I`m getting a new truck this weekend and I`m not to sure on what way to go.

The stealership is trying to get me to lease not sure why but those small lease payments sure look nice as apose to the finiancing costs.

I dont own a buisness where I can right the lease payments off so not to sure what way to go??

Any advise would be greatly appriated.

 

Lease you are basically renting the truck, then turn it in or buy it in the end for the determined balance that was calculated in the beginning. But if you are looking to keep it shorter term then the lease period, it will bite you. You CAN'T come ahead anytime in a lease, you break even when the lease is up. Lease are cheaper payments, but I like my money going toward the purchase of the truck not just to rent it. Like my truck now I will be ahead (payoff vs trade value) 2.5 years from the start, where as if I leased it would be a 3-5 year lease. So if you plan on trading it in 3 years from now, maybe a 3 yr lease is what you need.

 

And if you plan to drive less than 12,000 miles in one year, otherwise prepare a budget for additional mileage, tear and wear, any big dents and scratches.

 

^^^
That is a popular myth.

Yes, you get billed $.08 per mile over the allotted 15k a year (you get 15k, if you CHOOSE to take the 12k plan you get a better finance rate). But what nobody talks about is that if you have a lot of miles on a vehicle that you plan on trading - you get hit then too. There is no magical mileage fairy to give you those miles for free just because you didnt lease.
Same rule applies to the afore mentioned dents and scratches.

If you like to upgrade every 2 or 3 years, get yourself a 27 month lease. Usually that has the best payment/residual/rate combination.

If you are looking for something to drive into the ground and run for 5,6, or 10 years...buy.

 

Only problem with a lease, you will get nailed for any excessive damage that might be done. with a truck, if you use it, damage is quite likely. But, in the end, it's up to you to decide what fits you better.

 

No offense, but from your name I take it you work at a dealership. At least you sound like a dealer. Maybe you are one of those dealerships that dont like to rip off people as most do. The feeling of driving a car you lease cannot compare to the feeling of the car you own. At least in my opinion. I have 16,000 miles on mine in less than a year, I dont care, its mine. I had a lease once on a saturn, I kept counting the miles per month and how much more I had before the year was up. All honesty, you take more care of a lease car than a owned car. My cousin has a Galant, and he's had that model for 7 years, a 99, 00, 03. He is tired of leasing because is a constant payment. Every time his lease is up, they tell him that he is over the mileage, there is dents, tires are worn, the upholstery is dirty. Then they do an estimate of what it will cost to "recondition" the car to sell. They tell him that he can refinance the difference to own it, usually the same monthly payment for another 3-5 years. Or get another lease and they can "oversee" some of the costs of reconditioning.
So you might the be the exception to the stealership rule.

 

That is another misconception.
The things you mentioned (deducts for worn tires, dents, upholsetery), are not determined by the dealer. These are all determined by the company backing the lease - usually CFC for Dodge or GMAC for GM. The car does not go the the dealer, unless he wants to buy it, it goes to an auction network, and goes up for sale to all dealers (new and used) nation wide. The factories pull a lot of crap that give the dealers a bad rep. (warranty, lease returns, rebates, etc.) But in the mind of most consumers, all they know is that the dealer is giving them a hard time...and don't know most of the time we are just stuck in the middle.

And the thing about you having 16k on your car...thats fine - I put on a lot of miles in a year too - but when you go to trade, you will feel the deduct for high mileage then too.
My point is, no matter if you lease or buy....those miles are going to cost you at some point.

And yes, I totally understand the feeling of making payments to OWN something rather than just a rental fee.

 

Lets say you want a 35k truck and have 5k down. You end up needing a 7 or 8 year loan because you can't handle the payment and still might not with a 7 or 8 year loan. So now you bounce down to a 25k truck with 5k down just to get you in that $400ish a month area. Bring leasing in, you take that 35k truck with 5k down and end up with a $400 lease payment for 48 mo. When you are done, you have 13k or so to buy out the truck. You now refi 13k for however long as a purchase.

What you've done is sacrificed a few extra thousand over an 8 year period (you won't miss that money) to have something you really want. There is no shame in saying you can't afford a 35k vehicle so you leased it just to buy it later when you CAN afford the lower payment.

Now if you are notorious for trading up every 2 or 3 years, leasing may be good too. When you buy again or lease again at the end of the term, they generally don't ding you on the mileage thing.

 

This will seem like a wise *** post, but neither.

Save your money until you can buy it. If you have to finance a vehicle you really can't afford it. The less debt you live with now the more money you will have in the end.

When you are 55 or 60, your back will be aching and you won't care what kind of vehicle you drove in the past. All you will care about is how that retirement fund is doing.

 

I work for DCX. Leases are for idiots... even though that's where we make a butt-load of $$$.
Leases are for folks that drive less than 1000 miles/month (way less, actually) and have an OCD need to get new vehicles on a bi-yearly basis.
In a lease, you build ZERO equity, which means you get nothing in return for what you spend... you accumulate no trade value.... All you do get is the risk of balding tires or going over the mileage and getting RAPED in penalty fees.

If you lease a truck, and actually try to use it as a truck, you'll be sorry.... Your end of term inspection will SLAM you for things like paint wear in the bed, off-road use, and mars to the rockers if you had nerfs on it.

You cannot lease a truck and treat it like a truck without getting HOSED at turn-in...

Leases are for old farts that want a new sedan every 2 years so they can drive something that hasn't absorbed their "Old People Stink."



If you don't have the coin to buy outright, you're always better off financing... keeping the amount of cash you have on hand a secret from the dealer, until you negotiate a final sale price... Then you use the cash you brought to the table to cover the sales tax and fees, dumping any remainder against the financed amount..

This is how you build equity, and like me, go from a 2003 4.7 1500QC at $400/month (60months) into a 2006 HEMI QC at $250/month for 36 months... (I'll have it paid off in 24 months anyway.)