Should I buy my current leased truck or lease a new one?
#1
04-19-2018, 07:37 PM
Should I buy my current leased truck or lease a new one?
Hey Guys,
In 2015 my BIL was working for a dealer. Traded in a 06 honda Ridgefline and leased a 15 f150 crew cab sport 4x4 w the 2.7.
Payment is 336/month
Lease is up next month. My BIL no longer works at the dealer.
i'm a little over mileage $780 worth
Buyout on truck is $30,500
Dealer says wholesale is $26k
Dealer also says if I were to put 5000 down on a new lease, my payment would be 375/month (13500 mile a year lease)
If I were to buy the truck I have now, I'd put 10k down and look very hard at an extended warranty.
What would you do?
I could pay the miles, walk away from everything then put 10k down on something (an f150 most likely) used.
pay the miles, put down 5k lease another
buy the truck
another option?
In 2015 my BIL was working for a dealer. Traded in a 06 honda Ridgefline and leased a 15 f150 crew cab sport 4x4 w the 2.7.
Payment is 336/month
Lease is up next month. My BIL no longer works at the dealer.
i'm a little over mileage $780 worth
Buyout on truck is $30,500
Dealer says wholesale is $26k
Dealer also says if I were to put 5000 down on a new lease, my payment would be 375/month (13500 mile a year lease)
If I were to buy the truck I have now, I'd put 10k down and look very hard at an extended warranty.
What would you do?
I could pay the miles, walk away from everything then put 10k down on something (an f150 most likely) used.
pay the miles, put down 5k lease another
buy the truck
another option?
#2
04-19-2018, 08:46 PM
Fleet Mechanic
Well you got a bad dealer, I got what was owed on mine plus since I had added a spray in bed liner, window tint and bed cover. Got in the new truck 0 down and Payments werer $10 a month less, till I added some more Accessories, from the dealer this time. Both are Screw FX4 Lariat Sport 501A but went from a 2015 3.5 Eco to a 5.0 in the 2018 and a 6.5 bed. My lease wasn't out till Aug of ths year.
#3
04-20-2018, 12:16 AM
#4
04-20-2018, 01:01 AM
Take the 10k and put it down on the purchase of a brand new one. As you can see, the lease is almost always a much better deal for the dealer/Ford. I would never, ever put 10k (or 5k or 2k) down on a lease.
if your truck was for sale used would you buy it for 30k? Does it book out on NADA for that? If it’s a good deal for you and you still like it go for it. 10k down would make for some low payments. Plus you would own it and have nice equity.
Actually I never lease. I always come out better on a purchase. I bought my truck 2 years and 4 months ago and I have 10k equity in it now. Bought it for 11.5k off sticker.
Almost every dealer wants to talk payment and not the actual purchase price. I have a daughter trying to buy a Tacoma or Frontier right now (too bad the Rangers aren’t out). Those import dealers make me want to bang my head against a wall. They won’t give a purchase price no matter how hard you press them. They just want to write it up then work on a payment. If you don’t have car buying experience, one could easily pay way over sticker by the time the deal is done.
if your truck was for sale used would you buy it for 30k? Does it book out on NADA for that? If it’s a good deal for you and you still like it go for it. 10k down would make for some low payments. Plus you would own it and have nice equity.
Actually I never lease. I always come out better on a purchase. I bought my truck 2 years and 4 months ago and I have 10k equity in it now. Bought it for 11.5k off sticker.
Almost every dealer wants to talk payment and not the actual purchase price. I have a daughter trying to buy a Tacoma or Frontier right now (too bad the Rangers aren’t out). Those import dealers make me want to bang my head against a wall. They won’t give a purchase price no matter how hard you press them. They just want to write it up then work on a payment. If you don’t have car buying experience, one could easily pay way over sticker by the time the deal is done.
#5
04-20-2018, 08:06 AM
Fleet Mechanic
....Those import dealers make me want to bang my head against a wall. They won’t give a purchase price no matter how hard you press them. They just want to write it up then work on a payment. If you don’t have car buying experience, one could easily pay way over sticker by the time the deal is done.
Funny enough, different salesmen have different sales tactics...so you might not have this issue if you worked with someone else there. Good luck!
If they happen to have something particularly rare, you could always approach the sales manager and tell him you are going to take your business elsewhere if they won't negotiate on price (vs payment). The salesman is just sticking to his guns, probably because he's pretty good at padding profits using that technique.
