truck leases

What do you guys think about leases I'm 16 and I'm looking for a 3/4 to have if I want to pull a trailer I don't like borrowing one all the time I see ads with leases for under 200 a month and I can do that I definitely wouldnt go over the miles your limited to I currently have a ford ranger but would like to keep as it was my grandpa's truck so is the lease a bad idea or a good?

depends... long term is a bad ideal as you pay for the vehicle and have to give it back. consumers reports says you loose about 2400 bucks on a 3 year lease.

However short term, and short of capital, it can be a viable solution so you dont tie up your capital and credit. But again, short term solution. You use it for the project and give it back when it over. Renting for even shorter term projects may even be better for occasional needs.

Long term your better buying,, and even better buying one a year old or more with warrantee left. someone else took the big hit on the new to used bit and you step in at a better value.


Most of us fall in love with the ideal of the vehicle so no logic will talk you out of it.

Can you afford the insurance and taxes which are going to at least double, since you are only 16?

Leases are for people who think they need a vehicle much more expensive than they can afford!!!! Unless you have a business that will pay for it. It sounds like you are a very unlikely candidate to need a new truck. Not trying to be mean, but those are the facts as I see them. Do you want to own a truck or do you want a truck to own you?
Keeping your paid for truck and renting one or hiring the hauling done when you really need it is probably the best way to go.

Dumbest thing you can do. You're better off buying a cheap, used clunker and driving it for a while until you can afford to put a GOOD downpayment on a new vehicle, and not having as large a monthly payment. Making an effort with a goal- putting money away for a new truck- may surprise you how fast you can put money away. Those salesmen at the car dealers just love to see someone leverage themselves to the hilt to get a new vehicle. And when you walk in with cash in hand, you can almost tell them how much you're going to pay for a vehicle. And, if they don't like it, you can go to the next dealer. It really makes car shopping a lot of fun!!!

Don't lease. If you're going to spend the money either way, it just as well go to something that you can own. Then you can be the person to decide what you want to do with it. It's similar to renting. There are times when renting makes sense but if you can afford it you just as well buy it. That way you will have equity. So instead of leasing a newer rig that you'll say goodbye to in a couple of years with nothing to show for it may as well purchase something that may be a little used, but will be yours.

Of course this is just my opinion but hey, you asked. Good luck

Josh

You would not be able to enter into a lease contract at the age of 16.

It's not a good idea man...

I have been looking at putting money down, and then payments on a 2007+ Duramax truck, even that is a little hard to see being feesable.

I wouldn't spend a dime on something if it was never going to be MINE.

Bryce

A lease works best for commercial vehicles where the lease costs can be expensed instead of depreciated. If you won't drive it a ton of miles, consider buying a lease return vehicle or an older vehicle instead of a new vehicle.

If no one has mentioned to you yet, beware of long term financing on a vehicle. People see the low monthly payments and don't realize it's mostly interest payment at high interest rates. At trade-in time they are underwater, they still owe more on the vehicle than it is worth as a trade-in.

Not dissin' ya, but you just brought my youngest son to mind.

I guess with young guys a big truck is like the old muscle cars of my era.

Man I wanted a Heavy Chevy!!!. But no denero.

Never got one. Never got that new Kawasaki motorsickle I wanted either.

But, back to my youngest son. He got his first job. Had a brand new Honda Civic, his first new car. I was so glad cause I was tired of fixing up his old clunkers and his constant wanting something different.

So one day he calls to tell me he traded in this new car on a 2008 Dodge Duramax, big ole diesel.

First thing was it needed $1400 of new tires. Then he called today to say it was steering real squirrley and the dealer had put a new steering gear on it and that didn't fix it.

He lives in town, in an appartment. He has no trailer, or anything to haul. Needs that big truck like a hole in the head.


Oh well, I put no money in this one, so I'll hold my tongue.

I made some big blunders in my day. Oh, wait, we aint talking about ex-wives here!!

