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[OP]
Newbie
Dec 21, 2018
20 posts
2 upvotes

Lease help

Hi everyone,

So I'm looking at leasing a truck.

I've never leased before, and don't really wanna go into the reasoning that I want to lease because that will start a whole other topic/war lol.

As like anyone, I'd like to get the lowest weekly payment with the most km allowed, with the shortest term (2-3 year).

I don't plan to buy the vehicle after the lease is up, unless the residual it higher, then I'd buy and sell for profit.

How does this work? Some dealerships have $0 down, some have $2000 down. Some have low interest, some have high.

How do you figure out the math on this, to get the best deal possible.

Thanks in advance.
24 replies
Jr. Member
Oct 6, 2013
115 posts
16 upvotes
Red Deer, AB
Your residual needs to be lower than the market value of the car when returned.

If you lease car A today and the residual after the lease period is $100 and the real value is $110, you can buy, or finance the car, with a selling price of $100 and try to sell for $110.

The question you have to answer is: is the car that you are leasing now will have a residual value lower than the real value?
Deal Addict
User avatar
Jul 26, 2007
4716 posts
2283 upvotes
Toronto
If you can wait for a sale, cheapest lease I remember seeing Dodge ram for $199 per month for 2 years. almost went to see what's the fuss even though I didnt need one. Damn rdf.

Do your research and you will find avg truck prices, interest rates, discount in few weeks time. When there is sale like Ford employee discount in July, hit them up.
Deal Addict
Apr 6, 2008
1807 posts
1147 upvotes
Are you talking brand new or used? I would stay far away from leasing anything used. Usually they are from a bottom dweller finance company that is a huge rip off.

Brand new, if you go into Ford let's say, and are looking at a certain trim F150, the lease rate should be the same for all Ford dealers within your province. It changes month to month but otherwise it should be the same for all dealers.

In terms of money down, I would never put anything down on a lease because if the car gets written off, you may never see that money again due to depreciation. Also, if you have let's say $5000 in the bank, why not buy yourself a used vehicle for 3 or so years? If you are leasing, you are obviously low on cash flow, your money is better off spent on a used vehicle with low depreciation then a brand new truck with high depreciation.
Jr. Member
Oct 6, 2013
115 posts
16 upvotes
Red Deer, AB
My little understanding of leasing is depended about your intention.

The first rule is leasing a used car is a bad deal.
The second rule is leasing a new car could be a good deal if:

a. Planning to buy out the vehicle:
a.1 Check if the chances of the RV is lower than MV (Market Value)... it's hard to predict the future, but you can predict how reliable is the car that you are leasing.
a.2 Down payment can help you to make your payments lower and helps in cash flow (optional if you need lower payments)
a.3 Get full coverage insurance (almost mandatory)
a.4 Choose the lowest miles per year, it will reduce the cost of the payments, helping your cash flow
a.5 Start saving some money to a future down payment when the lease ends (optional, but financially healthy)
a.6 The idea of using a lease to buy a car is during the lease period you can have lower payments helping your cash flow. Probably, at the end of all payments (lease and finance period), the difference between finance and lease will be minimum.

b. Not planning to buy out the vehicle:
b.1 Don't do a down payment, you will never see this money back
b.2 Choose the options that help to reduce your payments
b.3 Be honest with yourself and choose the closest annual miles that you will drive, going over will incur in extra costs
b.4 Follow all dealer maintenance schedules
b.5 The idea, in this case, is to avoid putting extra money that you will not recover, keep payments low and take care of the car

Of course, this is my little knowledge about the pros and cons of leasing or financing, and everything depends on your intentions.
Sr. Member
Aug 15, 2009
702 posts
450 upvotes
Montreal
virtuosit wrote: My little understanding of leasing is depended about your intention.

