Lease, Finance or Own.

[moosem]

I lease all my vehicles. I pay for what I use while it's still worth it. I'm all set with a $700 payment on a vehicle with no warranty. I change the oil, put gas in them and turn them in when the lease expires. I, personally, would never buy the first year of a new redesign. Plus, vehicles nowadays fall apart in 5 years or less. Case in point: the 2015 GMC SIERRA that I just turned in had a fully rusted frame in less than 12 months, and the drivers seat fell apart and was replaced after one month and the new one also fell apart. Plus, all the technology in modern vehicles is GOING to break eventually! How many computers do you own that are still working after 5 years? All these touch screens are nothing more than a tablet. They will eventually fail, and when they do, it's going to cost thousands of dollars to replace. I pay $347/mo for a truck with a $48,000 sticker. It works for me! I also have a commuter car for travelling back and forth to work and to subsidize the mileage limitation.

Oh yeah... 44YO; Granite Crystal Metallic; Bucket Seats

 

[moosem]

Oh yeah... 44YO; Granite Crystal Metallic; Bucket Seats

...and painted bumpers!

 

[thcmas35]

Here's my thought on it. Dave Ramsey drives me nuts, but I certainly agree with the concept of being fiscally responsible (for anyone interested, bogleheads is a forum with a little more reasonable approach), and I agree MOSTLY with the concept that leasing is not the greatest financial move. For me, I leased because 1. I've never leased before and have just been buying and swapping cars every few years so, wanted to see if this suited me any better. 2, the totally new 2019 I assumed would have a few bumps along the road. My plan is at the end of 3 years, decide if we want to buy or not, and most likely...I'll get into something new. I justify the expense as cars are my hobby, my transportation and...there's another way I justified it to myself but I cant think of it now . For what my buddies spend on hunting and golf, I roll that into my vehicle budget. We are very fortunately, a high income household and medschool tuition has been paid off. I only say this because I believe if your household income is 50k a year, leasing a vehicle is taking way too big of slice out of the pie.

age 32 - undecided on lease/buy, bucket and paint.

Income/debt/new worth, personal vs business and time horizon play a big part of buy vs lease decision. There are plenty of people that end up getting ripped off with leases because they don't understand the math or financing and are dazzled by a lower monthly payment. I guess the same thing can be said for buying over a longer time horizon too, although that is usually less complicated. Personal finance is fascinating to me and it's interesting to see the different approaches and rationale with large and small purchases (absolute prices and relative to ones current/future income & new worth).

 

[moosem]

Not exactly sure why leasing a vehicle = getting ripped off? I understand that I don't own it, and I'm okay with that. Has nothing to do with my income, debt or net worth. It has everything to do with the fact that buying a vehicle is the worst investment one can make, and I have no interest in keeping a vehicle for more than a few years anyway because I like driving brand new vehicles and I don't mind having an affordable car payment indefinitely.

Plus, I don't get my panties in a bunch because the bumper doesn't fit perfectly.. or I heard a weird clunking sound when I take a left turn...who cares? It's a lease. Engine break in period.. what's that? couldn't care less, it's a lease. Get in a minor fender and now the value is decreased by 20% cause it shows up on Carfax? Oh well...whatever. New tires for $2000.00?? Nope, not me. I won't even wax it. Just wash it, keep it clean, fill it with gas, change the oil and drive it. I don't care if the paint fades away in three years and one month from now.

Some might argue that buying a vehicle for $60k and then three years later it's worth $30k is getting ripped off.... Of course, whether you buy or lease, you're basically throwing money out the window anyway, so why not have a nice, new shiny one every three years for a much lower monthly payment? I'm paying for a brand new vehicle that's still worth paying for, not a piece of junk that costs $700/month with an expired warranty. Why would anyone pay cash for a new vehicle? Now, that's stupid. Unless you're a multi-millionaire, which am not. However, I am an engineer with a good job. My credit score is 857, I own a beautiful home and I have no credit card debt, and yet, I still lease my vehicles...

 

[Agitated]

I used to be a how-much-a-monther. It’s a sad way to live for me personally. To each his own. I prefer no debt whatsoever. Took me a while to get there, Im 47 now, but the sacrifice earlier on pays off exponentially. I’m far from rich or being well-off.

 

[thcmas35]

Not exactly sure why leasing a vehicle = getting ripped off? I understand that I don't own it, and I'm okay with that. Has nothing to do with my income, debt or net worth. It has everything to do with the fact that buying a vehicle is the worst investment one can make, and I have no interest in keeping a vehicle for more than a few years anyway because I like driving brand new vehicles and I don't mind having an affordable car payment indefinitely.

