Timmer

ok, so the lease is almost up on my '06. I got it with a 10,100 mile a year leese, and it has just over 28K on it. i plain on buying this truck so the millage dosent matter. or so i thought. in December i can buy it outright for $23,998, give or take a monthly lease payment.

IF, i turn it in, i will owe $0.25 for every mile over 20,200. (- the 182 that was on it when i got it). what will they do with it if i turn it in? resell it right? for how much. i was told that payoff ammount was non-negotiable. (<-- had to look that one up :P ) is that true? all this talk about new rams selling for so cheep has me thinking maybe i could talk them down on this payoff ammount.

RamWheelsBy4

It will probably depend on the Leasing Company's agreements and your contract weather or not the purchase from lease price can be negoiated. Never hurts to try though.

So if I read correct you will owe somewhere over $2,000 for mileage and then pay the purchase price of $23,998.

I see sales of comparable trucks anywhere from 20k to 30k over the last two months. Being that you know the truck that is not necessarily a bad price, but then again todays market going forward is very questionable.

Timmer

no, they wont charge me for being over millage unless i turn it in. at least thats what the sales man told me, and i woked with him for a year so i dont think hed lie.

1-2-3

This is why I don't lease. Makes no sence to pay on a vehicle 4 years that aint gonna be yours in the end.

RichM752

Leasing a vehicle is the same as renting a vehicle.

SOhappy

'cept in this case it looks like he just paid down the depreciation and isn't out much, if anything vs. a loan (unless he had a large, up-front cap cost reduction). If diesel trucks would've held their value better he could have come out ahead, relatively speaking.

RamWheelsBy4

Well then if you look at it like creative financing then you will save the two grand and apply it to the purchase. That makes it in the 22k range and normally would be a good deal for low mileage excellent condition truck.

I did say creative financing and rationalization.

BPoulsen

I'm in a lease also, and it's just about up. One thing you might want to look at, is if you can get the financing for 100% of the residual. With the economy going like it is, and the car makers in the bind they are in, it's going to be hard to find 100% financing. My lease is up soon, and my residual is $26,xxx and they won't loan anymore than wholesale - which is around 20k. So, I'd have to come up with 6k just to keep my truck. ALSO, there are some really good deals on 08's right now. I'm looking at one and they took 15k right off the top without even asking.

tslewisz

If you want to keep your truck, you might look into re-leasing it down to a $1 residual. Might get out of some sales tax in the end.

hivoltage

I could be wrong but isn't a lease vehicle worth something on your taxes,aren't you allowed to "write off" a certain portion of it? If so don't forget to add the tax savings into your final equation.

Timmer

the good thing is i only leased it for 2, credit wasent good enough to buy it outright, or i would have.

then dont lease a vehicle.

you mean like a down payment? if so it was not much ill tell you

my credit union said they will give me a loan for 100% of what payoff was, and told me my credit is now good enough that i can get there best rate on it. didnt ask what it was, but, a 5 year loan payment for a $24K truck should be less than the lease payment of $567 a month im paying now, and for the last 2 years :P oh, and cheaper insurance. when i told my insurance co it was a lease, they were like " oh, its a lease, well, that changes things. its going to be a lot more for you"


tell me more about this, first iv herd.


thanks guys for all your replys.

Tortured

First of all, leasing isn't a bad way to go especially if you get a new car every few years anyway. You save on monthly payments and DMV tax and it's a right off if you own a business.

Now I have leased 2 out of 4 of my wifes cars because she gets a new car every 4 years. In my experience the lease company will call you up about 6 months before the lease is up to find out mileage and give you a $ amount you can purchase it for. Your answer should be "I don't want the car". They will keep calling back every few months with a lower purchase price because they don't want the car either.

On our last lease the bank told us we could purchase the car "Durango" for 16,900 6mos before the lease was up, that price went down to 9,500 2wks before I turned it in. Just my experience.

1-2-3

What alot of folks do is think about what they are paying on a monthly basis. Not overall cast of ownership. Example. A co-worker leased a Saturun for 48 months. Pays about $400 a month. Then buys the same car for another $400 a month for 48 months. Thats 96 months at $400 a month. Thats $38,400, not just $400 a month This is a good part of whats wrong ith our economy. people cannot afford vehicles so lenders have come up with creative ways for them to get them anyway. If you cant afford it you don't need to be driving it. If your credit is too bad to get it you don't need to be driving it.

I'll never lease a vehicle or buy a new one again. Especially these days. Theres too many of them out there that can be picked up for just about nothing. You just gotta be willing to look around, don't buy with emotion, know your financial abilities, and be willing to walk away at a moments notice.

I walked away from a car my wife wanted a couple of years ago. I went into the dealership knowing my price I'd pay (sale price, not monthly payment), what I had to have for a resonable trade in, and what intrest rate I'd pay. A 99 cent amortorzation book at the used book store will tell you your monthly payments from that information. I always take one with me, and if the salemans has any sort of brain, seeing that book will tell him up front your not walking in stupid and blind.

The sales manager at first tried to haggle interest rates, but I didn't budge because I allready know what rates I can get with one phone call. After he fianlly met my rate, then he went after price. He got within $10 of my max i'd pay so I walked out. he didn't beleive I would but I did. He got mad and threw my folder in the trash.

About a month later, they got another one on thier lot. I went back in, told him my conditions, and he said he'd be right back. In about 10 minutes, he had the paperwork ready, my financing ready and all I had to do was sign. He handed me the keys, looked at our then 15 year old and told him to pay attention, cause his dad knew what he was doing.


When I got the 04, I went in with two pre approved loans, each with an 800 number refrence number, and name of a real person just a phone call away. Not just an empty web quote. The dealers rate was about 2-3% over that, with the up front assurance I would never get better. After handing him a copy of each, he asked me to wait one more day and give his finance folks a chance to beat this deal, and he did. Plus he got another $1000 knocked off the price without me aking him to. I think it's the first time I've had a counter offer from a salesman with a lower price and better rate.
People don't car shop like that any more. They let the sales staff tell them what they are going to pay. Thats just backwards to me.

1-2-3

I guess I should answer my opinion to the real question. I would drop that truck and walk away from it. Pay the loss on the mileage, then got get one for $12,000. Don't know about Ohio, but they are everywhere here. I pass about 4 small used lots every day on the way in and there are always several waiting for someone to take them away. There was a sweet looking silver 3500 new on a lot this morning. Id' bet it could be had for $10k. Its a Gen 3.

hivoltage

Timmer, I don't know much about the tax breaks you can get while leasing I just know thats why many companies lease instead of purchase.
I was hoping someone else with more knowledge may chime in.
I figure with some creative accounting a person should be able to get some credit just for traveling to work.