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New Stats: Avg Auto Loan: $30,032 / Payment: $503 / Duration: 68 mos


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2 hours ago, jasonj80 said:

Hard for people to grasp but people that drive a ton of miles should always lease (just buy the miles up front), and people that drive an extremely low number of miles should always buy from a financial stand point when dealing with new vehicles.  

Why?   Not accounting for differences in rebates/subsidies you're paying for depreciation either way.   My rule is if you're going to get a new vehicle every 2-3 years then leasing is easier.  If you want to keep it longer then purchasing is better or you could lease with the intent to buy it out.  That way you can keep the payments lower and you have the option to walk away from the lease if you don't like it.

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Lease to buy is not always the answer. It all depends on the specific deal.

I initially leased my Ranger, but the deal was outright horrible. My credit is spotless, but the "rent charge" on the lease was ~$6k over 39 mos.  I went in last month and bought it out after just two months and my interest charge over the life of the loan is almost half that.  If I had waited until the end of the lease, I'd be paying an extra $6k on top of whatever my interest would be when I bought it out.  No thanks.

As said earlier, don't go by the monthly...always go by the total.  If you have to worry that much about your monthly payment amount to stretch it through a lease and then a purchase, maybe you should not be buying the vehicle you have your eyes on.

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1 hour ago, Anthony said:

Lease to buy is not always the answer. It all depends on the specific deal.

I initially leased my Ranger, but the deal was outright horrible. My credit is spotless, but the "rent charge" on the lease was ~$6k over 39 mos.  I went in last month and bought it out after just two months and my interest charge over the life of the loan is almost half that.  If I had waited until the end of the lease, I'd be paying an extra $6k on top of whatever my interest would be when I bought it out.  No thanks.

As said earlier, don't go by the monthly...always go by the total.  If you have to worry that much about your monthly payment amount to stretch it through a lease and then a purchase, maybe you should not be buying the vehicle you have your eyes on.

I think I mentioned at one time how bad Fords lease programs were on the rangers and lack of incentives...they FINALLY came out with subveened purchase rates....guess what...more floor traffic...go figure!

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2 hours ago, Deanh said:

I think I mentioned at one time how bad Fords lease programs were on the rangers and lack of incentives...they FINALLY came out with subveened purchase rates....guess what...more floor traffic...go figure!

 

Oh yeah, why I signed on to that lease is beyond me.  I was enamored by the vehicle but reality hit me shortly after that is was just a rotten deal.  Buying it out after just two months was a no brainer and I still got a killer rate (and bought a 7/100 Premium Care warranty at the time too which they price matched Flood Ford).

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7 hours ago, akirby said:

Why?   Not accounting for differences in rebates/subsidies you're paying for depreciation either way.   My rule is if you're going to get a new vehicle every 2-3 years then leasing is easier.  If you want to keep it longer then purchasing is better or you could lease with the intent to buy it out.  That way you can keep the payments lower and you have the option to walk away from the lease if you don't like it.

On the ultra high mileage drivers your payment will be less that what the depreciation will be on the vehicle get past 20k per year and you’re better to lease it. This is especially true on luxury brands. 

 

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10 hours ago, jasonj80 said:

On the ultra high mileage drivers your payment will be less that what the depreciation will be on the vehicle get past 20k per year and you’re better to lease it. This is especially true on luxury brands.

So you're saying the depreciation estimates used to calculate residuals are wrong on high mileage leases?   That means they're just throwing away money.  Why would they do that?

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13 hours ago, fuzzymoomoo said:

Makes me wish I had a clue how any of this finance stuff works 

Save your money

Buy a truck, any color you want 'cause we're keeping it and not worried about re-sale.

Drive the hell out of it, cause it's yours and you don't have to worry about mileage etc.

As it ages, fix it once and while.

Take good care, and it will last 15-20 years, and several hundred thousand miles.

 

 

 

 

Edited by Kev-Mo
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43 minutes ago, akirby said:

So you're saying the depreciation estimates used to calculate residuals are wrong on high mileage leases?   That means they're just throwing away money.  Why would they do that?

It has to deal with the way the extra mileage is calculated, it is charged the same across the board so you pay the same per-mile fee no matter the cost of the vehicle. So a 65K F-150 or Lincoln has the same mileage buy rate as a 25K fusion. You're also going to be upside down during the period and if you total the car or even get in an accident you'll be far ahead in the lease route

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16 minutes ago, jasonj80 said:

It has to deal with the way the extra mileage is calculated, it is charged the same across the board so you pay the same per-mile fee no matter the cost of the vehicle. So a 65K F-150 or Lincoln has the same mileage buy rate as a 25K fusion. You're also going to be upside down during the period and if you total the car or even get in an accident you'll be far ahead in the lease route

So they are basically just throwing money away.  I guess they don't get very many of these so they get lost in the shuffle.

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23 hours ago, jcartwright99 said:

I just realized that someone brought this thread back from the dead.

So let's adjust for the present:

Average payment in 2019 $545/month for nearly 6 years.  -Ouch!

https://www.daveramsey.com/blog/the-truth-about-car-payments

 

 

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5 minutes ago, 630land said:

It's all about "keeping up appearances", to show off latest SUV, or truck.

I love how people think they know how everyone else thinks.

Maybe they just like shiny new vehicles with the latest gadgets.

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Just now, akirby said:

I love how people think they know how everyone else thinks.

Maybe they just like shiny new vehicles with the latest gadgets.

true...but I sure see an awful lot of $100k +++ grocery getters around Fashion Island and South Coast Plaza......….

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6 minutes ago, akirby said:

But we're talking about $30K - $40K vehicles not $100K.

that was a response to the "keeping up appearances"....and those 100k plus types of cars aren't even on my radar lol...lust maybe, common sense no...

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