Lease vs. Purchase?

Are you leasing or purchasing or not sure?


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PrepVet

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I have never leased a car before ever. I try to pay cash even for my new cars but on this one it will either have a note or a lease payment.

I am considering a lease this time for a few reasons: we have no idea where the economy is going to go now and having a shorter term lease would be easier to end eventually if needed. Also it is a first model year car and those tend to be more problematic than later run models and eventually we may get a hybrid option.

I am still very much on the fence on how I will pay for mine. And yes I know. A lease is just renting a car with nothing to show at the end of it. One of many reasons I have stayed away from them. The payments would be roughly the same in a lease vs purchase for me just the term lengths and money down being different. And oh yeah the limits on miles but I have several other paid off cars I can use to offset that.


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pony2bronco

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With a vehicle this customizable and modular I have a hard time understanding how anyone can lease it and keep it stock / never have fun in it. I mean I get some people are leasing to wait for the Warthog, but that just seems like a waste to me.
 

Erock

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Loan, just not fortunate enough to go any other route. It’ll be the last vehicle I purchase (I hope) and only the 2nd new one I’ve ever had. Over the last 2 years I’ve been minimizing, and am down to just 3 currently, from 7. When this is done it’ll just be the Bronco and the ‘68 Ranger.
 
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PrepVet

PrepVet

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With a vehicle this customizable and modular I have a hard time understanding how anyone can lease it and keep it stock / never have fun in it. I mean I get some people are leasing to wait for the Warthog, but that just seems like a waste to me.
I’ve had my current JK for well over a decade and logged over 210k miles on it and is 98% stock. That has never diminished the amount of fun or enjoyment I have gotten from it.
 

Compta38

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paying about 40% down and financing the rest with plans to pay off pretty early. Renting a car is like renting an apartment, at the end of the day you have nothing to show for it.
 

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MN_OuterBanks

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Will most likely buy with a loan. I have leased before and didn’t really work for me since I don’t use all the miles. Plus, with the scarcity you may be able to sell it.
 

MadMan4BamaNATL

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Leasing is not a waste of anything.

You're paying for the time you use it. Leasing also keeps your loan/debt ratio low. Leasing is only an option if you have good credit, which gets you the best money factor. Leasing takes on far less risk in case you damage the vehicle or end up with a first year run dud. Finally leasing helps those who want to maintain a level of liquidity with finances since it isn't smart to put money down on a lease; maybe $1000K is ok.

Businesses rarely purchase vehicles new because why would you take on a depreciating tool unless the vehicle IS the business? Leasing keeps your payments low up front, then you have options on the back end if you would like to keep your car and finance for an extra 24-36 months.

That said, I'm purchasing the Bronco with a loan with maybe just $2K down because I don't like down payments in case the vehicle gets totaled or flooded. Also, I don't want to think about mileage on the Bronco and I plan to keep it indefinitely as a toy although it will be a daily driver for at least 3 years.

Even if you modify your lease, it's not a big penalty in most cases and if you keep the ride, you've limited a lot of uncertainty.

This isn't advice, just some options to consider from a PhD Economist who works for a large private investment brokerage..... that's all. ;)
 

Fordmanbob

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Loan, just not fortunate enough to go any other route. It’ll be the last vehicle I purchase (I hope) and only the 2nd new one I’ve ever had. Over the last 2 years I’ve been minimizing, and am down to just 3 currently, from 7. When this is done it’ll just be the Bronco and the ‘68 Ranger.
I leased a new car in 1985...never again! This will also be my last new vehicle(66 1/2 yo). I'll be down to Bronco, 68 Torino, 17 Ultra classic CVO.
Enjoy your new Bronco 😁 I know I will
 

da_jokker

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Leasing is not a waste of anything.

You're paying for the time you use it. Leasing also keeps your loan/debt ratio low. Leasing is only an option if you have good credit, which gets you the best money factor. Leasing takes on far less risk in case you damage the vehicle or end up with a first year run dud. Finally leasing helps those who want to maintain a level of liquidity with finances since it isn't smart to put money down on a lease; maybe $1000K is ok.

Businesses rarely purchase vehicles new because why would you take on a depreciating tool unless the vehicle IS the business? Leasing keeps your payments low up front, then you have options on the back end if you would like to keep your car and finance for an extra 24-36 months.

That said, I'm purchasing the Bronco with a loan with maybe just $2K down because I don't like down payments in case the vehicle gets totaled or flooded. Also, I don't want to think about mileage on the Bronco and I plan to keep it indefinitely as a toy although it will be a daily driver for at least 3 years.

