Who Leases? Who Purchased?

[iLikeTurtles]

Maybe a dumb question, but is financing a car like financing a house, where the first several payments almost entirely go to interest rather than principal (I.e., you won’t get any equity in the car until several months of payments?)

If so, I’d think that financing at a high rate with a dealer is bad news since even 3 payments before refinancing could mean a few thousand dollars.

Youre paying the same percentage of outstanding balance, so as the term goes on and you have less out standing balance you pay less total in interest each payment.

 

[iLikeTurtles]

Purchased Laramie Ram and Jeep Cherokee for wife. Financed 10k each to get get the extra rebates. Held the loans for a month and paid them off. Could care less if the dealer lost their kickbacks, they were asshats anyhow View attachment 76856

If i finance through dealer and refinance before their stipulation (generally three months?) the dealer loses their hold back?

 

[iLikeTurtles]

MSRP - $66.4k
Purchase - $54.4k
Paid cash for 100k bumper to bumper and put about $8k down on top of that. At 72 mo I pay $814/mo at 2.29%.

Traded in a 2017 Golf R that i was maybe 2k upside down on (because of prior deals).

I would rather lease (if the deal was right), but I drive 20k+ mi per year which makes the payment near purchase price. So if i hold the vehicle long enough its worth it to buy.

Probably year three or 3.5 is when i anticipate I will be in the green anything less is a loss.

 

[flyfingers]

I purchased and the dealer made me do what Swicago had to do. In order to get the "special deal" had to finance a minimum of $7,500. Had to verbally agree to hold the loan for 6 months - I literally told them yes while elaborately shaking my head no. They financed me thru Chrysler Capital. I got online to pay it off but they will only let you pay $2,999 per day so it took 3 days to play their game. Whatever, it's paid for and I sleep well. Not a fan of payments in any way shape or form - I'm just not that guy. Hate the feeling of being in debt and will do whatever it takes to stay out. My dad taught me long before Dave Ramsey started teaching; the rich rule over the poor and the borrower is slave to the lender. Scripture.
More than one way to skin a cat and to each their own.

 

[Swicago]

If i finance through dealer and refinance before their stipulation (generally three months?) the dealer loses their hold back?

I believe they would. But your refi may not see it as a new car anymore, so your rated may not be as good

 

[iLikeTurtles]

I believe they would. But your refi may not see it as a new car anymore, so your rated may not be as good

Is there anything the dealer can do about it or the next purchase with ssme financer if chrysler?

 

[Swicago]

Is there anything the dealer can do about it or the next purchase with ssme financer if chrysler?

Not that I am aware of. It says in the contract, you can pay off early w/o penalty. Chrysler financial is not same entity as the dealer, so I would not worry about it.

 

[iLikeTurtles]

Not that I am aware of. It says in the contract, you can pay off early w/o penalty. Chrysler financial is not same entity as the dealer, so I would not worry about it.

So could chrysler tag your person essentially and elect to not offer funding? I would assume not as chrysler (stellantis, whatever they are now) doesnt care if the loan gets bought out.

 

[Adkram]

first truck ive ever had. Leased in case I didn't want it after a few years. Of course now at 2 years I have 35k miles on a 3 year /30k mile lease and I love the damn thing. My plan as of now is to write a check at the end for the buyout but curious if anyone has dealt with this with Ram/Chrysler and if there are any suggestions on how to maximize the deal..... should I buy it early or alternatively is it likely they make a crazy offer to take it back at year end trying to make sales numbers?

 

[TheMadDutchDude]

Lease to buy. The wife and I weren’t in the financial space to be able to make the purchase. I leased mine coming from a ‘17 leased truck. They took it back 10 months early to get me into this one and I only had to pay $250 for the privilege. I put $2k down and pay $350 a month. Purchase price at the end of the lease (12 months from now) is $28k out the door according to my paperwork.

