Need info on leasing. Pro/Cons

[amxguy1970]

Lease if you want to drive something you can't afford. It almost is never the wise financial choice to lease.

 

Just run the numbers, they don't lie. At 3 years you will have equity in your vehicle in most all cases. Extend that to 5 years and you will no doubt have equity that can go towards the next vehicle or better yet pay it off and have no payment while the lease person is always paying 500ish a month. If you always want a new vehicle and minimal maintenance and don't mind paying more for that service then lease, just know it isn't a good financial decision. 

 

Tyler

[iwannaseeatnight]

Buying vs. leasing comes down to a person by person basis, in my opinion.  There are pros and cons to both, as well as exceptions to both.  I personally like getting a new truck every few years, especially since they are constantly changing/evolving.  And I am in a position where I don't consider it fiscally irresponsible (I'm sure all the CPA's on here will tell me otherwise).  As for insurance coverage, I can't say.  I've always kept full coverage, even on past vehicles I've owned.  But in regards to equity, there can be exceptions.  I leased a '15 Sierra SLT, no money down.  In late '17, when they were offering large rebates to get the remaining '17 inventory off the lot, I took it in for an early turn in.  GM forgave the 4 remaining lease payments and the dealership gave me more for the truck than what the payoff was... $3,200 more.  Granted, I was well under mileage, averaging about 9,000/yr, but goes to show that there are exceptions to the rules.  Even equity.

[2016 Sierra Owner]

Thanks everyone for the replies. Pretty much the reasons I'm looking to lease are lower payments, always under warranty, and I won't have to pay for the extended warranty. I don't put many miles on my trucks.

[KARNUT]

If you don’t drive many miles and have a problem free vehicle keep it. You could always buy extended warranty if you’re worried about repairs. My wife doesn’t drive many miles. We have 3 of her cars that got paid for and we kept. Low mileage for the age. We use one for a bad weather car. One for a Sunday car. Ones a collector. The bad weather car is going to a grand kid. I on the other hand because of miles traded often, until retirement. Going to run mine much longer now. I will always have a spare just in case.


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[txab]

Might look at this:

 

https://www.carprousa.com/carprousa-faqs.php

 

Look for the "leasing" section

[bshort]

I leased this one because I generally only use it to tow a travel trailer.  If it gets wrecked, don't care.  Engine blows, don't care.  If it turns out to be a pos, like many 19's have, I don't care.  It will go away in the end.  

When I'd buy, I'd put 0 down.  Never really got ahead of value until year 4 on the note.  

 

[Likarok]

I have leased a lot over the years. Currently though all owned.

If you are a person who buys a car/truck and really looks after it and plans on keeping it then Buying is a no brainer.

 

But if you simply look at a car/truck as a mode of transportation and 2 or 3 years is as long as you want to keep it, and enjoy always driving something new, then leasing is the way to go. Never lease for more than 3 years max, or you may as well buy it. Also with a 3 year lease you always have warranty. Also when I have leased I have done it with no down payment and the lowest possible interest, last one was 1%. I have also leased with the intention to buy out the lease at the end. Have done this a couple of times. Good thing about this method is that the payments are usually less to lease. And if it is a company vehicle  were you can write off the costs then leasing also makes sense.  

 

Lets face it. With cars and trucks getting to be so expensive,(as much as my first house) people are doing what they have to do to drive a reliable vehicle, and they are likely never going to own it anyways, a monthly payment is in their budget and always will be. 

 

Edited September 7, 2019 by Likarok

[dw91]

I leased my wife’s vehicle and financed my truck. She doesn’t take care of her vehicles and they’re just modes of transportation. This is the first time I’ve leased anything and I like the idea. I don’t care if she washes it or keeps it clean, it’s not mine at the end of the payments. 

[Belo]

On 8/29/2019 at 10:47 AM, amxguy1970 said:

Lease if you want to drive something you can't afford. It almost is never the wise financial choice to lease.

 

one of the most ignorant comments I've read on this site. By simple definition, if you're able to lease something that fits within your budget, you can in fact afford it. Most make a mortgage payment because they can't buy a house outright. But if they land a mortgage that's within their monthly budget, they  can in fact afford to buy that home. 

Edited September 11, 2019 by Belo

[KARNUT]

My son in sales. He doesn’t drive a lot of miles and carries clients in his car. Leasing make sense for him. He drives high end sometimes exotic cars. He writes them off, they bring him loaners when his rides need their free service. Usually less payments than most people pay in pickup payments. The best part I get to drive them too. Leasing works for some people.


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[foghorn23]

On 8/29/2019 at 10:02 AM, Belo said:

no he's right. after my first lease I get a call from gm financial that my coverage wasn't adequate. 2 other cars were owned. we weren't low with our coverage, but not up to their specs.

 

btw another point on leasing. Wreck it the frist week? You're still on the hook for the 36 months of payments. 

Not the case with any leasing company I've dealt with.  GAP is built into the lease.  It is true that any down payment you put into a lease would be lost if you drove it off the lot and totaled it.  That is the reason to put as little as possible ($0) down on a lease.

 

On the other hand, if you buy, finance and don't pay extra for GAP you can be on the hook for the difference in what you owe vs the insurance value of the vehicle if you total it early on in a purchase contract.

 

As stated your circumstances dictate which is a better option for you personally.  

[ct_corey]

You aren't always in the positive after 3 years when you buy. All depends on how much you put down. These trucks don't hold their value like other vehicles. 

 

I lease and typically have a good residual(purchase price at the end) amount at the end.  To me its like a 3 year test drive. My current 19 TB is a turd but I know in 3 years I give it back to GM and don't have to worry. If I decided to keep it, it would have a strong buyout price of only 26k witch isn't bad for a 3 year old truck with 40-50k on it. Plus I know how the truck was driven and maintained. 

 

My 16 Silverado was a lease that I wanted to buy but it had the chevy shake problem so I decided to turn it back in and give my 19 a chance. 

[Jaychevy81]

Also if you lease you can get a well equipped truck for a cheaper lease payment. If you really like it roll it into a finance with a great interest rate before the lease is up. If you don’t like it turn it back.


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[kc classic]

38 months ago I leased my first truck. Total payments of 14052 on a 42000 truck. Not figuring in tax and financing fees on the 42000.00 truck. Last month I leased my second truck. At the end of 3 years I will have 12837 paid on this vehicle. In 3 years I will lease another truck and will have 15111.00 to do it with.

So in nine years I will have spent about 40000.00. Had I bought the first truck I would have spent at least 46000 plus upkeep on said truck. And said truck would be rusting out from the salt here in the northeast.

So I am happy to lease a truck and know what I will be paying in advance.

[AlaskaErik]

On 9/10/2019 at 5:43 AM, ct_corey said:

You aren't always in the positive after 3 years when you buy. All depends on how much you put down. These trucks don't hold their value like other vehicles. 

 

I lease and typically have a good residual(purchase price at the end) amount at the end.  To me its like a 3 year test drive. My current 19 TB is a turd but I know in 3 years I give it back to GM and don't have to worry. If I decided to keep it, it would have a strong buyout price of only 26k witch isn't bad for a 3 year old truck with 40-50k on it. Plus I know how the truck was driven and maintained. 

 

My 16 Silverado was a lease that I wanted to buy but it had the chevy shake problem so I decided to turn it back in and give my 19 a chance. 

If you're upside down after three years you're doing something wrong.