Need info on leasing. Pro/Cons

2016 Sierra Owner · August 29, 2019

Hello, I currently have a 16 Sierra SLT. I'm 37 months of 72 into ownership. The truck currently has 25K miles. It's my daily driver but, I don't live far from town and we generally take my wifes car on trips. I'd like to get the Pros and Cons of leasing also some payment numbers on 2019 trucks that you may have leased now. Any info will be appreciated and thanks in advance for the reply.

steve841 · August 29, 2019

IMO ... always Buy.

Only lease is you have a business that allows the write off. Otherwise ...

1. You are stuck with the vehicle. If for some reason you need/want to get rid of it, you can't - or you pay a substantial penalty.

2. Costlier insurance.

3. Zero equity at the end of lease.

4. If you like it, you'd have to buy it at end of lease.

5. Mileage penalty if you go over.

diyer2 · August 29, 2019

Would you rent a house?

Shoes?

Etc.

2017Darkness · August 29, 2019

1 hour ago, steve841 said:

IMO ... always Buy.

Only lease is you have a business that allows the write off. Otherwise ...

1. You are stuck with the vehicle. If for some reason you need/want to get rid of it, you can't - or you pay a substantial penalty.

2. Costlier insurance.

3. Zero equity at the end of lease.

4. If you like it, you'd have to buy it at end of lease.

5. Mileage penalty if you go over.

Soooo many things wrong with this...

1. Go buy a new vehicle and try to get rid of it in the first year or two of ownership and not pay a penalty. You will more than likely be upside down by quite a bit.

2. Leasing has 0 effect on the cost of insurance.

3. Unless you have money down or trade equity going into a purchase, probably not going to have much, if any equity when you want to trade.

4. Or turn it in, walk away and get a new one for usually the same payment.

5. If you're smart, you know how many miles you drive every year and build that in at the beginning of your lease.

I lease all my wife's vehicles, she's on number 6 or 7 and have never been burned. Her Acadia Denali would have been $675 payment for a 72 month purchase or $450 for 36 months taxes included. Don't have to buy tires, brakes, or any major services. Turn it in, walk away and get the new one.

Edited August 29, 2019 by 2017Darkness

diyer2 · August 29, 2019

Personal choice.

I'll buy used and save some money.

steve841 · August 29, 2019

5 minutes ago, 2017Darkness said:

Soooo many things wrong with this...

1. Go buy a new vehicle and try to get rid of it in the first year or two of ownership and not pay a penalty. You will more than likely be upside down by quite a bit.

2. Leasing has 0 effect on the cost of insurance.

3. Unless you have money down or trade equity going into a purchase, probably not going to have much, if any equity when you want to trade.

4. Or turn it in, walk away and get a new one for usually the same payment.

5. If you're smart, you know how many miles you drive every year and build that in at the beginning of your lease.

I lease all my wife's vehicles, she's on number 6 or 7 and have never been burned. Her Acadia Denali would have been $675 payment for a 72 month purchase or $450 for 36 months taxes included. Don't have to buy tires, brakes, or any major services. Turn it in, walk away and get the new one.

1. And not with a lease? Come on man.

2. Leasing requires 100/300 min. Which is not needed in most states. Far cheaper.

3. BS .. I traded my 4 year old chevy truck in and still had 50% value. Ended up $10K on the plus side ... but, I will agree not in all cases.

4. No guarantee of payment amount.

5. Can you predict anything in life 1-2 years out? If so, post those lotto numbers for me.

diyer2 · August 29, 2019

Here we go again.

2017Darkness · August 29, 2019

11 minutes ago, steve841 said:

2. Leasing requires 100/300 min. Which is not needed in most states. Far cheaper

Somebody is telling you stories.

Belo · August 29, 2019

I was always a ride or die believer in buying, but have switched to leasing.

General disclaimer, there is no right or wrong, it's all about what fits your case the best. I'll explain my situation.

