Leasing an 05
#16
Originally Posted by osbornk
If you do decide to go the rental truck route (leasing), be sure to purchase gap insurance. If your truck is destroyed or stolen (doesn't matter whether it's your fault or not), you will likely be upside down in the lease and you will owe more on the lease than the value of the vehicle. If that happens, you will owe the difference even though you don't have a vehicle. You also need gap insurance if you buy and have a small down payment.
#17
K...guys...i really don't care if you think leasing is a great idea or a terrible idea...i understand the benifits to both leasing and buying, bottom line i want to lease a truck. I'd really appriciate to know how much you're all paying so i can get a figure on what its gunna cost me. Thanks...
#18
Originally Posted by 1956MarkII
Could ANYONE here, for just a minute, accept the idea that those in the business just might know what they're talking about, and that maybe, just MAYBE , we might have the "inside edge?" Is that even possible? Because if it is, consider this: there are 11 people in our sales department, and TEN of us lease vehicles. We do this because we weighed all the options and decided this is what makes the most sense for US. We all have good to great credit, so that wasn't a factor. Now, if 91% of a group WITHIN AN INDUSTRY are leasing, doesn't that tell you something?
Or, am I just speaking like a "true car salesman" again...........
Or, am I just speaking like a "true car salesman" again...........
Leasing is not for everyone
#20
Originally Posted by Ryan50hrl
K...guys...i really don't care if you think leasing is a great idea or a terrible idea...i understand the benifits to both leasing and buying, bottom line i want to lease a truck. I'd really appriciate to know how much you're all paying so i can get a figure on what its gunna cost me. Thanks...
#21
Originally Posted by 1956MarkII
Could ANYONE here, for just a minute, accept the idea that those in the business just might know what they're talking about, and that maybe, just MAYBE , we might have the "inside edge?" Is that even possible? Because if it is, consider this: there are 11 people in our sales department, and TEN of us lease vehicles. We do this because we weighed all the options and decided this is what makes the most sense for US. We all have good to great credit, so that wasn't a factor. Now, if 91% of a group WITHIN AN INDUSTRY are leasing, doesn't that tell you something?
Or, am I just speaking like a "true car salesman" again...........
Or, am I just speaking like a "true car salesman" again...........
I used to drive them into the ground, but I'm sick of working on what I drive. The dealer even threw in 12 oil changes. I like the truck, but 33-34 months into this deal I'll sell it, pay off the lease and jump into a new one with hopefully 400hp.. So far I've got 5300 miles, so I'm way under my mileage quota..
Last edited by Dunk; 02-28-2005 at 05:24 PM.
#22
I ran the numbers before I took the plunge. Because of the tax write-offs I can realize through the lease, and the fact that I'm not front-loading the sales tax, it's cheaper to lease than buy. I'm leasing for three years, then will likely purchase it outright. I compared both options, and leasing, then paying it out, saved me about $4000 vs. financing it. Paying cash wasn't a good option, with rates as low as they are. I get better return on my money than Ford is charging for theirs. And, if you intend to buy it out anyway, then wear and tear and mileage isn't an issue.
#23
Originally Posted by fordcanucktruck
I ran the numbers before I took the plunge. Because of the tax write-offs I can realize through the lease, and the fact that I'm not front-loading the sales tax, it's cheaper to lease than buy. I'm leasing for three years, then will likely purchase it outright. I compared both options, and leasing, then paying it out, saved me about $4000 vs. financing it. Paying cash wasn't a good option, with rates as low as they are. I get better return on my money than Ford is charging for theirs. And, if you intend to buy it out anyway, then wear and tear and mileage isn't an issue.
#24
Lease payment
Originally Posted by Ryan50hrl
K...guys...i really don't care if you think leasing is a great idea or a terrible idea...i understand the benifits to both leasing and buying, bottom line i want to lease a truck. I'd really appriciate to know how much you're all paying so i can get a figure on what its gunna cost me. Thanks...
#25
You guys seem to forget that now even if you purchased you get the small business write off since it's a truck and its not just depreciation. Check into that one.
I can understand why sales leases, the attrition rate is high at most dealerships they move from dealership to dealership and they take smallest lease available, so they can get out from under it quickly, plus the inside incentives and minimum down!