Plus, I don't get my panties in a bunch because the bumper doesn't fit perfectly.. or I heard a weird clunking sound when I take a left turn...who cares? It's a lease. Engine break in period.. what's that? couldn't care less, it's a lease. Get in a minor fender and now the value is decreased by 20% cause it shows up on Carfax? Oh well...whatever. New tires for $2000.00?? Nope, not me. I won't even wax it. Just wash it, keep it clean, fill it with gas, change the oil and drive it. I don't care if the paint fades away in three years and one month from now.

Some might argue that buying a vehicle for $60k and then three years later it's worth $30k is getting ripped off.... Of course, whether you buy or lease, you're basically throwing money out the window anyway, so why not have a nice, new shiny one every three years for a much lower monthly payment? I'm paying for a brand new vehicle that's still worth paying for, not a piece of junk that costs $700/month with an expired warranty. Why would anyone pay cash for a new vehicle? Now, that's stupid. Unless you're a multi-millionaire, which am not. However, I am an engineer with a good job. My credit score is 857, I own a beautiful home and I have no credit card debt, and yet, I still lease my vehicles...

Who said that leasing = getting ripped off? I mentioned that some people get ripped off, but that was due to the complex structure of the pricing (MF, depreciation rates, fees, mileage, etc). I used the word ripoff, but in a different context. Not sure if that was directed at me or not. I also previously said that I leased two trucks - but that was for different reasons then when I purchased this time.

I think a lease a is a ripoff when you pay a large premium for depreciation over expected depreciation (and MF over interest rate). The rebates also have been different for leases vs buying in the past that changes the value proposition, or has for me - sometimes people don't pick up on that. As previously mentioned, it also depends on other factors such as mileage. If you drive a lot over mileage you can incur large costs also. There are plenty of other variables that change the equation and can make leasing comparatively more expensive for people.

I could be wrong, but my guess is most people don't do the math and eyeball instead if they can handle a monthly payment. Every time I go new car shopping, they tend to do the 4 square or ask about what payment I'm interested in. I assume that is the approach most people take, since it seems to be the approach most dealers start with. There's a lot of room to screw you that way IMHO.

 

[moosem]

Who said that leasing = getting ripped off? I mentioned that some people get ripped off, but that was due to the complex structure of the pricing (MF, depreciation rates, fees, mileage, etc). I used the word ripoff, but in a different context. Not sure if that was directed at me or not. I also previously said that I leased two trucks - but that was for different reasons then when I purchased this time.

I think a lease a is a ripoff when you pay a large premium for depreciation over expected depreciation (and MF over interest rate). The rebates also have been different for leases vs buying in the past that changes the value proposition, or has for me - sometimes people don't pick up on that. As previously mentioned, it also depends on other factors such as mileage. If you drive a lot over mileage you can incur large costs also. There are plenty of other variables that change the equation and can make leasing comparatively more expensive for people.

I could be wrong, but my guess is most people don't do the math and eyeball instead if they can handle a monthly payment. Every time I go new car shopping, they tend to do the 4 square or ask about what payment I'm interested in. I assume that is the approach most people take, since it seems to be the approach most dealers start with. There's a lot of room to screw you that way IMHO.

Got it! should have read your post twice before knee-jerking my response! I got all the MFG incentives, and the lowest available MF from Bank of America. I'm very pleased with the deal I got. I am a long time lessee so I know all the games dealers play. In fact, they did try playing games with me and I abruptly stood up and walked out of the showroom, only to be called back by the salesman when I was about a mile down the road.

 

[Jordan2929]

My thought process behind purchasing rather than leasing is that 6-7 years down the road when I decide to trade this truck in on a new one it will be my down payment, and because its a truck (with the crew cab, black interior and most the other features people look for) it will still be worth a pretty penny, not to mention I only put on 7-8 thousand miles a year. This is the first vehicle of significant value that I've ever owned, (I'm in my early 20's) so there's no doubt that this will by far be the most expensive vehicle I'll ever own solely because I had nothing to trade in on this truck. I figure with the value of this truck and some negotiating I'll have to pay around 15,000 for the next one. And if I keep the next one for 7 years it breaks down to $178 a month plus I own the truck.... I have nothing against people who lease, if you dont mind being limited on your miles its nice hopping into a new truck every 3 years.

 

[syddog 2000]

My house I own, I like driving a new vehicle every three years. In my opinon owning any vehicle is a losing propersition, That being said I am guilty of owning many over the years. This one is a lease and happy to pay rent on this new model.

 

[Maconi]

Not exactly sure why leasing a vehicle = getting ripped off?

Some might argue that buying a vehicle for $60k and then three years later it's worth $30k is getting ripped off....

The entire point of a lease is that you're paying for the depreciation over the lease term, so you're losing that $30k either way, right?