I purchased a new 09 pontiac g8gt as I knew I'd want this car for a long time. payments for 5 years and payment free for last 5. I don't drive it all year and it's nicely valued with only 62k miles. I also modded it and messed with it. these are all reasons where buying makes sense. I could not have done all the monkeying around with a lease.

bought my wife's 15 explorer. Mostly because 72 months 0% was a heck of a deal to get low payments. However when we bought we were living down south and didn't get awd. We're now up north and would have traded it in if it was a lease for something awd. We don't hate the explorer, but don't love it either. We still have 2 years of payments and with the better tires we will probably keep it another 3 or so and retain some good residual value and be payment free for a while. Currently we may have a suspension issue and it's out of warranty. So this is a good example where either or may work.

Finally the truck. I leased my first vehicle ever which was a 16 silverado. traded in a pos 03 silverado LT 4x4 for $2k and ended up with a 3 year 10k lease for $350 a month with protection plan. That truck new would have cost me over $600 a month that I wouldn't be able to afford. Fast forward and it's clear the double cab wasn't going to cut it for vacation trips with 3 growing boys and a dog. So glad I leased it, because I was able to move into a nicer (RST) crew in June with little to no effort and a slightly higher payment that I could now afford. The cons? No trade in value or equity. The pros? I don't drive the truck much unless it's fall, winter, trips or need the bed. Probably about 6k a year. This fits the ultra low mileage lease really well. Now I added a tonneau cover and running boards which need to be removed and I can't easily mess with anything mechanically, but don't plan to. Some like to and leasing isn't a good option. I'm paying under $500 a month on a $54k truck. It's fully covered under warranty and in 2022 I can decide if I want to keep doing the lease deal or possibly buy a new 2022 or buy out my lease. But buying out my lease means I'll be due for brakes and tires soon etc and buying new might be the better option.

besides the warranty, there is always new features like carplay and other options that come out that you "wish" you had. The lease helps this.

Many different reasons why leasing is good and why buying is good.

Edited September 9, 2019 by Belo

Belo · August 29, 2019

9 minutes ago, 2017Darkness said:

Somebody is telling you stories.

no he's right. after my first lease I get a call from gm financial that my coverage wasn't adequate. 2 other cars were owned. we weren't low with our coverage, but not up to their specs.

btw another point on leasing. Wreck it the frist week? You're still on the hook for the 36 months of payments.

2017Darkness · August 29, 2019

13 minutes ago, Belo said:

no he's right. after my first lease I get a call from gm financial that my coverage wasn't adequate. 2 other cars were owned. we weren't low with our coverage, but not up to their specs.

btw another point on leasing. Wreck it the frist week? You're still on the hook for the 36 months of payments.

I have never been contacted to change my insurance at any time over 6 or 7 leases. All GM leases. ..Maybe it's something they changed over the years and I have been grandfathered-in. Gap insurance is typically included in your lease payments so you would not be on the hook if you wreck it.

Edited August 29, 2019 by 2017Darkness

Mountain boy · August 29, 2019

Tried a lease once at the end I turned in my truck felt like I had been raped. Pretty much sums it up.

Belo · August 29, 2019

18 minutes ago, 2017Darkness said:

I have never been contacted to change my insurance at any time over 6 or 7 leases. All GM leases. ..Maybe it's something they changed over the years and I have been grandfathered-in. Gap insurance is typically included in your lease payments so you would not be on the hook if you wreck it.

you probably had the right level of coverage. idk I just remember them requiring me to update my coverage level. Maybe a new york thing? I think it was only like a $20 a year or so hit.

aseibel · August 29, 2019

Lease = car payments forever

Buy = pay it off, own it outright.

If you don't ever want to drive a vehicle more than a couple years old, then a lease is for you. If you want to be more responsible with your money and keep a vehicle more than 3 years, buy. It really comes down to how long you are willing to commit to owning something.

killramos · August 29, 2019

If you are going to insist on always driving a brand new truck or get bored of them quickly. Leasing is probably a good option.

Its also great for a business to have predictability of costs, lease for duration of warranty and you know exactly what that piece of equipment is going to cost you.

if you keep your cars forever leasing obviously makes no sense.