Well Dunk I can tell you for $23 more a month than your lease payment my Lariat which MSRP'd for $38,200 before Xplan and other incentives plus down payment will be mine in 29 more months. Since Kelly rated the 2004 F150 to above average value retention, It puts me in a nice positon if I decide to go to a new vehicle afterwoods, and I'm not locked in to the never ending lease circle.
I can understand why sales leases, the attrition rate is high at most dealerships they move from dealership to dealership and they take smallest lease available, so they can get out from under it quickly, plus the inside incentives and minimum down!
Well Dunk I can tell you for $23 more a month than your lease payment my Lariat which MSRP'd for $38,200 before Xplan and other incentives plus down payment will be mine in 29 more months. Since Kelly rated the 2004 F150 to above average value retention, It puts me in a nice positon if I decide to go to a new vehicle afterwoods, and I'm not locked in to the never ending lease circle.
Last edited by KevinM; 02-28-2005 at 08:23 PM.
#26
Originally Posted by KevinM
Well Dunk I can tell you for $23 more a month than your lease payment my Lariat which MSRP'd for $38,200 before Xplan and other incentives plus down payment will be mine in 29 more months. Since Kelly rated the 2004 F150 to above average value retention, It puts me in a nice positon if I decide to go to a new vehicle afterwoods, and I'm not locked in to the never ending lease circle.
Right, about the value. My truck will be worth 20,089 at end of lease with 36k on it according to Ford. I doubt I'll have more than 30k on it and I'll sell it for 23-25k. Which mean I'll get most of my 5k back out of it to start over again.
Buy'em if you want, but right now 300-350 is cheap to me to be driving brand new..and I'm sure I'll like the new 07 I'll slide into.. It may turn into a 250 by then..
#27
#28
Dunk, actually I don't have $15k of my money I have about $8600 of my cash plus the proceeds from the sale of my EXPY (of which I waited too long but glad I did - new 150 style) on a private sale, $4,000 in MFG rebates, $1,000 in rebates for using Ford Motor Credit, at 4.2% and got the vehicle on the Xplan. With the amount of $$ I put into investments every year the actual cash down payment was nothing more than some money making money! Can't see how I will ever fall behind the ball if I buy every three years and since the F150 should retain some value, it's just that much less out of my investments depending on the incentives from the manufacturer. Well that's my story!
#29
Originally Posted by Ryan50hrl
K...guys...i really don't care if you think leasing is a great idea or a terrible idea...i understand the benifits to both leasing and buying, bottom line i want to lease a truck. I'd really appriciate to know how much you're all paying so i can get a figure on what its gunna cost me. Thanks...
#30
Originally Posted by ATCS2004
If you lease for 3 years then buy you will be paying more than if you bought upfront. If you think you saved 4K I'd like to see your fuzzy math. I personally don't think you can ever come out ahead by buying the vehicle at the end of the lease. You are paying interest during the lease and if you finance after you pay interest all over again. It doesn't make sense!
The lease rate I paid here is 0.0%. The finance rate was 3.9%. I got equivalent rebates. the sales tax here is charged in full on a purchase, but only monthly on a lease, therefore I'm not paying interest on the tax, if you follow. My math wasn't fuzzy at all - I simply added up all of the lease payments, plus the payments I'd have to pay on the buyout over two years at anticipated interest (I figured 8% on a used vehicle). Then I compared that figure to the total of finance payments I'd have made over the same term. Savings just shy of $3000. Then I factored in the two different tax scenarios, based on my business' marginal tax rate, and the difference in tax implications was a further $900. As far as paying interest twice, once during the lease and once afterwards, that doesn't apply on a 0% deal. It also is no different than paying interest on a financing deal for five years, vs. paying interest on a lease deal for three years, then an additional two. In both cases, you're paying interest on the unpaid balance for five years.
In addition, on a lease I didn't have to put any money down, while on the finance deal I did. I lend money for a living, and typically generate a return of upwards of 12%, so it doesn't make sense for me to put money down when I don't have to.
At the end of the day, everybody's financial situation is going to be different, and that's why it's important not to make blanket statements about the financial advisability of leasing vs. purchasing, and expect those statements to apply equally to everybody. That would be like expressing a preference for 4wd over 2wd, or 3/4 ton over 1/2 ton, without taking into account the needs of the vehicle owner. IMHO.