BluegrassMotorsport
Well-Known Member
Hey y'all. New here and I've got truck fever again. I know, know - it's a bad time to be buying anything. Carvana offered me more than I paid for my 6.2 Silverado when Covid prices first went crazy, and I figured I would put that payment toward my Corvette and pay it off early. I'll have it paid off in August so it's time to start truck shopping again. I've been a Chevy guy my whole life and I loved my last one, but there's really no excuse for their interior at that price point. The new interiors were supposed to be out this fall, but have been delayed into eternity. Thanks, Covid. I'm being tempted by the Ram and Hydro Blue would match my Vette almost identically. I know there's quite a few threads on leasing and I read through most or maybe all of them. But I wanted to get some opinions on trading toward a lease.
I'll be trading an Audi A4 I bought to replace my Silverado. Really, really great car and I love the mpg but I'm a truck guy. I've played around with the estimator on Ram's site. Based on 2021 prices, after my trade I could buy a Laramie Level B for $400-450 per month or lease the same truck for $150-175 per month. Pretty significant difference there. But I know monthly payments don't tell the whole story. The lease puts me in a new truck every 2-3 years which is great because I like to trade. But, I don't know if I'd be willing to give up ~$24k in equity from the Audi toward a vehicle I don't own, all for the sake of a cheaper payment. One of the arguments in favor of leasing is the first couple years' payments on a new vehicle purchase are mostly interest anyhow, because of how amortization schedules are set up. So you're not gaining much equity. But, because of my trade, I'll already have plenty of equity in if I buy instead, despite paying mostly interest at first.
So, it seems to me leasing is probably the best option if you trade often and are coming in with no equity. But if you have a relatively high trade, you should keep the equity and role it into a purchase. Thoughts?
Thanks for coming to my Ted Talk haha.
I'll be trading an Audi A4 I bought to replace my Silverado. Really, really great car and I love the mpg but I'm a truck guy. I've played around with the estimator on Ram's site. Based on 2021 prices, after my trade I could buy a Laramie Level B for $400-450 per month or lease the same truck for $150-175 per month. Pretty significant difference there. But I know monthly payments don't tell the whole story. The lease puts me in a new truck every 2-3 years which is great because I like to trade. But, I don't know if I'd be willing to give up ~$24k in equity from the Audi toward a vehicle I don't own, all for the sake of a cheaper payment. One of the arguments in favor of leasing is the first couple years' payments on a new vehicle purchase are mostly interest anyhow, because of how amortization schedules are set up. So you're not gaining much equity. But, because of my trade, I'll already have plenty of equity in if I buy instead, despite paying mostly interest at first.
So, it seems to me leasing is probably the best option if you trade often and are coming in with no equity. But if you have a relatively high trade, you should keep the equity and role it into a purchase. Thoughts?
Thanks for coming to my Ted Talk haha.