Pros and Cons of Leasing a Car - Page 2 - Dodge Cummins Diesel Forum
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post #13 of 19 (permalink) Old 10-16-2019, 04:15 AM
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Australia aside.

Broaner is right on some issues but not on some.Be known I sold Dodges for 17 years.

First it is not true that you will never be upside down on a lease. In fact you are often further upside downif you do any of the following: First you are obligated for the payments for the full term of the lease, always. Second roll over from a previous upside down is part of that. You wnat out early included. You go over miles. You crash it and it is not worth what you owe on lease plus residual(reason for GAP). The only time you are equal or ahead is at end of lease and on point or better for miles.

Good reasons for lease and best methods:

IF "Money rate(lease interest) is a lot better than purchase rate. Sometimes common on good specials, but not usually otherwise.
If you are going to match miles.
You are buying a vehicle with a good residual and reseal value.
You are business with multiple vehicles and want newer ones all the time on warranty.
You are always good on miles and want a newer vehicle often and will keep them to end of lease for sure.
Know you wall always have a payment and have the necessary down for rewind.
NO 0 to one percent interest rates are available for purchase.
You can do and understand the math of both lease and purchase.

Many people are pushed into 60 month leases on the basis of lower payment to buy too much vehicle and the want out in 3 years and are $10,000 upside down, often based on negative balance from prior trade in.

So leases are fine if you fit the "profile" and can sometimes save some money or convince but make sure you are committed and it is right for you..


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post #14 of 19 (permalink) Old 10-16-2019, 06:49 PM
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Bigfish I agree, that's a problem here to. Once you sign the lease you are obligated to the all the remaining lease payments, even if you want out shortly into it. Have an accident and you do need insurance to cover the gap. i.e. all the lease payments. And for those people who say they want to lease and then buy at the end, be careful of how big the residual amount is. If it's too big and people still want the truck, they are often bundled into a follow on lease. You are so right in that you must fit the "profile" to make best use of the lease.
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post #15 of 19 (permalink) Old 10-16-2019, 07:16 PM
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Iíve leased 4 vehicles in my life. I only came out ahead (maybe) on one of them.

All of the others I had to pay at the end of the term for the ďpleasureĒ of giving their vehicle back to them.

Iíve paid cash or short term financed since then.


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post #16 of 19 (permalink) Old 10-17-2019, 02:54 AM
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I forgot about turn in fees.. Some have them , I do not remember Chrysler ever having them.

99 2500, Quad cab, 4x4 47RE, BD pressure lock on it, small BD 90/140 chip on the VP 44 connection plug, 17" 3rd gen wheels. 3.55 diffs. Ruenell front bumper and warn winch, Rancho adj shocks. 663k miles.
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post #17 of 19 (permalink) Old 10-17-2019, 04:02 AM
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Mike, short term finance at the right rate might be best, especially if the lease is a business cost. I mentioned that we have tax advantages of paying for a lease out of pre tax pay, but you can't pay off the full vehicle during the lease period. There is always a "residual" and the shorter the lease the larger the residual. I'm doing my 2500 HD over three years but will still have about 55% to fork out at the end of lease.
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post #18 of 19 (permalink) Old 10-17-2019, 11:48 AM
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Good info. Thanks.

In my eyes, Insurance is turning out to be the biggest con of leasing. They want a huge increase of liability protection. Progressive is requiring $300k coverage. You could argue you are protecting yourself with that money sure. But for somebody in my situation, the extra liability is required to be carried for all vehicles on plan(At least through Progressive). This results in +$70/mo and makes it signicantly closer to the full purchase payment for total monthly expenditure. We'll be buying from here on out but It will be a long while before I plan to buy anything brand new again due to both of us being in our planned 20 year cars.

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post #19 of 19 (permalink) Old 10-17-2019, 04:14 PM
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Pros and Cons of Leasing a Car

Quote:
Originally Posted by zhifchik View Post
Mike, short term finance at the right rate might be best, especially if the lease is a business cost. I mentioned that we have tax advantages of paying for a lease out of pre tax pay, but you can't pay off the full vehicle during the lease period. There is always a "residual" and the shorter the lease the larger the residual. I'm doing my 2500 HD over three years but will still have about 55% to fork out at the end of lease.


I hate debt so I short term finance (if I canít or do want to pay cash) to get the debt out of my life as quickly as possible.

Iím not familiar with how much a business can write off on a purchased vehicle vs a leased vehicle. It may well make sense to lease in certain business situations but Iíll never do it again on a personal vehicle.


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