The first rule is leasing a used car is a bad deal.
The second rule is leasing a new car could be a good deal if:

a. Planning to buy out the vehicle:
a.1 Check if the chances of the RV is lower than MV (Market Value)... it's hard to predict the future, but you can predict how reliable is the car that you are leasing.
a.2 Down payment can help you to make your payments lower and helps in cash flow (optional if you need lower payments)
a.3 Get full coverage insurance (almost mandatory)
a.4 Choose the lowest miles per year, it will reduce the cost of the payments, helping your cash flow
a.5 Start saving some money to a future down payment when the lease ends (optional, but financially healthy)
a.6 The idea of using a lease to buy a car is during the lease period you can have lower payments helping your cash flow. Probably, at the end of all payments (lease and finance period), the difference between finance and lease will be minimum.

b. Not planning to buy out the vehicle:
b.1 Don't do a down payment, you will never see this money back
b.2 Choose the options that help to reduce your payments
b.3 Be honest with yourself and choose the closest annual miles that you will drive, going over will incur in extra costs
b.4 Follow all dealer maintenance schedules
b.5 The idea, in this case, is to avoid putting extra money that you will not recover, keep payments low and take care of the car

Of course, this is my little knowledge about the pros and cons of leasing or financing, and everything depends on your intentions.
I don't know all company but VW/Audi you can "land" your downpayment to lower your finance % = lower payment per month. At the end of the lease, you get this money back.

I'm sure you can do this to almost every car company.
Jr. Member
Oct 6, 2013
115 posts
16 upvotes
Red Deer, AB
elpaso wrote: I don't know all company but VW/Audi you can "land" your downpayment to lower your finance % = lower payment per month. At the end of the lease, you get this money back.

I'm sure you can do this to almost every car company.
I think it's all about negotiating, asking, and being in the right moment.
A few dealers maybe will be reluctant because there is demand for the vehicle, others maybe will do everything to get rid of it (good ratio in their inventory turnover).
Deal Fanatic
User avatar
Sep 12, 2007
6115 posts
848 upvotes
Greely
elpaso wrote: I don't know all company but VW/Audi you can "land" your downpayment to lower your finance % = lower payment per month. At the end of the lease, you get this money back.

I'm sure you can do this to almost every car company.
You’re talking about multiple security deposits (MSD). Audi and VW will allow you to put 9 additional deposits down which will reduce your lease rate. I’m sure others do as well.

As an example, on a new S3 lease which I just signed, I brought the rate down from 1.98 to 0.63 by putting down MSDs.
[OP]
Newbie
Dec 21, 2018
20 posts
2 upvotes
Thanks everyone for the replies.

Definitely leasing new not used. Many reasons as to why.

I work downtown and commute, but i have a fuel efficiency vehicle that is just about paid off for that. The truck will be for pleasure and side jobs. (Work in construction).

I'm leaning towards the ram rebel 1500 or the f150.

Anyone have any experience with leasing one of these?
[OP]
Newbie
Dec 21, 2018
20 posts
2 upvotes
steve-0101 wrote: You’re talking about multiple security deposits (MSD). Audi and VW will allow you to put 9 additional deposits down which will reduce your lease rate. I’m sure others do as well.

As an example, on a new S3 lease which I just signed, I brought the rate down from 1.98 to 0.63 by putting down MSDs.
Would the dealership be more inclined to charge you for extra damage etc, in order to retain most of this? Are you doing this in an attempt to buy it out at the end?

I don't think I'll buy out at the end. I like the idea of a new vehicle every 2-3 and not worrying about maintenance, tires etc. Whats your thoughts with this?
Deal Addict
Jan 22, 2017
1222 posts
403 upvotes
i'm an actual finance manager for the ffun motor group.
I would only recommend a lease if this is beneficial to you on the books or if you are not planning to stay in the country long.
The reality and truth is you do not NEED to put 2k down if your credit is strong.
If you got any real questions send me a pm.

if you insist on leasing...
never lease used unless you know exactly where the unit came from and the car proof is clean.
always get a second mechanic to look at the unit before signing.
do not sign any promisary notes... leave any deposits or make any verbal commitments on the first visit to any dealership.
always get numbers and take pictures of any offers. and never ever ever fall for the this offer is for today only... they can always do better.
FONUS = SCAM
Deal Addict
Apr 6, 2008
1807 posts
1147 upvotes
Layhe86 wrote: Thanks everyone for the replies.

