How About Another Leasing Question

[Cluck]

I know there have been a ton of posts about leasing and it got me thinking. I just want to get everyone's opinion on leasing for MY situation only. I know leasing is out of the question for some of you guys that drive a lot ...or keep your trucks a long time. However, I get a new truck every 2.5 - 3 years without fail and I drive no more than 12K per year. With that said, I have the cash and can purchase the truck outright. But I also wouldn't mind holding on to the cash like most.
I figure a 2019 Limited at $60,000 today would be worth 40K ish in the 3 years? with 36K miles. Please let me know your thoughts... again based on my situation.

 

[habu987]

You and are are financially in pretty much the same situation. This will be my first truck, but I'm looking at leasing a Longhorn in the fall, since I drive ~12k per year and plan to get a new vehicle in 3 years.

Background out of the way, I'd say go for the lease. It makes sense for me, so it should make sense for you.

 

[Cluck]

Thanks for the feedback..

 

[alwi228]

Same situation, currently at the dealer waiting on them to show me figures between leasing AND buying at the end (ultimate test drive) or just financing. If im out another grand for the luxury of leasing this entirely new truck, I'd feel good about that. Will keep you updated!

 

[alacombe]

Wouldn't tax and interest be included in your monthly lease payment? Well at least in WI it is. So you would be paying more to lease it then to just buy it and pay cash for it. Your monthly lease payment would include interest

 

[habu987]

Wouldn't tax and interest be included in your monthly lease payment? Well at least in WI it is. So you would be paying more to lease it then to just buy it and pay cash for it. Your monthly lease payment would include interest

This example is 6 years out of date, but the principle still applies...

My last new car purchase was in 2012. At the time of purchase, I had them run the numbers for purchasing and leasing--all-in quotes were $554 per month purchasing, $349 per month leasing. The sale quote was for 60 months, $1500 down, the lease quote was for 36 months, 15k miles, $1500 down, both had a $1400 trade in and included all taxes/fees rolled into the price. I went with the purchase.

For the 3 years I was planning to keep the vehicle before getting a new one (ended up turning it in as a lemon several months later, but that's a whole 'nother story), I would have paid $19,944 and $12,564, respectively, to purchase or lease it. I remember checking out prices on 2012 models with similar equipment and miles in 2015, and I probably would have had ~$4.5k in equity in the car if I'd kept the car for 3 years.

Given that math, unless I'd have gotten a phenomenal deal on trade-in, I would've been roughly $3k ahead at the time of getting a new vehicle if I'd leased the car instead of buying it.

EDIT: This math is all contingent on financing the car, whether you purchase or lease. If you're paying cash, that obviously changes the equation.

 

[Cluck]

Yes, I think financing is totally out. It would either be lease it.. or pay cash and buy it. Leaning towards leasing..

 

[sparkygreen]

You just need to be very careful with the lease to make sure you are getting the right deal. Check out www.leaseguide.com to learn more and use their calculators and also a forum on Edmunds https://forums.edmunds.com/discussion/50544/ram/1500/2019-ram-1500-lease-deals-and-prices

The edmunds forum will tell you the true residual and money factory(MF) from Chrysler Capital so you can know if the dealer is marking up the MF, which they are allowed to do.

Also know that Money Factor x 2400 = APR. THis makes it easy to compare the "interest" you are paying on a lease versus a traditional loan. Or in your case the interest paid during the lease versus paying cash out of pocket.

Currently on a 2019 Limited in my area the Residual and MF is:

36/10 - LEASE TERM (36Mo / 10K miles year)
4x2 - .00106 and 55% (MF x 2400 = 2.54%)
4x4 - .00118 and 57% (MF x 2400 = 2.83%)

So those rates are pretty low, but I think you can get 0% for 36 on a regular loan, which would mean a higher payment but no interest.