Lease or buy pickup

[William G]

Considering a change of pickup and never done lease before. Always thought it as paying a lot of money for something you never own although I’ve never actually looked into it properly.

But with some horror stories with modern vehicles reliability and cost of repair I’m wondering if it something that adds up. No maintenance or depreciation

Be interested to hear from anyone who’s tried leasing and their thoughts on it.
My biggest concern would be penalties for a work vehicle being left back in work vehicle condition

 

[Flatlander]

I’m very old school and never leased anything but got to a stage that amortization wasn’t making the tax bill shrink in the short term enough. A lease Payment here is a total write off But in my mind you need to buy it out at the end of the term or it’s money wasted. After the dealership hit you with fixing all the dents and scratches and any over mileage charges you’ll be better off buying it out. Keep in mind thou that if you buy it out for next to nothing when it’s sold it becomes profit. Best to make the buyout a decent number. I’d still rather just pay up and not have the worry about having payments to make if a bad year hits.

 

[William G]

Yeah I’m of a similar mindset
I’ve been fairly lucky with reliability so far and no major repair bills. Usually run them pretty much into the ground so depreciation is dam near 100% over about 10 years but they’ve earned their keep by then.
But the cost of them now that 100% depreciation is quite a choker. And if it has some of the major repair bills I hear of at 5 year old on top of that it would be eye watering.

Was wondering with a 3 year lease you have a new pickup on regular basis and no repairs or depreciation. But I suppose you’re just paying for all that in the monthly payments and either buy out price or penalties at the end.

 

[ollie989898]

Trouble with leasing is you pay big money every month and end up owning no truck at the end of it. They will also skin you alive in extra costs if the thing is not cosmetically perfect at the end. I'd suggest this is a very high risk strategy for a vehicle likely to be used on a farm. If you're able to stick coughing up the money each month you may as well HP the thing.

 

[FonterraFarmer]

Considering a change of pickup and never done lease before. Always thought it as paying a lot of money for something you never own although I’ve never actually looked into it properly.

But with some horror stories with modern vehicles reliability and cost of repair I’m wondering if it something that adds up. No maintenance or depreciation

Be interested to hear from anyone who’s tried leasing and their thoughts on it.
My biggest concern would be penalties for a work vehicle being left back in work vehicle condition

Thinking completely outside the box get a 70's early 80's Chevy pick up, repower it with a LS or Barra (with Haltech) with a 5 speed or 6 speed manual coupled to a 9 inch.
All known proven mechanicals, easy to work on and cheap to service.
It'll put a smile on your face every time you drive it and pee off the neighbours when you leave home too enthusiastically....

 

[ARW]

When you work out the figures of leasing your are only paying for the depreciation and the interest on the value, I don’t think it’s extortionate but it will be cheaper to buy your own and sell at 3 years old and take that risk
I know someone who leases 6 vans and they get an car repair shop to mend the scrapes before they hand them back in and that’s cheaper than the penalties
We have looked at it many times but fencing is just to rough on them and apparently you can’t fit off road tyres on it or modify the pickup bed

 

[nick...]

Think this is a generational thing.I’m 61 and been bought up to not buy anything unless I can pay for it.and that’s the way it’s allways been.the younger generation tend to use hp or leasing as that’s the way to get newish stuff
nick…

 

[Dave W]

I looked at leasing a few years ago and thought the numbers stacked up.
Worst thing is (or was back then, could be different now) your limited to a punt mileage and the truck has to go back in showroom condition

 

[crashbox]

Think this is a generational thing.I’m 61 and been bought up to not buy anything unless I can pay for it.and that’s the way it’s allways been.the younger generation tend to use hp or leasing as that’s the way to get newish stuff
nick…

Also makes sense if you're racking the hours on.

And if you're first generation with no land as security, you can't always get the cash up front. Leasing helps you get going, at least.

 

[workin f nowt]

Depending on miles per year you can get 10 years or 100000 miles warranty on a Toyota as long as its serviced by them (not knowing how good the warranty is). So you'd get your 10 years if that fits or 100000 miles out of it without repair costs. I'm the same as in don't lease vehicles and my work pickup well let's say nobody really wants them when I'm finished with it so the panel beating charge would be worrying.

