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· Mopar Kid
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Discussion Starter · #1 ·
So does anybdoy know about there leases(stupid dont ever get one)? I want a new Truck/car and my lease isnt up yet. I've beat the hell outta my truck, it's sad but i was young minded when i got the truck and now wish i never did those dumb things(off-road with a 4x2, do more than 30 burnouts, and not really care). Also because of my old job my miles are over by 3,000 as of now and by the time my lease is up it will be somewhere around 10,000 over. That's almost 2,000 dollars in fee for miles, and plus the body isnt perfect. It seems like, i'm screwed and dodge is gonna give me the stiff one. Is there any way around this! :help:
 

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Buy it at the end of the lease...only way around it.
 

· Mopar Kid
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Discussion Starter · #3 ·
If i buy it, would i have to worry about fixing the body. I mean i think i will anyway but buying means like it doesnt matter what shape its in?
 

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No, you just pay the residual value that was predeturmind when you signed the lease. Meaning the trucks real condition has nothing to do with it, and the price you have to pay is non negotable, it was set when you bought/leased it originaly.

The only kicker is that the residual or buy it at the end price, is almost always way more than it is ever really worth,even if it were in the exact shape the lease terms spell out.

I have my 07 Suburban leased, it stickered at 52K GMs set the Residual at 38K after 2 years. I paid 44k for it, and its real value after 2 years had I bought it in stead of leased it would have been 28k when I went to trade it in. So I am saving myself 8-10k by leasing it. Becasue there is no way even in perfect condidtion would it ever bring 38k that the lease residual indicated. So in many cases a lease can be cheaper than owning if you know how to work it.
 

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Actually, a lease is always more expensive, because at the end of the lease period... you have nothing. However, at the end of a loan, you have your own, paid for vehicle.
 

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vanDutton said:
Actually, a lease is always more expensive, because at the end of the lease period... you have nothing. However, at the end of a loan, you have your own, paid for vehicle.
If you change your statement from always to only if you plan to own that vehicle the rest of your life or at least the normal life of the average vehicle, then that statement has some truth to it. But since the average consumer owns there car no more than 2-3 years, and in most cases a non leased vehicle finaced on a 5-6 year loan has a higher monthy payment and is typically still upsidedown in its value to payoff after only 2-3 years when most people are wanting to trade again. A lease you don't have that problem you just turn it in and get another or walk away.

I can give you an example of A Jeep Commander that I own. I bought it on a 5 year 0% loan. It stickered for 43K. I payed and finaced 39K (650 per month), it has 13,000 miles on it now with a book value of 25k. When it becomes 2 years old I know I want to get rid of it, however I will still be upside down becasue by the time its 2 years old it will have 30,000 miles and only be worth 20k at best and I will still owe over 23k. Had I leased it, it would have cost me something like 575.00 a month, and I could have just turned it in rather than writing a check for a couple more grand to cover the negative equity.

24mo x $575= $13,800.00 = leased for 2 years
24mo x $650= $15,600.00 = owned for 2 years

I would have saved myself 4000.00 dollars in payments and resale value, had I done the math and research, and seen the lease was the better way for me to have gone.

SO my point is, that many times to lease a vehicle for a average period of time, can many times be cheaper than owning it for that same period of time.

Typical rule of thumb, the more expensive the vehicle the more atractive the lease options get.
 

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Yes... but why would you want to keep a car payment your whole life? Why not pay it off and drive it until it dies? Just makes more sense to save some money in the long run. As soon as mine is paid off, I'm just going to save up in the future by paying the payment to my savings account and pay cash in the future. Couldn't this time because of college and such.
 

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cc1999 said:
If you change your statement from always to only if you plan to own that vehicle the rest of your life or at least the normal life of the average vehicle, then that statement has some truth to it. But since the average consumer owns there car no more than 2-3 years, and in most cases a non leased vehicle finaced on a 5-6 year loan has a higher monthy payment and is typically still upsidedown in its value to payoff after only 2-3 years when most people are wanting to trade again. A lease you don't have that problem you just turn it in and get another or walk away.

I can give you an example of A Jeep Commander that I own. I bought it on a 5 year 0% loan. It stickered for 43K. I payed and finaced 39K (650 per month), it has 13,000 miles on it now with a book value of 25k. When it becomes 2 years old I know I want to get rid of it, however I will still be upside down becasue by the time its 2 years old it will have 30,000 miles and only be worth 20k at best and I will still owe over 23k. Had I leased it, it would have cost me something like 575.00 a month, and I could have just turned it in rather than writing a check for a couple more grand to cover the negative equity.

24mo x $575= $13,800.00 = leased for 2 years
24mo x $650= $15,600.00 = owned for 2 years

I would have saved myself 4000.00 dollars in payments and resale value, had I done the math and research, and seen the lease was the better way for me to have gone.

SO my point is, that many times to lease a vehicle for a average period of time, can many times be cheaper than owning it for that same period of time.

Typical rule of thumb, the more expensive the vehicle the more atractive the lease options get.
That 2 grand that you "saved" can get eaten up real fast if they want you to put tires and maybe get some scratches and dings fixed when you turn it back in. Or if you go over your set mileage. If you can write your lease off on your taxes, its worth it. If you are an average guy and can't write the lease off I would buy.
 

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Tires in 30-36k should be ok, the overall care of the vihicle is really up to the buyer. You are right, if you plan to abuse the vehicle or if you drive more than 12-15k per year then you are 100% correct a lease is not for that person. Small dings and normal wear and tear are allowed including tire wear. So I do want make sure everyone knows that its not expected to be turned back in showroom condition. I like the 2 year lease myself, The car always has full mfg warranty, tires are never an issue and the payment is still less than most 5 year loans even @ 0% in some cases.

