disadvantages of leasing a truck?

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njitgrad

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Thought I would start another thread for this...being a potential new truck owner what are the downsides of leasing vs buying a truck. Can you still deck it out to your liking if you lease?
 

rule18

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Thought I would start another thread for this...being a potential new truck owner what are the downsides of leasing vs buying a truck.

Like anything else, it depends on your situation. If you just want low payments, nothing to sell/trade in on the next one and don't mind having to return it unharmed, then it works.

If you own a company, and you want/need the writeoff then it's a win. Lease payments and insurance can be used as a legit writeoff each year, so says my CPA. We've been leasing my wife's cars for years for that reason.
 

Daw14

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Most have limited miles allowed,with per mile overcharge, it’s not yours ever,you will be charged for every tiny paint chip ,slight scratch, worn tires,and more upon turn in.
 

bm02tj

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If you lease negotiate the buy out terms before you sign
then you can do what you want with it and you know your total cost
My self I would never lease
 
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njitgrad

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My sister has leased three Acuras in a row now and never had anything bad to say. She's just happy to own a new SUV every three years.

The only reason I am considering it is because this is my first truck.
 

tron67j

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Also always remember to negotiate the "purchase price" of the vehicle you are intending to lease as if you were going to buy it that day. Your payments are based on the difference between the value of the truck when it's placed in service and the value when it is returned. The lower your beginning price the lower your payments. So many people just take the lease price per month that's advertised and never negotiate.
 

Bighorn guy

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I leased my new truck. One reason is the business write off I did negotiate a price on this truck, got it as cheap as I could before I signed the lease. I also know my buying price if I decide to buy it. Another reason I leased it is if I don’t like this truck in a couple years I will get a different one. Maybe it’s not for everyone. But it’s a great option to have available
 

BWL

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If you want a new truck every few years, don't modify and are good about keeping a vehicle undamaged then leasing is fine if you get enough mileage for the term as you're only really paying the depreciation in that case. Extra mileage cost should be negotiated if you intend to return it. If you plan to buy it out then you come out ahead buying it in the first place more times than not. Apart from that leasing isn't worth it. As far as write offs go the loan interest and depreciation are deductible in lieu of the lease payment so there's no tax advantage to it apart from less calculation required. Calculating depreciation and interest vs just entering in the lease payments. Either of them will require you tracking mileage to only deduct the percentage that is business use and if registered to a business paying the payments then the personal use is a taxable benefit.
 

PoMansRam

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You own your lease every bit as much as you "own" your 60-84 month financed truck.

You can do what you want with your leased truck, but like said above, if your intent is to return it and walk away at the end of the term, you need to follow the contract.

Will a dealer or the lease company accept your modified leased truck? Depends on the type and quality of the mods. All used vehicles are selling like crazy these days, especially trucks.

You do NOT have to follow the end of lease tern-in procedure per your contract. You can turn your vehicle in at any time at ANY make/model dealership.

I once turned in a 2012 Subaru Legacy lease 8 months early, over miles, with worn snow tires and brakes. I had a vehicle picked out on their lot that I wanted to buy. During negotiations I made it clear, the only way we were making a deal today was take in my lease free and clear. They did.

I've only leased twice. I wouldn't say I'd never do it again.
 

Sig Schecter

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You own your lease every bit as much as you "own" your 60-84 month financed truck.

You can do what you want with your leased truck, but like said above, if your intent is to return it and walk away at the end of the term, you need to follow the contract.

Will a dealer or the lease company accept your modified leased truck? Depends on the type and quality of the mods. All used vehicles are selling like crazy these days, especially trucks.

You do NOT have to follow the end of lease tern-in procedure per your contract. You can turn your vehicle in at any time at ANY make/model dealership.

I once turned in a 2012 Subaru Legacy lease 8 months early, over miles, with worn snow tires and brakes. I had a vehicle picked out on their lot that I wanted to buy. During negotiations I made it clear, the only way we were making a deal today was take in my lease free and clear. They did.

I've only leased twice. I wouldn't say I'd never do it again.

While this info is certainly nice the see, I err on the side of caution when thinking I could fall into the same boat should I want to. Ever since getting my first truck a couple years ago I don't think I could downgrade to a car ever again. I just leased my 21 big horn and feel pretty good about it. But I'm not so sure I am gonna feel good enough to buy it at lease end. That same thought would have occurred if I financed the vehicle only difference being that in 3 years I can switch to another truck that does make me feel good about buying it after the lease is up...unless of course I don't want to and then I will rinse and repeat.

I have never owned a vehicle outright. Therefore I have always had a payment. That payment is factored into my budget and always has been. I always end up getting sick of the vehicle I have been driving around or simply want the latest and greatest. For me, at this point in time, leasing makes sense.
 

PoMansRam

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....I have never owned a vehicle outright. Therefore I have always had a payment. That payment is factored into my budget and always has been. I always end up getting sick of the vehicle I have been driving around or simply want the latest and greatest. For me, at this point in time, leasing makes sense.

That's how it's been for me for nearly 30yrs. I get the itch, find a deal on something and if the deal is right in terms of trade-in allowance and purchase price I go for it.

