disadvantages of leasing a truck?

[15BlueStreak]

I think the disconnect here is US rates vs Canada. On Ram US site they don't even list a 5 year lease. Longest it goes is 4 years. When selecting a 4 year the payment goes up by 60-80dollars over the 36 month lease. If you were to finance 8 years in US the rate would not be good. Most likely close to 5% or higher. Typically most banks will only do 7 years unless you're looking at a 80k truck and even that is a push. I know trucks are pricey in Canada but not sure how much more over ours. So maybe Canada has some different options of financing than us Yankees. Cheers!

 

[ramffml]

I think the disconnect here is US rates vs Canada. On Ram US site they don't even list a 5 year lease. Longest it goes is 4 years. When selecting a 4 year the payment goes up by 60-80dollars over the 36 month lease. If you were to finance 8 years in US the rate would not be good. Most likely close to 5% or higher. Typically most banks will only do 7 years unless you're looking at a 80k truck and even that is a push. I know trucks are pricey in Canada but not sure how much more over ours. So maybe Canada has some different options of financing than us Yankees. Cheers!

The MSRP is definitely a higher number in CAD vs USD. But I don't see why the percentages would change any (though maybe I'm wrong). Lease rates are driven by depreciation. If your truck is going to depreciate a lot, your lease rate is quite high, if they suspect your truck will hold its value then you get a lower lease rate. That holds true across US and Canada.

 

[50 Front]

I don't know where you're getting your numbers from, but they're wrong.

I specifically pointed out, the 5 year term had the lowest monthly lease rate. Which means, if you leased 3 years at time, for a total of 10 years, you'd be even worse off. Your monthly payment goes up, so over the 10 years you pay MORE.

Just to add some numbers to the vague hand waving I've seen in this thread: the 3 year monthly lease for my example truck is $968.

3 year lease at 10 years = $968 * 12 * 10 = 116,160
5 year lease at 10 years = $819 * 12 * 10 = 98,280
96 month payment plan = $71,000


I rest my case. Long term ownership, financing ALWAYS wins, by a huge amount. 71K vs 116K? It's not even close. How many engines and transmissions and tires do you go through in 10 years, because I've owned cars that were 15 years old with 200,000 miles and still on factory everything minus some wheel bearings, brakes, battery, and tires.

Those numbers are crazy high. All i can tell you is i am currently leasing a 19 that had a sticker of 61,500 and I'm paying $600 a month, no money down, taxes in payment for 3 year 36k miles (taxes in NY of 8.25). I thought $600 was a bit high but at the time in July of 18, inventory was very low since the truck was only out for a few months at that point. My residual is 35k, so i will probably get back 3 to 5 k when i trade in for new one or sell it to carvana in a couple of months since used car prices are up.

 

[DKRGoods]

To lease or not to lease, that is the question only you can answer. If you are the kind of person that likes a new vehicle all the time, drive low miles, leasing is usually the better way to go. As stated above too, warranty, repairs etc. If you hold on to your vehicles, drive a lot of miles, buying is usually the way to go. Look at your life style and choose.

Personally, I used to buy and sell all the time. Then came the internet and way to many cars. Now dealers really don't budge on price that much because they know the market too well. My past four vehicles, I leased top of the line and drove low miles so they always offer me the best price when returning the lease. My 19 Ram Laramie just flipped 16,000 and it goes back this fall. Might hit 20,000 not sure.

Best of luck in your choosing.

 

[NathanJackson]

It is best to rent, because you can simply stop renting at any time. It will not be so easy to get rid of leasing.

 

[runamuck]

for me the downside would be not owning anything. I always buy and I have never been upside down at trade time. if events cause me to need to sell, I can do it at anytime and probably make a few bucks or at least have no penalty. I have paid off several cars/trucks in my life and gone without payments for a time..4 years once on a nice 4x4 avalanche. I have heard a few horror stories of mileage charges from lessors too.