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Old 03-15-2015, 12:28 PM   #15
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Beg to differ

Well Papi, I'll use your numbers.

Leasing; $724 a month for 36 months = $26,064 + $4,000 = 30,064

if at the end the truck is worth 22K then that's a total of $52,064

Buying; 45K plus 6% sales tax is $50,231.

60 months at 2.9percent is $754 a month.

After 36 months, that's $27,144 + $5,000 down payment = $32,144. You owe $18,087 to pay off whereas you own 22,000 in the lease. But you could sell your truck for a profit of $3913 if it's really worth $22,000. The lease you have to give it back with no ownership or profit.
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Old 03-16-2015, 12:45 PM   #16
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You still don't seem to understand, so here it is right from the Dodge Truck web site.
I will use their standard equipped "Outdoorsman" 4X$ with the 6'4" bed, Crew cab.

Lease is $386/mo for 36 months; with a .06% sales tax, that's $409/month with $1800 down. At the end of the lease you will have paid $13,896 + 1800 or $15,696. The residual cost to purchase at the end of 36 months is $19, 215. (Most residuals are at or about 50% of the sticker price)

Buy at $38,430 plus .06% sales tax = $40,736 - $1800 down = $38,936/60 months = $649/month payment.

Any way you figure it, a lease is a better, more efficient way to go. At the end of the lease, if you don't like the truck or you want a different vehicle, you can turn it in or sell it. If you buy it, you are basically stuck with it until you are not upside down or you lose money on a trade or sell for at least 4 years.
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Old 03-16-2015, 03:31 PM   #17
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It depends on how you use your cars.

If you continue leasing then there'a never-ending payment. I tend to buy my cars for cash as they come off lease with a 50% price tag from new, then keep them until I decide it's time to sell after three or four years, making back about 1/2 of what I paid for them, then rinse and repeat.

That way I pay about 1/4 of the price of a new vehicle every four years, but get to drive cars that are, these days, as good as new - our Honda arrived with less than 25k miles on the clock and was absolutely spotless. I tend to buy dealer serviced vehicles with a warrantee and never had any issues that way.
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Old 03-16-2015, 05:27 PM   #18
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I always buy, but at the end of my lease, no matter how many miles. Again, with the money you would spend on a used vehicle in all cash money, say $25,000, you could lease a brand new vehicle and pay the monthly payment, or, you could pay the 24-30 month lease total up front and get a discount for a lump sum payment, probably around $16,000. Then you would have no vehicle payment for the lease term and have $9,000 left over to save or whatever. At the end of the lease, if you made payments to yourself over the 30 month period, you would have enough to buy the vehicle at the end of the lease, turn it in for another new vehicle lease or whatever. Many more choices. This way you get the latest technology and safety improvements and you are never upside down and have the option of turning it in, buying and keeping or buying and then selling. But, to each their own.
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Old 03-17-2015, 04:02 PM   #19
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Well thanks to everyone for their comments. The leasing issues raised were interesting. I can see when people such as Moflash want a new vehicle every 3 years and are willing to spend $5k/yr for this privilege, then leasing is the way to go. I'm different. I don't mind driving a 15yr-old vehicle if it is still reliable. Just yesterday, my wife traded her 14yr-old Honda, which she bought 10 years ago (at end of someone's lease), for another 4-year old (end of lease) low-mileage Honda in perfect shape. I would have driven the old one as long as possible. She plans to keep it for 10 years again. Cost of ownership/yr is a lot less than driving new every few years. To each is own, but I'd rather have my money earning money rather than owning depreciating assets.

Back to the initial query, maybe some form of partial financing might work. I haven't found anything suitable yet for $20k, but for a few thousand more there are plenty of 3-4 year old F-150 and Ram trucks around. I'm starting to lean towards F-150 (probably 5.0L). I'll look into the leasing aspect since tax here is 13% on purchasing anything.
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Old 03-17-2015, 05:16 PM   #20
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Originally Posted by cramar View Post
To each is own, but I'd rather have my money earning money rather than owning depreciating assets.

Back to the initial query, maybe some form of partial financing might work. I haven't found anything suitable yet for $20k, but for a few thousand more there are plenty of 3-4 year old F-150 and Ram trucks around. I'm starting to lean towards F-150 (probably 5.0L). I'll look into the leasing aspect since tax here is 13% on purchasing anything.
You and I think alike. I don't normally finance depreciating assets.

But one thing I have done to obtain my perfect 820 credit score is finance things when I have either 100% or 50% of the cash. But usually never finance if I don't already have 50%. I'll set the cash aside in an savings account and then pay it off in a year. Usually 9-10 months reflects well on credit.

So if you have 20K, and access to a credit union, and you found a truck for 28K I'd finance 20 and put down 8. Put the remainder in a savings account and pay out of it every month, try to spread it out for at least 9 months min. Anything less isn't really a boost to your credit.

