Need Info on Leasing a Vehicle

IWreckALot
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IWreckALot
Edited Date/Time 3/3/2015 11:11am
Does anyone here lease their vehicles? My wife wants a new truck and I've always been pretty dead set against essentially long term renting a vehicle. I drive my vehicles past the time they're paid off and until the wheels fall off and there's no way of knowing how many miles I'm going to put on a truck per year. I don't like that you don't own what you're paying on also.

Just curious if any of you have some info I can use to get her head off the idea of leasing. Or if it's really not as bad as I'm stating then I'll reconsider it. I've just always had it in my head that it's a bad idea and it still seems like a bad idea.
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scooter5002
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scooter5002 2/25/2015 9:04am
2/25/2015 9:04am
To me, the only reason to lease, is for business purposes. Up here, if you lease, the tax write off is consistent, first payment to last. If you buy, it's depreciated at a diminishing value. I'm assuming it's the same down there. This "lease for 3 years, then get another one", is a great deal, for the automakers. I'm the same as you, buy it, and run it.
newmann
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newmann 2/25/2015 9:17am
2/25/2015 9:17am
Look at ALL of the costs involved with the lease from beginning to end. Ask what happens if it gets wrecked. Are you going to be responsible for the diminished value of a wrecked and repaired vehicle? Can you purchase gap insurance on a lease to protect yourself in this situation? How many miles are you allowed per year. What all maintenance is included with this vehicle? If the numbers work, go for it. As expensive and complex as vehicles are these days, it might make more sense than purchasing.

I have customers who buy new vehicles every 2-3 years and the beating they take trading them in is mind boggling.
Uncle Tony
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Uncle Tony 2/25/2015 9:32am
2/25/2015 9:32am
For someone who likes new vehicles every 2 or 3 years I think leasing is worth it, you're basically paying for half the cars value,some have options to buy at the end of the lease, all leases here in New York require full coverage, I don't know about other states, also the mileage is an issue, the cost ramp up real fast if you go over, so factor that in, for me I drive my vans for ten years easy so leasing is not good, but my wife doesn't drive much and just turned in her 2013 Ford Escape Saturday and leased a new Ford Focus, ford credit gave her a lot of incentives to re-lease
SEE ARE125
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SEE ARE125 2/25/2015 11:02am
2/25/2015 11:02am
I would give my opinion, but if I did someone would surely disagree and I don't feel like a non-moto debate today. So I'm just going to say go with your gut, sounds like you already know the answer.

The Shop

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Xracerdone
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Xracerdone 2/25/2015 11:09am
2/25/2015 11:09am
I've leased for years. I like a new truck every 3 years, I get to write it off for work, yes gap insurance covers leases as well. You can negotiate a lease like anything else. I've always gotten 15k miles a year, full service plan, have never put more then $500.00 down & my pyt is never more then $315.00 a month. I don't care if I ever own the truck out right, if I wanted to I would've paid cash in the first place
TailSoHard
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TailSoHard 2/25/2015 11:24am
2/25/2015 11:24am
You'll have to come back and make this decision again in another 2-3 years after your lease is up. You'll have nothing to show for the vehicle you've just been paying for for 3 years. So, you're back at square one. I, for one, don't feel like having to make that decision every couple years. At least if you were to buy a vehicle, you'd have the option of getting a pre-owned (that someone leased for a couple years) at a waaaayyy better deal than a new 2015 model. Go find a 2013 truck with 20,000 miles on it and save yourself that extra 30%. It will be equally as nice as a 2015, plus you'll get to do whatever you want to it, can drive it as much as you want, and then also sell it once you're ready for a new one again. You'll be able to start this cycle over again with some equity in that old truck that you can use to make your next decision much easier.

lostboy819 2/25/2015 11:29am
2/25/2015 11:29am Edited Date/Time 2/25/2015 11:33am
If you look at a car payment as a "cost of living" that you can comfortably pay and know you will always have one and also want to drive a new car/truck every few years then it is a good way to save a few bucks per month over buying but make sure you do you homework for miles per year, insurance and taxes. The biggest mistake people make is when they cant really afford what they want to buy and then they go with a lease these are the people who should buy a used or certified used car and not new.
IWreckALot
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IWreckALot 2/25/2015 12:30pm
2/25/2015 12:30pm
Thanks for all the input. I've only owned 3 vehicles personally plus my wife's car. I don't know that I'll ever buy new but from what I've read, I think buying a used vehicle is still what I want.

