I guess they would sting you if you done 20+k miles a year as well.

 

Mileage never really bothered me because if you do a 20k/yr lease your residual just goes down and your payment goes up. You are only prepaying for the extra depreciation from the extra miles. You have to figure if you buy the vehicle and put 60k miles on in 3 years, your resale value is that much lower than if you bought and put on 36k miles in 3 years. You are correct with the fact that the current lease scenerio doesn't make financial sense. I was only trying to point out that when leases were beneficial to the consumer, they were not bad. Fact of the matter is the leases of today have swayed from protecting the consumer to protecting the manufacturer. All i know is when my lease is up, i may have to seriously force myself to keep my vehicle for as long as possible.

 

Car Financing: Buying vs Leasing

Compare the Costs: Buying vs. Leasing vs. Buying a Used Car

Leases always favor the automaker except in cases where the market value of the vehicle makes a dramatic, unexpected change the automaker did not anticipate. Again, trying to time the market is impossible unless you have a crystal ball. Leases have been the subject of huge abuses by automakers over the years. Anyone besides me remember the Ford Red Carpet problems? With a lease you are continuously paying for the most expensive years of car ownership: the first 3. It never goes away because you will always have a payment to make until you get off the lease train. With purchasing, after 3 years you're gaining the upper hand. The only advantage a lease offers is the prestige of owning a new car all the time. For some folks that's a priority, I'll take earlier retirement over that.

 

This is why im keeping my truck until it's run into the ground. Ok i may buy another car/truck but im getting my moneys worth from it.

 

I would like to see them do this comparison with my last 3 leased vehicles. I don't know where they come up with higher insurance rates as my truck is $67/ month for full coverage through state farm and my agent has told me there is absolutely no difference in rate from buy to lease. Their example is a **** poor lease which i for one would never do. 350/month for a 20k car, with 3k down, whatever. Lets see this comparison for my msrp 37k truck where i put no money down except first payment at 310/month including salestax. I notice on their comparison that they didn't include taxes on either the purchase or buy. I said it before and i will say it again, if you know what to look for in a lease, they can be very beneficial. Basically i am gonna pay $12090 including my sales tax over a 39 month period. Right in line with normal depreciation. As we all know the last year our trucks are depreciating much faster than normal an all i can say is thank God i leased mine.

 

I pay $925/year for full coverage on a 2006 Roush F150, which includes specialty vehicle coverage, and that includes coverage on 3 other vehicles (wife's minivan, daughter's truck and a tow vehicle). I don't know about the monthly rate because I don't finance anything I can afford outright, but that amount divided by 12 is $77.08. My rates or yours proves nothing. Even the article said that it could vary depending on driving record, vehicle, age, etc.

[quote]Their example is a **** poor lease which i for one would never do. 350/month for a 20k car, with 3k down, whatever. Lets see this comparison for my msrp 37k truck where i put no money down except first payment at 310/month including salestax.[./quote]

Quote all the deals you want. Lease deals are only important to those who think payment amount is the determining factor. For me its overall cost of ownership of all vehicles costs combined over a life-time. According to many studies that can add up to hundreds of thousands of dollars. Basically, are you an ant, or a grasshopper?

There you go... proving my point by talking about "normal" depreciation. You have normal depreciation those 36 months, and the next 36 and the next 36.... The person buying is through with rapid depreciation after a fixed time, and for a period of years has no payment.

You can boast about the great leasing deals you get. That's fine, you're getting great deals. But you're also saddling yourself with a payment forever which is doing the most damage a person can do to retirement prospects next to carrying a balance on credit cards.

You repeatedly ignore the fact that you cannot time markets. Your boasting about the depreciation rate today is like someone making a lucky call at the craps table. Markets go up, they go down. One can argue the benefits of leasing verses purchasing. A lease only wins short term - long term leasing is not a winning choice. Same with new... verses a 2-3 year old vehicle: unless you are prepared to take advantage of rare circumstances buying "slightly used" will put you ahead of buying new.

Run Your Car Into the Ground

Leasing a Car Foolishly

http://finance.yahoo.com/banking-bud...Money-Dilemmas
"The bottom line: Over the long term, buying costs you less."

The real reason you're broke - MSN Money
"Own your cars longer. This one move can save you literally hundreds of thousands of dollars over your lifetime. Keep your cars for at least a year or two, if not longer, after you've paid them off."

