Leases?

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wallyuwl

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I put this on another thread but wasn't getting any hits because it wasn't a new topic. So I'll put my question here...

I think I'm going to try to find a deal on a left over 2019 RAM. The new rebates today are $7k off a 2019 Big Horn, $6k off a 2020. But dealer discounts are more on a 2019, too. I'd even look at a Tradesman if I could find one, around here everyone has Big Horns with a few Limited trims. The rebates are only until the 14th instead of the typical whole month, so I'm thinking they will be even better incentives in a couple weeks as this virus stuff gets more intense.

I may look to lease this one. I only leased a vehicle once before and it was a while ago, and we got hosed (due to mileage - long story, but the deliar lied to us about something, go figure). Do you negotiate leases the same way you do a purchase? Then the lease is based off the the vehicle price? Or are lease amounts pre-set by the manufacturer? I know $$ down and mileage restrictions change things, too.

https://www.bobistheoilguy.com/foru...9/new-ram-thoughts-by-owners#Post5389029
 
Originally Posted by wallyuwl
Do you negotiate leases the same way you do a purchase? Then the lease is based off the the vehicle price? Or are lease amounts pre-set by the manufacturer? I know $$ down and mileage restrictions change things, too.

https://www.bobistheoilguy.com/foru...9/new-ram-thoughts-by-owners#Post5389029


In theory yes it is based off the vehicle price, unless the manufacturer has special incentive for lease. They may do that to kick the can down the hall so their book looks better (i.e. write off when you return the vehicle instead of taking the hit right now). In any case make sure you look at what you can afford and buy / lease accordingly, not just payment per month.
 
Originally Posted by Snagglefoot
What interest rate is RAM basing the lease on?


Money factor? Not sure. Haven't talked to anyone at a dealership yet. Just trying to figure out how this leasing thing works in general so I don't go in blind.

I may also buy as that is the best financial move if you keep for 5+ years, but don't want to get stuck with a POS like my F150 that I planned to keep 7-8 years and am now probably going to get rid of after 26 months.
 
A lease is renting the car; you are paying for the depreciation of the vehicle.
A lease is good for people who always wanna drive new and don't wanna work on cars.
Generally it is cheaper from a down payment and monthly payment standpoint.
But it is expensive in the long run.
If you use the truck like a truck and it gets excessive wear, you are responsible for repairs.

If you are considering keeping the vehicle, driving over 12K per year, etc, a lease is the most expensive way to go.

There are always exceptions and the devil is in the details, but this is generally how leases work.
I hate leases. Good luck.
 
You should go to leasehackr.com and run the numbers there. Money factor is basically the interest rate. Multiply by 2400 to get the effective interest rate.

The residual is based on MSRP. So if you get a big discount on list price, you can end up paying way less per month than on a purchase.
 
Originally Posted by wallyuwl
I put this on another thread but wasn't getting any hits because it wasn't a new topic. So I'll put my question here...

I think I'm going to try to find a deal on a left over 2019 RAM. The new rebates today are $7k off a 2019 Big Horn, $6k off a 2020. But dealer discounts are more on a 2019, too. I'd even look at a Tradesman if I could find one, around here everyone has Big Horns with a few Limited trims. The rebates are only until the 14th instead of the typical whole month, so I'm thinking they will be even better incentives in a couple weeks as this virus stuff gets more intense.

I may look to lease this one. I only leased a vehicle once before and it was a while ago, and we got hosed (due to mileage - long story, but the deliar lied to us about something, go figure). Do you negotiate leases the same way you do a purchase? Then the lease is based off the the vehicle price? Or are lease amounts pre-set by the manufacturer? I know $$ down and mileage restrictions change things, too.

https://www.bobistheoilguy.com/foru...9/new-ram-thoughts-by-owners#Post5389029


There are lease calculators on the web. You input the price, residual value, interest rate (they borrow money to let you lease a vehicle) and how long.

Lease is normally a bad deal. But it gets you a new car every 3 years.

Dealers like to just talk monthly payment. Of course put enough down and the monthly payment could be $50/month.
 
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In some cases the manufacturer offers so much lease cash that a buyer is better off leasing then turning around and buying the car. A perfect example is the Stinger- where Kia offers over $10k in lease cash.
 
Originally Posted by MCompact
In some cases the manufacturer offers so much lease cash that a buyer is better off leasing then turning around and buying the car. A perfect example is the Stinger- where Kia offers over $10k in lease cash.

