disadvantages of leasing a truck?

[BBhorn]

I leased my 2018 bighorn. The lease was up in February. I only have 25000 miles and my buyout was $26000. I bought the truck, there was no way I could buy one with this many miles that cheap right now. Also I know the truck was taken care of because I owned it the whole time. In this case it worked out in my favor.

 

[IRSmart]

Need to leave it stock, limited mileage (depending on lease), no equity earned, and the list goes on. I leased once, never again. I see no benefit to it for the average joe.

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Without reading the rest of the thread, this is all wrong. It depends on what you plan on doing at the end of the lease. You absolutely can mod it if you’re going to trade it or buy it at the end. You absolutely can build equity. If you buy or trade it, you have unlimited mileage. Being informed in a lease is key. It differs from a purchase a lot less than people think it does.

 

[mtnrider]

Without reading the rest of the thread, this is all wrong. It depends on what you plan on doing at the end of the lease. You absolutely can mod it if you’re going to trade it or buy it at the end. You absolutely can build equity. If you buy or trade it, you have unlimited mileage. Being informed in a lease is key. It differs from a purchase a lot less than people think it does.

Your statement has a lot of "If's" in it.....

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[IRSmart]

And y

Your statement has a lot of "If's" in it.....

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And yours had a lot of absolutes in it.

 

[tron67j]

The original request was just for the downside of a lease. Yes, it makes a difference if one plans on buying, modifying, etc. then one should be ready to buy at the end of the lease. But for just straight lease and no purchase, think the thread covered it all quite well.

 

[noupf]

Man, the lack of knowledge here regarding leasing is actually quite amazing. Clearly some people here have literally know idea why leasing is a great option for a lot of buyers or how it works. Clearly some posters do get it and understand the process and why it can be a great option.

I suggest the OP looks up the pros and cons to leasing online. Theres lots of good information out there to help you understand the process and what the numbers mean. I got into the leasing game last year with my wifes 2019 Infinity QX60. Learned how to negotiate a lease to get the best price possible for the amount of miles that we will likely use it for over the 39 months of lease term. We opted for 10k miles per year as my wife only drives about 9500 miles a year. We could have choosen 12k or 15k miles per year if we drove more, and the price for each went up about $15 per month.

We pay $350 a month on a $50,000 stickered vehicle and had zero dollars out of pocket besides sales tax. When we hit 39 months, we should be right around 32,000 miles or so and our warranty will also be up. At that point we'll be giving the vehicle back and likely negotiate a similar or identical deal. Nothing out of pocket again ( besides the partial sales tax ), she gets a brand new car again........ and a new warranty to boot.

For us, it makes a lot of sense. She doesnt drive a ton, no trade in needed, no down payment, virtually nothing out of pocket. Instead, i keep all that down payment money ( that would have been used to buy the vehicle just to get an affordable monthly payment ) and I invest it instead of having it locked up in a depreciating asset. WIN WIN

 

[Dakota2020]

I don’t lease, I buy older used vehicles with cash. I’m a Dave Ramsey fan.
That’s just me. I don’t like car payments if I can help it.
There are advantages for business owners to lease. The only benefit I see to leasing for personal use is that it potentially gets you into a new vehicle every few years if you get bored easily. There’s an option to buy at the end and you usually get good deals on that. The disadvantage is that you don’t own it during the lease, it’s like renting so whatever mods you do you have to take them off and pay for any damages like scratches and such.
Also, you have to keep an eye out for your miles. They charge you if you go over your allotted.

 

[ramffml]

Man, the lack of knowledge here regarding leasing is actually quite amazing. Clearly some people here have literally know idea why leasing is a great option for a lot of buyers or how it works. Clearly some posters do get it and understand the process and why it can be a great option.