 

I understand why my mate got so stung on his lease now. You basicly have to return the car as it was when you bought it or major fee's. When his 3 year lease was up seats had cigerette burns in them and so did the head liner. He had bumped another car and had a few scuff marks on the near side rear quater and it had something in the trunk that had stained the carpet. He got cought with massive fees because of silly little things that happen when you own a car he still aint paid them and is going to court soon about it lol.

So is leaseing a good idea for a truck? Not if you are going to use it for work and def not if you want to do any upgrades to it. It would be like borrowing a friends car everday and worry about your gonna brake it or do to many miles in it.

 

If you talk to any competent CPA they'll say the same thing: long term leasing doesn't make sense. The only time I've ever had my CPA recommend a lease is with a business vehicle because of the tax advantages, but that's going away as well since many trucks can be written off almost immediately.

 

The only time I witnessed a lease truely benefiting a person was in the 1995. My buddy had an Izuzu Trooper. It was too small and he was buried deep in negetive eqiuity. He wanted a Windstar. With my negotiating assistance, he was able to lease a Windstar for the same monthly payment as the Trooper and shave a year off the financing terms and be rid of the undersized SUV. After the three year term was satisfied, he turned the van back in and walked away with a conventionally financed vehicle without rolling negative equity in the equation. He's never leased since.

Tim

 

Tim,

That situation makes sense.... since it was used to leverage a situation and then termination the "lease train" once the situation changed.

 

I like how he used the lease to get out of his negative equity situation and then proceeded to start the cycle all over again. I agree a lease for a work truck is not smart. For the guy like me that would normally trade his vehicle in every 3years anyway i see no disadvantage. If i kept my vehicles a long time then sure a purchase is definetely the way to go. For the guy that is pissed because he is getting charged for cigarette burns and excessive damage to returned leased vehicle, what the hell do you think would happen if you bought that car and traded it in? Do you seriously think you would get full market value? As far as damage goes, as long as you use a manufacturers program, they are very forgiving. When i got out of my dakota lease, i had a cracked windshield and a creased bumperand was already nearing my mileage allowance. Market conditions were good and it was beneficial for me to trade out of it to break even ( i was 1 year before my lease was up) to get my ram. And for the notion that i am only doing my lease solely for payment is ridiculous. I like a new car/truck every couple years and this is the best way for ME to do that with the least amount of money out of my pocket. I don't see the crime in that. I must say i really like this forum, it is fun having some spirited debates on here. I think at the end of the day we can agree that everyone has different needs and we each have to do what is best for are own needs. I don't abuse my vehicles, i don't keep em a long time, i don't drive massive amounts of miles per year and i know the leasing system very well and have learned to use it to my advantage. I don't want anyone to think i think leases are best for everyone but i just want to point out for SOME it is the cheapest way to enjoy driving a newer vehicle.

 

Don't be offended my friend. There is a financing solution for everyone. We have all illustrated, mainly Ken, that there are advantages and disadvantages to leasing.

Tim

 

Agreed 100%

 

Leases are bad for:

-People who use their vehicles for any type of work. Be it your job, or you're leasing your truck because you'll be doing a lot of work on your house the next three years, or because you want to be able to tow a boat or camper.

Scratches, dents, holes, stains...any type of damage gets you fees at the end of the lease deal.

-People who do a lot of driving. Leases have set amounts of miles on them, go over the miles and you pay guess what, more fees! My pastor rented a minivan in the late 1990's and her job requires a ton of driving. Her and her husband ended up paying tons of money in fees due to scratches, stains, holes in seats, and going over mileage. They have not leased a vehicle since.

That is why I wouldn't lease a vehicle and why my friend wouldn't lease from the dealership he works at.

When you own a vehicle there is no limit to the miles you can drive without financial penalty...no fees for scratches, dings, stains, or holes on top of what you had to pay down and in monthly payments.

 

Yeah there are far to many bad reasons to lease over buying. The problem is no matter how hard you try you will always get dings, knocks, dirt, stains, tears, and scraps in trucks. If you ain't then you really don't need a truck. I could prob keep a car in fairly good condition but even then my wifes 3 year old Mazda has got damaged dash board, a couple of dings in doors from people in parking lots, a ding in the back from a rouge shopping cart, chipped paint on the front of the car and stained carpets. Most of this can be fixed but the dealer will sting you for that when you return your car. We have nothing to worry about as it's our car. Plus we have done way over the 15000 normal limit for annual millage. we have done 25000 a year. wouldn't like to see the fees on that. But im sure that if you could be very careful and not do to many miles then leaseing is fine.