Pros and Cons of Leasing a Car - Dodge Cummins Diesel Forum
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post #1 of 11 (permalink) Old 07-23-2019, 03:50 PM Thread Starter
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Pros and Cons of Leasing a Car





Leasing can be a convenient choice for some and here are some of the pros and cons of this option.



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post #2 of 11 (permalink) Old 07-26-2019, 11:01 AM
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How bout never being upside down on a loan? Therefore not needing gap insurance.

How bout buyout options which ensure that you don't pay more than the total cost of the car?

'05.5 6.7 Shotpeened NV5600 - 12.6 @ 111.6 - 994 HP & 1630 lbs/ft
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1350 Frontshaft, TruTrac, 315's, 64" T-Bars,TGC 1/2"+, Carli BJ's, '08.5
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post #3 of 11 (permalink) Old 08-07-2019, 04:50 PM
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How about the mileage charge ? Average charge is over .15 cents per mile over allowed usage. That would be another $3K per year minimum for me. How about wear and tear that for some reason is considered beyond normal? Unless I was leasing a sunny Sunday vehicle the costs are far too high and not nearly as clear cut as the dealer would have you believe. Especially if it turned out I didnít want the vehicle at the end of the lease.
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post #4 of 11 (permalink) Old 08-08-2019, 02:16 PM
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There is no mileage overage charge if you buyout through FCA

'05.5 6.7 Shotpeened NV5600 - 12.6 @ 111.6 - 994 HP & 1630 lbs/ft
150%'s, LBZ/Arson pumps, MHP +1mm, ZZFab, Wagler Rods, 69/73/1.0 & s482
1350 Frontshaft, TruTrac, 315's, 64" T-Bars,TGC 1/2"+, Carli BJ's, '08.5
Street Triple, 103#/Extreme Pushrods, 625's
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post #5 of 11 (permalink) Old 08-08-2019, 04:28 PM
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Whatís the sense in leasing then? You may as well have bought it outright to begin with. Probably at a more favorable interest rate.
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post #6 of 11 (permalink) Old 08-08-2019, 04:52 PM
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Make no mistake; The bank, dealers or car manufacturers are not your friend.

Lease, rent or buy, they are out to make money. Nothing wrong with that but the fine print is where they get you either BIG or small. Lol

2012 6.7 4x4 Laramie, 68RFE, 3.73, Deleted with mystery tune. No scan tool yet
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post #7 of 11 (permalink) Old 08-09-2019, 11:06 AM
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Originally Posted by Jhenderson View Post
Whatís the sense in leasing then? You may as well have bought it outright to begin with. Probably at a more favorable interest rate.
Just spreads out the expenditure over 9 years vs 6 if you take the longest terms on everything. Example: We have now bought 2 new Grand Cherokees. Both roughly $44k. Bought one on a 72 mo loan and its paid now. Newer one is leased. The lease results in $220 lower payment for the lease term and about $300 lower for the loan term or alot more car for the same payment and very little additional total cost. For those of us who have fairly static income but plan to work 40 more years it works great. hahaha Maybe you know but a $640 car payment hurts alot more than $420.

Effective lease interest rate comes in below .5%. And you get to guarantee yourself you don't have a lemon because many leases include service rentals. Small price to pay to have a 3 year test drive on a car with absolutely zero risk of additional expenses. If you use Chrysler Capital for the lease buyout there are also other incentives available that would not be through normal banks such as continued 0% interest.

Another side benefit, you get to implement and pay for the extended warranty at the lease buyout. So you've had a chance to really research and decide if you actually need the extended warranty or not.

Finally, Leasing has a much smaller impact on temporary credit. So if you are looking to refi or buy a home, you are much better off to be mid lease than be upside down on a hefty loan. This is a main reason we choose the lease on the 2nd car.

And the most powerful piece of anecdotal evidence, many large, very successful companies lease for these reasons. If it were not cost effective they wouldn't do it.

'05.5 6.7 Shotpeened NV5600 - 12.6 @ 111.6 - 994 HP & 1630 lbs/ft
150%'s, LBZ/Arson pumps, MHP +1mm, ZZFab, Wagler Rods, 69/73/1.0 & s482
1350 Frontshaft, TruTrac, 315's, 64" T-Bars,TGC 1/2"+, Carli BJ's, '08.5
Street Triple, 103#/Extreme Pushrods, 625's
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post #8 of 11 (permalink) Old 08-09-2019, 12:40 PM
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If youíre financing for 9 years we have no more to discuss.
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post #9 of 11 (permalink) Old 08-09-2019, 01:55 PM
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everyone I know except one person has taken big hits on leases.
I know of 2 people right now that have leased cars parked because their wives ran up the mileage and they do not want to pay the mileage charge.
One person is going to have it sit for a year.

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post #10 of 11 (permalink) Old 08-09-2019, 02:59 PM
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Obviously leasing and racking up the miles is terrible. If you can't buy out or choose not to you get absolutely ripped. This is why we keep miles in check on the lease even though we plan to buy out. If life happens and we can't buy out we lose nothing.


Quote:
Originally Posted by Jhenderson View Post
If you’re financing for 9 years we have no more to discuss.
Amortization and/or depreciation schedule. Look it up some time.

We finance our equipment at work for 7-15 years depending if it ranges from $100k to $2mil. If its more expensive than that allows then we lease. Same same... Time is not a negative factor.

'05.5 6.7 Shotpeened NV5600 - 12.6 @ 111.6 - 994 HP & 1630 lbs/ft
150%'s, LBZ/Arson pumps, MHP +1mm, ZZFab, Wagler Rods, 69/73/1.0 & s482
1350 Frontshaft, TruTrac, 315's, 64" T-Bars,TGC 1/2"+, Carli BJ's, '08.5
Street Triple, 103#/Extreme Pushrods, 625's
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Last edited by Broaner; 08-09-2019 at 03:07 PM.
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post #11 of 11 (permalink) Old 08-13-2019, 04:32 PM
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Quote:
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Obviously leasing and racking up the miles is terrible. If you can't buy out or choose not to you get absolutely ripped. This is why we keep miles in check on the lease even though we plan to buy out. If life happens and we can't buy out we lose nothing.




Amortization and/or depreciation schedule. Look it up some time.

We finance our equipment at work for 7-15 years depending if it ranges from $100k to $2mil. If its more expensive than that allows then we lease. Same same... Time is not a negative factor.

Donít flatter yourself. Iíve been financing equipment for the last 35+ years. If you really understood the situation you wouldnít finance 5 year property for more than 4 years. Financing long term equipment is far different than long term financing on a short term investment.
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