Thinking about: Leasing a new truck

Discussion in 'Hangar Talk' started by flhrci, Jun 27, 2020.

  1. genna

    genna Cleared for Takeoff

    Joined:
    Feb 5, 2015
    Messages:
    1,407
    Display Name:

    Display name:
    ТУ-104
    Yep, people that leased big SUVs in the late 2000 lucked out a lot. Their cars were "worthless" in 2009 if they had bought it instead and had to sell. Bring car to dealer and leave it was a nice benefit of the lease then.


    One of the things that can get people that lease is the fact that you negotiate with multiple entities. With financing, you typically negotiate with the dealer on the price of the car and get available financing terms(you may have that already from your bank if you are smart). With leasing, price is dealer, residual and "interest" is leasing company. The leasing company may be or may not be the finance arm of the brand in question, but it's still a separate entity. And that residual is the main thing that dictates the cost of the lease. It's also harder to shop around. Things are a lot less transparent especially if you are new to it.
     
  2. Ryanb

    Ryanb Touchdown! Greaser! PoA Supporter

    Joined:
    Jul 21, 2010
    Messages:
    12,122
    Location:
    Tennessee
    Display Name:

    Display name:
    Ryan
    Ford is probably not as particular as Lexus, which was the car that was leased in our case.
     
  3. YooperMooney

    YooperMooney Pre-takeoff checklist

    Joined:
    Aug 8, 2019
    Messages:
    148
    Display Name:

    Display name:
    YooperMooney
    It’s a trade off between sacrificing value for convenience. If you are wealthy (have enough where you can’t spend it fast enough) then have at it. There are many people like this. Lots of people have saved up so much money during their life that they have never considered to “enjoy” it before they take their last breath.

    Leasing is never a good option for anyone who is not wealthy.
     
  4. genna

    genna Cleared for Takeoff

    Joined:
    Feb 5, 2015
    Messages:
    1,407
    Display Name:

    Display name:
    ТУ-104
    This is definitely true. Happened in 2009 and to a lower extend a month or two ago. However, there are a lot of things that have to fall into place for a lessee to take advantage of it. Basically, you need to have a lot of luck for this to pay off. Not something I would rely on. Today, for example, used car market is very hot again. If anything, there is a much higher probability that you will want to change the car before the lease ends or not want to change the car when the lease ends for various personal reasons. Easy to do with something you own, hard with something you rent with long term contract.


    Strictly speaking also true. Comparing 36 mo lease vs trading in a new car after 36 months of ownership - assuming you do not go over allotted miles - will probably yield similar results(though I still maintain that lease will cost a bit more), but with purchase you have a lot more options to make it a lot more cost effective. With lease, you really don't(buying your own car after lease is usually not cost effective).
    1. You can keep car longer and thus spread depreciation over more years. There are no 5y leases that I am aware of, but many manufacturers still have warranty at that point and modern car is pretty reliable even longer than that. The longer you keep the car, the less it costs per month on average.
    2. Buy lightly used car to begin with - which is always the cheapest way to go anyway.
    3. You do not have to trade it in, selling it directly usually yields better result.
     
  5. weilke

    weilke Touchdown! Greaser!

    Joined:
    Jan 26, 2010
    Messages:
    14,035
    Display Name:

    Display name:
    weilke
    If your goal is to 'get one over' on the leasing company, you are not going to win at this game. If your personal circumstances are predictable and you want to drive a nice car, leasing is probably going to cost about the same or a little bit more than a financed purchase. The premium you pay is for the predictability of your monthly cost. Many car buyers have so little (and often negative) equity in their car that realistically there is little difference between 'buying' and leasing. Do you really 'own' the car if you have a payment for 120% of its value ?

    I used to buy 2 year lease-returns and between the three drivers in the house we drove them into the 220-250k range. When I am done, the cars have very little residual value and I sell them for a bundle of $100 bills to a young car mechanic. Once I could afford it, I switched to buying new and driving them until the 220-250k range. With the long holding time, when broken down to a monthly cost, the difference between new and the 2-3 year cars is a rounding error. My wife gets the new car, I get the hand-me down. Never had a car I didn't like and my problem is really one of parking spaces ;-)



    As I said, I have only leased one car, and that had a tax angle to it. I rather buy new and drive them a long time. I just object to the sanctimonious* 'you should never lease a car' mantra that doesn't seem to be based on an analysis of the numbers and more of a religious edict.










    * not from you
     
    genna likes this.