Lease vs. Purchase?

[Allfordme&u]

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.

in my case lease will be a total business expense, give it to ford or give it to the tax man..

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[Allfordme&u]

in my case lease will be a total business expense, give it to ford or give it to the tax man..

what i do is lease it, try to extend the lease as far as they will go, then double the payments for the remaining time so the buy out is next to nothing, owning the vehicle i want at a fraction of price

 

[dwbronco]

Your best option isn't even listed. Steal it.

Also, the Bronco is not a car.

 

[Xploit]

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.

I'm leasing for the following reasons:

1. the truck hasn't really been reviewed yet and since its totally new, who knows what will be improved upon in the upcoming models.

2. If its great, I will negotiate to purchase at the end of my lease.

3. The family business will be leasing it for me

 

[Fordmanbob]

Love that you're still counting fractions of a year! I tried to talk my 80 3/4 year old father into getting one, but he's content with his 1995 Jeep. I'll let him take mine for a spin. Enjoy that Bronco.

Ya gotta cheat where you can at this age

 

[lakesinai]

You're correct friend, but those are some favorable parameters you describe there and only become real at the end; not so clear at the start of the acquisition which is why although businesses tend to put a ton of miles on a vehicle, they still lease them. Miles overage really isn't that expensive when you do the math.

Whether to lease or buy is often a very deeply held personal decision which is why I said my post was not advice, only information on options and things to consider.

Personal situations can change any variable and there is no sure way to totally remove risk unless you just elect to not purchase a vehicle and take the bus.

However, vehicles are very personal purchases in the United States. Some just drive whatever and don't care, then there are car guys or gals who will pay what is necessary because they can and want the best experience driving and everything that comes with being a petrol head.

Exactly! The Bronco is not a necessity for most people! Its a choice to pay top dollar to buy a unique and fun car!

 

[slacker4wheel]

Hello Bronco guys and gals. Plan on putting down 50 % and financing the rest. Yeah I know it going depreciate as soon its goes off the lot, but what the heck , been investing for the last 25 years , its time to have some fun. I can not take it with me Hahahah . Hope everyone gets their Broncos soon. Its almost a year since we made reservations and the wait is getting old. Have a great day!!!!!

 

[mpeugeot]

Leasing is not a waste of anything.

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

I did lease once before and honestly it wasn't a horrible experience even though we went over the allotted mileage. We also drove it like we stole it for 3 years and the bumper to bumper warranty was used several times to replace the rear axle bearings that suffered at the hands of the DOT legal BFGoodrich R1's and Yokohama A008rsii's. Yes, that car was well used when it was turned in and worth every penny not to own at the end of the day. LOL.

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