 

[Joshua022]

2021 BigHorn night edition 2wd was $43k out the door in cash.

 

[bman77]

2021 Rebel
MSRP: $59,995
Cash Down: $8500
OTD price : $49,024
Bought extended bumper to bumper warranty and wheel warranty.
Out the Door price with warranties: $54,240
Payment: $904 a month, 0% for 60 months

 

[RajD1992]

I purchased my 2019 Limited 4x4 in September 2019. I actually found one reasonable priced and had basically 90% of what I wanted in it, my reason for buying over leasing is simply the mileage I put on the car. In less an a year and a half I have almost 30,000 miles on the truck.

I ended up paying $57K out the door with a sticker price of $63K and change I think I got a decent deal so no regrets there. I think in the end it comes down to choice and whatever works best for you.

 

[RideTheSquirrel]

I leased a 2020 Ram 1500 Bighorn 4x4 (level 2 I believe) in May. I can't recall the sticker price. Lease was for 42 mo. 10k / year in miles, and I pay $459 a month. I can't tell if that's a good deal or not lol.

 

[BigD]

Dave Ramsay says never lease a vehicle. I trade mine in every 5 or 6 years. These trucks have good resale value. Basically I pay them off early, then trade in, plus put some more money down. I end up with a small payment. My $41,000 Big Horn will be paid off in 1 year. I'll keep it 3 - 6 years depending if i have any issues with etorque or anything else. If i don't have any problems the first 3 years, chances are I can make it another 2 or 3 without anything major going out. Never buy extended warranties either. Waste of money. They wouldn't push them so hard if they didn't make a lot of profit off of them.

 

[cervelo15]

MSRP: $52095
Lease Trade Equity: $4000
Cash out of pocket: $2500
OTD price: $39823 (with Ram rebate)
$633 for 72 months

Bonus: signed all my paperwork and was on my way home in less than 30 mins. Simplest and easiest experience I ever had. Literally bought it right off the back of the car carrier, as it was in transit when I made the deal.

Read a lot of comments on leasing and buying. 2 Chevys, 1 Ford and my 2nd Ram later, I wanted out of the leasing game. I always came up in the green with my leases, even moreso now with the pandemic. I was almost 9k below mileage in my most recent lease and my vehicles were always well kept. But I hated the hassle of having to look for a new vehicle every 3 years. Going thru the same BS every time. Leases you put in so much money up front and have nothing to show for it, unless you buy the truck. Years of pissing that money away made me want a change.

The main driver for me was wanting to relive my youth working and tinkering with my truck, making all the mods I can on it (and now thanks to this forum!). The payment to buy was only $150 more than I was paying for my most recent lease. Plus it might be a vehicle I can have my daughter own when she starts driving.

 

[WhiteNightEdition]

I was curious who leased their Ram 1500? How much are your payments? How many miles? versus How many purchased? How much are your payments?

I purchased my 2019 Ram 1500 Laramie Sport Crew Cab 4x4 (our long-term test truck on 5thGenRams) back in April 2019. Payments are $720/mo

After working in the biz for a good while, leasing is the way to go, even if you plan to keep the vehicle. Some people reference the 9% lease tax, but let's be real. You'd have a 6% sales tax anyway, plus, they offer returning lessee rebates as well as special lease only rebates. I'm leasing my 2021 Ram 1500 Crew Cab Lvl 2 Big Horn w/etorque hemi and 3.92s (Roughly 53k sticker) for $400/month. That's with no down payment and also with the dealer paying off my last 5 payments from my lease turn in.

 

[c3k]

I buy.

I leased one vehicle, due to being in financial straits. I don't understand the concept of paying for what is in essence a long-term rental. Sure, the payments are lower (that's why I did it the once), but in the end, you're left with nothing. (Lease to own = rent, then buy a used vehicle. Why not just buy the used vehicle at the start?)
Similar to renting real-estate instead of purchasing.

Everyone's circumstance is different. I have the inclination and ability to do the vast majority of any work needed to maintain and repair a vehicle.