Gene

naw
leasing a truck would be the same as you are doing right now...just costs more.
You are still 'borrowing' a truck.
It's not yours, you have to give it back, and they keep all that money.
Put all the down at signing money, and all the payments in a bag.
You want to hand that bag over to them to 'borrow' their truck?

watch your finances and budget, when you can afford a new truck...buy one.
til then, you have your Ranger to drive., buy a used, ugly, cheap, but good truck for the trailer.
Working your way up the vehicle 'ladder'.....ya gotta get some rungs under ya....leasing, you aren't really on the ladder at all.
When the lease ends, you have nothing and are in the same position you are right now...just 3 years later.

The first thing I would do is start using better sentence structure and punctuation.
Then your writing will be easier to read and better understood.
Some folks think if they use a cell phone to post they can dispense with punctuation. Not true.
This is from a cell so I know it can be done without much extra effort.

(quoted from post at 19:00:52 10/29/15) Not dissin' ya, but you just brought my youngest son to mind.

I guess with young guys a big truck is like the old muscle cars of my era.

Man I wanted a Heavy Chevy!!!. But no denero.

Never got one. Never got that new Kawasaki motorsickle I wanted either.

But, back to my youngest son. He got his first job. Had a brand new Honda Civic, his first new car. I was so glad cause I was tired of fixing up his old clunkers and his constant wanting something different.

So one day he calls to tell me he traded in this new car on a 2008 Dodge Duramax, big ole diesel.

First thing was it needed $1400 of new tires. Then he called today to say it was steering real squirrley and the dealer had put a new steering gear on it and that didn't fix it.

He lives in town, in an appartment. He has no trailer, or anything to haul. Needs that big truck like a hole in the head.


Oh well, I put no money in this one, so I'll hold my tongue.

I made some big blunders in my day. Oh, wait, we aint talking about ex-wives here!!

Gene

Click to expand...

BIG mistake buying a Dodge duramax.....Hmmmmm

Hey, a Duramax will fix up ANY Dodge...

Not a great idea. As stated before a lease is great for commercial applications/businesses where the payment can be expensed and the truck will see use, not great for personal use. Being 16 I'm not even sure you can enter into a lease payment. The lease payment will probably be the cheapest payment of the whole deal, you will have to factor in insurance, fuel, repairs, and you better not put a single scratch or dent on the truck or you will pay through the nose at the end of the lease to fix it. Also just be aware that the actual lease payment will be probably be more than the $200 advertised in the ad, many times the price quoted is before fees, taxes, and interest.

Best bet at your age is to buy an older but useable truck outright, one that will be reasonable on insurance, that can be beat on without worry, and that you can fix yourself.

Don't do it. I'm 24, saving for a house and my trailers were taxing my Tacoma to the hilt. Had to replace a few leaf springs, and replace several axle seals from being overloaded.
Found a 89 f250 diesel, low milage no rust with 5th wheel hitch working 4x4 for 3000 at the start of the month. It's a little slow but I had 2 bobcats and a walk behind trencher on the gooseneck today and it hauled it great. I would have liked to get a newer duramax but this will work for a couple years.

Keep the Ranger, open a savings acount and pay yourself $250. a month for two years that will give you 6K for a down payment and go find a 2 year old low mileage truck.

Leasing a vehicle usually only makes financial sense for a business with tax advantages and a need for a reliable, newer vehicle. Another situation is a [u:567d94ed69]very[/u:567d94ed69] high dollar vehicle, where taxes are only paid on the value of the leased term. Another thread today may reveal that almost every vehicle on the lot is very high priced. I think a very young person jumping into a lease for a personal vehicle is the worst possible option and will hurt your financial future.

You need to understand the concept of deferred gratification. It is the SINGLE MOST IMPORTANT CHARACTERISTIC of successful people. Deferred gratification mean not having what you want right now so you can have something better at a later date. People who get it wrong are doomed to a life of poverty, or at the best perpetual indebtedness. Although deferred gratification usually refers to purchases, it can mean other decisions such as whether to stay in school or what sort of jobs you take.

In the past forty years, the US economy has shifted from one based on manufacturing to one based on finance. The finance industry needs to get folks hooked on credit as early as possible so they can have them in debt their entire adult lives. You don't have to succumb to the enticements of the financial sector any more than you have to try that first snort of heroin. Credit is a powerful tool if used wisely, but it takes maturity to handle it.

