Lease, Finance or Own.

[Rammit]

I like the idea of leasing but the reality is you are always better off purchasing. In order to make it beneficial though, you have to keep it 7-10 years. I had a financial advisor tell me this a long time ago and when I did the math I was surprised. My last truck was a 2010 Ram 1500 Laramie. I purchased the truck for 38K out the door, including an extended warranty. I drove it 8-1/2 years and 120,000 miles. I financed it for 0% interest for 5 years. I sold the truck for $16,500. During that time I put on a few sets of tires, brakes and general maintenance which amount to about $3,000 (not including my lift). This works out to a cost to drive this truck was $24,500. Had I leased this entire time I would of spent about $51,000 or $26,500 more than purchasing (based on a $500/mo lease). During the time I had no payment I made them to myself. As a result, I paid cash for my new truck Depending on the vehicle you buy, the residual value, any unplanned maintenance issues, these results may vary. However, the numbers almost always work out in favor of purchasing. It does take some discipline though and you don’t get that new car smell as often, but the numbers over a long period of time are quite staggering. I plan on doing this with my current Ram and am in the process of doing this with our 17 Chrysler Pacifica.

 

[moosem]

Assume no trade in and 36 months?

Correct.

 

[moosem]

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?

East coast. I'm at work now!

 

[moosem]

I like the idea of leasing but the reality is you are always better off purchasing. In order to make it beneficial though, you have to keep it 7-10 years. I had a financial advisor tell me this a long time ago and when I did the math I was surprised. My last truck was a 2010 Ram 1500 Laramie. I purchased the truck for 38K out the door, including an extended warranty. I drove it 8-1/2 years and 120,000 miles. I financed it for 0% interest for 5 years. I sold the truck for $16,500. During that time I put on a few sets of tires, brakes and general maintenance which amount to about $3,000 (not including my lift). This works out to a cost to drive this truck was $24,500. Had I leased this entire time I would of spent about $51,000 or $26,500 more than purchasing (based on a $500/mo lease). During the time I had no payment I made them to myself. As a result, I paid cash for my new truck Depending on the vehicle you buy, the residual value, any unplanned maintenance issues, these results may vary. However, the numbers almost always work out in favor of purchasing. It does take some discipline though and you don’t get that new car smell as often, but the numbers over a long period of time are quite staggering. I plan on doing this with my current Ram and am in the process of doing this with our 17 Chrysler Pacifica.

all valid points.

 

[runamuck]

I always buy and I have always got more than I owed at trade time. I only know a cpl. people who lease and one of them is upside down every time he trades and it always costs him money to get out. I prefer to own and I usually trade every 4 years .

 

[thcmas35]

I like the idea of leasing but the reality is you are always better off purchasing. In order to make it beneficial though, you have to keep it 7-10 years. I had a financial advisor tell me this a long time ago and when I did the math I was surprised. My last truck was a 2010 Ram 1500 Laramie. I purchased the truck for 38K out the door, including an extended warranty. I drove it 8-1/2 years and 120,000 miles. I financed it for 0% interest for 5 years. I sold the truck for $16,500. During that time I put on a few sets of tires, brakes and general maintenance which amount to about $3,000 (not including my lift). This works out to a cost to drive this truck was $24,500. Had I leased this entire time I would of spent about $51,000 or $26,500 more than purchasing (based on a $500/mo lease). During the time I had no payment I made them to myself. As a result, I paid cash for my new truck Depending on the vehicle you buy, the residual value, any unplanned maintenance issues, these results may vary. However, the numbers almost always work out in favor of purchasing. It does take some discipline though and you don’t get that new car smell as often, but the numbers over a long period of time are quite staggering. I plan on doing this with my current Ram and am in the process of doing this with our 17 Chrysler Pacifica.

Getting new cars often is not cheap option regardless if you are leasing or buying. Some people don't realize how expensive it is unless they do a deeper dive into the numbers. Getting a loaded truck is not a cheap option either. Then there is the safety argument that I used to talk myself into a higher trim/new vehicles ... driving a newer, safer vehicle with technology (think collision alert, ACC, crash ratings, etc) that will help fill in the gaps & better protect me and my family could end up being part of the financial equation also (lost work, medical expense, insurance rates increasing, etc). So many factors, ahhhhhhh!

 

[Jako]

Getting new cars often is not cheap option regardless if you are leasing or buying. Some people don't realize how expensive it is unless they do a deeper dive into the numbers. Getting a loaded truck is not a cheap option either. Then there is the safety argument that I used to talk myself into a higher trim/new vehicles ... driving a newer, safer vehicle with technology (think collision alert, ACC, crash ratings, etc) that will help fill in the gaps & better protect me and my family could end up being part of the financial equation also (lost work, medical expense, insurance rates increasing, etc). So many factors, ahhhhhhh!

Nice assessment.
I have 6 vehicles ranging from 1990 to 2019. Safety is way better. I'm 63, Dad is 89, mother in law 88. Both getting minor nicks / scratches in their cars. Did not get collision avoidance in my Big Horn. If this is similar to the life of other vehicles the collision aoidance could readily pay for itself, maybe not today but in my later years. 2001 Dodge 1500 SLT was 26K, 2019 Ram Bighorn 41.5K. Cost of living and upgrades (safety, mpg, comfort etc.) in the Ram is a "pretty good deal" as I see it.

 

[robe2388]

Many people are also forgetting the advantage of leasing if you have a small business or something. The lease and all expenses associated with the truck is 100% tax deductible gents.

 

[SpeedyV]

Many people are also forgetting the advantage of leasing if you have a small business or something. The lease and all expenses associated with the truck is 100% tax deductible gents.

...which is also true - and may even be less expensive - when buying equipment and tracking depreciation. In the end, it all comes down to frequency of replacement, as others have stated.