Used RAM 1500 Hemi Tow Vehicle

[Moflash]

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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[BoldAdventure]

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.

[joelisac]

Moflash, I like the way you think, I think. When you trade in for your next vehicle do you put down another 30%?

[cramar]

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.

[pappy19]

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.

[BoldAdventure]

So why don't you have a newer truck?

[SteveH]

Originally Posted by BoldAdventure

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.

[pappy19]

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

[SteveH]

Originally Posted by pappy19

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

I suggest you go back and read my post. I did not even use the word "Diesel" one time.

[Moflash]

Originally Posted by joelisac

Moflash, I like the way you think, I think. When you trade in for your next vehicle do you put down another 30%?

No,only on the first one do I put money down.The reason for the 30% down is so you are liquid and never upside down.That amount is carried over to the next vehicle and now you have equity right out of the gate again.The only sales tax I pay in my state is on the initial vehicle purchased then on the trade difference on subsequent purchases.In the 36 months you are still adding to equity so when it comes time to trade even though there is a trade difference of $15000 the payment remains the same or less on the new vehicle as I have been paying down the balance with my payments.
In order to do this you must keep your vehicle perfect.I install 3M protective film to protect the vehicle from stone chips,Weatherguard mudguards and a slide in bedliner.I wax every 3 mos and keep it detailed and serviced.When it comes time to trade I detail the vehicle (spotless even underneath)and advise the dealer that I will be removing my accessories(mudguards,bedliner etc).
They put extra clean wholesale book money in my trade as my trucks sell within 10days on the lot(dealer makes a profit).But on the day I trade my trad in is cleaner than the new vehicle.As with anything it takes some extra effort but I enjoy the results.

[Moflash]

Originally Posted by pappy19

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.

You are partially correct pappy but not quite in that with a lease you are paying the depreciation (purchase price - residual value) plus interest on the entire purchase price over the term.
You pay sales tax on the payment and any down payment(capitalized cost reduction).Further more if you purchase at the end you will pay tax on the buyout.
If you trade in a leased vehicle (in a state that gives you a trade credit) without buying it at the end you receive no tax credit against the new vehicle because you were not the owner you were the Lessee(renting with option to buy).

Leases become attractive when a Manufacturer sets a high residual (exceeding 60% at times for 36mos) and a subsidized low interest rate (lease factor)of say .5% APR or less.

BMW and Mercedes do this on a regular basis to gain market share.In this case you do not want to buy the vehicle at the end of term as the buy out is higher than the actual value,so its time exercise your walk away option.

[cramar]

Anyone have any issues with their MDS system on the HEMI? Any front suspension or rear differential problems? These seem to be problem areas with RAMs according to my Internet research.

[ckottum]

Not a single problem in 40,000 miles on our 2012 Ram 1500, lots of Airstream towing. Still on original tires.

[moparjohn]

115,000 ,miles on my 2009 Ram, no problems, just oil and tires etc. MPJ

[BoldAdventure]

0 problems with ours and almost to 95K and this is a testament to what kind of road trippers we are... we bought the truck July 7th 2014 with 72K on the clock. :|

Previous owner had all service records, no problems.