I suggest the OP looks up the pros and cons to leasing online. Theres lots of good information out there to help you understand the process and what the numbers mean. I got into the leasing game last year with my wifes 2019 Infinity QX60. Learned how to negotiate a lease to get the best price possible for the amount of miles that we will likely use it for over the 39 months of lease term. We opted for 10k miles per year as my wife only drives about 9500 miles a year. We could have choosen 12k or 15k miles per year if we drove more, and the price for each went up about $15 per month.

We pay $350 a month on a $50,000 stickered vehicle and had zero dollars out of pocket besides sales tax. When we hit 39 months, we should be right around 32,000 miles or so and our warranty will also be up. At that point we'll be giving the vehicle back and likely negotiate a similar or identical deal. Nothing out of pocket again ( besides the partial sales tax ), she gets a brand new car again........ and a new warranty to boot.

For us, it makes a lot of sense. She doesnt drive a ton, no trade in needed, no down payment, virtually nothing out of pocket. Instead, i keep all that down payment money ( that would have been used to buy the vehicle just to get an affordable monthly payment ) and I invest it instead of having it locked up in a depreciating asset. WIN WIN

Yeah but you do that twice and you could have owned the car at that point. But now you have nothing to show for it at the end of 2 cycles.

Leasing = renting. At least in my mind, it's never the financially smart option. If you absolutely insist on having new wheels every few years then yes it is the cheapest way to do that, but it doesn't mean that having new wheels every few years is actually financially sound.

 

[GrumpyOleMan]

Different strokes for different folks. I like to drive the same vehicle for a long time. leasing (did it once) drove me nuts because I never felt like the truck was "mine". My wife wants a new car every couple of years so she leases, works out great - for her.

 

[PoMansRam]

........ I got into the leasing game last year with my wifes 2019 Infinity QX60. Learned how to negotiate a lease to get the best price possible for the amount of miles that we will likely use it for over the 39 months of lease term. We opted for 10k miles per year as my wife only drives about 9500 miles a year. We could have choosen 12k or 15k miles per year if we drove more, and the price for each went up about $15 per month.

We pay $350 a month on a $50,000 stickered vehicle and had zero dollars out of pocket besides sales tax. When we hit 39 months, we should be right around 32,000 miles or so and our warranty will also be up. At that point we'll be giving the vehicle back and likely negotiate a similar or identical deal. Nothing out of pocket again ( besides the partial sales tax ), she gets a brand new car again........ and a new warranty to boot.

For us, it makes a lot of sense. She doesnt drive a ton, no trade in needed, no down payment, virtually nothing out of pocket. Instead, i keep all that down payment money ( that would have been used to buy the vehicle just to get an affordable monthly payment ) and I invest it instead of having it locked up in a depreciating asset. WIN WIN

Very wise on this particular ride IMO.

I bought my bride the Nissan version ~1.5yrs ago used as an ex-rental ($24K). We've got a 2019 Nissan Pathfinder SV 4x4. I like it, she loves it, but like any Nissan/Infinity product, they can get expensive as the time and miles tick on. Aside from the Frontier, Nissans are weird. They're either a POS right out of the box or they go 10yrs, 250K miles with no problem, CVT or not.

 

[15BlueStreak]

Yeah but you do that twice and you could have owned the car at that point. But now you have nothing to show for it at the end of 2 cycles.

Leasing = renting. At least in my mind, it's never the financially smart option. If you absolutely insist on having new wheels every few years then yes it is the cheapest way to do that, but it doesn't mean that having new wheels every few years is actually financially sound.

That is incorrect. It was a 50k vehicle. He pays 350 a month. He only pays 13,650 over the course of 39 months. So..... by my math. He could do 3.5 leases to come to 47,775. Still not 50k. He is always into a new vehicle with no money. Leasing is not for everyone but works if you play your cards right. Some people pay off a 50k vehicle in 5 years. Then when paid off they are worried about that expensive vehicle costing them money. So they trade it in and whammo back into a say 500-600 dollar payment again. So who is ahead really? Double edged sword. Do you what you like.

