Truck Buying Question - Finance or Lease??
I apologize in advance as this isn’t directly outdoors related, aside from that I will use this thing to get outdoors!
The last few vehicles I’ve owned, I’ve bought new and kept for around 4 years and then upgraded to another new one.
I don’t want this to be a discussion about brands, or buy an old beater and drive it till it drops etc. This is just my personal preference which may or may not align with others. My father buys new and keeps for 10+ years and by the time he wants a new truck he’s still only put maybe 60K on it. Unfortunately I don’t have that luxury as I do drive a lot for work and we travel as much as we can camping, hunting, etc.
The reason I upgrade to new every 3-4 years is I like to have a known payment, and with extended warranty I know the truck can self destruct and I’m still covered under a bumper to bumper extended warranty. The cost at purchase is another $1900.00 and it has more than paid for itself in my experience with my last two trucks.
I’m at the point of starting to look at trading in my current vehicle as I will be coming off warranty in the next few months, and I know the trade-in is more than what I currently owe the bank, so I’m not putting debt into debt. I might consider selling privately, although I don’t have a ton of time for that.
I’ve never considered leasing before, but the sales guy I was talking with today says I should maybe consider it but I’m a little skeptical. I think the only benefit perhaps is that every 3 years I just show up hand over the keys, and then pick up a new truck with a similar payment, provided I’m not over mileage and there is no major damage to the truck, all with an extended full warranty.
I keep good care of my vehicles so I’m not worried so much about damage at handover, and anything serious will be from a hit and run or a collision, which insurance will address. I asked for a quote for more than the standard 20k a year mileage as well.
I can get a much nicer truck with good towing and other bells and whistles compared to the truck I have now on a three year lease, for about $30.00 a month less than what I am paying by financing. If I was to finance the same truck I’m looking at, they want roughly $150.00 more a month than what I’m paying now. The financing would be 2.9% and the lease 0.9%
Is there something I’m missing? Anyone familiar with leasing? I’m not hung up on ownership because technically the bank owns my truck right now anyhow. The lease thing almost seems a bit too good to be true.
Just doing as much due diligence as I can. Any thoughts appreciated.
thx
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