RAM 1500 Diesel Forum banner

1 - 20 of 24 Posts

·
Registered
Joined
·
14 Posts
Discussion Starter #1
I haven't heard of anyone talking about leasing just wondering if its even offered. I would consider it when it comes time to sign if its reasonable..
 

·
Registered
Joined
·
693 Posts
My truck hasn't show up yet, but when it does I'm thinking about making it a lease. I've never leased before but because I live far away from a major metro area, getting a decent price selling used cars is hard. Trade in value is always a bummer. So I'm thinking that leasing the truck might be a good solution. Have never leased a vehicle before.
 

·
Registered
Joined
·
33 Posts
Mine will be leased when it arrives...

The lease quotes my dealer worked up for me were pretty damn favorable in my opinion. $500/mo, including taxes with no money down on a $52K truck sounds more than sensible to me! :)
 

·
Registered
Joined
·
47 Posts
If you run the numbers I think you'll find that leasing is the most expensive way to go.
 

·
Registered
Joined
·
13,680 Posts
Another issue is personalization. Most truck owners do things to make their trucks "work" for them. They install different mud flaps, running boards, floor mats, radios, bed liners, caps, tonneau covers, wind deflectors etc. That's all a problem with a lease.

My daughter was stupid and did a lease once. She was not permitted to make any changes to the vehicle. She also could not really drive it much and had mileage issues on return. Scratch. Don't even think about having a scratch or dent or boo boo on return. Then you pay more.

Sure you paid more in the first place for a lease. I mean just above this is a post lauding $500 a month payments. That's $18,000 for three years. Then you add all the taxes, feed, deposits etc and you get???
Buy the truck for 15% off with all incentives, pay the tax and do the math, as also suggested above.

In 10 1/2 years of running my Cummins a lot, I returned 1/3 of the MSRP on my sale. How much was that? About what that $500 a month lease will cost you in three years.
 

·
Registered
Joined
·
693 Posts
I looked hard at leasing when I got my truck, but choose to buy it instead. What was driving the lease idea is 1) I don't hang on to cars all that long anyways, and 2) I suck at getting decent $$ when I sell cars. The nearest major metro area is 2hrs away. As a result it can be hard to sell a car for a decent price because there aren't that many used car buyers.

When the dealer worked out the numbers the lease monthly payments were more than the purchase payments because the lease option didn't have some incentives. I got to thinking that if I want to sell my truck in 3-4yrs, it will have almost no competition. There's going to be darn few used Ecodiesel trucks available for the next several years for obvious reasons. Therefore even I should be able to get a good price if I decide to sell the truck.

Finally, my mileage estimate for the Ecodiesel is getting blown out of the water. A bad thing for a lease. It was supposed to be the daily driver only half the time, but I'm enjoying it so much the other car hasn't left the garage in the 2 months since I got the Ecodiesel.
 

·
Registered
Joined
·
360 Posts
Finally, my mileage estimate for the Ecodiesel is getting blown out of the water. A bad thing for a lease. It was supposed to be the daily driver only half the time, but I'm enjoying it so much the other car hasn't left the garage in the 2 months since I got the Ecodiesel.
That's what gets a LOT of people with non-business lesases, the mileage numbers are crazy low and the penalty adds up quick. Leasing tends to make much more sense for businesses where you need to be seen in the newest nicest vehicles to make a good impression. And commercial leases often have no mileage limits.
 

·
Registered
Joined
·
730 Posts
I looked hard at leasing when I got my truck, but choose to buy it instead. What was driving the lease idea is 1) I don't hang on to cars all that long anyways, and 2) I suck at getting decent $$ when I sell cars. The nearest major metro area is 2hrs away. As a result it can be hard to sell a car for a decent price because there aren't that many used car buyers.

When the dealer worked out the numbers the lease monthly payments were more than the purchase payments because the lease option didn't have some incentives. I got to thinking that if I want to sell my truck in 3-4yrs, it will have almost no competition. There's going to be darn few used Ecodiesel trucks available for the next several years for obvious reasons. Therefore even I should be able to get a good price if I decide to sell the truck.

Finally, my mileage estimate for the Ecodiesel is getting blown out of the water. A bad thing for a lease. It was supposed to be the daily driver only half the time, but I'm enjoying it so much the other car hasn't left the garage in the 2 months since I got the Ecodiesel.
I'm shocked your lease was more than purchase, looking online for my various builds it's a few hundred dollars a month cheaper to lease.
 

·
Registered
Joined
·
241 Posts
One of the things that you really need to look at is what the lease is costing you. You are financing the anticipated depreciation of the vehicle. They never show you what interest rate that you are getting because they are showing you the low payment and getting you to sign. Have them spell out to you the interest rate on the lease or figure it out yourself.
 

·
Registered
Joined
·
13,680 Posts
...and when you are done RENTING the truck you can burn your rent slips to stay warm.

At the end of the lease you have nothing but the memory of using the truck for just a few years. I mean no equity. You gave it all to the owner of the truck you rented.

Now how do you actually carry anything in the bed of a leased truck? I mean, logs, dirt, rocks, fuel, all sorts of tools, tanks, bikes etc. All those thing scratch and damage the bed when you use the truck. At the end of a lease you will have to pay for all that damage or plan on not using the truck as a truck.
 

·
Registered
Joined
·
241 Posts
That is not totally true Captainmal, if at the end of the lease your truck did not depriciate as fast as they have scheduled it to then you have equity. I leased two Cummins trucks and when the lease was over I had $3,000 in equity in one and $4,000 in another. The truck one truck had 110,000 miles on it which was 50,000 miles over what the lease was for but the truck was still worth more than they figured it would be and I got this back towards another and never got beat up for any dings or damage.
 