 

[OtterOS]

A good friend of mine buys a truck every 2-4 years and trades in his old one. When I ask the difference of this and leasing he just says he owns the one he is still paying on. I don’t know - IMHO with a lease you can buy it out after if you wish to keep or return it when you are getting antsy for a new fancy truck.


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[ramffml]

That is incorrect. It was a 50k vehicle. He pays 350 a month. He only pays 13,650 over the course of 39 months. So..... by my math. He could do 3.5 leases to come to 47,775. Still not 50k. He is always into a new vehicle with no money. Leasing is not for everyone but works if you play your cards right. Some people pay off a 50k vehicle in 5 years. Then when paid off they are worried about that expensive vehicle costing them money. So they trade it in and whammo back into a say 500-600 dollar payment again. So who is ahead really? Double edged sword. Do you what you like.

Nope. "do that twice" was not meant to be taken literally, so yes "twice" is not 100% accurate number. The point was, you're throwing monthly payments at a car you will never own, nor recoup those costs. Just like renting. At the end of the 2-3 leases you have no "asset" to show for it. So to reiterate my point: if you insist on having a new car every few years then leasing is better, but having a new car every few years is not financially smart.

 

[PolarisCobra]

You really have to consider how far you will drive it. If you go over the defined mileage, there is a high cost when you turn it in.

You can't do much in the way of modifications (maybe add steps, I am not sure).

I tend to keep my stuff for 10 or more years, run them until the wheels fall off. Before I got my truck, I had a Pacifica (SUV Style, not minivan) for 11 years, had 195,000 miles on it when I upgraded. Got off a lease, had 18K on it when I got it, paid $18000 for it, got my moneys worth.

Got my truck off a lease as well, will likely keep this one longer. Working from home now, not putting many miles on it anymore.

 

[50 Front]

I have leased many cars and trucks over the past 20 years. I agree with others above that leasing is not that different from buying. With trucks becoming so complicated and the fact its hit or miss with any manufacturer to get a good one, leasing is like a long test drive. If you get a good one you can buy it out if you want. If you get a problem truck, give it back. You can trade a lease just like if you bought it or you can sell it.
It is true that you don't own the truck when you lease but if you have a loan you don't own it either. I worry less with a lease then if i owned it. If my lease gets damaged, i have it fixed and give it back. The best things about leasing is that you get a new truck every few years, it is always covered by warranty, no maintenance except oil changes and always have latest tech.
All leases allow for normal wear and minor damage is not charged. They give you a guide as to what they consider minor damage. I always use every mile on the lease but i have a another car to balance the mileage so i don't go over. If you go over mileage is typically 25 cents per mile, so if you go 1000 over its $250.
Buying and keeping long term is always argued as the better way to go but if you include all the maintenance (tires, breaks, fluid changes etc) the difference is minimal.

 

[ramffml]

I have leased many cars and trucks over the past 20 years. I agree with others above that leasing is not that different from buying. With trucks becoming so complicated and the fact its hit or miss with any manufacturer to get a good one, leasing is like a long test drive. If you get a good one you can buy it out if you want. If you get a problem truck, give it back. You can trade a lease just like if you bought it or you can sell it.
It is true that you don't own the truck when you lease but if you have a loan you don't own it either. I worry less with a lease then if i owned it. If my lease gets damaged, i have it fixed and give it back. The best things about leasing is that you get a new truck every few years, it is always covered by warranty, no maintenance except oil changes and always have latest tech.
All leases allow for normal wear and minor damage is not charged. They give you a guide as to what they consider minor damage. I always use every mile on the lease but i have a another car to balance the mileage so i don't go over. If you go over mileage is typically 25 cents per mile, so if you go 1000 over its $250.
Buying and keeping long term is always argued as the better way to go but if you include all the maintenance (tires, breaks, fluid changes etc) the difference is minimal.

When you have a payment, you still own the truck, how much you own of it as a percentage is based on how much you've put into it so far. When you sell the truck, every penny is yours minus depreciation.

I just priced this out specifically for this thread, using my exact truck on the Ram Canada build page.

