F150 - buy out my lease or Lease new?

[check]

Big decision coming up at the beginning of April. Whether to buy my current lease truck at about $25,000, or lease another new one?

It is a Super Crew 4 x 4 with the 5.0 L engine, the 5.5 ft. box, and the "302A" package which includes the XTR goodies, and I also have a tailgate step, a bedliner, navigation, and 20 inch wheels. It will have about 30,000 miles by April, when I have to make the decision. If I give it up for a new one, I will have to pay about $1500 in excess mileage charges.

If I buy out the lease, I will want to add a warranty, which we cost me an additional $2000-$3000.

Current lease payments are about $680 per month, after-tax. (13% here in Ontario.)

I can borrow the $25,000 for about 4% interest.

So, what to do? The Ads in the Toronto Sun are calling me!

 

[smstonypoint]

What's your best guess of what you could get for the truck if you exercised the purchase option?

Steve

 

[Tractorable]

You'll have to crunch the numbers to see if it's worth it to you.

The 5.0 with 20in wheels is a sweet setup. I'd probably buy it if it were me. Plus, you know the history on it if you plan to keep it for the long haul.

 

[bspeedy]

Why add a warranty? If the truck has 30k trouble-free miles you don't need a warranty. If you've had trouble with it, you don't want the truck.

Are your figures in USD or CAD?

 

[dodge man]

That sounds like a good buy out price to me, but you would have to look up the numbers on Kelly Blue Book to check. I agree, skip the warranty.

 

[Slowpoke Slim]

Unless you're using it for business purposes, or can otherwise write off the lease payments, I would never lease a vehicle. You're throwing your money away. At this point, where you are now, I'd buy it out and keep it until you pay it off. Then keep it for longer, as it doesn't "owe you" anything at that point. Maybe you can start getting some of your money back by keeping it after it's paid for.

 

[check]

Why add a warranty? If the truck has 30k trouble-free miles you don't need a warranty. If you've had trouble with it, you don't want the truck. Are your figures in USD or CAD?

Yes, good point about the warranty.

The figures I quoted are Canadian dollars, and the Canadian dollar right now is about $.80 US.

BTW, Thousand dollar payout is incorrect. That was my last truck. This truck's payout is $31,000. (as you probably know, the prices of the F1 50 shot up when they went with the aluminum body.)

It turns out that the dealer called me last night, saying that he thinks he can give me the same truck again, for the same lease paymen. We will see.

 

[bspeedy]

Yes, good point about the warranty.

The figures I quoted are Canadian dollars, and the Canadian dollar right now is about $.80 US.

BTW, Thousand dollar payout is incorrect. That was my last truck. This truck's payout is $31,000. (as you probably know, the prices of the F1 50 shot up when they went with the aluminum body.)

It turns out that the dealer called me last night, saying that he thinks he can give me the same truck again, for the same lease paymen. We will see.

That 31K is 25k USD (roughly). That's not a terrible price. I'm not a 'car payment' guy, so I can't relate to the whole idea of leasing. I'd rather own it and use it up. But I don't care for driving new or have anyone to impress. Different strokes I guess.

 

[Tomtint]

25k is short money for that truck. If you are happy with it..buy it. I'm a fan of leasing, .. pay the depreciation on it and give it back in 3 years.. no muss no fuss. My wife has a Porsche Macan that is coming up on 3years old in 2 months.. she is under on the miles allowed by several thousand.. we can buy it for the residential.. or actually let another dealer take it in trade.. and keep the equity we have in it.

 

[jeff9366]

I am not too familiar with trucks but I have been shopping small vans (Ram Promaster City) and crossovers (Mazda CX5).

I find two year old and three year old vehicles with 20,000 to 35,000 miles on them and a probable trouble free service life of 200,000 miles have depreciated 40%. Many are vehicles off-lease.

With autonomous driving not far in the future people will not pay much for used vehicles.

I find 40% depreciation astounding.

When we tip into recession and repossessions increase, used vehicle prices will decrease further.