Lease to own good idea?
#1
Senior Member
Thread Starter
Lease to own good idea?
Iv been looking to get a new truck and iv talked to a few dealerships about my trade in and iv gotten good offers but still not where i want to pay a month. So im thinking of leasing and saving some money up this way with a lower payment then buying it after the lease is up is this a good idea or not?
#2
Not a good idea. From what others have told me, the price to buy it at the end of the lease is usually more than the vehicle is worth.
I'd never lease, makes no sense at all. You are limited to very VERY low mileage, unless you pay an expensive charge for every mile over, yet you make a payment the same or a bit less than what it would cost to buy it.
I guess if you get rid of cars every year or 2, it saves you from losing money from low balling dealers that want to screw you on the trade in value. Never happened to me because I just walk and go to another dealer.
If you can get what your truck is worth, but can't afford to get a new truck because of high payments, keep what you have or get a different truck that you CAN AFFORD.
Hek, I wanted a 2012 F250 loaded the same as my truck, but the cost was $4000 more MSRP and I would lose $3,500 in rebates, plus my mileage would drop about 4 mpg. I wouldn't be comfortable paying that much for a truck or the monthly gas prices so I stuck to a truck that had more comfortable payments and lower monthly fuel expensives.
I'd never lease, makes no sense at all. You are limited to very VERY low mileage, unless you pay an expensive charge for every mile over, yet you make a payment the same or a bit less than what it would cost to buy it.
I guess if you get rid of cars every year or 2, it saves you from losing money from low balling dealers that want to screw you on the trade in value. Never happened to me because I just walk and go to another dealer.
If you can get what your truck is worth, but can't afford to get a new truck because of high payments, keep what you have or get a different truck that you CAN AFFORD.
Hek, I wanted a 2012 F250 loaded the same as my truck, but the cost was $4000 more MSRP and I would lose $3,500 in rebates, plus my mileage would drop about 4 mpg. I wouldn't be comfortable paying that much for a truck or the monthly gas prices so I stuck to a truck that had more comfortable payments and lower monthly fuel expensives.
Last edited by Mike Up; 04-13-2013 at 03:54 PM.
#3
Senior Member
^x2. Paying extra money for driving does not sound very good to me. And what about mod's? If your leasing, can you mod? I dont see how you could. Save your money
#4
Senior Member
iTrader: (5)
I leased my 2011 fx4 for two years and my purchase price is 26,000. The truck is valued around 35,000 give or take. So in my case the truck values more than my purchase price because of the equity I have in it. The dealer doesn't inspect the truck if you buy after the lease is up. They only inspect it if you decide to turn it in so you are free to mod it.
#5
I've leased then bought it. Worked fine. Not the "ideal" thing to do, but it got me into the truck I wanted at the time.
#6
Iv been looking to get a new truck and iv talked to a few dealerships about my trade in and iv gotten good offers but still not where i want to pay a month. So im thinking of leasing and saving some money up this way with a lower payment then buying it after the lease is up is this a good idea or not?
A good example, my 11 fx2 had a lease end residual after two years of around $26k. I did an amortization and found after two years of payments my payoff would be 1400 higher... Made great sense for me...
A lot of people say no to leases because they don't understand them. They have always worked well for me and I have done six or seven leases...
#7
If you mod you would have to remove at the end but most people don't turn it in, they trade it in, keep it or sell it.
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#8
It all depends on the deal. If you understand how it works, then it can work out for you. Biggest problem is people don't understand it. All a lease is, is financing the difference of the agreed upon purchase price versus the agreed up residual value at lease end. The money factor (interest rate) is applied to the even monthly payment, and tax is added based upon the portion of equity that you are paying off. If you plan to keep it, and buy it at lease end, then the miles don't matter, nor does the condition of the vehicle, but you better settle for a residual value that is what you would be willing to pay for the truck at lease end. Also, if you plan to buy it at end, the more you can put down, the lower the payments will be, but if there is a chance that you will turn it in, put as little down as possible, as that money is GONE. The biggest risk you take if you make a good deal, is the finance rate for a used vehicle at lease end could go way up making your overall payment for the truck more than what you would have paid if you just bought it. The biggest downside to a smart lease deal is the length that you will pay on the vehicle, say 3 years for the lease, and then another 5 for the buy is a long time to make a payment on the same vehicle. People usually won't keep something that long, or get tired of paying for the same vehicle and try to get out, screwing themselves.
Long story short, it could be ok if you negotiate a good selling price, a good residual value, and the money factor is low enough (needs to be lower than an average finance deal). Btw, I leased my truck, and the difference in total dollars paid (6 year 1.9% deal with $8k down, vs $3k down and 3 year lease with proposed 2.9% 5 year loan) is less than $2k dollars. Which happens to be less than the down. At any given time my payment will be between $150-$250 less per month, but I end up having to pay on it for 2 more years.
Long story short, it could be ok if you negotiate a good selling price, a good residual value, and the money factor is low enough (needs to be lower than an average finance deal). Btw, I leased my truck, and the difference in total dollars paid (6 year 1.9% deal with $8k down, vs $3k down and 3 year lease with proposed 2.9% 5 year loan) is less than $2k dollars. Which happens to be less than the down. At any given time my payment will be between $150-$250 less per month, but I end up having to pay on it for 2 more years.
#9
Senior Member
Thread Starter
Thanks for all the replies the main reason for lease was that usually they will offer a lower monthly payment then if u buy so i figured i could use the money they gave me for trade as more down payment for the lease and lower my monthly payment more .
#10
I leased my 2011 fx4 for two years and my purchase price is 26,000. The truck is valued around 35,000 give or take. So in my case the truck values more than my purchase price because of the equity I have in it. The dealer doesn't inspect the truck if you buy after the lease is up. They only inspect it if you decide to turn it in so you are free to mod it.