As far as why would I want a payment for ever. In some cases like my super duty that I bought new and only drive maybe 6-8k a year and plan to keep around at least 4-5+ years and my Ram that I bought used with 12k on it that I drive it 20K+ a year, on both of those trucks I did pay cash. With the jeep I took the 0% money because it was there, and I can make more money on that money by keeping my money invested.

When its a vehicle that I know I will not want to keep more than a couple years, or when in many cases the lease is the cheapest way to own it. then I lease. I am in posittion that even the Suburban that I have leased, I could have wrote a check for it, but after 2-3 years I knew I was going to need to replace it and the 38k GM set the residual at vs the 28k I am pretty sure will be the max I would be getting trade in had I bought it, the lease was at least an 8-10 grand better way to go.

A lease is not for everyone.
But in many cases they work far better for many people than a purchase, if you know and under stand how they work.
 

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Ram3500Dually said:
That 2 grand that you "saved" can get eaten up real fast if they want you to put tires and maybe get some scratches and dings fixed when you turn it back in. Or if you go over your set mileage. If you can write your lease off on your taxes, its worth it. If you are an average guy and can't write the lease off I would buy.
Its really 4 grand, 2 grand extra in payments vs the lease, and the purchase was still at least 2 grand owed more than its worth. So I have paid and extra 2 grand in payments and still have to write a check for another 2 grand when it comes time to get rid of it. Its a total of 4 grand, at 30,000 miles the tires would not have been an issue, and samll dings are allowed. So there would have been plenty of money saved to have covered anything that could have been wrong after 2 years.
 

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21000 Cash... no payments.

21000 at 7% interest over 5 years = 415.83/month = 24,901.80

Just saved yourself five thousand dollars by paying cash up front. Put the $415 in a savings account every month, at the end of that five years, you have about 26k... which soundsl like a better deal to you?
 

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Like I said, If I am buying something I am planning on keeping for 5 years or more then sure, I pay cash as I did for my Super Duty . Or in the case of my Ram, I bought it used with only 12,000 miles on it and I also know I am going to rack up a lot of miles on it something like 20,000 plus a year, so even though I am only planning to keep it a couple years or so, the miles negate the lease option. So I paid cash for it as well.

In the case of the Commander and I knew 2 years was it I still took the 0% money but should have done the lease becasue after 2 years the residual value set by the lease was much higher than its really going to be worth. In the case of the Suburban I knew 12k a year was good for what I had planned for it, 2 years was all i planned to have it, so by leasing it I am taking advantage of the really high residual factor it had and am saving my self 8-10 grand. reguardless of the intrest rate.

I don't think you can picture not keeping something till its dead, which is why a lease would not be of any benifit to you. But the norm is really 2-4 years max for the average consumer. So for the average consumer driving the US average 12-15k per year, leases can be a cost effective way to be able to drive new model cars with OEM warranty coverages, if for no other reason then the high residual factors associated with factory leases they can save a person a lot of money.
 

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I wish I could only do 12-15k a year. My average is twice that. Mine isn't even two years old and has 52k on it...
 

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In your case, I might think about trading up next summer when incentives are at there max, and get an 08' with that lifetime powertrain warranty. In another 3 years you will have 125k on that one you have now that might start getting pretty expensive to keep it running . With that new warranty you would be in a position to really get the most out you investment, picture 10years later with 250k on it, after its been paid for for 5 years and free powtrain parts and labor for ever.
 

· Mopar Kid
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Discussion Starter · #16 ·
Well, my miles are over. So do you mean buy it and then trade it?
 

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teamdakota06 said:
Well, my miles are over. So do you mean buy it and then trade it?
My last comment was really directed at vanDuttons last comment sorry about that.

In your case since yours is leased and you are going to be over on miles to the tune of 2 grand based on your original estimate. Here is what I would do. 1st I my main concern is not the miles, there are rebates on the 08s right now for $1500 on new 08 dakota's if thats what you want, so don't worry about the 2 grand.

It would be nice to be able to apply the rebate to your next purchase but its not that bad. It cost between 10-20 cents per mile in depreciation, no matter what you are driving so its not like its a total loss, had you bought the truck rather then leased it, the real trade in value would have more than likely been less every bit of that 2 grand you are looking at in extra mileage. I don't think that part of leasing the truck has really hurt your situation here. The residual value is key here.

What I am concerned with, is more the body damages that were not repaired and the possible need for tires. Those could be a problem. A lease allows for dings, minor scratches, normal tire wear. Since its leased, I am sure you were required to carry full coverage insurance, so if its bad enough that you would be charge for the repairs anyway why not just use your insurance to get it fixed. If the tires bad you might be able to snag a decent used set or something to avoid extra charges, when you turn it in.

My gut thoughts are fix the damages, turn it in, and use the rebates off your next vehicle to cover your excess miles.

It wold not hurt to have a little more info to be 100% on that.

The residual value would be something that would help (thats the price they have on your contract for what it cost to buy it at the end )?????

What extent are the damages to the truck?
 

· Mopar Kid
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Discussion Starter · #18 ·
Well, I just put brand new tires on the truck, the goodyear's suck! For the damage just see the pictures i have attached. It's not to bad, I'm thinking to fix the damage is gonna be somewhere around 600-800. I feel really stupid for beating the hell out of her but i was youngminded and just didnt care. So, now I'm gonna have to pay for it. I also painted my center dash piece black and my center console black but it look clean like it came that way. Also thanks cc1999 you have been helping a lot!
 

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· Mopar Kid
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Discussion Starter · #20 ·
Yeah, i think so more than likely but not intill july or around that time. why do you ask good sirr?
 
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