My mileage/years of ownership have included: 300K/18 years; 190K/10 years; 175K/16 years; and the crown jewel, ~ 1 million (unkown, due to broken speedo cable for 5 years)/35 years. Various others. All well past 100k.

No, I don't drive beaters. They all look great and keep getting upgraded as needed as components wear out. I like owning and having a physical remnant for all those payments.

The truck I have on order? I will be disappointed if it doesn't last 15+ years.

 

[Ericv1980]

Looking for some advice on this deal. I'm in Canada.

- 2021 Ram Sport, financed at 0%
- MSRP $82k after options, etc
- Employee discount, down to $75k
- Freight & HST takes final price to $88k

I'm coming to the deal with $6k in equity so the amount to be financed would be around $82k

I plan to drive it for 3-4yrs and see myself putting 40,000km on it per year (25,000 miles per year) so 120,000-160,000km at the end of 3-4yrs (75,000-100,000miles)

Since I'm financing at 0% and am starting with some equity and discounts ($14,000 between my $6k equity from current deal combined with employee discount) my hope is that by the 3-4 year mark, the truck will be worth more than I owe on it and I'll be able to continue to build equity in the next deal, and the next, etc.

If I finance for 96mos and trade at the 36mos mark (with 120,000km), I would owe $55k. If I trade after 48mos (with 160,000km) I would owe $45k. Basically the 96month term has be paying off roughly $10k/year.

If I finance for 84mos, I'd owe $50k at 36mos with 120,000km on it and $45k at 48mos with 160,000 on it.

So I guess my question(s) are:
(1.) generally, what are opinions on this strategy?
(2.) If I go with the 96mos term and plan to trade after 36mos - owing $55k, what are chances that I will protect and grow the $6k in equity that I have in the deal?
(3.) Is this just a stupid strategy that'll never work with such high finance terms?

 

[Truckit]

Looking for some advice on this deal. I'm in Canada.

- 2021 Ram Sport, financed at 0%
- MSRP $82k after options, etc
- Employee discount, down to $75k
- Freight & HST takes final price to $88k

I'm coming to the deal with $6k in equity so the amount to be financed would be around $82k

I plan to drive it for 3-4yrs and see myself putting 40,000km on it per year (25,000 miles per year) so 120,000-160,000km at the end of 3-4yrs (75,000-100,000miles)

Since I'm financing at 0% and am starting with some equity and discounts ($14,000 between my $6k equity from current deal combined with employee discount) my hope is that by the 3-4 year mark, the truck will be worth more than I owe on it and I'll be able to continue to build equity in the next deal, and the next, etc.

If I finance for 96mos and trade at the 36mos mark (with 120,000km), I would owe $55k. If I trade after 48mos (with 160,000km) I would owe $45k. Basically the 96month term has be paying off roughly $10k/year.

If I finance for 84mos, I'd owe $50k at 36mos with 120,000km on it and $45k at 48mos with 160,000 on it.

So I guess my question(s) are:
(1.) generally, what are opinions on this strategy?
(2.) If I go with the 96mos term and plan to trade after 36mos - owing $55k, what are chances that I will protect and grow the $6k in equity that I have in the deal?
(3.) Is this just a stupid strategy that'll never work with such high finance terms?

Here's my quick thoughts,
1) extremely risky.
2) Not likely. Currently trading a 2019 Limited, 26 mths old, under 100,00kms and don't expect anywhere near $55,000 Canadian. Loaded long box, off road pkg., 3:92s etc. etc. Will run it through the auction as soon as new one arrives.
3) $75,000 is not a great deal even with the employee discount. There are no huge incentives other than finance. Might be better to wait?
If you make the deal, get your $6000 equity paid out and finance it. Basically, that gives you a $6000 interest free loan. Just make sure you invest it wisely and don't just spend it. Is this for business or pleasure? Able to write it off?