Need Your Opinion

Outbacker · May 25, 2008

I leased a 2005 Sierra (see sig) and in 2 months the lease expires. Went in to see the dealership today, and I have 3 options. Re-lease the truck for 3 years, lease a new 2008 4X4 extended cab with Active Fuel Management (any true thoughts on this), or buy my truck and finance over the next 5 years. All the payments for these options are within $30.00 or each other. The reason I leased in the first place was to determine if this truck was for me, and having a 1/2 ton has been great. New truck = new warranty. Re-lease = a lesser warranty that I have to pay for. Buy truck = 3 year warranty (same as the re-lease warranty) and finish the last 2 years of payments with no warranty. They are telling me that over the next 4 years my current truck will start to cost money (more repairs and maintenance costs), and obviously they feel the new truck is the way to go.

So my question is this: What would you do this situation? Any advice or thoughts that I should consider? Obviously, I cannot determine if my truck will last the next 20 years with regular maintenance. Stuff goes wrong.

Thanks for the thoughts.

jmhornz71 · May 25, 2008

Have you thought about buying and not leasing a new truck and financing that, you may have to extend your payments another year or so to keep the payments inline unless you dont think you will keep it that long. Leasing can be a pain especially when you go to turn it in and they start nitpicking you on things to charge you for. If you dont like the long term commitment then lease again

jhoff8487 · May 25, 2008

If your current numbers all work out within 30 dollars why would you re-lease your current truck for 3 more instead of leasing a brand new one for 3?

Honestly, if you're thinking of buying your truck you could buy another truck cheaper. I guarantee right now, with the economy and truck sales how they are, you can find another truck identical to yours for less money than you'll owe on yours.

This decision is really up to you and what you want. Leasing has advantages but so does buying. I am buying mine...

omegafiler · May 25, 2008

If your current numbers all work out within 30 dollars why would you re-lease your current truck for 3 more instead of leasing a brand new one for 3?

Honestly, if you're thinking of buying your truck you could buy another truck cheaper. I guarantee right now, with the economy and truck sales how they are, you can find another truck identical to yours for less money than you'll owe on yours.

This decision is really up to you and what you want. Leasing has advantages but so does buying. I am buying mine...

Agreed. Other than low payments, that's the whole point of a lease - get a new vehicle when the lease is up. The only other option I'd consider is just purchase this next vehicle with traditional financing, as I've always done. But that's up to you, of course.

shocktrp · May 25, 2008

I leased a 2005 Sierra (see sig) and in 2 months the lease expires. Went in to see the dealership today, and I have 3 options. Re-lease the truck for 3 years, lease a new 2008 4X4 extended cab with Active Fuel Management (any true thoughts on this), or buy my truck and finance over the next 5 years. All the payments for these options are within $30.00 or each other. The reason I leased in the first place was to determine if this truck was for me, and having a 1/2 ton has been great. New truck = new warranty. Re-lease = a lesser warranty that I have to pay for. Buy truck = 3 year warranty (same as the re-lease warranty) and finish the last 2 years of payments with no warranty. They are telling me that over the next 4 years my current truck will start to cost money (more repairs and maintenance costs), and obviously they feel the new truck is the way to go.

So my question is this: What would you do this situation? Any advice or thoughts that I should consider? Obviously, I cannot determine if my truck will last the next 20 years with regular maintenance. Stuff goes wrong.

Thanks for the thoughts.

Releasing or buying the 2005 doesn't make sense. It's out of warranty and the new ones come with 5/100 powertrain. Additionally, you owe more on the truck than it is worth - go to KBB and find the book value.

Go in there and play hardball. You need to know;

Dealer invoice and true dealer cost.

All current incentives and rebates.

Where the financing is coming from and what interest rate.

What the bottom line is that you are going to pay.

Also be aware of unpublished incentives - dealers sometimes get cash incentives based on the amount of cars they sold the previous month. (These are used for the hard sell customers when they think you are going to walk and go to another dealer.)

Plan in advance so you have time to do the deal. Remember that dealers want to push trucks out at the end of the month and the end of the quarter to make their numbers.

I actually returned my Trailblazer SmartBuy and walked out. I drove my POS work van for a couple of weeks while searching for a deal, went back, and the salesman mysteriously found an unpublished incentive for an extra $2k savings (which brought me under my target number).

Also, don't let them sucker you into the monthly cost sell - this is what started the whole mortgage "crisis". If the total price plus interest is going to be $30k, then your wallet is going to be $30k lighter at the end of 5 years. Are you willing to spend that? Are you able to afford it? If you can great, but if you can't then you are spending beyond your means. Don't try to find a creative way to finance something you cannot afford (you wouldn't jump out of a plane without a parachute, would you?).

sam5828 · May 25, 2008

Well for one get out of that truck. also you can get out of it now. GM has programs where they will waive payments to get you out early. so why not do it while they got another $2500 off right now for memorial day plus owner loyalty if it is still going on. also i forget what site it is but guys are giving employee discounts to members of that site for friends and family... it is a gm forum or silverado something like that....

Also lease if you can IF you own a business you can write off 100% of the payments instead of depreciating out over 7-10 yrs..

Plus if they still have 0% you cannot go wrong

pennzoil29 · May 25, 2008

Well for one get out of that truck. also you can get out of it now. GM has programs where they will waive payments to get you out early. so why not do it while they got another $2500 off right now for memorial day plus owner loyalty if it is still going on. also i forget what site it is but guys are giving employee discounts to members of that site for friends and family... it is a gm forum or silverado something like that....