You have a link for this deal? I couldn't find one . Thanks
 
as others have said, leasing is the way to go if you always want to drive a new car every few years. If you buy (finance) and trade every few years you will be in much worse shape than if you lease. Also leasing a current year vehicle was always cheaper than leasing a leftover model.

Cheapest way is always to buy used and keep it forever...but not everyone wants to drive old vehicles.
 
Originally Posted by iahawk

Cheapest way is always to buy used and keep it forever...but not everyone wants to drive old vehicles.

Absolutely. I have yet to own a vehicle that was manufactured in the 21st century.
 
I leased both my Elantra GT's new.
Unfortunately we needed new cars 3 months part.
I have a friend at a Hyundai dealership.
Both cars were driven by managers and had a little over 3K miles on them.
The factory incentive was $3000 off plus an extra $3000 because of the mileage.
I pay $475 a month for both of them.
The GT would not have been my first choice but the deal was good.
And they are fun cars to drive with great gas mileage.
I could not afford to buy them due to the high monthly payments and because of my age a 60 month payment schedule was out of the question.
All in all I'm good.
 
My buddy inquired into one of those Dodge truck leases back in January. It was a great deal until he really came down yo the
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$$$$$$$. There was a $2,000 discrepancy that just wouldn't go away. I don't remember the specifics though. Just watch out for the gotcha towards the time it comes to sign.
 
If anyone knows the answer to this i'd love to know.....

This situation occurred to a friend that had a career change and initially had to attend a lot of out of town meetings to be brought up to speed.

Why is there a yearly mileage limit? Why don't they just adhere to the 3 yrs / 36k and leave it alone at that and let you manage it on your own. Then when you turn it in, charge you for miles added 36,001 and after.

Example, if you need to drive more frequently in your first year due to a career change or health issue, then back off your driving on years 2 and 3, why do they whack you the overage on a specific year?

Year 1: 16,000 ( get a huge overage charge)
Year 2: 10,000 (Under 12k so no charge)
Year 3: 10,000 (Under 12k so no charge)

Total of 36,000.
 
Originally Posted by Fordiesel69
If anyone knows the answer to this i'd love to know.....

This situation occurred to a friend that had a career change and initially had to attend a lot of out of town meetings to be brought up to speed.

Why is there a yearly mileage limit? Why don't they just adhere to the 3 yrs / 36k and leave it alone at that and let you manage it on your own. Then when you turn it in, charge you for miles added 36,001 and after.

Example, if you need to drive more frequently in your first year due to a career change or health issue, then back off your driving on years 2 and 3, why do they whack you the overage on a specific year?

Year 1: 16,000 ( get a huge overage charge)
Year 2: 10,000 (Under 12k so no charge)
Year 3: 10,000 (Under 12k so no charge)

Total of 36,000.



I have never heard of a 'yearly mileage limit". They are concerned about how many miles are on the vehicle at the end of the lease term-that is what the payment is based on. So-if he takes it to the dealer-and at year one and he is over (the miles)-the dealer is going to notify the lease company. WHY? Otherwise-how would the lease company even know?
 
Last edited:
You hit it spot on. They took it in for the yearly emissions and safety inspection and yes they got the overage charge. I too wanted to know why.
 
Originally Posted by Fordiesel69
If anyone knows the answer to this i'd love to know.....

This situation occurred to a friend that had a career change and initially had to attend a lot of out of town meetings to be brought up to speed.

Why is there a yearly mileage limit? Why don't they just adhere to the 3 yrs / 36k and leave it alone at that and let you manage it on your own. Then when you turn it in, charge you for miles added 36,001 and after.

Example, if you need to drive more frequently in your first year due to a career change or health issue, then back off your driving on years 2 and 3, why do they whack you the overage on a specific year?

Year 1: 16,000 ( get a huge overage charge)
Year 2: 10,000 (Under 12k so no charge)
Year 3: 10,000 (Under 12k so no charge)

Total of 36,000.


My WAG.

Depreciation as well all know is not linear. Higher miles accelerates the depreciation so the finance company attempts to re-coup that loss whenever a customer breaks a lease.


The mileage charges you're talking about don't occur when it comes time to turn in the vehicle at lease-end.
 
Originally Posted by Fordiesel69
You hit it spot on. They took it in for the yearly emissions and safety inspection and yes they got the overage charge. I too wanted to know why.


Who charged them (Dealer or Finance company)? Sounds like BS to me. Did your friend review the lease agreement after he was presented with the charge?
 
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