlueCrayon]

I for one certainly wasn't going to settle for a truck for 15k less that I wouldn't be happy with just so I can buy it and have it for 6-7 years.. Yaaay now I have a vehicle I don't like for twice as long as the lease on the vehicle I actually wanted!

 

In my case I pay 600/month to lease, but it would've been like 800/month for 72 months to buy....there's no way in hell I'm keeping a vehicle for more than 3-4 years anyways so I figure I might as well drive a brand new vehicle every 3 years and drive something I really want at the same time.

 

I think the biggest missed point here is, yes, many people just go lease something because they can't afford to buy it....however, many people including myself, CAN afford it so we choose to pay a much cheaper monthly payment for the same vehicle since we're not planning on keeping for more than a few years anyways.

 

On a side note, I may not have gotten nearly as good a deal as many of you....I had to have the 6.2 but there were zero available in western NY last March so I chose to build my own. Unfortunately, even though I got EXACTLY what I wanted, there were several delays and it took 14 months for me to take delivery and the deals weren't nearly as good at the time. MSRP was 55k and I got maybe 10% off.

 

[Silverado Steve]

I think as vehicles become more expensive and unaffordable leases will grow in popularity. Many banks now offer 72 and 84 month loans just to make new cars somewhat affordable...that is absurd. That or younger drivers will be priced out of new car ownership and car sales will drop. Most people have resigned to the fact that a car payment is a fact of life.

[gt tangerine]

I got my custom with the tow package, 5.3, and convenience package for 239 a month nothing down. It has 10k a year and after almost a year I just hit 4k miles. The only reason I leased it was due to the price they gave me. Seemed pretty good at the time.

[arkenzo]

Ugh, this is irritating, leasing is not always for people who cannot afford monthly payments on a buy, whoever is telling you this information is very wrong.

 

And guess what, I'm the type of person that will tell you that buying a car cash or dropping a big down payment is not a smart decision. You're losing money every mile you drive and in California you have the very high chance of getting in a car accident and you can guess what that'll do to the value of you car.

 

A vehicle is never an investment.

[Annhl8rX]

Sure leases work for some people. However, ever wonder why dealers are so quick and persistent to push them on buyers? One dealer wouldn't discuss purchasing options for 30 minutes when I bought mine, but was pimping leases. Are dealers really looking out for you, or are they highly trained in the arts of fuzzy math with the intent to make sure you leave as much of your hard earned cash in their building. Dave Ramsey has outlined this many times over, leasing makes little sense only you are an LLC and can write off the payment as a business expense on your taxes. Buying used and driving it until the wheels falls off is the most economical, buying new and driving until the wheels falls off is the next. If you can't afford either, you are looking at a vehicle you cannot afford.

 

OP has asked every possible question regarding buying...4.3 vs 5.3, used, lease, buy from Canada, model year leftover...etc. You are either very indecisive or very thorough in your research...lol

I've never had a dealer push a lease. In fact, the one time I asked about leasing they steered me back toward a purchase.

 

I have looked into third party leasing a couple of times and at 15K miles a year for 3 years it wouldn't have saved me money either time. In the interest of full disclosure, neither time involved a GM product.

[Annhl8rX]

We all waste money somewhere. I've come to terms with the fact that I waste money on vehicles by trading every three years or so. I can't imagine myself ever not having a vehicle payment. If leasing would actually save me money I wouldn't hesitate to do it.

[arkenzo]

We all waste money somewhere. I've come to terms with the fact that I waste money on vehicles by trading every three years or so. I can't imagine myself ever not having a vehicle payment. If leasing would actually save me money I wouldn't hesitate to do it.

if you can keep the mileage in check then leasing would save you a lot of time/money especially if you trade in every three years for the latest in greatest in car tech.

[Tribs77]

Ugh, this is irritating, leasing is not always for people who cannot afford monthly payments on a buy, whoever is telling you this information is very wrong.

 

And guess what, I'm the type of person that will tell you that buying a car cash or dropping a big down payment is not a smart decision. You're losing money every mile you drive and in California you have the very high chance of getting in a car accident and you can guess what that'll do to the value of you car.

 

A vehicle is never an investment.

Your last line is absolutely correct!

 

But I disagree with you about paying cash or putting a lot of money down. Unless it is zero percent APR for the duration of the loan, you'll end up spending thousands more in interest over the course with the more you finance. This is like choosing to pay cash for something (anything) vs. using a credit card and now carrying debt. Unless you actually don't mind spending even more money in interest, this is NOT debatable. Believe me, if I was capable of paying cash...I absolutely would. It doesn't get any better than having no loan, no car payment AND free to sell/trade at anytime with equity that is the value of the vehicle.

 

I'm no financial expert, but I understand the basic principles here. As stated earlier, there are definitely benefits to leasing over buying. The issue I take is with choosing to do so based solely on the fact that you can't afford to buy that same vehicle AND in particular those that admit up front that they plan to keep/buy the vehicle after the lease is up. You'll end up paying even more and for longer. Why not just choose a lesser equipped more-affordable model? I guess it just seems crazy to me what some people will get themselves into so they can impress others by what they drive, that's all.

[Brian S.]

There has always been a market for rentals for people who don't want to buy things, the owner of the asset is always the winner. They don't rent the trucks out of the goodness of their heart, they do it to make more money from people.

 

If the people want to throw away the money, it's their business. I only threw out the "Buy a cheaper truck first" option because it's a way to get into a cycle of buying every 5 years and always having equity in your vehicle. (I do this, but for me I buy every 3 years usually)

[Donstar]

This is an interesting discussion. People may have different opinions as their needs and circumstances change. Years ago I remember trying to justify to my older brother the need for a car while going to university. He costed out and proved that it would be cheaper for me to take a taxi everywhere I went than pay my current auto expenses. Leasing or buying is a personal decision and both have pros and cons. It took most of my working career to beat the car loan cycle but I now drive newer trucks and have substantial equity when trading in on a new vehicle. My vehicles are an asset and I can do with them as and when I please.