Purchasing vs Leasing and buying out contract

egilbe

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There are a couple dealers in my area who are offering over $5000 off a new ranger Lariat with FX4 package and tow package, which are my requirements, everything else is a preference if I had a choice. I was planning on ordering a 2020 after I paid off a couple credit cards because paying them off was a short-term goal of mine. It didn't occur to me to lease the truck, because I never have. I buy a new vehicle and keep it for 10 years or whenever it gets too expensive to get it to pass state inspection.The last vehicle I bought was a 2001 Jetta with the 1.8T and I traded it for my base model Hyundai Elantra in 2016, to give you an idea.

For those who have leased, have you bought the vehicle at the end of the contract? Why did you lease, vs purchase? Leasing may work for me, now, but, probably, I will want to purchase the truck at the end of the contract.

I'm torn between short-term financial goals that are, probably, more rational, and my desire for a new truck now. If I wait 6 to 8 months, I'll have better cash flow, no credit card and no car payments, or I can lease now while the 2019 prices are falling and I'll have the same cash flow in three years and buy a three year old truck, or give it up and buy and brand new 2023 model and keep that until I die.

Hmm...decisions, decisions
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I leased mine - And I leased a few older Rangers. The first lease I did I kind of got on the "lease treadmill". Each time I leased, I intended to buy out the lease at the end of it, however I went it to do it and they offered me a new truck for the same payments as what I would have had to purchase my truck. I did that twice before finally buying out my 2005 at the end of its lease. I kept it for 14 years. I intend to do the same with this truck - purchase the lease at the end of it. I kind of treat it as an extended finance. We are paying on my wife's car and didn't really want two full car payments (we didn't have ANY car payments for quite a few years, which is nice).

It has worked well for me.
 

t4thfavor

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I leased mine - And I leased a few older Rangers. The first lease I did I kind of got on the "lease treadmill". Each time I leased, I intended to buy out the lease at the end of it, however I went it to do it and they offered me a new truck for the same payments as what I would have had to purchase my truck. I did that twice before finally buying out my 2005 at the end of its lease. I kept it for 14 years. I intend to do the same with this truck - purchase the lease at the end of it. I kind of treat it as an extended finance. We are paying on my wife's car and didn't really want two full car payments (we didn't have ANY car payments for quite a few years, which is nice).

It has worked well for me.

That's right where they want you... Buying someone else's lease is always cheaper than buying your own, and leasing again is ((cheaper)) than either. It's not cheaper overall since you are paying the depreciation for the dealership who then sells it for markup to someone who doesn't like the new car smell.

Leases are cheap because they are profitable for the dealership.
 
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egilbe

egilbe

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I went and test drove a ranger, magnetic, sport package, stone interior, FX4. The Sales people almost had me signed up to purchase it, but financing and my budget doesn't quite see eye to eye. I'll see them again in 6 months like I originally planned.

My impressions, rough shifting in a couple spots, overall snappy as hell. I miss a turbo, I do. Its a softer suspension, but pleasantly soft. I really liked it. I did the bounce test and it only rebounded a couple times. About what I expected.

Overall, excited to plan for the purchase. It was just what I needed to focus on a goal. I really enjoyed the looks on the sales manager's face after spending two hours basically forcing me to buy one, when I only wanted to test drive one, when I said, "OK, gents, I'm out of here!" They tried, they really did. Karma will pay me back, I'm sure.
 

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Sounds like your going for the smarter long term financial plan. If you KNOW you will keep the truck just buy it. If you lease then buyout the lease you could have paid for the same truck 2.5X. Patience is a virtue and I’m sure you will be rewarded with some attractive deals on 2019s in 6 months. You may even find an adequate used one and save yourself a real bundle
 


Tracy Bowman

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I went and test drove a ranger, magnetic, sport package, stone interior, FX4. The Sales people almost had me signed up to purchase it, but financing and my budget doesn't quite see eye to eye. I'll see them again in 6 months like I originally planned.

My impressions, rough shifting in a couple spots, overall snappy as hell. I miss a turbo, I do. Its a softer suspension, but pleasantly soft. I really liked it. I did the bounce test and it only rebounded a couple times. About what I expected.

Overall, excited to plan for the purchase. It was just what I needed to focus on a goal. I really enjoyed the looks on the sales manager's face after spending two hours basically forcing me to buy one, when I only wanted to test drive one, when I said, "OK, gents, I'm out of here!" They tried, they really did. Karma will pay me back, I'm sure.
You did good.:sun:
 

JimG_AZ

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You did really good by walking out. If it doesn’t fit the budget, do not make the purchase. The new car smell is not worth enough to put yourself in a financial bind. Also, if you keep your cars long term, don’t even consider a lease.

I would have loved to have seen the sales manager’s face. LOL, I am sure he was talking some great financing deals.
 

t4thfavor

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If I had waited for mine, I'd have a Lariat FX4, and 0% for 60 months... As such I didn't, so I have an XLT FX4 3.99% for 72 months...
 

Anthony

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Funny story:
  • I leased my Ranger in January.
  • I bought out the lease with a loan from TD Auto Finance in April because the lease terms were not fantastic and it was eating at me. I also knew I'd be keeping the truck until the end of time.
  • I paid off the loan 2 weeks ago.
I can't stand payments. As much as I should keep a large amount of money like this liquid and invested. It irked me making the payment every month. I now own my Ranger free and clear.
 

rangerdanger

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If Ford offers 0% APR for 60 months on the 2020 Ranger, even though the payments will be higher vs leasing + buying, you won’t pay any interest or lease acquisition/buyout fees.
 

SubVet

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I lease the wife's CRV. Every two and a half to three years she gets a new one. On my side of the garage, I pay cash even though I know I probably won't be keeping it after 3 years. Looking forward to the new ranger and the new Tacoma frankly. Going to buy either one.
 

Roofhopper

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I lease the wife's CRV. Every two and a half to three years she gets a new one. On my side of the garage, I pay cash even though I know I probably won't be keeping it after 3 years. Looking forward to the new ranger and the new Tacoma frankly. Going to buy either one.
I’m afflicted with the same sickness. I’d suggest we start a support group but we’d just talk each other into buying more s*** :LOL:
 

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I’m afflicted with the same sickness. I’d suggest we start a support group but we’d just talk each other into buying more s*** :LOL:
Isn't that the truth...this site is costing me money! :piggybank:

No one even needs to talk me into it I just look at all the builds on here and next thing I know I'm ordering stuff I normally wouldn't.
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