Leasing?

beerguy214 · August 24, 2018

I have been leasing trucks for years because buying a truck is throwing more money out the window.I just leased a 18 Silverado for 300 a month for 24 months it cost me out of pocket 700 dollars.The sticker price on the truck was 48k so if you would have bought it I am sure you would of ended up in the high 30k range.So in 2 years of driving the truck with the payment plus the 700 out of pocket that is 7900k.If I were to buy it I lost that as soon as I drove off of the lot because it is a used truck.Unless you have roughly 40k laying around to pay cash and are keeping the truck for 20 years there is no reason to buy unless to a lot of miles on it.If you do put a lot of miles on then you don’t get squat when you sell it.Just my opion erveryone has there own.

Supreme Pizza · August 25, 2018

I have not read all the replies, but I did read the original question.

Leasing is a complete waste of money. The idea of leasing was not invented for your benefit. You spend a bunch of money, and in the end you lose your vehicle. If you decide to buy the vehicle in the end, your still WAY over paying if you consider the lease cost + buy out option.

Buy a used vehicle, and save many thousands. Plus you get to keep the rig....

Jaychevy81 · August 25, 2018

Your way over paying I don’t see that anywhere on my contract. There are no extra contract fees the price of the vehicle is the same as when you initially purchased it. 0% Apr hhmmmm don’t seem to be a bad deal to me. So please elaborate how you wayyyyyyyy overpay.

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Supreme Pizza · August 25, 2018

Not looking for a debate. Just replying to a post.

Obviously not everyone will agree, otherwise - leasing would not be an available option. If it was the BEST option available, then EVERYONE would lease. To each their own. For me it doesn't make sense, for you it does.

Do what makes ya happy. That's all that matters.

Boardmember · August 25, 2018

A number of concepts that need to be introduced into the discussion for a more complete evaluation:

leasing a vehicle = renting the vehicle

is your car ever an asset or merely an expense?

residual value. It’s pretty simple to take 36 lease payments + residual value (cost) and compare it to a comparable finance payment and term and see which looks better. Make sure to factor in the cost of money if you’re paying the residual.

Money factor (lease interest rate) vs APR

Imcrazy · August 25, 2018

IMO if you're driving 12k miles a year or less and the monthly payment with NO money down is at least 20% less than the 72 month buy payment with NO money down then leasing is where it's at... BUT, that 199/24 month lease is NOT the correct payment description it is $3700 first month payment then 23 payments of 199... This IMO is where lessors scam people to be real the lease payments are $354 a month... ($3700/24) + 199 = $354 a month... Still a good deal IMO but, don't put the $$ down... If you wreck the truck in month 2 and it's totaled your insurance CO will simply pay off your remaining lease payments and you're out the $3700 you prepaid on the lease...

I like leasing because cars depreciate like a freaking rock with extra rocks tied on them rolling down a steep teflon coated greased slide... At least with a lease you know exactly what depreciation you're paying for.. OH and on top of that depreciation they wear out brakes, tires, shocks etc and you've gotta fix em while shelling out $3-600 a month on a loan payment because they're so damn expensive most people can't afford to pay cash for 'em so you have to get a loan for the better part of a decade just to cruise around in one!

I drive for work and work pays my truck payment so I'm running 25-30k a year hence why I got out of leasing and don't really mind the $500 a month car payment because like I said I don't pay it, my employer does plus my oil changes and all my miles when I'm driving for work but, if not for that I would continue to lease... My truck needed all new shocks and front springs at 45k miles, if I had not done the work myself I would have been out $800 for the shop to do it, as it was I dropped $400 on parts.... For a 2-1/2 year old truck... Add that to my yearly expenses and look at how my monthly cost skyrockets for this year..