 

[puppet]

Leasing always going to be more expensive than buying outright. The leasing company has to borrow money to buy it, maintain it, repair it and sell it on again. All that is passed to the customer.
Of course you can plan cash flow on a lease if you don't have cash. I would then buy a 3 year old which has pulled a horse box at weekends

 

[Johnnyboxer]

Yeah I’m of a similar mindset
I’ve been fairly lucky with reliability so far and no major repair bills. Usually run them pretty much into the ground so depreciation is dam near 100% over about 10 years but they’ve earned their keep by then.
But the cost of them now that 100% depreciation is quite a choker. And if it has some of the major repair bills I hear of at 5 year old on top of that it would be eye watering.

Was wondering with a 3 year lease you have a new pickup on regular basis and no repairs or depreciation. But I suppose you’re just paying for all that in the monthly payments and either buy out price or penalties at the end.

Yes
No such thing as a ‘free lunch’
As you guessed you are paying for the depreciation and maintenance in the lease (contract hire) rental each month
Then they hit you at the end for damage and excess mileage
Only one winner the lease company-but good if you don’t want the asset on the balance sheet

 

[CPF]

Think this is a generational thing.I’m 61 and been bought up to not buy anything unless I can pay for it.and that’s the way it’s allways been.the younger generation tend to use hp or leasing as that’s the way to get newish stuff
nick…

It takes a long time to save a million for my next combine , so it’s got to be financed to keep up with the Jones’s , Nick

 

[William G]

Pretty much everyone saying what I’ve always thought. To much money for something you never own and getting hammered when leaving it back.
Was just a notion I thought might be worth looking into and thought I’d put it out there to see if anyone does it with success
Think we’re all in same boat in this industry of knowing there’s a good chance we’ll be returning it hoping they only look at the vehicles best side

 

[CPF]

The other way is to put it on finance with a balloon payment at the end ,gives you chance to save up for the balloon payment and you own the vehicle afterwards along with tax benefits on your payments .
I have done this.

 

[BuskhillFarm]

If you like new and change every 3 years leading is a no brainer. Best value would be buy 1 year old and drive until its done, you can afford a lot of maintence for the price of depreciation.

 

[nick...]

It takes a long time to save a million for my next combine , so it’s got to be financed to keep up with the Jones’s , Nick

Yes I’d agree with that.all machinery is ridiculously expensive and everything getting out of hand.a main dealer boss told me recently no one buys stuff anymore,tractors combines etc but just pays monthly for 3/5 years and then has another and the payments continue.pick ups and cars are a bit differant if changing every 3 years and if owning,the cost to change figures are not too??? Bad
nick...

 

[ollie989898]

If you like new and change every 3 years leading is a no brainer. Best value would be buy 1 year old and drive until its done, you can afford a lot of maintence for the price of depreciation.

If that is the case why not pay the HP cost every month and then trade it in when the final payment is made and get a new one? With Toyota and co offering long term warranties you can't lose, surely? With the right spec second hand pick ups always command strong money (unless you are a rough arsh with them).

 

[BuskhillFarm]

I

If that is the case why not pay the HP cost every month and then trade it in when the final payment is made and get a new one? With Toyota and co offering long term warranties you can't lose, surely? With the right spec second hand pick ups always command strong money (unless you are a rough arsh with them).

that makes no sense.

1. 1st year of depreciation is big on anything.
2. There are two type of people who buy pick up, the op falls into the livestock category. He’s going to “use” it for what it’s meant for, and will get dirty and dented therefore as mentioned after 3 years will have penalty’s. As you say rough arse, as I say used for its intended use.
3. If you fall into the other category of closet homosexual/wife beater then, yes the pickup will be polished every Sunday and be worth substantial more

 

[ollie989898]

I

that makes no sense.

1. 1st year of depreciation is big on anything.
2. There are two type of people who buy pick up, the op falls into the livestock category. He’s going to “use” it for what it’s meant for, and will get dirty and dented therefore as mentioned after 3 years will have penalty’s. As you say rough arse, as I say used for its intended use.
3. If you fall into the other category of closet homosexual/wife beater then, yes the pickup will be polished every Sunday and be worth substantial more

I only mention this because it is precisely the strategy used by a previous employer. At the end of year 3, regardless of mileage, they were traded out. The residuals were so strong it made it relatively cheap motoring.