topic Re: Lease vs Buy? in Auto Loans

Lease vs Buy?

C_DUBYA — Mon, 20 Feb 2023 18:39:34 GMT

I have to turn my current lease in this spring and I am unsure how to proceed this year. I have been a lease lover for years. I have not bought a vehicle in over 12 years. But I am hearing that there is a major limit on new vehicles for lease, and the amounts are sky high.

Today I have a 2020 Ram 1500 crew cab that I love. It has all the bells and whistles I want.

My options:

Buy this vehicle at lease end

Turn vehicle in and lease new

Turn vehicle in and buy new/used

Anyone have experience on what is the best to do? My goal is smaller monthly payment somewhere around what I pay today ($400). Right now would it be cheaper to lease a brand new truck, or buy out a 3 year old truck with 30k miles?

I do not know what to do and I never trust the car dealers on my options. I know they will just push me in a direction that helps their quota and not my pocket.

Thanks for any tips.

Re: Lease vs Buy?

sccredit — Mon, 20 Feb 2023 18:50:07 GMT

What is your lease buyout vs value?

Re: Lease vs Buy?

C_DUBYA — Mon, 20 Feb 2023 23:45:10 GMT

I am not sure and waiting for the dealer to reply with that.

Re: Lease vs Buy?

C_DUBYA — Tue, 21 Feb 2023 00:28:19 GMT

Found it. Payoff is listed as 29500. Kelly Bluebook says trade in value is 32000 to 36000.

Re: Lease vs Buy?

SweetCreditObsession — Tue, 21 Feb 2023 03:34:14 GMT

It sounds like buyout might be a better idea. Lease rates are higher right now too. I saw a commercial for a car with a monthly payment that was $600+....

Re: Lease vs Buy?

Shooting-For-800 — Tue, 21 Feb 2023 03:37:14 GMT

Like ANY car deal, the numbers are everything.

Have to have ALL the numbers to decide what the best deal is.

Re: Lease vs Buy?

CreditCuriosity — Tue, 21 Feb 2023 15:40:15 GMT

If you got lease early pandemic you are likely ahead as you mentioned up thread.. They are locked in on the buy out amount. Take advantage if you can of it and keep that truck for longe sounds like the best option.

Re: Lease vs Buy?

donkort — Thu, 02 Mar 2023 14:23:41 GMT

To me, it's better to lease if you're not mechanically savvy. Buy if you are mechanically savvy.

Of course, you would have to weigh the monthly payments of buying versus leasing.

I leased for a long time because I'm not mechanically savvy.

Re: Lease vs Buy?

fury1995 — Sun, 05 Mar 2023 15:00:57 GMT

@C_DUBYA wrote:
I have to turn my current lease in this spring and I am unsure how to proceed this year. I have been a lease lover for years. I have not bought a vehicle in over 12 years. But I am hearing that there is a major limit on new vehicles for lease, and the amounts are sky high.

Today I have a 2020 Ram 1500 crew cab that I love. It has all the bells and whistles I want.

My options:
Buy this vehicle at lease end
Turn vehicle in and lease new
Turn vehicle in and buy new/used

Anyone have experience on what is the best to do? My goal is smaller monthly payment somewhere around what I pay today ($400). Right now would it be cheaper to lease a brand new truck, or buy out a 3 year old truck with 30k miles?

I do not know what to do and I never trust the car dealers on my options. I know they will just push me in a direction that helps their quota and not my pocket.

Thanks for any tips.

Well, here's your first tip. Leases for ANYTHING today suck compared to three years ago. Rates / Money factors are all higher and the banks are gun shy on the residuals and have gotten very conservative.

Step one. You need to get your Ram appraised at Carmax (online works too) then stop by a couple of your local dealers and find out what they would pay you for the truck. Just get quotes to sell it. Then compare those numbers to your buyout value (residual value on your contract). If you have equity, that is your down payment.

Step two. Rate shop your local bank / credit union for terms available for lease end financing.

Step three. Seperately, get a quote for leasing a new Ram (it will be higher now, trust me). If there is any special rate new Ram financing, that may be your better option as new lease originations are way way down now.

Then come back here with what you've found.