Opinion: Buy Out Lease?

[Dodge This]

around me you can get a new sport for 38-40k at a 6year loan that like 590 a mo (depending on credit)

Maybe a stripped down sport with no options, but if you want any of the toys, you're going to pay more than $40k to get them.

 

[Jetsfan122]

I say keep it. I'm in the same boat. Last year I was in the process of paying off my lawyer due to a very costly divorce. Got a great deal on a lease for a CC Express. No money down and $299 a month. There is no way I'd get that monthly payment on a new truck. When my lease is up I plan on buying out the truck as I'm in a better financial position and I know the truck is properly maintained as opposed to buying a comparable used truck with no idea of how the previous owner used/abused/maintained the truck.

 

[adboyd06]

In case anyone cares, I'm heading to the dealer tonight to buy out the lease. Finally made up my mind. 5 year loan at 2.24% interest.

 

[Jarhead57]

In case anyone cares, I'm heading to the dealer tonight to buy out the lease. Finally made up my mind. 5 year loan at 2.24% interest.

Good move imho

 

[SHOOT2KILL]

I am currently leasing a 2015 RAM 1500 Laramie Sport, fully loaded except push button start and front and rear sensors. I picked up the truck with 200 miles on it in August 2015, signed the paper work for a three year less with 12,000 miles per year.

Today the truck has 22,000 trouble free miles and I have the opportunity to buy out the lease for $31,624 plus tax and tag. Which seems like a very reasonable price. At the end of the lease, in August 2018 the residual value of the truck is around $28,*** (I forget the exact amount). My goal as of the past few months is to eventually not have a truck payment, which obviously would never happen while leasing.

After doing a bit of research I could not find a comparable truck for anywhere near $31,624. Would you buy out the lease at that price?

Please look at your original lease paperwork...It should show that you paid sales tax at the lease inception...Fast forward to today...Your post says you are buying out the lease for $31,624.00 plus TAX....Sooooooo your paying sales tax on the same truck TWICE ????....You will have to determine if you paid the original sales tax as part of a DOWN PAYMENT or the lease company prorated the sales tax into each monthly lease payment...Their are only a handful of states that make you pay sales tax twice on the same vehicle when you buy it after the lease term ends...Michigan is NOT one of those states...BE CAREFUL...

 

[adboyd06]

Shoot - Thanks for the info, I took a look at the paper work I did not pay sales tax at the lease inception. A small amount of tax was added to monthly lease payment.

 

[GsRAM]

Good move, congrats! The only other option i was going to suggest was trading your 15 on a new one to get your equity out of the 15 and then buying the 17. I don't lease so I don't know much about it. Or if that would even be an option. Glad it worked out for you.

 

[baum]

Shoot - Thanks for the info, I took a look at the paper work I did not pay sales tax at the lease inception. A small amount of tax was added to monthly lease payment.

beat me to the punch.

No lease do you pay tax up front. its added in with each monthly payment only on that months payment also.

 

[adboyd06]

Good move, congrats! The only other option i was going to suggest was trading your 15 on a new one to get your equity out of the 15 and then buying the 17. I don't lease so I don't know much about it. Or if that would even be an option. Glad it worked out for you.

I thought about trading in the 15 and buying a 17/18 but then I'm 7 years out from no payments, instead of 5 years (or less).

The real struggle will be holding on to this truck. I've never been one to keep a vehicle for more then 3-4 year, but that's going to change!!

 

[Tray Burge]

Nothing wrong with leasing if: A) you can stay in the allotted mileage allowed and: B) you don't mind having a car note because you trade in every 2-3 years.
Leases are horrible if: A) you drive over the allowed mileage and haven't bought the miles up front and B) you don't trade in that often and don't like a car note.
Buy out the lease if you want to own it.

 

[sandawilliams]

I am currently leasing a 2015 RAM 1500 Laramie Sport, fully loaded except push button start and front and rear sensors. I picked up the truck with 200 miles on it in August 2015, signed the paper work for a three year less with 12,000 miles per year.

Today the truck has 22,000 trouble free miles and I have the opportunity to buy out the lease for $31,624 plus tax and tag. Which seems like a very reasonable price. At the end of the lease, in August 2018 the residual value of the truck is around $28,*** (I forget the exact amount). My goal as of the past few months is to eventually not have a truck payment, which obviously would never happen while leasing.

After doing a bit of research I could not find a comparable truck for anywhere near $31,624. Would you buy out the lease at that price?

I have leased a few vehicles over the years. On all of them I negotiated the buy out price at the time of leasing. Worked very well and the buy out ended up being something I couldn't refuse. You might try re-negotiating the buy out price now. It's worth a try.

 

[adboyd06]

Tried to negotiate the buy out price, was unsuccessful. The residual value at the time was determined by Chrysler Capital...Or at least that's what I was told.

Either way it's a done deal now, and I'm happy about it.

 

[unxpctd]

Glad it worked out...and if you're happy...thats all that counts!

 

[baum]

Tried to negotiate the buy out price, was unsuccessful. The residual value at the time was determined by Chrysler Capital...Or at least that's what I was told.

Either way it's a done deal now, and I'm happy about it.

your basically negotiating that price at the beginning. the residual is based of of "purchased price" minus the monthly payment.

 

[HemiStarPower]

Congrats. Glad it worked out for ya!


Sent from my iPhone using Tapatalk

 

[nationalminer84]

First off if you finance you don't "Own" the truck either. miss a few payments and see who does..... that said Leasing is paying for what you use and gives you options. Case in point. I leased my 2015. buy out that day was determined to be 28 grand. fast forward to a couple weeks ago. got a great deal on a 17. dealer "bought" the truck from me as a trade in for 29 grand. I theoretically made a grand. OTOH, I could have chose to buy the truck for 28 when they are on the lot for 32 all day long and I would have known the history. the trap is when people lease then buy on a long loan and end up paying for it for 7-9 years over all. I was prepared to put $ down and take a shorter term had I bought it instead the $ stays in the bank earning interest and im driving a new truck.