I generally put a few thousand down so that if I need to trade-in at some point I won't be upside-down.

It's not wise financially, but living in the rust belt as I do, vehicle ownership always costs money.

I'm totally with you in terms of it being tough to think about having to own a car as your daily driver after you own a Ram 1500 or similar.

I owned a series of pickups from about 1993-2002, then some Jeeps and other SUVs and cars, then back into pickup truck world.
 

GeometryFletch

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you mean rent a truck? lol kidding..but seriously..leasing is great when a company does it for you, not for personal.
 

rule18

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Most have limited miles allowed,with per mile overcharge, it’s not yours ever,you will be charged for every tiny paint chip ,slight scratch, worn tires,and more upon turn in.
Not exactly true, although they do ding you for certain things. I've been leasing cars for my wife's business for 15 years (GREAT tax write-off especially if you own a small business).

Monthly lease payments are usually hundreds of dollars per month lower than car loan payments, depending on how much you put down.

All leases have mileage limitations, the most frequently offered are 10,000, 12,000, 15,000. Usually the overage charge is .25 per mile.

The lease term is negotiable as well (12, 24, 36 and 48 months). Usually one of those, combined with one of the mileage caps is the best deal)

Standard lease agreements detail what you'll be charged for:
  • Dings and scratches the size of a credit card or smaller are typically no charge
  • Tires are typically not included in your end-of-lease liability
You have the option of buying the car when the lease is up (pre-negotiated price the day you drove off the lot).

It's wise to take the vehicle in for a pre-return inspection.

Leases are mostly misunderstood. IF the deal works for you, or your circumstances warrant a significantly lower monthly payment than a car loan, do it. If you're just looking at it as an option, then consider it carefully.

To the OP, good luck!
 

amm24dmb

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I’ve leased many cars and I see no disadvantage at all. Unless you can pay cash for a new car or buy a cheaper used vehicle and pay it off in 3-4 years then I think leasing is the way to go in the short term. I’ve been over on lease mileage at times, had a couple dings and some mods, but you can just trade in a leased vehicle at any time just like you would a purchased vehicle. No difference at all. I’ve never done the actual process where you go to the same manufacturer and give the car back to the leasing company. That’s when they looks for dings and mileage, etc. Just pick the next vehicle you want, go to the dealer and trade in the leased vehicle for the new one. Same process. Or if you want to buy it just go to the Ram dealer and buy it or secure your own financing and buy it. Easy!
 

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I never leased before so can someone clarify the lease duration. No mater what happens the person leasing is on the hook for duration of the agreed payments?

So for example, I sign up for a lease for 36 months. After 30 months, my dealer calls me to let me know that I can go into a new lease now. Does that mean that no matter what, I still have to pay off those 6 months, or roll it into another loan?

Thanks.

Owner of a 2020 Ram Laramie (leveled with 2" rc struts and 1" rear spacer on 33.5" toyo open country) , 16 Dodge Charger scat pack and my wife 21 Jeep Wrangler Unlimited Sahara (2.5" rc lift with 35" duratracs)
 

amm24dmb

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I never leased before so can someone clarify the lease duration. No mater what happens the person leasing is on the hook for duration of the agreed payments?

So for example, I sign up for a lease for 36 months. After 30 months, my dealer calls me to let me know that I can go into a new lease now. Does that mean that no matter what, I still have to pay off those 6 months, or roll it into another loan?

Thanks.

Owner of a 2020 Ram Laramie (leveled with 2" rc struts and 1" rear spacer on 33.5" toyo open country) , 16 Dodge Charger scat pack and my wife 21 Jeep Wrangler Unlimited Sahara (2.5" rc lift with 35" duratracs)

Correct. Say your payment is $300 a month and you have 6 payments left, you’re on the hook for the $1,800 bucks UNLESS you can get more for your car than you owe on it. The dealer will call the leasing company (same as if you would have purchased the car) and get the payoff/buyout on it (this is NOT how many payments you have left). Say you owe 30K on the buyout and they’ll give you 30K you’re in the clear. All depends on what you owe on the vehicle. Again, this figure is what you negotiated the car price to at the time you leased minus the payments you’ve made on it. This roughly determines the buyout.

Sometimes dealers claim they can waive payments for you and do all this fancy stuff to get you out of the lease early, but you’re paying either way. Only shot I’ve seen to get out a bit early is if you’re under on miles or if they really want your trade. But who knows if they’re inflating your trade and not discounting the new one as much. That’s where you have to do your homework on the new lease/purchase.
 

aces-n-eights

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I think the disadvantage of a lease is that you don't build a way to owning a vehicle outright. You'll always have that payment.

I bought my '16 Laramie (a lease return) in '19 and the original window sticker was in the truck. The original price was $50k+ and i paid cash, $29K. I just checked NADA and the truck is worth $32K average retail - i know used truck prices are high right now, but even i had lost a thousand or two it's better than the $20k+ hit the original owner took.

Not having a car payment is freeing - put that money in an investment or into your home - something that appreciates instead of depreciates.
 
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