CAPTMEO

I know that this question is asked and answered all over the web quite bit, but I think I actually appreciate the input here...

I'm looking to replace my wife's mini van after almost 7 years. It's between another 'practical van' or a new Expedition. To keep the payments reasonable it would either be buy the van or lease the Expedition.

What's the consensus?

Thank you

asidrave

What are the numbers you working with?

gregsf150stx

Not enough variables to start a real conversation.

CAPTMEO

Ok, I should have seen that coming. I hate to be car broke. My usual MO is to trade shortly after paying off and keep the payment below $400, by cashing in on the equity. We currently have a 2011 Toyota Sienna AWD with 93k on it. Honda is willing to give me $15,500 (high end blue book) on trade toward a new 2018 Odyssey (under $400). We want a new Expedition, but with an almost $60k price tag the payments would be crazy, even with $16k + down. A lease would be $400 +/-.

We averaged under 15k miles a year, so I'm not really afraid of going over, but you never know.

The one dealer believes that with the price of large SUVs and trucks climbing, leases are going to be the norm.

rocky raccoon

Buy vs. Lease is strictly an affordability issue. I have leased a car that I could never afford to buy and was pleased with the deal. I was particularly pleased when it was stolen two years into the three year lease. I simply called the leasing company and told them that someone stole their car. They said, Too Bad and do you want another one?

butcher73

how much money down is figured into that $400 payment for the lease? ...hopefully not $16k.

Devildog9999

I lease because I am just plain old and cannot pull wrenches anymore. I REFUSE to put a penny down, and stand firm with the sales folks on what I am willing to spend per month, and what I want. Normally we meet in the middle and both parties are happy. Drive it for 2 and a half years and get a new one simple, sweet, and easy. Yes - I never "own" it, but at this point I would rather drive a new one every couple years and not have any headaches. In your case I think you need to just decide what you HAVE TO HAVE on a leased vehicle based on what you want to spend and then work out the details with the dealer on any down payment or additional perks.

German_truck

lol. seriously. +1

A lease makes sense if you WANT a new truck every 3 years and don't drive a lot + are willing to pay for the massive depreciation with your monthly lease payments.

the residual value at the end of the lease is generally higher than what the used car is actually worth - so buying it out is not a great way to purchase...

when you lease you never have any equity in the vehicle and pay for the depreciation and the privilege to walk away after 3 years and get a new vehicle...

leasing as way to "afford" a vehicle you could never finance is a financially speaking a very dumb concept... kinda like renting a luxury mansion because you are too fancy for a normal house with a much lower down payment and reasonable mortgage.

German_truck

... might be cheaper to finance and buy a service/ maintenance plan on top.

butcher73

^^^ based on some stupid math, it does appear the OP would put the $16k down on the lease (not a great idea...). $16k divided by 36 months = $444/month. I'm assuming a lease on a new $60k truck would be $800-900 per month and OP was hoping to get to around $400. $850-444 equals roughly $400/month.

Just remember this... end of 3 years, you go back to the dealership at end of lease. Let's do another one bc we like it so much. Well hold on, the down payment is gone... you'll be $800-900 per month on lease for the same truck.

Sounds like you may be looking at more truck than you are willing to pay for if $400 per month is your threshold.