#6
04-20-2018, 08:24 AM
That was the floor manager at a local Toyota dealer who did that. Sales staff has to run all deals through him and a few others like him. All sales managers want to do is check final deals for appoval before sending the off to the the finance wringer. Most import dealers are that way.
It’s ten times easier to buy a Ford. I’ve only seen one Ford dealer around here that does business that way. Although it seems to be slowly spreading throughout the industry.
It’s ten times easier to buy a Ford. I’ve only seen one Ford dealer around here that does business that way. Although it seems to be slowly spreading throughout the industry.
#7
04-20-2018, 08:51 AM
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#8
04-20-2018, 09:32 AM
Fleet Mechanic
I wouldn't put that money down on a lease. If you want to keep leasing and get a new vehicle every 3 years, then just pick another vehicle and lease it. If you would be happy driving something 5+ years, then buy one.
Me, I would buy something. But, it's your money, it's up to you how you spend it.
I'm more conservative with my money...so I'd rather buy something and keep it longer.
There is no right or wrong answer if you have the money to do either.
#9
04-20-2018, 01:42 PM
#10
04-20-2018, 03:11 PM
You have so much more freedom with a purchase. You can get out of it easier if you need to, especially if you have equity. You own it so you can modify it without worry of how it affects the residual. All vehicles are money loosing propositions. Some call them investments, which they are not. At best, with very few exceptions, they are depreciating assets. I like knowing that my vehicle is worth more than the pay off amount. I get to keep that if or when I sell it.
#11
04-20-2018, 04:30 PM
You didn't list the lease term where you'd put down $5k. If it is a 36 month lease, then that would be $139 a month that your $5K equals (in payments). So, to get your $5K back, you'll have to set aside another $139 per month....making your real monthly lease payment $514.
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#12
04-20-2018, 04:32 PM
#13
04-20-2018, 10:30 PM
I've leased once.
2014 F150 screw fx4 with the app package. Loved it but was always feeling like I was renting it. Anyway, halfway through the lease, the trans took a complete dump. Long story- but I couldn't wait any longer for a truck. It sat untouched on their back lot for almost a month.
I did something completely ridiculous and traded it on a Tundra. The Ford dealer had a sister Toyota dealer down the road.
Trading it was no different than if I were buying it. They called Ford and got lease payoff. I ended up breaking even on the trade (surprisingly) and got the Tundra $1,000 under msrp.
Kept the Tundra for 4months and sold it back to the dealers used dept. paid $500 to do so- but it was better than paying on something I wasn't keeping.
If the trans wouldn't have broken, I would have likely bought the 14. But unless I had saved a bunch extra, I would have paid on the truck for longer than if I had purchased it in the first place. Leasing really doesn't gain equity.
I'll personally never do it again.
2014 F150 screw fx4 with the app package. Loved it but was always feeling like I was renting it. Anyway, halfway through the lease, the trans took a complete dump. Long story- but I couldn't wait any longer for a truck. It sat untouched on their back lot for almost a month.
I did something completely ridiculous and traded it on a Tundra. The Ford dealer had a sister Toyota dealer down the road.
Trading it was no different than if I were buying it. They called Ford and got lease payoff. I ended up breaking even on the trade (surprisingly) and got the Tundra $1,000 under msrp.
Kept the Tundra for 4months and sold it back to the dealers used dept. paid $500 to do so- but it was better than paying on something I wasn't keeping.
If the trans wouldn't have broken, I would have likely bought the 14. But unless I had saved a bunch extra, I would have paid on the truck for longer than if I had purchased it in the first place. Leasing really doesn't gain equity.
I'll personally never do it again.
#14
04-21-2018, 04:46 AM
#15
04-21-2018, 09:37 AM
Horrible deal considering the F-150 retains value extremely well. My 2012 F-150 cost me only $120 a month to drive around for four years (bought at $29k, $10k off MSRP, traded in for $24k).
If you have $10k down, and you can get a new one at $10k off, that's $20k down for a $40k truck.
Five years on $20k, payments would be around $350... and you'd have something worth $20,000 five years down the road.
Go to www.cars.com and look at new F150 trucks, a lot are priced at $8k to $10k off MSRP.
If you have $10k down, and you can get a new one at $10k off, that's $20k down for a $40k truck.
Five years on $20k, payments would be around $350... and you'd have something worth $20,000 five years down the road.
Go to www.cars.com and look at new F150 trucks, a lot are priced at $8k to $10k off MSRP.