With the amount of miles I put on, when I make the 60th payment, the truck will have in the 100-115K miles. I would bet I could only get $7-8k at trade in or risk selling it on the open market. Lets see, in 2008 I bet the new trucks went from a MSRP of $41k to $47 or $48K. So that leaves with with about a $35k cash down payment for the own it free and clear with no financing. I only make $50k and the Govt. takes $14k for payroll taxes. So a years pay for a truck is not to feasible.

I am not in a bind, just on the fence. Kind in that NEEDS VS WANTS situation.

 

That's another thing nice about using bank financing and buying that dream rig of yours new is You have total say so in what happens to it during that 60 month loan. Chances are with the miles you drive, you will trade into a new one at 40 or 45 months, rather than paying it off. Or as blue oval states you go the full 60 mo term, completely paying off the loan and running a paid for rig out to it's total life of say 200K, then junking it out and buying another outright. Also, you have total control of drilling any holes or changing things around with suspension mods, etc, without a leasing company in the middle of everything you do. The main thing is get that title in the bank where you have control and say so in what happens, and also every payment means one less to make down the road.

The world is full of payments, and the days of buying a new vehical for spot cash have long gone for most folks, but the need for reliable, comfortable, and safe transportation is probably more critical now than it was 25 years ago when guys did buy without financing. If you buy new, and spec out exactly what you want to ride on, leaving all the optional bling for later add ons, chanches are you will be much more satisfied with that purchase and keep it longer, than if you buy used and get something that seems cheap to buy, but doesn't quite fit your needs and wants. Remember, if it is cheap there is a reason, and if it is used, the previous owner had good reasons for letting it go, reasons you will probably agree with!

Have Jeff get Ford to build you that '06 F-350 4X V-10 manual/stick with 4.30 gears, and use the bank cash avail to purchase it. What the heck, you may have a good year next year and make a pre payment or two on that loan shortening down it's life. I'm convinced these Super Duties will never get any cheaper to buy, and if the new fed chairman tightens up bank loan credit regs they will just be that much harder to buy in 6 months than now. BUY IT! Don't Lease it.

 

Yet, most people would rather own a vehicle that they owe more on than it's worth, because leasing "doesn't make financial sense." And being upside down in your truck makes sense because..?

In an ideal world, I'm with you. But in the real truck world, "nice used Super-Dutys" are rare, and they bring big $, so close to new prices in many areas that it's become a big reason for people to seek out Ernie and myself for a new one.

Yet, someone in this very post compared owning a vehicle to owning a house. But there's that nasty REALITY that you pointed out: everyday vehicles depreciate, yet 99% of homes increase in value (in some areas right now, on a daily basis...). I say "everyday vehicles" because there's always this smart-aleck that tells me his uncle bought a Ford for $5000 and sold it for $50,000, and it turns out to be a flawless '56 T-Bird.

Yes, in the perfect vacuum of the Forbes/Fortune/Consumer Reports financial laboratory, paying cash for a late-model used truck in perfect condition with few miles is your best bet. Now let's talk about the REAL world that I do business in every day. We can all beat this dead horse from now till doomsday, but the big question is this: does it make more sense to lease a vehicle short-term (24 or 36 mos.), or finance it for 6, 7 or even 8 years? Ideally, financing it for 36 months is the way to go, but that makes for an unmanageable payment for the vast majority of buyers today, even if it's on a basic Focus. Most consumers are forced into longer-term financing, and that means they'll always have a monthly payment (gee, just like your house...). If I'm ALWAYS going to have a payment (again, I know that's not the ideal, but it is reality for most of us), I'd rather have a lower payment, on a vehicle I DON'T owe more than it's worth, that's always within warranty and won't need the higher-cost maintenance repairs (brakes, struts, tune-ups, etc...) of a 3-year-plus used vehicle.

 

That's what I am toying with right now. That is what got me thinking in the first place. My truck is in SUPER condition. Actually better than the day I baught it. With my upkeep of the exterior and adding other things. The thing is that it is just about to turn 60K miles and I need tires ($700-800) I also need brakes because of warped rotors. If I want to fix the warping issue once and for all. I will go with ART rotors and pads ($775 and I do the labor) Just recently I discovered a paint issue with the doors where the meet firmly on the weather stipping. Who know what a body shop will charge. I am guessing ($500). It is time for 60k mile service. Tranny drain and flush and a fuel filter. At the 30K miles service, the dealer charged me $285. So as you can see it is easily looking at $2300ish in repairs and sevice. That's what got me thinking.


http://www.familyfordinc.com/pages/p...B90127&photo=6


That is the truck that I was thinking about. I went to take a closer look at it today in the daylight and at 11k miles the paint in 10 times worse than mine at 55k miles. There is a deep scrape the intire with of the tailgate and numerous other scrathes. They are dreaming to think it is worth $35k with only a 5.4L. So as I sit now it will take the perfect truck with the perfect deal to get me to take action.

Jeff, does that truck in the link have anything on OASIS? Polar did another truck for me and it had paint and steering gear issues. Too bad, it was a 350 CCab V10.

Thanks

 

True Jeff. So I bought a loaded up KR PSD knowing it'd bring all the money (just didn't know how soon), then rolled that money into another one. You can still buy for shorter-term resale- you just have to be more careful what "it" is.

 

Yes they are, I looked at 100's of used trucks before I found mine and still mine had some issues

 

Thank you everyone for explaining exactly why you would want and not want to lease. It's more clear to me now...

 

Jeff, I really can't argue your counterpoints. I was trying to bring up the fact that there is a third option to buying new or leasing new and that was to buy used.

I am taken aback by the fact that people take loans of more than 60 months. I've occasionally heard of 72 months but to me, that's crazy. If you can't pay off a vehicle in 5 years or less, I would say you cannot afford it and need to reassess the situation. In this instance, leasing might be a better option. However, leasing a pickup brings risk, especially for those who use it for work purposes.

I agree that buying used really doesn't apply to pickup trucks due to the abuse they normally receive. I should have really mentioned that. Also, we didn't touch on this issue and it certainly does not apply to trucks but what about the certified pre-owned programs when folks buy used? Some manufacturers (not Ford) offer up to 7 years and 100,000 warranty from date purchased new on some cars. I know the warranty is mostly powertrain and nothing else but those are your most expensive components.

Like you said, IF you're always going to have a payment, it might be better to lease in some circumstances. I'm not an anti-lease guy (although I don't lease myself), I think it works for some folks and not for others as it depends on the individual circumstances.

As far as New York goes, I thought most manufacturers stopped leasing here due to the ancient vicariously liability law here. Has that changed?