First off--

--this forum is a great place and a wealth of knowleadge, thank you EVERYONE!!

Ok, I am thinking about leasing a F150 SC FX4 and I qualify for X-Plan, so on and so forth..

What are the pros and cons to LEASING the truck, and why should i BUY or LEASE?

Thank you a head of time to all the answer this post!!!! This will be my first BRAND new truck and i want to do it right!!!

Thanks
-Dave

 

Check out leasing info at www.carbuyingtips.com - you might decide that buying is the way to go (no tax advantage to leasing anymore).

 

I was going to lease my second Mount'eer (98). I asked what the difference in the payments were. The dealer state that there was none. The thought of paying all that money then having to turn it in? I didn't get any mechanical trouble with it so the advantage of free repairs was null and void. I decided to buy it.....now she's paid off, drives like new. I'm gonna keep her untill she gives up.......NO CAR PAYMENTS!!!!!!!

M40

 

The guy that owns carbuyingtips also operates a website called "weddingtips.com." An expert on cars AND bridal gowns? Hmm.....

And what tax advantage is there to OWNING a vehicle? None that I know of anymore. In fact, a business can write off more with a lease than they can by owning it. Why do you think the doctor/ lawyer crowd all lease their Mercedes?

If you like to trade vehicles often (every 2-4 years), if having a new vehicle on a regular basis is important, dependable transportation that's always under warranty, you take reasonable care of a vehicle and miles are not outrageous, then leasing is something you should look at. I've said before: it's not that leasing is so wonderful, it's that owning a vehicle has gotten worse. Long-term financing only benefits the banks. You can't tell me it makes more sense to finance a vehicle for 72 months than to lease it for 36. People say you don't OWN anything after 36 months with a lease. But you don't OWE anything either! Halfway into a 72-month loan, I'll GUARANTEE you owe far more than the vehicle is worth (asuming 10% or less down payment). Does that make more sense than a lease? Only if you keep the vehicle the entire 72 months, and don't mind the potential repairs that 6-year-old vehicle represents.

 

Hi Jeff -

I didn't mean to imply that "carbuyingtips" has all the answers for lease/buy questions - there's lots of info on the 'net, but it's a place to start. That's also why I used the word "might" in my reply.

PaGe1 didn't say he was considering a lease for business purposes, but if so then your comment about write-offs makes sense (and with the new rules, the bigger truck the better!)

Two other possible problems with leasing:

Not having a real good idea of how many miles you'll drive during the lease,
then getting hit with excess mileage charges;

You and the dealer disagreeing on "normal wear and tear", which can result
in ticky-tacky extra fees.

Thanks for all of your purchasing tips - when I buy my new Explorer next month I plan on using every one of them!

 

Steina-

I didn't mean to jump on your post, either. Sites like carbuyingtips are a bit of a thorn in my side, because they're put together by self-appointed "experts." No one from WITHIN the auto industry has ever put together a "buying-advice" site, with REAL inside information. But that's going to change in the next month or two (hint, hint...).

Leasing has such a bad name becuase it was so badly abused in the 90s. By the time the FTC stepped in to clean it up, the damage was done. If a dealer treats you fairly, AND YOU'RE LEASING THROUGH THE CORPORATE FINANCE SOURCE (Ford Credit, GMAC, etc...), then it can be a very good thing for today's buyer. Like you said, if you don't have a feel for how many miles you'll be driving (or your driving habits change dramatically), or you're leasing through a bank or outside source, then it can be rather frightening down the road. I've leased numerous vehicles since 1983, and it's always worked out well for me. Then again, I knew someone in the business....

 

I have leased several vehicles in the past. I do like to get a new truck every 2 or three years and it has worked out well in that respect. I did purchase one vehicle at the end of the lease because the book on the truck was a lot more than the residual price that was set in the lease agreement. So you do have options at the end. I would like to know what the current interest rates are in NY on the RCO plan. I know its not really a lease but a balloon payment at the end of a given term but I am still considering it. Jeff if you could let me know I would appreciate it. With the low interest rates available now it could really be a toss up because so little of the payment is going to interest and so much to the principle. I don't think I helped you because I just confused myself.

 

Thank you everyone for all the info, it helps a lot. The "normal wear and tear" concerns me as well as the fact that I may want to but some "bolt-on's" on like; an intake, exhaust, stero system and myabe wheels(But no major changes to engine or interiour), how does this affect a lease?

Again thank you everyone KEEP it coming!

-Dave

 

Dave -

Some of the mods you mentioned might not be a big hit with the lease company - best bet is to discuss this before you sign on the dotted line. Of course, you could return the truck to stock before you turn it in, then buy it back and reinstall your goodies - that way you know they all fit!

Good luck whichever way you go.

 

Just lease my second truck a F-250 XLT 4X4 Beige with lots of option. I get a new truck every 3 years (15,000 miles a year) payments are less by about $100 than buying it. The last 9,000 miles(36,000 to 45,000) are cover bumper to bumper for an extra $5 a month. I put a tonneau cover, step tubes, and a colored bug shield on my old truck. The dealer like the way the truck looked an offer me $661 more than the Residual to not remove the items, more than I pay for them brand new.
I got $4100+ off for my x-plan and another $3750 in rebates and a free bedliner and tank of gas. Leasing works for me but I know its not for everybody. I take care of my trucks and my local dealer usally forgivens over mileage and minor body damage if you release with a better truck from him.
Very Happy with my truck dly