To buy or to lease.

[CB750F]

So, I thinking of getting a PHEV 6G when it comes out(if).
For those who own, or know someone that has a PHEV.
Issues?
I like to buy & run it into the ground so never looked at leasing.
I don't own a business, lease makes lots of sense with a business.
Just wondering if there are 'real' issues with a 2 system vehicle?
I'm thinking of leasing & if no issues buy at end of lease.
What say you, forum crowd?
I should have put this in 6G forum but better traffic here.

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[Joeiconic]

Hybrid vehicles have been around for 20 years, so that wouldn’t concern me. I dont see why the type of vehicle, I.e. PHEV. vs ICE, would factor into the financial analysis.

 

[AzScorpion]

You run the risk of issues with anything you buy. Even Toyota who's reputation for "reliable" vehicles isn't that of their past ones.

I've never been a fan of leasing and have owned a business for 35 years and have always purchased my trucks. Yes the payment is a little lower but then when it comes time to refinance you're now refinancing a used vehicle at a higher interest rate. Todays rates are high enough so I wouldn't want to be paying anymore. Also (and I'm not sure about this so someone who knows leases better can confirm) I believe you do not get any incentives or rebates when leasing. At least I know that's how it works with solar, the company you're purchasing it from receives all the incentives.

Personally I would skip the first year then buy one and if you like it after the first 2 years and it's trouble free add the extended warranty to it. You have until the 3/36 is up to do it. This is what I'll be doing if Ford comes out with a PHEV Ranger.

 

[RedlandRanger]

Also (and I'm not sure about this so someone who knows leases better can confirm) I believe you do not get any incentives or rebates when leasing.

That is not true. I've leased a few vehicles and I leased my Ranger (which I've now purchased). When I leased it I got 2 or 3 incentives plus X-Plan pricing,

For me, I used it as a way to reduce monthly payments while we had 2 payments. I've viewed leasing as kind of an "extended purchase". It will most likely cost more in the long run, but can be a good option for some people in the right circumstances. You just need to fully understand what you are getting yourself into. I myself would never lease a vehicle that I did not intend on owning long term.

Once thing you need to be careful of when leasing - not to get on the "leasing treadmill" (unless you are fully aware of what you are doing). You lease a vehicle, the lease comes up, and the dealer says "well, we can put you in the NEW vehicle for the same price you were paying". Then you end up leasing another vehicle - and the cycle repeats. You never end up building any equity in anything. For some people, they want to drive a new vehicle all the time and are aware of the costs of doing so, but for others it is just a trap that causes you to spend a LOT more on transportation, IMO.

 

[AzScorpion]

That is not true. I've leased a few vehicles and I leased my Ranger (which I've now purchased). When I leased it I got 2 or 3 incentives plus X-Plan pricing,

For me, I used it as a way to reduce monthly payments while we had 2 payments. I've viewed leasing as kind of an "extended purchase". It will most likely cost more in the long run, but can be a good option for some people in the right circumstances. You just need to fully understand what you are getting yourself into. I myself would never lease a vehicle that I did not intend on owning long term.

Once thing you need to be careful of when leasing - not to get on the "leasing treadmill" (unless you are fully aware of what you are doing). You lease a vehicle, the lease comes up, and the dealer says "well, we can put you in the NEW vehicle for the same price you were paying". Then you end up leasing another vehicle - and the cycle repeats. You never end up building any equity in anything. For some people, they want to drive a new vehicle all the time and are aware of the costs of doing so, but for others it is just a trap that causes you to spend a LOT more on transportation, IMO.

Good to know about the auto leasing you get the incentives. With solar leasing the company (Like Solar City) will get all the government rebates with adds up to several thousands. I own my solar system and my rebates were $6,000.

I know several who do exactly that, go from one lease to the next. They basically have a revolving payment and never own anything but they like the fact they're always driving a new vehicle with a warranty. I can see where this works for some people and I might even entertain this one day down the road if the numbers work out. Usually they don't.

 

[RedlandRanger]

Good to know about the auto leasing you get the incentives. With solar leasing the company (Like Solar City) will get all the government rebates with adds up to several thousands. I own my solar system and my rebates were $6,000.

I know several who do exactly that, go from one lease to the next. They basically have a revolving payment and never own anything but they like the fact they're always driving a new vehicle with a warranty. I can see where this works for some people and I might even entertain this one day down the road if the numbers work out. Usually they don't.

Yeah, a car lease is different than the Solar stuff for sure.

I know people who go from lease to lease to - as long as you understand what you are doing and realize you are paying a LOT more to drive a vehicle it is fine - it is a person's choice on where to spend their money. The problem is a lot of people don't really understand what they are getting into.

 

[troutspinner]

You sound similar to me when I leased a Tacoma. I was coming from full size pickups and wanting to get back into mid-size after a 20 year hiatus. I wasn’t sure that going back to mid-size was going to be a mistake.

My conclusion led to a short term 2 year lease. However, I made sure that lease had buy-out options as well as early termination options. It only took about a year for me to confirm that I did make the correct decision, I just didn’t choose the correct mid-size. Haha.

So I early terminated for 2 months of payment fees and bought a Ranger. The leasing company then sent me 3 months of payments back as they sold it, making a profit. This is rare however, right before Covid economy really set in.

My point is, if you’re that concerned, make sure all of your options are available and don’t lock yourself in with your long term goal, satisfy the possible short term goal first.

 

[CB750F]

Fair enough. Just wondering if I missed anything?
Buying second yr for sure.
Not a fan of extended warranty.
Tks.

 

[Dereku]

Fair enough. Just wondering if I missed anything?
Buying second yr for sure.
Not a fan of extended warranty.
Tks.

When it comes to PHEV battery replacement the extended warranty might be really appealing.

 

[CB750F]

When it comes to PHEV battery replacement the extended warranty might be really appealing.

Yup, for sure.

But what will be covered? Don't want something like the Toyota RAV4 issue 7K$ OUCH!!!!
Will need to read the fine print if I decide on a PHEV.

https://www.auto123.com/en/news/toyota-rav4-hybrid-cable-problem-corrosion-class-action/69259/

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