Also lease if you can IF you own a business you can write off 100% of the payments instead of depreciating out over 7-10 yrs..

Plus if they still have 0% you cannot go wrong

I think Scott made sense here. I kept looking at his avatar, and kind of not so much at what he wrote.

SS1304 · May 25, 2008

I was looking at a few new trucks and the dealer didn't want to work any number. I know that they are not moving any trucks and he still did not want to do anything. He did mention the smart buy but wasn't sure on that. This is a good thread I'll be hangin out here for a few.

z85violator · May 25, 2008

simple, buy a new one if you can afford it. the 2005 is already 4 model years old and won't be worth a lot in 5 more years. at the end of a lease you have nothing to show for it unless you can write it off through work.

sam5828 · May 25, 2008

I was looking at a few new trucks and the dealer didn't want to work any number. I know that they are not moving any trucks and he still did not want to do anything. He did mention the smart buy but wasn't sure on that. This is a good thread I'll be hangin out here for a few.

then find a dealer that does.... the smart buy is no longer... it was for NY people because they could not lease because of the laws in NY. but now they can lease...

D&SYukonDenali · May 25, 2008

I leased a 2005 Sierra (see sig) and in 2 months the lease expires. Went in to see the dealership today, and I have 3 options. Re-lease the truck for 3 years, lease a new 2008 4X4 extended cab with Active Fuel Management (any true thoughts on this), or buy my truck and finance over the next 5 years. All the payments for these options are within $30.00 or each other. The reason I leased in the first place was to determine if this truck was for me, and having a 1/2 ton has been great. New truck = new warranty. Re-lease = a lesser warranty that I have to pay for. Buy truck = 3 year warranty (same as the re-lease warranty) and finish the last 2 years of payments with no warranty. They are telling me that over the next 4 years my current truck will start to cost money (more repairs and maintenance costs), and obviously they feel the new truck is the way to go.

So my question is this: What would you do this situation? Any advice or thoughts that I should consider? Obviously, I cannot determine if my truck will last the next 20 years with regular maintenance. Stuff goes wrong.

Thanks for the thoughts.

Do you own your own business or side business (leasing a vehicle for work purposes has a tax benefit)? I definitely would not do a 5-year loan on a used vehicle unless you get 0% (which I doubt they'd offer).

Payments is one thing to consider, but the bigger factor (IMO) is principle paydown over time. Money spent on interest is wasted money. Being upside down on a vehicle loan is difficult for many people to get out of.

Outbacker · May 25, 2008

Thanks for all the replies. The payment on the new truck for buying is about $250.00-300.00/month more then lease or buy of my current truck. I can see why people have trouble getting out of a lease cycle. But you are all giving food for thought. And unfortunately I do not have a business that I can write it off on.

Thanks.

D&SYukonDenali · May 25, 2008

I leased a 2005 Sierra (see sig) and in 2 months the lease expires. Went in to see the dealership today, and I have 3 options. Re-lease the truck for 3 years, lease a new 2008 4X4 extended cab with Active Fuel Management (any true thoughts on this), or buy my truck and finance over the next 5 years. All the payments for these options are within $30.00 or each other. The reason I leased in the first place was to determine if this truck was for me, and having a 1/2 ton has been great. New truck = new warranty. Re-lease = a lesser warranty that I have to pay for. Buy truck = 3 year warranty (same as the re-lease warranty) and finish the last 2 years of payments with no warranty. They are telling me that over the next 4 years my current truck will start to cost money (more repairs and maintenance costs), and obviously they feel the new truck is the way to go.

So my question is this: What would you do this situation? Any advice or thoughts that I should consider? Obviously, I cannot determine if my truck will last the next 20 years with regular maintenance. Stuff goes wrong.

Thanks for the thoughts.

Do you own your own business or side business (leasing a vehicle for work purposes has a tax benefit)? I definitely would not do a 5-year loan on a used vehicle unless you get 0% (which I doubt they'd offer).

Payments is one thing to consider, but the bigger factor (IMO) is principle paydown over time. Money spent on interest is wasted money. Being upside down on a vehicle loan is difficult for many people to get out of.

Sorry, just realized you are in Canada; I don't know the tax laws there.

Oh Canada · May 25, 2008

I just leased an 08 GMC Sierra SLT. Sticker was over 50k. Leaseing makes total sense if you are flipping your vehicles every 3yrs give or take especially when the lease rate is so low. For 27mths it is .7% If you have the cash in the bank to stroke a cheque for it then thats one thing but if you dont, leasing can help keep you in a new vehicle with warranty.

Good luck and enjoy your new ride. I know I am! BTW, i am in Manitoba and trucks are scarce here. I have read the posts from the US citizens and sure wish I had the selection you speak of!

2007silveradonbs · May 26, 2008

I was looking at a few new trucks and the dealer didn't want to work any number. I know that they are not moving any trucks and he still did not want to do anything. He did mention the smart buy but wasn't sure on that. This is a good thread I'll be hangin out here for a few.

then find a dealer that does.... the smart buy is no longer... it was for NY people because they could not lease because of the laws in NY. but now they can lease...

The smart buy is still active. My Avalanche is on the smart buy program.

http://www.gmacfs.com/us/en/personal/autom...asing/plan.html

I works great for VA military members because if they are purchasing they don't have to pay for yearly tax. If I would have done a lease, I would have had to pay a yearly tax.