Leasing questions.
Looking to the future if I replace the Winnebago with a fifth wheel then I'll have to purchase a truck. Has anyone leased with good results?
Forum Discussion
As long as you fully understand how a lease works, and what happens at the END of the lease, it can work for some people. It is usually a business deal, though, as the lease payment can be written off 100% as a business expense (it has been awhile, so that may have changed).
My brother in law got talked into a lease without realizing it was a lease. They kept talking about a "balloon payment loan"... which is a lease. After making payments for 4 or 5 years, he had to take out another loan for 6 (may have been 5) years to pay for the "balloon" payment of more than $10,000. Yep, he basically did a 10 year loan for his mid size truck.
A customer of mine, who specializes in helping car dealerships invest their profits, leased a couple Mercedes... a few years later, they realized they had put almost triple the "allowed" mileage on the cars. He had to trade in the cars, and got a couple used cars with high payments to pay off the leases. He told me to never lease unless someone else is paying the bills...
Another friend has leased trucks in the past, but... he works in town, so puts about 5,000 miles at the most on his trucks (many years less than 3,000). He is also fanatical about cleaning and maintaining his trucks. Leasing worked for him.
I did a 6 year loan on my truck (not great, I know), but now it is paid off and I own a truck that is in great shape and well maintained.
My brother in law got talked into a lease without realizing it was a lease. They kept talking about a "balloon payment loan"... which is a lease. After making payments for 4 or 5 years, he had to take out another loan for 6 (may have been 5) years to pay for the "balloon" payment of more than $10,000. Yep, he basically did a 10 year loan for his mid size truck.
A customer of mine, who specializes in helping car dealerships invest their profits, leased a couple Mercedes... a few years later, they realized they had put almost triple the "allowed" mileage on the cars. He had to trade in the cars, and got a couple used cars with high payments to pay off the leases. He told me to never lease unless someone else is paying the bills...
Another friend has leased trucks in the past, but... he works in town, so puts about 5,000 miles at the most on his trucks (many years less than 3,000). He is also fanatical about cleaning and maintaining his trucks. Leasing worked for him.
I did a 6 year loan on my truck (not great, I know), but now it is paid off and I own a truck that is in great shape and well maintained.