A number of years ago I started building my credit this way. I borrowed $1000 from my credit union, setup automatic payments and around the 9 month mark paid off the remainder. Then I went back and borrowed 5K, then after that I had saved up 12k to buy a used car. We put the 12K into an account and got a used auto loan. I kept that one a tad longer, 12 months paid off.

The difference IMO is that in any emergency I can quickly exit my loan. VS MR. Leasing who if he loses his income is ____ up a creek without an emergency fund.

Leasing is great if you want a new truck all the time, but 38 > 20 because MATH.

However as I mentioned earlier, nothing wrong with leveraging to your advantage.

At least, this is my own personal opinion on the subject. Everyone can use their own tools to achieve their own goals.

I've heard good things about the 5.0 in the Fords. My wife liked the interior on Ford better, but I preferred the Ram's interior. I've always been a Chevy guy, but the year models we where looking at really disappointed. I felt Ram was giving me the most bang for dollar with the options we wanted.

Leather, Heated/Cooled Seats, Tow Package, Ram Boxes, Sunroof, console, 4x4, 3.92 gears and came in at 26K.

The Lariat's and King Ranch's I looked at over on the Ford side kept costing even more or if they where the same price had higher milage. But in the end, you buy what you like.

Good luck in your quest.
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Old 03-17-2015, 09:55 PM   #21
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I do not lease a tow vehicle as it does not make sense.I purchase it and put down 30% and finance it for 72 mos at 2.9% interest.I trade every 36mos or 39900 miles.
I never pay cash for depreciating assets.instead use my cash to make money and find that I can make a lot more with my cash than the 2.9% interest.
Driving a $67,000 MSRP truck for $5000 a year is cheaper than leasing by far.Leasing a 2015 F350 with this Msrp would result in a monthly payment in excess of $1000 per month plus sales tax on the payment add the mileage penalty for any excess mileage over 12000 per year and and if you do choose to buy at the end of term and now u pay the tax on the buyout.
My way is also cheaper than buying a base model truck then trying to trade in 5-6 years with 100000 miles as the truck now has little value.
Driving a vehicle into the ground is a costly error that a lot of people make as a vehicle is never really paid for as repair items come into play and resale value is depleted.
I have been in the automobile business for approaching 40 years now and have leased,financed and sold thousands of vehicles ranging from Chevrolet's to Lamborghini's .I have put a pencil to every possible scenario over the years.
This is the cheapest way to drive a new tow vehicle period.
There are at times factory subsidized lease programs available for passenger vehicles.There are times when it's foolish not to lease but alas trucks being used as tow vehicles do not fall into that category.
Does my system work for everybody no it won't but it works very well for my usage.


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Old 03-17-2015, 10:48 PM   #22
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That's leveraging to ones advantage, great example. I have never considered that. I might have to do some math.

Kind of why I like the idea of treating a vehicle like a liability and not an asset. Assets earn money. An asset that is depreciating isn't much of an asset when it's worthless now is it.
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Old 03-18-2015, 12:20 AM   #23
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Moflash, I like the way you think, I think. When you trade in for your next vehicle do you put down another 30%?
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Old 03-18-2015, 09:43 AM   #24
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Moflash, you obviously have the experience to figure out the best way to drive a new truck. What I've wondered over the years is what is mathematically the cheapest way to drive a vehicle…period! Maybe buying outright a used one at 50% and selling when 25%, hopefully before major repairs are necessary. There must be some formula. What cannot be easily factored is when some major repairs are forthcoming. But financing might be cheaper than cash buying when interest rates are low or if you can write it off.

For me all I can think about is that if I can reduce the $5k/yr to $2k, and invest the difference, over 30 years that ends up with quite a bit extra change.
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Old 03-18-2015, 10:45 AM   #25
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With a lease, you are basically paying the depreciation off for the lease period. On an outright purchase, you'll be paying the whole amount for the vehicle, plus sales tax on the entire amount, and then you lose about 20% as soon as you leave the dealership. Unless one is towing constantly or towing commercially, I don't see where it makes any difference in buying or leasing a vehicle from that stand point.
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Old 03-18-2015, 11:02 AM   #26
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So why don't you have a newer truck?
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Old 03-18-2015, 12:37 PM   #27
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So why don't you have a newer truck?
"Pappy" probably won't say, but it may be because Ford discontinued the gas guzzeling, spark plug spitting V10 engine he speaks so highly of in their 3/4 ton trucks, and we all know he's a die-hard Ford driver.
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Old 03-18-2015, 02:23 PM   #28
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No Steve, it's because my 2008 V-10 is running just fine and I'll take the 3-4 mpg less in mileage compared to the $19.95 oil changes and $10 fuel filters, not to mention the .50 cent+ difference in fuel cost. Oh yeah, I forgot the initial $8,000+ cost of the diesel engine. And I don't have to worry about the front end falling apart since I have a Ford and not a Dodge.

Cheers-
Pap
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