Edited August 25, 2018 by Imcrazy

2017Darkness · August 25, 2018

I lease all of my wife's vehicles...She's one her fifth one and it works perfectly for us. The key factors are residual value and the cost of money. You have to watch for the cap cost reduction deals for lease deals. If you play your cards right the CCR, which is like a rebate on a lease, is a couple thousand dollars, and the residual value is high, there are times where a lease payment won't get close to the cost of owning the vehicle. Buying out your lease at the end is a bad idea. You have already paid finance charges and taxes for 3 years on the vehicle, now you will be refinancing the residual value for another three years and usually incurring maintenance costs on top of that. You will think financing it for another 3 years and its yours sounds good, but the rate goes up and say your residual was around 50%, do the math on $25,000 over 3 years at current rates....I do finance my trucks, but I buy them right and trade every 2-3 years when the bumper to bumper runs out

EDIT: NEVER, EVER, EVER PUT MONEY DOWN ON A LEASE.....ALL YOU ARE DOING IS BUYING DOWN YOUR PAYMENT....

Edited August 25, 2018 by 2017Darkness
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Malibu SS · August 25, 2018

Too old to waste money leasing. Bought my 2015 cash, and never looked back. Plan on keeping it 20 years.....or until I die. Still driving my 1998 silverado, and my 2007 Duramax. Dont forget to factor in full coverage insurance on those new trucks. Sorta" bumps up your payment. Like someone said earlier,,,,,Car companys dont lease for your benefit...They are there to make money. Keep you commin' back,, Guaranteed annual income. Keep the money flowing. Young people today should buy a good used vehicle ,, preferably off someone they know.. Change the fluids on a regular basis. Learn how to work on your vehicle. brakes are so easy to maintain as are other things. You can Google how to fix things on just about any vehicle. Thats what Ive done all my life, and im so far ahead of the game moneywise.......well you get the idea.

diyer2 · August 25, 2018

7 minutes ago, Malibu SS said:

Too old to waste money leasing. Bought my 2015 cash, and never looked back. Plan on keeping it 20 years.....or until I die. Still driving my 1998 silverado, and my 2007 Duramax. Dont forget to factor in full coverage insurance on those new trucks. Sorta" bumps up your payment. Like someone said earlier,,,,,Car companys dont lease for your benefit...They are there to make money. Keep you commin' back,, Guaranteed annual income. Keep the money flowing. Young people today should buy a good used vehicle ,, preferably off someone they know.. Change the fluids on a regular basis. Learn how to work on your vehicle. brakes are so easy to maintain as are other things. You can Google how to fix things on just about any vehicle. Thats what Ive done all my life, and im so far ahead of the game moneywise.......well you get the idea.

Agree 100%.

Only you don't have to be old to enjoy the savings.

The other thing I will add is to buy used and save more money.

Imcrazy · August 26, 2018

21 hours ago, Malibu SS said:

Too old to waste money leasing. Bought my 2015 cash, and never looked back. Plan on keeping it 20 years.....or until I die. Still driving my 1998 silverado, and my 2007 Duramax. Dont forget to factor in full coverage insurance on those new trucks. Sorta" bumps up your payment. Like someone said earlier,,,,,Car companys dont lease for your benefit...They are there to make money. Keep you commin' back,, Guaranteed annual income. Keep the money flowing. Young people today should buy a good used vehicle ,, preferably off someone they know.. Change the fluids on a regular basis. Learn how to work on your vehicle. brakes are so easy to maintain as are other things. You can Google how to fix things on just about any vehicle. Thats what Ive done all my life, and im so far ahead of the game moneywise.......well you get the idea.

No offense but, you're not considering all the facts...I've leased about 10 vehicles for my wife and myself and to date I've probably saved about 25k over buying the same cars but, I am a very good shopper... Just on the current vehicle my wife is in I saved $5600 over buying... Lease payment for 3 years is $235 x 36 mos = $8600, buying that same car over 36 mos =730x36 = $26280 - the trade in value of the car once it's paid off in month 37 ($26280 -$12000) is a cost of $14,280 - the lease payments made = $5600 saved over 2 years.. Saying that the full coverage adds to the cost is a false argument, if you're buying a $25k vehicle and not fully insuring it you truly do not understand money one bit.... Giving up your cash when interest rates are 0% or very low cost financing options are available doesn't make sense, you should leverage your cash in other areas of your financial plans...