The mileage factor alone worries me. I don't like not having the freedom to drive my vehicles the way I want or having to pay for additional mileage.
newmann
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newmann 2/25/2015 12:41pm
2/25/2015 12:41pm
Anyone ever watch that goofy Unique Auto show on tv? Some ball player brings his Mercedes in to the shop to put it back to original so he can turn it in on his lease. Had Lambo doors, paint and massive stereo system plumbed all through the car. I was about to shit myself. No wonder so many sports stars are dead ass broke.
IWreckALot
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IWreckALot 2/25/2015 1:12pm
2/25/2015 1:12pm
newmann wrote:
Anyone ever watch that goofy Unique Auto show on tv? Some ball player brings his Mercedes in to the shop to put it back to original...
Anyone ever watch that goofy Unique Auto show on tv? Some ball player brings his Mercedes in to the shop to put it back to original so he can turn it in on his lease. Had Lambo doors, paint and massive stereo system plumbed all through the car. I was about to shit myself. No wonder so many sports stars are dead ass broke.
That's too funny. So many questions to be asked that I'm not going to ask any of them.
BlueThumper
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BlueThumper 2/25/2015 2:59pm
2/25/2015 2:59pm
If you don't plan to drive it more than 12K - 15K a year, a lease can save you $100+ a month on payments. We lease the wife's vehicle because she likes something new every three years and only drives 1.5 miles round trip to work. No buying tires, worrying about warranties, etc. You just have no trade-in value.
bryan
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bryan 2/25/2015 4:10pm
2/25/2015 4:10pm
I don't think it's necessarily a bad idea. It's the terms of the lease that make or break it. Letting someone else keep ownership of something that's constantly losing value is usually pretty smart, if the terms are fair.

Leasing saves money now, but ends up costing a little more over a long period since you never pay things off. It also lets you get into a car that might be a little out of your price range, with its lower payments and the fact you get rid of it before maintenance ever becomes an issue.

Financing a new car and selling before 3 years or so is probably the best way to lose your ass. Leasing saves tons of money if you think this might be the alternative.

Xracerdone
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Xracerdone 2/25/2015 4:34pm
2/25/2015 4:34pm
bryan wrote:
I don't think it's necessarily a bad idea. It's the terms of the lease that make or break it. Letting someone else keep ownership of something...
I don't think it's necessarily a bad idea. It's the terms of the lease that make or break it. Letting someone else keep ownership of something that's constantly losing value is usually pretty smart, if the terms are fair.

Leasing saves money now, but ends up costing a little more over a long period since you never pay things off. It also lets you get into a car that might be a little out of your price range, with its lower payments and the fact you get rid of it before maintenance ever becomes an issue.

Financing a new car and selling before 3 years or so is probably the best way to lose your ass. Leasing saves tons of money if you think this might be the alternative.