Definitely leasing new not used. Many reasons as to why.

I work downtown and commute, but i have a fuel efficiency vehicle that is just about paid off for that. The truck will be for pleasure and side jobs. (Work in construction).

I'm leaning towards the ram rebel 1500 or the f150.

Anyone have any experience with leasing one of these?
I would NOT lease a truck for side jobs if you plan on returning it in 3 yrs or whatever. Assuming you don't put the money into extra accessories (why would you on a lease), then you have no bed liner, protection film, interior protection, etc. You'll be afraid to use the thing for what it's intended for, a truck. I bought a 04 Silverado 3 yrs ago for $1000, put a few hundred into brakes, got a legit safety, and it's still running now. It's a toy hauler/construction/dump runs, and I don't care at all what it looks like. Better off to put the money into a truck like this. Who cares if it's ugly if you're just going to work with it.
[OP]
Newbie
Dec 21, 2018
20 posts
2 upvotes
fusion2k2k wrote: I would NOT lease a truck for side jobs if you plan on returning it in 3 yrs or whatever. Assuming you don't put the money into extra accessories (why would you on a lease), then you have no bed liner, protection film, interior protection, etc. You'll be afraid to use the thing for what it's intended for, a truck. I bought a 04 Silverado 3 yrs ago for $1000, put a few hundred into brakes, got a legit safety, and it's still running now. It's a toy hauler/construction/dump runs, and I don't care at all what it looks like. Better off to put the money into a truck like this. Who cares if it's ugly if you're just going to work with it.
I appreciate the reply. Im not too worried. I'm very meticulous with my vehicles. No heavy hauling. Just a plumber.
Deal Addict
Apr 6, 2008
1807 posts
1147 upvotes
Layhe86 wrote: I appreciate the reply. Im not too worried. I'm very meticulous with my vehicles. No heavy hauling. Just a plumber.
Lol and I'm an electrician. Buy yourself a $3000 minivan and call it a day. It would be way more useful then a 40 thousand dollar truck that gets returned in 3 years. But to each to their own, the only way we have used vehicles is if people buy new ones. I was in your boat, I was going to go for a Dodge RAM with the deals they had on, $200 a month lease whatever it was, but I did the math and it made way more sense to get something older. But it's your money, good luck. Lots of mark up on trucks so keep that in mind when negotiating.
[OP]
Newbie
Dec 21, 2018
20 posts
2 upvotes
techjedi wrote: i'm an actual finance manager for the ffun motor group.
I would only recommend a lease if this is beneficial to you on the books or if you are not planning to stay in the country long.
The reality and truth is you do not NEED to put 2k down if your credit is strong.
If you got any real questions send me a pm.

if you insist on leasing...
never lease used unless you know exactly where the unit came from and the car proof is clean.
always get a second mechanic to look at the unit before signing.
do not sign any promisary notes... leave any deposits or make any verbal commitments on the first visit to any dealership.
always get numbers and take pictures of any offers. and never ever ever fall for the this offer is for today only... they can always do better.
Thanks for the reply. What would you recommend is the best financial decision?

I have a daily driver already almost paid off. But the truck is for pleasure and small side jobs. I also like the idea of a new vehicle every 2-3 years, not having to worry about major repairs or tires.

The truck would have low kms and be maintained well so I'd assume the residual value would be good by the time I'm done with it.

Would it be smarter to finance, and then trade it in? I feel trade ins you get low balled at dealerships... And private sales are hard to deal with and find serious buyers...

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