07' Ram 1500 QC 4X4 Big Horn Package, tow package, center console....hmm I forget the rest. The following payment includes the current (possibly ending wed) rebate of $5,000, about $4,000 for Employee Pricing, and $1,000 off for loyalty.

$318/month for 15,000 miles over 27 months. This is the second "quote" they have given me, the first was around $400. Is this a good deal or should I barter some more? What do you all pay if you don't mind me asking? I'm just trying to see how good of a deal they are giving me.

Thanks in advance,
Shaun

 

I don't do leases but that is $.58 a mile and $10.60 a day and after 27 month you don't have anthing to show for it.
Also read the fine print about vehical condition when return it, they can nail you big time on this as they deternine the condition.
My recomendation is bite the bullet and buy it outright then at the end of the payments you still have somthing.
Also if you do any mods they can hold that agaist yu at the end of the lease.

 

I'm sorry, I forgot to mention some important information. I am 20 years old. This will be my first car that I pay everything for. I am upgrading to this truck from my sporty 4 banger Acura RSX Type S which I have had for the past 4 years. The truck will mainly be used for my daily driving around town, trips snowboarding, mountain biking but also to tow an enclosed trailer to do mobile auto detailing. I understand I'm only paying to rent the vehicle, but if I bought something outright, I would only be able to afford something not even half as nice as this. From what my accountant tells me lease payments are easier to write off for business purposes. Thanks again!

Shaun

 

Are they giving you 15k miles over 27 months or 15k miles a year with a 27 mo lease? Either way, unless you plan on refinancing, IMO a lease is bad news. You will be spending a long time trying to eat up negative equity that rolls over to each vehicle from now on. I leased my truck to get the maximum rebates (5000 cash back, 5000 lease cash and 1000 owner loyality) but refinanced 3 weeks later through my credit union. I know you're looking at the cheapest payment but unless you plan on dropping a wad of cash at the beginning or end of the lease, it's going to hurt you in the long run.15k miles sounds like a lot but, I have 25k miles on my truck and bought it in June or July of 2005 with 15 miles. My truck can sit parked for a week at a time. Miles add up quick and then you're stuck.

 

i would keep the RSX type S if i were you, but if you really wanted to lease this truck i wouldnt do it. at the end you have nothing to show for it. you say your 20, you are my age and trust me going from a car to a truck your gonna wanna still go fast so your gonna end up wanting to mod it. if your gonna pay notes on something why not make it yours. that way when your broke and wonder where all ur money went, just look outside the window and look at your beautiful dodge.

 

Try and find a used one and take out a loan. I just bought my 2002 dodge ram 1500 2wd regular cab with 74,000 miles on it for only $7,500 out the door. perfect truck and I have had no problems except when they F***ed up the wiring on my remote starter. If you can afford to lease you can afford to get a loan. Im 21 and paid cash so I didnt need a loan. Look round

 

Hi Shaun,

Does that lease quote include your trade-in, or any other money out of pocket up front?

Leasing is just another financing tool. It's in a way sort of like an interest-only mortgage that has become so popular, except in houses the value is expected to appreciate, while in cars it DEpreciates.

Basically, you're just paying the interest and the depreciation on the vehicle until a set-state (i.e. it depreciates to a certain point - that's why leases have the months and miles tied into them, that's really just the predicted depreciated value).

For some people, this does make sense, especially businesses, as they look at vehicles as a pure expense, mostly they are "fleet" type vehicles that will never be modified, there are tax advantages in the simplification of expensing them (since the depreciation is built into the lease payment, you don't need to declare depreciation as a tax expense which is a relatively complex thing to do).

I look at this way. If someone wanted to lease a vehicle frome me personally, I would let them do it all day long. They pay the interest and the cost of depreciation while I keep the principal (the actual vehicle itself). In the long run, it really is a bad deal UNLESS you meet a certain class of business expenses (i.e. fleet), OR you plan on using the lease terms to your advantage such as in stump_breakers post.

So the bottom line is, no it really is not a good deal for the most part, but if you're intent on leasing then yes, $318 a month for a typical term (12K to 15K miles per year - NOT spread over 27 months) for a 27 or 36 month lease is about right.

Just keep in mind, witha good credit rating and about $5K down payment your purchase payments could be pretty close to that low ($4XX) per month, even if it means you have to do a 72 month financing.

Sorry to sound like a big brother or something, but when I was your age (I am 31, so not all that long ago) I did EXACTLY what you are contemplating doing now (except with a Chevy truck at the time) and truly it was about the worst financial decision I ever made. So I do try to steer people away from it when possible...

 

Terms are about right, but unless there are serious business benefits or you just really love to switch cars every 2 - 3 years and don't plan to mod anything then it's not a good idea.

 

Leasing is the way to go. I am on my 6th lease and never had a problem with it including turning a vehicle in. As stated by stump breaker ( unless I misunderstood) their is no negative equity on a lease, at the end you simply walk away, in my case I usuallyget a slightly better deal as long as you stay with the same manufactuer.
My last lease was a 2003 dakota QC. I wanted a Ram before the lease was up, long story short, Chrysler ate 11 months of my Dakota lease and put me in a brand new 2006 ram QC thunder road 4x4 for $266/month with $400 down. That is 12,000 miles/year, 27 months. Its not bad driving a $34,000 vehicle for $266/month. I also like to get a new vehicle every 2-3 years. Hope this helps

 

Leases can be good or bad. Depends on the situation. I have a leased Honda Pilot and love that fact. We take good care of it so it's no big deal. However, I bought an 03 1500 QC 4x4 and am glad I did. I abuse the crap out of it off road. Wouldn't be able to have that much fun had I leased it. Plus I load the bed with all kinds of stuff. With a truck, I personally would never lease.