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Reasons for leasing, reasons for buying~ your next car or pickup.

Omega Man

Omega Man

Fortis Fortuna Adiuvat
Staff member
I have noticed that the car(truck) commercials are always showing the vehicles with "leased" pricing. Is leasing now the way most new vehicles end up in one's driveway?
I :gerg have always been a fan of owning a vehicle or equipment but realize there has been a change, especially in the construction industry.

Anyway, I was wondering if any of the Members have a preference or reason to "own" or "lease"- and what the upside or downside is to either theory?
:ear
OM
 
Omega Man said:
I have noticed that the car(truck) commercials are always showing the vehicles with "leased" pricing. Is leasing now the way most new vehicles end up in one's driveway?
I :gerg have always been a fan of owning a vehicle or equipment but realize there has been a change, especially in the construction industry.

Anyway, I was wondering if any of the Members have a preference or reason to "own" or "lease"- and what the upside or downside is to either theory?
:ear
OM
Click to expand...

50%, or more, of BMW car sales are leases and have been since the late 1990's. It's just like a rental. You shop for the best deal and use what you need. Maintenance / repairs are now covered by the warranty and there's no long term concerns relative to when the electronic doodads and gee-gaws die. If you're a business the lease costs can be treated as an expense vs a depreciating asset. Speak with someone operating a small commercial construction or utility repair/installation company.

Is it better to buy used? Yes. Does it make sense to lease used? It can. I've done it on a few 3-series. In the case of two of those cars I was glad not be a long term owner. One of them I purchased and still own.
 
We've never leased a vehicle, but we typically keep them for 5-10 years. We also don't often buy brand new as there are plenty of good one to two year old vehicles for much less cost that are virtually brand new and still have warranty. The major depreciation is all ready done on them so the cost is much less than new. Our most recent car purchase, a 2014 BMW 435xi, was actually a year old demo car with full 48 months warranty and only 3500 Kms on it when we found it. My 07 Toyota Tundra was the last new vehicle (motorcycles aside) that was purchased new, but I still have it and will keep driving for quite a few more years.

Leases make sense for tax purposes or if you really want to have a new car every few years. Purchasing is better for long term ownership, especially if you do not need to finance the purchase.
 
I think the amount of miles you drive can decide whether leasing works for you or not. Living in the woods like I do I drive about 20k a year so leasing is not an option for me.
As far as used vs new goes we have always bought used for my wife feeling we got a better deal letting the first owner take the depreciation.
The last two trucks I bought I had to go with new. I looked at three year old trucks with 80k miles that weren't much less than a new one with a warranty.
 
shakeybone said:
The last two trucks I bought I had to go with new. I looked at three year old trucks with 80k miles that weren't much less than a new one with a warranty.
Click to expand...

I spent most of a year looking for a used truck when I bought my last one. New and used cost the same. I guess the folks that need all the bells and whistles can find a value in the used truck prices, but for basic trucks, the price seems pretty steady.
 
Advertising for cars and trucks lists the lease rates because they appear affordable at $279 a month compared to the payment on a $40,000 truck. Even if you did 0% for 72 months buying would be $555 a month.
 
BGKK75S said:
Advertising for cars and trucks lists the lease rates because they appear affordable at $279 a month compared to the payment on a $40,000 truck. Even if you did 0% for 72 months buying would be $555 a month.
Click to expand...

Yeah, they like to make it seem like the big Land Rover is a bargain (lease) at $750/month. I guess if they really mentioned the cost you would :bolt
OM
 
The Euro brands now include oil changes because they found people would come in for the first one at $150 and then not come back until the lease was up. Then they resold them as Certified Pre owned with 100k warranties and started seeing engines fail at 70k. A quick oil change is cheaper for them in the long run.
 
BGKK75S said:
Advertising for cars and trucks lists the lease rates because they appear affordable at $279 a month compared to the payment on a $40,000 truck. Even if you did 0% for 72 months buying would be $555 a month.
Click to expand...

Considering the price of the now ubiquitous 1/2-ton 4x4 crew is now over 50K, that monthly payment is close to $750 or $35.7 per working day.

Doesn't leave a lot of room for the mortgage
 
36654 said:
Considering the price of the now ubiquitous 1/2-ton 4x4 crew is now over 50K, that monthly payment is close to $750 or $35.7 per working day.

Doesn't leave a lot of room for the mortgage
Click to expand...