Couldn't have said it better myself. Like everything, it's got its pros & cons, pros out weigh it for me.
Dirty Britches 2/26/2015 7:49am
2/26/2015 7:49am
Dealers make tons of money on leases, the second most on used cars.
One of their tricks is trying to get you to buy the car at end of the lease - and that price is set the day you sign the lease, not negotiated at the end.
Many people who have leased, did it once. Just once. I'm in that category too.
500guy
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500guy 2/26/2015 7:56am
2/26/2015 7:56am
I think a lease is only good if you need a new car every few years and can use it as a business expense.

even then with the tax credits a business gets buying a new one I don't see any value in the lease either.

to many ways to lose your ass on a lease.
borg
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borg 2/26/2015 8:23am
2/26/2015 8:23am
It's a no brainer for me. I don't need a new truck every few years so now I have had 4 years without a $300.00/month payment. As for a business writeoff, I get 56 cents a mile for business use. That's well over $6000.00/year. I would have to be an idiot to lease.
SEE ARE125
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SEE ARE125 2/26/2015 8:45am
2/26/2015 8:45am
Most leases are on new cars. New cars depreciate the fastest. So, in order to not lose their ass, dealers need to make more on the lease than the depreciation of the car. You're essentially taking the hit on the new car, with nothing to show for it in the end.
enketchum
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enketchum 2/26/2015 11:36am
2/26/2015 11:36am
There is no money in renting

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Foghorn
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Foghorn 2/26/2015 2:04pm
2/26/2015 2:04pm
I'm on my third lease. I regularly run over the allotted mileage by at least 25% on my F350. They always cover the extra costs as long as I lease a new vehicle. I negotiate decent terms that are lower than a new vehicle payment. No hassles with trades etc. and a brand new truck every three years. I like it for what I do. Buying a vehicle is a bad investment most of the time if you don't keep it for at least 5 years and then hope you don't have any major issues after the warranty runs out IMO.
Xracerdone
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Xracerdone 2/26/2015 3:15pm
2/26/2015 3:15pm
If you think a lease is bad then get yourself into the new 72 or 84 month loans, do the math, thats a loser. Anything over 60 months is a bad idea. Leases are not as bad as people say & a little google goes a long way. You just have to decide what it is you want out of it or if you want to own the vehicle after 5, 6 or whatever your loan years of pyts. For me, I don't want to make pyts on a truck for 5 years so I can finally have the title for a truck with 80-100k miles on it, it's already time for a new one by then. In my opinion, buying a 2 yr old vehicle with low miles is a much better deal if you want to own.
Xracerdone
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Xracerdone 2/26/2015 3:16pm
2/26/2015 3:16pm
I apply this math to my boats too, I have no intention of ever paying off my boats, I use them for 3-4 years, then upgrade to another.
iro
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iro 2/26/2015 3:44pm
2/26/2015 3:44pm
Dirty Britches wrote:
Dealers make tons of money on leases, the second most on used cars. One of their tricks is trying to get you to buy the car...
Dealers make tons of money on leases, the second most on used cars.
One of their tricks is trying to get you to buy the car at end of the lease - and that price is set the day you sign the lease, not negotiated at the end.
Many people who have leased, did it once. Just once. I'm in that category too.
This is false. The dealer makes no more or less on leasing vs. buying - it depends on the deal that is made. Also, when you buy out your lease at the end, the dealer makes no profit. The bank owns the leased car and the buyout (residual) that is set at the beginning goes to the leasing company - not the dealer. The dealer actually hates when you buy out your lease at the end. Believe me, there is no trick to get you to do it.

Leasing works great for some people but not for others. If you don't drive much (under 15k per year), like a new car every few years and don't mind having a payment, you are a candidate for leasing. If you drive a lot or keep cars a long time, you should buy.
level
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level 2/27/2015 6:30pm
2/27/2015 6:30pm
Leasing and buying work out in the long run to be exactly the same amount essentially assuming you are going to trade your bought vehicle in after 3 years and buy another one.
Ebs
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Ebs 2/28/2015 5:13pm
2/28/2015 5:13pm Edited Date/Time 2/28/2015 8:30pm
It's like renting a house versus buying one, or renting a television vs buying one.