Base price = 56K.
Taxes + discounts gives total price = 64K.

Financing for 8 years, monthly payment = 742 * 96 months = 71K total
Leasing at lowest rate is 5 years, monthly payment = 819 * 60 months = 49K.

Now remember this is long term, so lets say 10 years minimum.
Leasing = 49K * 2 = 98,000K
Financing = 71,000K + repairs

That's a difference of $27,000.

So to lease that truck for 2 cycles, 10 years, it costs you $100,000, and you still have no truck at the end.
To finance that truck and keep it for 10 years, it costs me $71,000, and I have another $10,000 in value left in my truck. Plus, I actually have the truck at the end of all this. The longer I keep it, the more and more I save unless repairs start getting costly, but 10 years is nothing nowadays.

There is no way you're going to beat that with a lease, even if you have to replace the entire engine several times.

 

[15BlueStreak]

Well this debate is as bad as the diesel vs. Gas debates. It all boils down to preference and what in the end cost you less. At least that's the way I would do it. I would not lease a truck for 800 a month if I could buy it for 600 a month. I damn sure would not finance one for 8 years. 7 years is my max and I hate that. Lately my last buy was my wife's jeep for 0% 72 months. Can't beat that. I leased my latest truck cause I only drive 5k miles a year. So I figured I would give it a run again at a lease. My 2 previous trucks were financed at 7 years at 3.25% not bad really. I traded the Ram 1.5 years in on a Ford. The ram I ate 1k. The Ford I traded 3 years in just this past October. I came out 10k ahead. So I leased and pocketed a 10k check. Not bad really. I figure I will lease for awhile now and have some nice long test drives. Hope the OP got his answer!

 

[bm02tj]

This is like what tire is best
Do what is right for you but if you lease have a firm buy out number
then you can make a valid choice

 

[50 Front]

When you have a payment, you still own the truck, how much you own of it as a percentage is based on how much you've put into it so far. When you sell the truck, every penny is yours minus depreciation.

I just priced this out specifically for this thread, using my exact truck on the Ram Canada build page.

Base price = 56K.
Taxes + discounts gives total price = 64K.

Financing for 8 years, monthly payment = 742 * 96 months = 71K total
Leasing at lowest rate is 5 years, monthly payment = 819 * 60 months = 49K.

Now remember this is long term, so lets say 10 years minimum.
Leasing = 49K * 2 = 98,000K
Financing = 71,000K + repairs

That's a difference of $27,000.

So to lease that truck for 2 cycles, 10 years, it costs you $100,000, and you still have no truck at the end.
To finance that truck and keep it for 10 years, it costs me $71,000, and I have another $10,000 in value left in my truck. Plus, I actually have the truck at the end of all this. The longer I keep it, the more and more I save unless repairs start getting costly, but 10 years is nothing nowadays.

There is no way you're going to beat that with a lease, even if you have to replace the entire engine several times.

Wow, i didn't know a 5 years lease is even offered. Most times the lowest payment will be on a 3 year lease. The payment for an average deal, no money down, and taxes and fees in payment would be 1% of msrp, so in your example the lease would be $560 a month for a total of $20160. Lease it three times and your total is a little over 60k. Meanwhile, you spent 71k plus probably about 10k in repairs since you are out of warranty, tires, breaks etc. So you spent 20k more and maybe your truck with 100k plus miles on it will still be worth that much. That's why i said its a break even situation except i have been driving new trucks every three years.

 

[ramffml]

Wow, i didn't know a 5 years lease is even offered. Most times the lowest payment will be on a 3 year lease. The payment for an average deal, no money down, and taxes and fees in payment would be 1% of msrp, so in your example the lease would be $560 a month for a total of $20160. Lease it three times and your total is a little over 60k. Meanwhile, you spent 71k plus probably about 10k in repairs since you are out of warranty, tires, breaks etc. So you spent 20k more and maybe your truck with 100k plus miles on it will still be worth that much. That's why i said its a break even situation except i have been driving new trucks every three years.

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.