Many view a lease as a "rip off" when viewed from a long-term outlook. After 10 years you'll have paid for 3-5 different vehicles worth of depreciation whereas someone who bought 1 vehicle and kept it that entire time obviously only had to pay for 1 vehicle's depreciation. The difference is they now have a 10 year old vehicle whereas the person leasing has a new vehicle every 2-3 years.

Leasing is never worth it from a value standpoint (which I assume is where the "rip off" comes from). You lease when you want to always be in a newer vehicle (and you're willing to pay extra for that perk).

 

[moosem]

Good point - prom a value standpoint, I agree. However, from a fun standpoint, leasing is a tremendous value, for me.

Further, I have no brand loyalty and I've yet to find a vehicle that I liked enough to want to drive it past a few years. In fact, my last three leases did not make it to the full term before I traded them in. I drive my wife crazy!!!

Besides, and I know I'm going to get booed for this, Chrysler's reputation for quality is not exactly stellar (neither is FIAT's).. I was never a big fan of MOPAR , until recently.. I travel for work and I drive a lot of rental cars including a couple of 4th gen RAMS (including a REBEL - which was awesome!) and really liked them. (I also drove a 2018 Charger which was badass!!) I have driven many F150's (not a fan) and I just came out of GMC SIERRA.. The RAM is far and away the nicest, in my opinion. When the 2019 came out, I knew I had to have one!!

Three years from now, who knows......Maybe, just maybe, I will be a MOPAR lifer going forward and will buy my next one, but probably not!

 

[Ortiz7983]

I financed my ram. 6 years but will pay it off in 3 years and 2 months. I plan to keep this baby for at least 10 years. Hoping 13-14. I’m fine with my plan. Eventually the next time I purchase my vehicle, I will pay it in full.

 

[Jay4334]

I lease all my vehicles. I pay for what I use while it's still worth it. I'm all set with a $700 payment on a vehicle with no warranty. I change the oil, put gas in them and turn them in when the lease expires. I, personally, would never buy the first year of a new redesign. Plus, vehicles nowadays fall apart in 5 years or less. Case in point: the 2015 GMC SIERRA that I just turned in had a fully rusted frame in less than 12 months, and the drivers seat fell apart and was replaced after one month and the new one also fell apart. Plus, all the technology in modern vehicles is GOING to break eventually! How many computers do you own that are still working after 5 years? All these touch screens are nothing more than a tablet. They will eventually fail, and when they do, it's going to cost thousands of dollars to replace. I pay $347/mo for a truck with a $48,000 sticker. It works for me! I also have a commuter car for travelling back and forth to work and to subsidize the mileage limitation.

Care to share any info on your deal. Looking to lease a big Horn crew 6'4 bed for a new business. Just started kicking tires and have a $450/mo for 36 mo with 10k per yr. offer and the sticker price is $52,640 with 30,004 (57%) residual. Plan on buying out when lease is up, granted no issues and business doesn't need a bigger truck. Just looking at it ...looks like we're in the same ballpark based on MSRP amount

 

[moosem]

Care to share any info on your deal. Looking to lease a big Horn crew 6'4 bed for a new business. Just started kicking tires and have a $450/mo for 36 mo with 10k per yr. offer and the sticker price is $52,640 with 30,004 (57%) residual. Plan on buying out when lease is up, granted no issues and business doesn't need a bigger truck. Just looking at it ...looks like we're in the same ballpark based on MSRP amount

MSRP on mine is $48070, buyout at lease end is $29192 (60%); $1700 down, $325/ month + 7% sales tax; total= $347.75/ month.

 

[moosem]

Oh yeah, 10k miles per year..

 

[pber1]

Own! My 2019 Big Horn is all mine just got the title a few weeks ago. I’ve saved to buy all my vehicles cash and drive them until I save up enough money for a new one. My son is 10 and he’s gonna be the next owner of my truck. So I’ll be driving my Ram and saving up for another vehicle until he’s old enough to drive.

 

[pber1]

If you plan on leasing then buying out at the end of the lease you’re only saving about $4-8k. From past experiences most dealers were willing to knock that $4k-8k from the get go if you plan on paying cash. With California tax, registration and all other BS fees I paid $45k out the door instead of the $52k

 

[moosem]

To each his own, brother! Enjoy it! Looks sharp in white! What are you doing up at so early!!??

 

[pber1]

To each his own, brother! Enjoy it! Looks sharp in white! What are you doing up at so early!!??

Agreed! I still have every car I’ve ever owned! I’m barely getting into bed rain=no work. When I got nothing to I take afternoon naps that keep me up late. How about yourself?

 

[thcmas35]

MSRP on mine is $48070, buyout at lease end is $29192 (60%); $1700 down, $325/ month + 7% sales tax; total= $347.75/ month.

Assume no trade in and 36 months?