Edited August 26, 2018 by Imcrazy

Malibu SS · September 2, 2018

Your talking 2 or 3 years....Im talking 20 . How much money and how many cars are you going to lease in 20 years? My cars are paid off in 2 to 3 years....The rest is just maintanance. When my trucks hit 5 years, its just liability and glass breakage. You think that you are saving money, and you are really spending money. Sorta like, you cant see the forest for the trees. By the way, Ive never had an extended warranty in my life. So far ,, no need for it. But you dont know my history, or what I have done in my life. You keep talking about 0% financing, well I never finance. I just drive em. These last 3 will be my last. Most people cant, or wont do what I have done with my vehicles. Thats OK. You just keep leasing, Ill just keep driving. Well see who comes out ahead.

Imcrazy · September 3, 2018

On 9/1/2018 at 9:27 PM, Malibu SS said:

Your talking 2 or 3 years....Im talking 20 . How much money and how many cars are you going to lease in 20 years? My cars are paid off in 2 to 3 years....The rest is just maintanance. When my trucks hit 5 years, its just liability and glass breakage. You think that you are saving money, and you are really spending money. Sorta like, you cant see the forest for the trees. By the way, Ive never had an extended warranty in my life. So far ,, no need for it. But you dont know my history, or what I have done in my life. You keep talking about 0% financing, well I never finance. I just drive em. These last 3 will be my last. Most people cant, or wont do what I have done with my vehicles. Thats OK. You just keep leasing, Ill just keep driving. Well see who comes out ahead.

Yeah, given the miles I put on my vehicles in 20 years my wife's car would have 300k miles on it, my truck would have 500k miles on it... Given that my wife not mechanically inclined at all, I like to have her in a new car, I couldn't see having her running around in something with 100k miles on it that is 10 years old, her safety is way more important to me than milking a car till the wheels fall off... I look at vehicles from a different perspective than you do clearly...

Maintenance adds up and IF you have to pay someone to do it for you because you don't have the time, tools or facility to do the work it becomes very expensive quickly...

Paying cash for a car is one of the most short sighted financial decisions you could make... Whenever 0% financing is available on a car, tractor, etc smart money is to take it unless you're giving up dollars off the purchase price to do so..

I can see the forest just fine, I just choose to have my forest include all my financial / life decisions not just my car purchases... I like to eliminate my liability for a vehicle by entering into a lease that guarantees the amount of depreciation I will pay.. I prefer to buy things that appreciate or hold their value, cars just sink like a rock and are nothing but an expense... Now this all assumes that I can continue to get super cheap leases, it helps having an 750- 800 credit score and enough cash in the bank to pay the lease up front (not that I ever would pay a lease up front) If lease price climb and I can buy a 1-2 year old car with 12-20k miles on the clock for $50-60 a month more on a 72 month loan than I could lease the new equivalent for then I might be able to justify the liability of owning another car... I don't mind owning / borrowing money to 'buy' my truck because my employer basically covers my car payment and I am running around in 'my' truck on their dime so if I have to sink $500-$1000 a year in maintenance cost into it, it's easier to stomach...

Not sure why you'd think it's financially sound to not have full coverage on a $30,000 piece of gear that you're putting on public roads where you have almost no control over the fact that some drunk or distracted driver could cause an accident that would destroy the value you have in the vehicle?? Maybe you have a few million bucks in the bank and you're in a totally different league than I am..

Doubt there is much of a point of seeing who 'comes out ahead' because really, that is such a subjective thing, we're probably both coming out a head in our own needs / situation... If you like keeping cars for a very long time and you're able to work on 'em and make 'em last for a low cost then great for you, I just prefer to treat cars as use items and replace them frequently..

Edited September 3, 2018 by Imcrazy

KARNUT · September 3, 2018

It really depends on the individuals taste and circumstances. I’m a car nut it’s part of my being. Lucky for me I was in a business partnership my every two-three year purchases were a write off. My wife goes 5-10 years or more and never sees 100K miles on a vehicle. We still have 3 of her last 5. A car that doesn’t get driven lots of miles can easily last a long time. I own a truck that’s a 92 Chevy and would drive it anywhere. So all rules apply and there’s no wrong answer. To some people their ride is everything, to some it’s just a tool.

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