You should realize that it's not really possible to drive a new $50K 3/4 pickup for 200 bucks a month. Those ads are teasers; they assume high down payments, short lease terms, very low mileage and excellent credit. (Despite the name, leases are just a different way to make a purchase on credit.) The real cost for a typical buyer will be much higher, although even if you double the monthly payment that's still pretty cheap compared to a four or five year loan. But what do you do at the end of the lease term? You either need to buy the vehicle outright (you would have been better to buy it up front instead of leasing), or you have to lease another vehicle and repeat the cycle.

Of course, since you're not yet 18, you can't buy or lease anything. You have to get your parent or other adult to sign for you. Is it fair to put them on the hook if you can't afford the expense of a new vehicle? And since you have little driving experience, full coverage insurance will be astronomical.

Save your money, stay in school and buy a used vehicle you can afford WHEN you can afford it.

As others have said only comercial vehicals to a bussiness that can take entire costs off as bussiness expence should be able to lease. This is me saying leases to private people like yourself should be baned by law. If I was looking for a new vehical and looking at advertisements in paper if I saw whjat I was interested in if it said lease for $XXXX I would not even contact the dealer about it. You would be paying ten times what you should be paying and have nothing left to show for it. And I have owned cars for over 30 years.

If you need a lease to afford a car you can't afford the car. A lease only works for someone (or a business) that likes to have a new car every year or two and is looking to avoid some of the depreciation hit they would take trading that often to keep new cars. If you are looking at a lease as a means to afford a car that you normally couldn't afford you are going to get hosed.

MarkB knocked it out of the park with his comment!!

Not sure I agree with the concept of buying a 2 year old vehicle, unless it is from an individual and price is right. Every time I went shopping for a couple year old truck at dealers I found I could buy new for almost the same price, and have zero miles, full warranty, and avoid buying one that had been wrecked and fixed. Dealers tend to price those 2 year old vehicles a few thousand below sticker of new, which at first glance appears to be a good deal compared to what you see on that sticker, but keep in mind no one should be paying anywhere sticker for a new one. As a matter of fact, I purchased a 2011 full size new a few years ago that stickered for roughly 36,000. By the time discounts, rebates, etc was taken off, I was down to roughly 30,000, then by time I negotiated, they took off my trade, etc, I was down to roughly 18,000. I am fairly sure that a 2 year old similar truck at that time would have likely easily been in the 30K range which would have put me paying nearly the same $$ for a used truck. Any more I either buy new when best discounts are to be had, or older stuff from individuals. My daily driver is a 1998 model with over 260,000 on it which I paid 2,000 for a couple years ago. I figure that one is probably worth about what I paid for it (if someone is willing to overlook the high miles), so cost of ownership on that one is very low. Unfortunately, I cannot say the same for the 2011 truck.

Pickup might hold their value better than car. From what I've seen most 3 year old, 35,000 mile lease return cars sell for around half the price of a brand new one.

I do agree on that.

You are too young to lease. At your age you cannot even RENT a car or truck for the day.

If you lease a vehicle you are buying one for someone else. I was looking for a nice, late model used sedan for wife. Looked at a nice 3 year old car a man had
leased for his teenaged daughter. She obviously had taken care of the car and it was clean as a pin. He had another month to go on the lease contract. He and I
thought I could buy the car from the bank that leased it. I called the bank. They wanted top book price for the car. The man not only had another month to go on
the lease, his contract called for him to pay and additional month's payment at the end of the period( I guess just for additional profit for the bank) Then the
bank said they couldn't sell me the car directly because they did not have a local state dealer's license. The man would have to pay off all that, then buy the
car, then sell it to me. Oh, BTW, the man's wife had co signed the lease, had to sign off on the deal, and they were going through a divorce. I decided they were
still making cars and I didn't need that car. Also I decided not to do business with that bank, ever.

KEH

Thanks for all the input I think I need to rethink this from the answers

I'll repeat what was just said: you have to pay for any damage to a leased vehicle, and it is pretty hard to use a truck without putting dings and scratches on it. Expensive repairs for cosmetic damage.