The Old Lease Vs. Buy Debate. What to do???

[smiley]

The point of a lease is to have a newer vehicle always and have lower payment than buying could offer. That is the idea anyway I have seen where it did not price out like that which then makes no sense. I too have leased than bought it out to trade it on worked well. I don't like not being able to do whatever I want to it though so I bought my truck. I also put on 18 to 20k a year and lease just gets expensive then. I like the idea of going a long time with same truck but know it will be hard as they keep getting better and better. As I tow more the more I also want a diesel to dominate with.

Brands will vary on leases because it is all about the residual value and for awhile it was pretty much impossible to know residual values on Chrysler stuff since there was so much uncertainty. My dad leased many Rams and always liked the way it worked for him as he just bought them out and came out with positive equity.

 

[Burntfire]

I couldn't imagine starting my payments over...

 

[Slate Mike]

My truck stickered for $37500. My lease pmts total $12672. My buyout is $18000. i get to keep most of my money invested, and, hopefully, making money. I can buy a 3 yr old Ram with 30k for $18000. If gas isn't $5/gal. I should be able to sell it for a profit. And them start all over. Works for me. Especially that I'm not driving 30k/yr like I used to.

 

[limited]

I don't see anybody talking about cable bills, phone bills, things we could live without; they have no value and no return on your money,
I drove a small car for years, witch help me save money to pay the house off plus all other bills, With getting this 2012 Ram and driving the mileage that I do, I would rather pay for enjoyment that I spend in my truck, then pay for Cable to watch commercials
We all only have so much money to go around you have to decide what gives you the most enjoyment for your money.
And Please Let's make sure we get the volume up on our rights, so they don't take our first amendment away. why let the goodie toshoes tells what to do,
I like my Guns

 

[PentastarCrew13]

I just leased a 2013 crew cab this week. It's about my 12th lease . Traded a Nissan frontier 17months into a 39 month lease. Went into a dodge 39month lease with only first payment down and got a $35k truck for $400payment flat . Will do the same when I scoop my 2015 . I get a new truck every 2 -3 years. Always have a warranty and get ride of them before they need tires . It's not for everyone but if you have great credit and always want a new ride it works great. I mod them then just strip and sell parts for new part money.

 

[PentastarCrew13]

Also buying at end of a lease is a bad idea. A trick with leases is get the low miles allotted like 10k and keep the payment low. Miles only matter if you turn in. I can trade at 38 months and the miles only affect value, you don't have to pay for them on a trade. Payoff on a lease is based on payments left , residual buy out at end and some other factors. I will say I have a modded jeep tht I play with so don't mod the DD too much

 

[jasf]

Buying at the end is a good idea IF the residual is right.Even if you only buy it on paper & trade it. We did that on an '09 Fusion to '12 Fusion & if the market holds we'll have $4k+ equity to do it again in '15.

 

[0212353]

I have the paperwork here to buy my lease right now.

I guarantee there is no freakin' way there is a 16K mile truck on a lot with the options mine has.........for anywhere near the price I will have in it. Based on what I asked the lender, they show bluebook 8K higher than what my buyoff is.

 

[shadango]

the disadvantages of the lease are the baloon payment at the end of the lease if you wish to purchase, the restriction of miles you can put on there per year, and if you lease and decide not to purchase, you're left with nothing.

the disadvantages of purchasing is that cars are not good investments, in the sense that they don't appreciate in value. you do have more freedom with the purchase with putting mods on and adding as many miles as you want, but it is your responsibility as far as maintenance goes if you're not under warranty. at the end of the life of your loan, you're left with something tangible, your truck, and if kept in good running condition, could possibly give you 200K miles or 6 years without payments, which is what appeals to me.

I once told myself I would NEVER lease. However, when my 03 Durango with 75k miles on her started needing too much (A/C work in the thousands, rotting brake lines, tranny needed rebuilt) I wanted to cut bait before I dub myself in the hole too far. Did that on my Ford Exploder and I lost bigtime.

Seems to me that with the complexity of vehicles these days, making one last for 200k miles with no repairs is not a likely scenario. I put on low miles a year ...about 6-8k.....and I take care of the vehicles. And still, seems like after the warranty runs out, things start popping up. Then you start to get nickel and dimed to death. That, plus the downtime and work you have to put into them to keep going.

I leased my '12 Ram 1500 and it has been about a year (almost).....the low monthly payment is great....about $300...versus the same money down and a MUCH higher payment on a purchase. The lease agreement has the purchase price of the vehicle at the end of the 3 years, if I decide to buy.......At the time, I looked at what 3 year old Rams were going for and honestly, it seems like the buyout price is about on par with what buying a 3 year old used truck will cost when my lease is up if all holds true. The plus is that I will know the previous owner and the history of it should I decide to buy my truck, and it will be low mileage (about 24k or less in 3 years)

Of course that means financing again and whether to buy a warranty etc.

But no different than if I were to buy a used truck. And with the cost of what I need being in the $40's (crew cab, 4x4) I cant afford to buy new outright.

So I dunno....jury is still out. Ask me after 2 more years...LOL

 

[Poriggity]

I have never understood paying for something for multiple years that you have to give back. Not to mention if you lease, any modifications go our the window and the vehicle needs to stay stock unless you feel like taking all those parts off after the lease is up.

Sent from my SAMSUNG-SGH-I747 using Tapatalk 2

 

[shadango]

Leasing scares me. I have never leased but the idea of not owning spookes me a litttle bit. I am know sure of the rebates on '12s now but i got mine about a month ago, a 12 quad sport 4x4 pretty much fully loaded except sunroof and spray in bedliner. It stickered at around 46,600, after 8k in rebates and another 2500 off the sticker, i got it for 36100. After 4500 in equity in my trade as a down pmt I fiananced 32k for 6 years at 3.24% and my pmt is 501 a month.

It took me a long time and several vechicles to be in a position to afford a truck like this and now that i have it, i am glad i bought instead of lease.

Ah, but there is the rub. You own a leased vehicle as much as you own a financed vehicle, up until you pay off the financed vehicle.

It is titled the same, insured the same, you ash it, you have to fix it when it breaks, etc.

The only difference is the way the finances are done.

At the end of a 5 or 6 year loan for a $45k truck you finally OWN it outright....for way more than $45k with interest figured in....but its a 5 or 6 year old truck with mileage on it and all the repairs that will come with it.

Lease for 3 years, keep it to under 12k miles a year and you have a fully warranted vehicle for less than the "buy" payment would have been.

You just never "pay it off" and own it outright. But like I said, for me at least, seems like its not long after I pay a vehicle off and the warranty runs out when the repairs start to stack up.

Like has been said, it is situational. Mods of course figure in.... I would really love to jack up my lease with a 4" mopar kit......buts it a lease so I would have to pay TWICE...for the install and then to have it dropped again. Just not worth it.