It's time for a new tow vehicle and we are considering a new pickup truck but I don't understand the hidden stuff behind leasing a vehicle? Dealers work the numbers 3 different ways, its more like a magic trick and I'm waiting for a rabbit to jump up on the desk. If I were leasing or buying the same vehicle and putting the same money down, is it really cheaper to lease and then buy it out after the lease? How does it all work?
If you put the same money down for a lease or if you were buying a vehicle, your payments will be lower BUT, after 36/48 howevermany months, you must return the vehicle. In the end you have nothing. If you finance it, your monthly payments will be higher, you can do it for longer BUT, you keep the vehicle at the end. There are other specific's, but that is what the deal is.
I don't think I have read any article that says Leasing is a good financial decision because in the end.....you have nothing. That doesn't mean that leasing isn't a good option for some people.
My mom is a recent widow and she is looking to lease a vehicle. Previously my parents only bought used with the money they had or financed a vehicle. Now, she wants to turn it in every 2 years and get a new one. She doesn't want to worry about any repairs other than an oil change. She doesn't want to have to worry about something breaking.
When I was younger I was thinking about a lease because I didn't have that much for a monthly payment. I opted to finance a stripped down vehicle with crank windows and manual locks, etc (or lack of etc) and the payment was in the same area as if I bought one that had options.
Matt O 2006 Skyline Nomad 27' travel trailer. Previously owned 1986 Coleman Columbia / 1992 Coleman Senecca / 1989 Born Free Class C RV.
I don't like leasing. At the end of your lease not only are you left with no vehicle but you have to pay to return your vehicle. There's a term for it but I don't remember what that is. Also, you have to keep the vehicle immaculate and under the allowed mileage. Otherwise you'll have to pay and the amount is not negotiable.
Tony, you don't have to pay to return the car UNLESS you go over the mileage or do damage. Lots of times they will overlook any damage or mileage overage if you get another vehicle from the same dealer.
Matt O 2006 Skyline Nomad 27' travel trailer. Previously owned 1986 Coleman Columbia / 1992 Coleman Senecca / 1989 Born Free Class C RV.
Whether to lease or purchase is definately dependent on your circumstances.
I've done both over the years for various reasons. Leased a vehicle for about $125/month when my youngest step-daughter was in college for her to use. That way we didn't have to worry about it breaking down 4 hours from home. And when the lease was over, it went back and she got the opportunity to purchase her own vehicle.
I also leased when both step-daughters were in college, leased a truck for myself because we simply could not make the mortgage payment along with college tuition for two and afford a reliable vehicle for me. The truck was our tow vehicle (pulling a 26' TT). We had to install the break controller. At lease end, we removed the break controller and turned in the vehicle - no issues, no return fees, we didn't exceed our mileage limits of the lease.
Since my circumstances are different, I don't lease - I purchase.
As long as you understand the pros and cons of each option, then you can make the decision that best works for you.
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