Even if you modify your lease, it's not a big penalty in most cases and if you keep the ride, you've limited a lot of uncertainty.

This isn't advice, just some options to consider from a PhD Economist who works for a large private investment brokerage..... that's all. ;)
So take the exact vehicle...one option you lease (and buy at the end of your lease), the other option you buy (aka loan) front the begining.

When it is all said and done and the vehicle is fully purchased which option was cheaper.

In other words, my understanding is that a lease will cost you more overall if you keep the vehicle at least till it's paid off.
 

LARELL

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So take the exact vehicle...one option you lease (and buy at the end of your lease), the other option you buy (aka loan) front the begining.

When it is all said and done and the vehicle is fully purchased which option was cheaper.

In other words, my understanding is that a lease will cost you more overall if you keep the vehicle at least till it's paid off.
yeah my understanding is that it only makes sense to lease if you like to get a new car every 3 years, and roll one lease into another. so for the OP if they plan on upgrading at the end of the lease then it may make sense. but i have always been told that in the long run it costs you more if you choose to purchase the same vehicle at the end of the lease.
 

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Rusty Sheckleford

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With a vehicle this customizable and modular I have a hard time understanding how anyone can lease it and keep it stock / never have fun in it. I mean I get some people are leasing to wait for the Warthog, but that just seems like a waste to me.
We're enthusiasts. If course we're gonna mod them. But for a lot of normies and the enthusiasmly-challenged... Taking the roof off and driving down the highway will satisfy most people
 

reidski29

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I plan on purchasing with a loan. I plan on keeping the vehicle for a number of years and will not be paying in cash as the financing options (0-4%) are less than I could make return wise in the market.

Granted, this will be the most expensive vehicle (and first new vehicle!) I have ever purchased! I'm a cheapskate and my wife still can't fathom the fact that I am paying $55K for something that doesn't even have power seats...
 

rugbysecondrow

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Leasing is not a waste of anything.

You're paying for the time you use it. Leasing also keeps your loan/debt ratio low. Leasing is only an option if you have good credit, which gets you the best money factor. Leasing takes on far less risk in case you damage the vehicle or end up with a first year run dud. Finally leasing helps those who want to maintain a level of liquidity with finances since it isn't smart to put money down on a lease; maybe $1000K is ok.

Businesses rarely purchase vehicles new because why would you take on a depreciating tool unless the vehicle IS the business? Leasing keeps your payments low up front, then you have options on the back end if you would like to keep your car and finance for an extra 24-36 months.

That said, I'm purchasing the Bronco with a loan with maybe just $2K down because I don't like down payments in case the vehicle gets totaled or flooded. Also, I don't want to think about mileage on the Bronco and I plan to keep it indefinitely as a toy although it will be a daily driver for at least 3 years.

Even if you modify your lease, it's not a big penalty in most cases and if you keep the ride, you've limited a lot of uncertainty.

This isn't advice, just some options to consider from a PhD Economist who works for a large private investment brokerage..... that's all. ;)
Leased my company car after analyzing the residual and tax benefits.

Will be getting a loan for the Bronco as the rates are still much lower than the opportunity cost of that same money invested is too high.
 

LostInArizona

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I am leasing mostly for the reasons @MadMan4BamaNATL stated. Will likely do some cosmetic upgrades to it and will be certainly using it and likely be going over the miles at some point. Although I work from home now and don't drive much daily for work, so maybe not. That said, assuming it's not a rats nest of problems, and of course I don't wreck the thing (knock on wood) I will absolutely be buying it out at the end of the lease. I can afford the loan payment and all, but it makes more financial sense for me to do it this way as it's far less cash up front, especially considering I am starting a major home reno/addition here soon that will likely span into the time I take delivery of the Bronco and will be the priority as far as my wallet is concerned for a little while.

As far as tinkering, there is nothing in particular about a lease that would prevent me from doing what I want. I did a full suspension upgrade on my first STI which unfortunately ended up totalled in an accident. But I likely won't be doing anything major on the Bronco for at least a year or two. But that's the beautiful thing about the Bronco, I really don't need to do anything. The BadSquatch already has everything I could possibly want to do from the factory. And because of its modularity the handful of additional things I want to do, like some trail armor stuff can be swapped out with factory panels with no permanent changes. This thing is the best of both worlds in that regard. They made "going back to stock," as easy as it could possibly be if I ever wanted to turn it in at the end of the lease. Which I sincerely doubt will happen unless it just turns out to be a lemon. I'm hoping it doesn't because I would gladly drive the wheels off this thing for the foreseeable future. Or until the government takes it away and forces me to buy an ev. :LOL:
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