I have more than enough money to purchase a fully loaded Lariat or King Ranch. But I lease because it suits my needs better. One does not necessarily lease because they can't afford purchase. The $1 bill comment is a little insulting to those people in a similar situation.

And yes there is no positive financial reason to lease, there is also no positive financial reason to purchase a $40,000 depreciating asset when an XL will do, or better yet a car.

As far as advocating leasing, young people hear what they want to hear and if they are going to be irresponsible with their money, our advice wont change that.

 

That is very kind of you,

Besides the financial thing, I think leasing vs. buying involves the way of looking at it.

A self employed person looks at things very differently from a salaried person.

A renter looks at things much different from a home owner.

A worker looks at things differently than an owner.

Someone who puts money aside for the future, vs. someone who figures things will just work out somehow.

One looks at costs, and returns in a present light.
The other looks at cost and returns in a long term light.

Another difference is that ownership equals control.

If you are self employed, you ‘own’ your output. If you are salaried, you are ‘renting’ your time to an employer.

While each of these alternatives has its merits, I am always going to fall on the ‘own it’ side, be it a house, an income, or even just my time.
And many will always fall on the ‘just doing my time, doing my thing side’.

Oh well, this is getting way too involved for an F-150 forum.
Have a great day
Chris

 

No offense is intended. I am talking more in general, not about any person here.
Referencing the 1 bill thing, that is just an easy example. Really couldn’t think of a better one, off the top of my head. I am sure there are plenty, but this is the only brain I have... and it’s not firing on all four today, I guess.
.
As to leasing suiting your needs better, I have got to wonder why?
If you are incorporated, sure, but that is what I was saying, in a business it makes sense under some circumstances. We have said that everywhere in the thread.

Or if you are so rich you don't care about the money, which is a category I am sure some of the guys on this board fit into.

Me, perhaps I am cheap, or poor, but it doesn't matter really. I don't know of any reason to spend more than I have to, unless you are doing it to help the economy? Which is OK, and even a nice thing to do? Heck, someone has to pay retail, for the rest of us poor shmucks to get any bargains, right?

Convenience is the watch word in this country, and nothing is more expensive.
But like I say, whatever floats your boat.

As to young people not listening, I disagree. I know many young smart people that listen, add up the arguments and do the right thing. I refuse to believe that just because someone is young, they have no sense. Sorry this one I have to disagree on.

Again, no offense intended here, it’s just a discussion.
Chris

 

First, thanks to Cyclone Vampire for the info...might come in handy...

I would think that the vast majority of people who are leasing are doing it to get more car for less money. Whether they are doing it because they want a cheaper payment on a specific car, or whether they are doing it to get more car for their available cash is up in the air...I've not seen stats that prove anything, so I don't know. I do know that leasing works better for those who drive few miles and want a new car regularly...for those like me, who keep our cars till the wheels fall off, buying is better...

One thing that J150 said, "that there is no positive financial reason to purchase a depreciating asset," is true. I've heard that many self-made millionaires buy used cars rather than throw money away on the huge losses of new-car depreciation. Which leads me to another good thing about leasing...it means there's a bunch of creampuff lease-return used cars out there for people to pick up cheap...

 

leasing makes sense for me because I flip a low mileage vehicle every 3 years so I always drive new. I pay for what I use on that new vehicle. If I bought and sold after 3 years, the difference between purchase price and trade in wouldn't really be any different (huge gap between trade in and what the dealer sells it for) than what I paid in the lease.

Where most leases ding you is the interest rate. People don't pay attention to that and could be paying 10% or more in lease interest. Many don't look at that line. They also base their leases off sticker because the dealer is pushing a $299 lease so people dont see that its based on sticker at 10%.

Secret to a lease is negotiate the purchase price first, then negotiate the interest, then negotiate the residual (this on eis tricky as sometimes you cant) then sign the papers. The lease cost is as flexible as purchase deals are. Dont just take a $299 "sale" price.

 

What's wrong with sale prices??? I got a sale price on my low-option STX...I only had to put $9200 down, and they let me have it for $699/mo for 68 months...I think I got a great lease.

 

Not bad, not bad at all. Uh, you want to take an option on a bridge I know about...


Hey did you get the optional 5000 dollar undercoating?

Chris

 

They threw that in for $3899...and I got a genuine plastic wooden gearshift **** for free!

 

I leased my F150, and its not because I want to appear to have more money than I actually do. It works better for me, I like to trade every couple years and drive new as someone above posted. Not to mention the smaller payments are nice, so it makes sense to me

 

Vehicle's depreciate. New cars/trucks are never sold for less than the previous model year. In a lease, your all ready paying on a depreciating vehicle, at a higher intrest rate than if you financed your car/trcuk new.

The dealer is not paying the depreciation, you are, one strike against you.

If you finance your new car/truck, you still have depreciation, nothing you can do but pay, enjoy your ride and hope your ride last's after the waranty, If your worried abought the warenty expiering. Leasing is just means of buying extended warenty coverage and owning nothing.

Easy Credit on a lease and lower payments are selling points of a lease as well as driving a new car every two/three years. Having to you the consumer read a crystal ball and perdict in advance your odometer reading at the end of two/three years or what damage's will be on the car/truck ties you up and just adds to your stress if your cash strapped, Your dealer is not stressing out over this, just hovering to make a easy sales kill.

Anothier tatic sold to you on a lease is idea you can invest the saving's over Financing, into your morgage, personnel investment's ect, Hard to argue the logic in that, but at the end of your term, you pay again to have a car, If your investment's in the stock market crash, you have nothing. Paying of your morgage is never a bad idea.

So, your stuck with a car that's falling apart, gas and repairs are costing more than your ride is worth, or you need a depenable truck for employment, Leasing is the short term answer if you can handel your finance's and budget to get your self on track, but some how it's to easy to take the new truck on a holiday and rack up milage.

My advice is to purchass, never lease, If you can put at least 10 to 15 % down on the final sales price, my advice is to purchass, Sales person will say, hey, you keep your money in your bank were you can use it....well I doubt your ever going to loss that in deprecaiten when your car/ truck is paid for.

If you can't afford to buy it, leasing will trap you.

 

I live close to work so mileage is not an issue right now, and being the car buff I am I like to trade often, so why get into a bigger payment and money down, buying, if you dont plan on keeping the vehicle more than 2-3years? Cant imagine you could buy one with nothing down, trade-in after 2years and have a ton of equity left. I didnt put a penny down on my truck, have a low payment, and i'm under the mileage requirements so it works for me. In my situation I dont see the advantage of buying right now. I would probably be a lot better off if I didnt like to trade so often, but I just cant help myself .

'04 F150 Scab STX
'97 F150 Lariat Scab 5.4
'87 Buick Grand National

 

this is a thread that has run its course. Its obvious that the lease vs purchase debate is on par with the whole gay marriage thing. People have their opinion and wont be changing it anytime soon.

Time to lock this. It isn't going anywhere.