·
Registered
Joined
·
730 Posts
...and when you are done RENTING the truck you can burn your rent slips to stay warm.

At the end of the lease you have nothing but the memory of using the truck for just a few years. I mean no equity. You gave it all to the owner of the truck you rented.

Now how do you actually carry anything in the bed of a leased truck? I mean, logs, dirt, rocks, fuel, all sorts of tools, tanks, bikes etc. All those thing scratch and damage the bed when you use the truck. At the end of a lease you will have to pay for all that damage or plan on not using the truck as a truck.
Says a guy that has more free cash laying around then I've probably made in my career. Of course it doesn't make sense too you, you can just write a check if you want. And that's not a bad thing, but is it not a value for someone like me to rent more truck than I can afford then to not have the truck atall?

My current truck is in decent shape, just paid it off last year after 6 years of payments. I have great credit now and qualify for the best interest rates available, but my income is low and my current truck is ageing fast. It's worth about $5,000 now. My payments were about $350/mo and it was for a near bottom of the line RAM, the V6 dog that nobody buys in an SXT trim. Don't get me wrong, it's been a great truck and has gone through some hell it should not have survived, I've towed 3x the rated limit with this truck from Ft. Lauderdale to St. Petersburg and it's been my first and only vehicle, so I have a lot of sentimental value there. But after paying $27,000 after financing and all over those 6 years, I MIGHT get 5K back.

I can lease a Laramie and maybe even higher level trim truck pretty much decked out right now for about $400/mo. I'd burn the $5,000 cash I made back in equity to have leased on my 3rd truck by now if I did from the start, driving a new truck every 3 years...and not the bottom level trim either.

I love my little truck but hindsight, makes me shake my head.

I know that math doesn't work out for everyone, and if you drive 30,000 miles a year yes that is a bad deal, but since I've started driving I've accumulated 115,000 miles giving me an average of around 15,000 miles a year, and I started out practically driving for a living. These days I'm around 10-12,000 a year if that.

Feel free to educate me if I'm missing something.
 

·
Registered
Joined
·
58 Posts
I looked into a lease but it was only $100 a month cheaper than a 5 year loan. I think a lease is great when you can get it a $199 a month.
 

·
Registered
Joined
·
241 Posts
One I purchased this truck as the interest rate on the purchase was so low.

We are all buying vehicles that depreciate as these are not going to appreciate in value. These are not investments and if you are going to get a new vehicle every 3,4,5 years or whatever then you would not be wrong to look at a lease. You just have to be aware of the interest that you are paying on the depriciation.

Renting vehicles as Captinmal states is true but owning something that depreciates the longer that you own it is not a good thing either as you will have a worthless piece of paper in a title after time (unless you have a Cummins and the engine will last forever). If I could get a lease that would be as low of an interest rate as buying I would do that. I like to have a new vehicle every three to five years as I usually like the updates on the newer vehicles.
 

·
Registered
Joined
·
13,680 Posts
Truth abounds. That other payment figure was $26K over 6 years. You still have that value and/or the truck when done. It's worth something. To lease for that long is not reasonable.

My biggest dislike of leasing is not the money issue. Sure I figure it's stupid to lease but money is made to be spent. Do what you want with yours. That personally doesn't bother me. What does bother me is that during the lease, the vehicle is not yours. You can't really do with it what you want.

It's kind of like borrowing something and then finding out you can't enjoy it because you have to return the thing without damage or marks of usage. You can't personalize the thing and that's understandable. It's not yours to personalize.

Someone asks you a simple question like, "Where's your car"? You can't answer.

You don't have a car.
 

·
Registered
Joined
·
730 Posts
Yea I mean the math works out for some, but not all was my point. For me the reward of owning is only a sentimental one.

Well yes and no, you can do with it whatever you want, you can change wheels, add aftermarket parts, install new everything...it just has to all be put back to stock before you turn it in. Once you have it they don't care what you do with it, and chances are within a 3 year period a lot of your aftermarket parts do two things, one they stay on the truck you modified and reduce it's value, and two you take them off your lease and a certain number of those parts will likely fit your next lease if you just buy an update to your current lease.

We can go round and round all day but I think both sides of this coin have equal weight. There's more exposure to a lease but it allows you to live beyond your means. Owning has its merits, but it can also be very costly if you have serious damage or repair after 8 years of ownership, whereas a lease is almost always covered by warranty meaning the cost is always known unless you do unreasonable damage yourself. I've replaced my brakes, blown a water pump, I have a bad front wheel bearing on my 3rd set of tires that are nearly bald, had two alignments, and I'm getting metal on metal contact somewhere in the front end that hasn't been diagnosed yet.

The value of these items listed above exceed the entire value of my truck today.

Penndiana, I didn't work out the residual value on any of my online builds but I'll try it today and let you know.
 

·
Registered
Joined
·
730 Posts
After doing the math, my projected lease for my loaded Laramie over 36mo would cost me $14,652, or $407/mo. Adjusted capitalized cost is $39,290, leaving $24,638 in residual value.

The same truck to buy works out to $685/mo for 60mo, or $24,660 over 36mo.

I'd estimate I'd save between $50-60 in fuel per month making my out of pocket monthly lease around $350 for a loaded Laramie.

$10,000 I don't spend in the next three years with no vehicle without warranty exposure in the future...hardly the awful picture some paint on leasing.

EDIT: Oh, and I included an extra 5,000 miles in these costs, which was around $50/mo in leasing costs. So I really could be around $300 in out of pocket leasing expense a month.
 
1 - 20 of 24 Posts
Top