I've always avoided the whole leasing vehicles thing mostly just cause i don't exactly trust dealers. So tell me the details here, I know nothin about it except at the end you turn it in. Mileage restriction? How do you handle the Mods made? What about any what the dealer considers damage? Up front cost and end of term cost? How do payments compare to buying? What if I elect to buy it at the end of the lease? What is the advantage or disadvantages of leasing as opposed to buying? I'm sure ther's more that I haven't thought of yet.

 

I have never leased a vehicle so I really don't know all the in's and out's, There is some good info in here>>>>Lease vs Buy? Car Leasing versus Buying Explained

 

Dennis,

I lease ALL my vehicles and have for about 12 years now. There are some major advantages and of course some disadvantages as well.

Advantages:
Payments ussually lower
New vehicle every 2-3 years depending on term
Always have warranty (important to me)
For business owners 100% write-off (at least in Canada)
Hassle free return to dealer at end of lease

Disadvantages:
Mileage restrictions 20k (low km lease) or 24k (high km lease)
Limited to mods that you can do (sorta)
If ya love it, you arent keeping it!
Hard to get out of in the first year, but no different than financing

For me personally I lease all of mine for these reasons: I can write off MY vehicle 100% agaisnt income tax. I use mine for work, and I need something reliable so I want and need warranty. Some people complain that you dont have any equity in a lease but compared to anybody in a 4-5 year finance I actually do better. I will wear out a truck in 2 years and this is an easy way for me to replace it regularily. Last reason, the payments are less than a finance.

Mechanics of a lease: MSRP of a New Mega = $66,000

Residual Value (or Lease end value) after 24month lease = $36,000

Purachase price negotiated with Dealer: $58,500

$58,500 minus the residual of $36,000=$22,500

$22500 is the amount that you actually make payments on...

$22,500 divided by 24 months (term)=$937.50/month for 24 months

So you pay $937 for 24 months then you turn it back or you can purchase it for the $36,000 Lease End Value Or sell it privately and pay out the lease. If you sell it for MORE than $36000 then you pocket the cash, less and you owe the dealer.

I am allowed 48,000kms for 24 months, I always put more than this on so I have 2 options. Pay 12cents/km and turn it back, or sell it then the kms dont matter. My dealer always buys back my trucks so I seldom worry about the kms. This year was the first time that I have had a problem because Canada has adopted US pricing and my USED truck was worth what the new one was, so I had to pony up some cash for the difference, but for me, I get paid to drive my truck so no big deal. Had I turned the truck back to Chrysler I would have had to pay about $6200 for excess mileage, but I have never done this yet!

My lease rate 3 trucks in a row has been 0% so I am using their money for free!! VERY NICE!

Mods: Since my dealer sells the trucks I mod them, if I turn it back to Chrysler it has to be the same as it arrived so I always keep anything that I take off...Today I spent 10 hours taking stuff off the old truck and replacing it with the factory stuff (intake, silencer ring, removed EZ) custom exhaust, tires, lift will all go with the truck only because it is cheaper to leave it on then to replace it all.

There is probably lots more, but this covers most of it...

 

wish I woulda known Longhorn...I've got stock suspension minus the rear blocks you coulda had

 

Dennis, its depends on the state laws. In Texas you will never see anyone do a lease because you loose your *** because of insurance rates and taxes. You have to check the leasing laws in your state to see if its worth while or not. I California is a state that the lease seems to work out ok.

 

$900 plus for monthly payments on a truck that will never be yours, not including insurance and operating cost was enough to tell me what I wanted to know. That's why I refuse to rent land or Apartments, all the money just goes into somebody elses pocket and nothin ever comes back. Even though I write my truck off on taxes also, that's stll out of my league to be able to afford up front waitin for tax time.

A new truck sure would be nice but in my world there's not a truck made worth that kind of money in today's economy. I know everybodies situations and needs are different and this is the right thing for some but not this poor country boy.

 

we leased our grand prix, it was a four year lease and if you go over the allowed KM you have to pay per km after that 10cents each one. We ended up owing 14,000 after four years at 350 per month, plus insurance. the thing is you can buy one with less km for under 14,000. So we just traded it off for the dmax. basically started from scratch with a new truck. its not leased though and they payment are a bit higher but its a truck, all the km are wrote off though on this one, like longhorn said, its better for buisness, I dont think you can modifiy it cause its not yours, and they alow wear and tear but no dents or accidents. Just need good credit.. here anyhow.