Nope, but the sure look cool in their F250 diesel Crew Cab jacked up 6". I look for the contractor with a 10 year old truck to do my jobs.
 
BGKK75S said:
The Euro brands now include oil changes because they found people would come in for the first one at $150 and then not come back until the lease was up. Then they resold them as Certified Pre owned with 100k warranties and started seeing engines fail at 70k. A quick oil change is cheaper for them in the long run.
Click to expand...

Boy, that makes some sense :thumb
OM
 
mcmxcivrs said:
. Our most recent car purchase, a 2014 BMW 435xi, was actually a year old demo car with full 48 months warranty and only 3500 Kms on it when we found it...
Click to expand...

I understand that there's great deals out there on pre owned BMW cars.

As for leasing, being a Dutchman, I've always been an equity guy. :D But I think it's fine for business vehicles, particularly if corporate owned.

I was surprised to read the comments above on used v. new truck prices.
 
Rinty said:
I was surprised to read the comments above on used v. new truck prices.
Click to expand...

You're more surprised when you're actually shopping....

But, my very base (it had a radio) 91 Toyota 4x4 Delux was traded on the same day as my 1989 525i, and the pickup was worth $500 more. The truck had more miles and the paint was in pretty poor shape. The car was in very good shape, accounting for age.

From what I've heard, my Pick-up was most likely shipped to Haiti or the Dominican Republic for resale......
 
If I planned on leasing I'd probably have to go see what long term deals I could get from Rent-A-Wreck. :)
 
If you have a business reason, leasing probably makes sense. As for a private lease, leasing allows you to fool yourself into getting more car/truck than you can afford.

Like many here, I usually buy used. Let someone else take the depreciation.

With that said, we just bought a 2016 Prius for my wife. Why did we buy new? Because the Prius was redesigned for 2016 and we didn't like the older models. Besides, we keep our cars till the wheels fall off. She traded in a 1999 Camry on it.

Chris
 
daboo said:
If you have a business reason, leasing probably makes sense. As for a private lease, leasing allows you to fool yourself into getting more car/truck than you can afford.

Like many here, I usually buy used. Let someone else take the depreciation.

With that said, we just bought a 2016 Prius for my wife. Why did we buy new? Because the Prius was redesigned for 2016 and we didn't like the older models. Besides, we keep our cars till the wheels fall off. She traded in a 1999 Camry on it.

Chris
Click to expand...

Pretty hard to get a decent deal on a used Prius. Besides, when gas prices are low, Toyota offers some nice incentives. How's she liking it?
 
36654 said:
Pretty hard to get a decent deal on a used Prius. Besides, when gas prices are low, Toyota offers some nice incentives. How's she liking it?
Click to expand...
She loves it. For her, it's perfect. She does a lot of driving to see clients in town and she gets about 67 mpg. The technology for me, is impressive. How Toyota has done it, is beyond me. Drive it in stop and go traffic, and the engine doesn't even come on. It runs the entire time on the battery. Heated seats. Heated windshield wipers and mirrors. Air conditioning. And it all runs when you're stopped and on the battery only. It seems like it should be gutless, but its not. Punch it, and the electric motor kicks in to add to the gas engine power.

We just took it on a trip from Seattle to McCall, Idaho. The only place where it only did "okay", was when we were on some back roads. The potholes in the dirt road were sometimes a bit huge and I would've felt more comfortable in the Subaru Outback with its greater ground clearance. But the Prius survived just fine.

Chris
 
daboo said:
She loves it. For her, it's perfect. She does a lot of driving to see clients in town and she gets about 67 mpg. The technology for me, is impressive. How Toyota has done it, is beyond me. Drive it in stop and go traffic, and the engine doesn't even come on. It runs the entire time on the battery. Heated seats. Heated windshield wipers and mirrors. Air conditioning. And it all runs when you're stopped and on the battery only. It seems like it should be gutless, but its not. Punch it, and the electric motor kicks in to add to the gas engine power.

We just took it on a trip from Seattle to McCall, Idaho. The only place where it only did "okay", was when we were on some back roads. The potholes in the dirt road were sometimes a bit huge and I would've felt more comfortable in the Subaru Outback with its greater ground clearance. But the Prius survived just fine.

Chris
Click to expand...

Our Prius also belongs to my wife. It's a 2010 and doing quite well.
 
Motorcycle Leasing

I may be wrong, but I seem to remember BMW dealers offering leasing for motorcycles years ago (at least here in the US)...
 
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