You pay a lot of money for something that never becomes an asset. You never have to worry about 'owning' something and you can constantly upgrade, but you're paying a premium for that. And on the life philosophy thing, you are stuck with the burden of owing someone else money, another payment to make in life, which to put it dramatically is self-enslavement.
IWreckALot
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IWreckALot 3/1/2015 6:10pm
3/1/2015 6:10pm
Thanks for all the replies guys. I think she's asked enough people and heard enough that she sees that it's not a great idea for us.
ToolMaker 3/2/2015 9:40pm
3/2/2015 9:40pm
level wrote:
Leasing and buying work out in the long run to be exactly the same amount essentially assuming you are going to trade your bought vehicle in...
Leasing and buying work out in the long run to be exactly the same amount essentially assuming you are going to trade your bought vehicle in after 3 years and buy another one.
Did you take over the family business? And which brand(s) do you handle?
UpTiTe 3/3/2015 9:01am
3/3/2015 9:01am
I lease one for my business, I don't put a lot of miles on it, I like the write off and always having a new car works for me. My dailey driver is a paid off truck. If uou don't need the tax advantages of a lease or a new car, they're a waist in the long run.

When my wife needs a car, I get program previously leased cars.
SF45
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SF45 3/3/2015 9:30am
3/3/2015 9:30am
BlueThumper wrote:
If you don't plan to drive it more than 12K - 15K a year, a lease can save you $100+ a month on payments. We lease...
If you don't plan to drive it more than 12K - 15K a year, a lease can save you $100+ a month on payments. We lease the wife's vehicle because she likes something new every three years and only drives 1.5 miles round trip to work. No buying tires, worrying about warranties, etc. You just have no trade-in value.
A 1.5 mile round trip should be a walk, or a bicycle ride at least! Huh
hvaughn88
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hvaughn88 3/3/2015 10:46am
3/3/2015 10:46am
BlueThumper wrote:
If you don't plan to drive it more than 12K - 15K a year, a lease can save you $100+ a month on payments. We lease...
If you don't plan to drive it more than 12K - 15K a year, a lease can save you $100+ a month on payments. We lease the wife's vehicle because she likes something new every three years and only drives 1.5 miles round trip to work. No buying tires, worrying about warranties, etc. You just have no trade-in value.
SF45 wrote:
A 1.5 mile round trip should be a walk, or a bicycle ride at least! Huh
I can't speak for blue thumper, but I can attest that riding a bicycle on the roads "down here" is sometimes a suicide mission. I was a "roadie" for a while when I was racing mountain bikes and had more than my share of rednecks yelling at me and squeezing me off the road. Not cool. Let's just say that a vast amount of people here don't like to share the road.
IWreckALot
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IWreckALot 3/3/2015 10:56am
3/3/2015 10:56am
BlueThumper wrote:
If you don't plan to drive it more than 12K - 15K a year, a lease can save you $100+ a month on payments. We lease...
If you don't plan to drive it more than 12K - 15K a year, a lease can save you $100+ a month on payments. We lease the wife's vehicle because she likes something new every three years and only drives 1.5 miles round trip to work. No buying tires, worrying about warranties, etc. You just have no trade-in value.
SF45 wrote:
A 1.5 mile round trip should be a walk, or a bicycle ride at least! Huh
hvaughn88 wrote:
I can't speak for blue thumper, but I can attest that riding a bicycle on the roads "down here" is sometimes a suicide mission. I was...
I can't speak for blue thumper, but I can attest that riding a bicycle on the roads "down here" is sometimes a suicide mission. I was a "roadie" for a while when I was racing mountain bikes and had more than my share of rednecks yelling at me and squeezing me off the road. Not cool. Let's just say that a vast amount of people here don't like to share the road.
I used to ride on the road a lot. There are a lot of hills around my house and I'd ride them about 4 times a week. Problem was, the road back to the house was a main road and a guy grazed my handle bar one day. That's when I said enough is enough and stopped riding that route. I'm very picky about where I'll ride on a road now. It sucks that assholes dictate where you can and can't ride but I'm not about to be laid up in a hospital due to stubbornness.

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