leaseing a tow vehicle?

[batavia02]

Did a quick check and i dont remember reading anything about it recently,but i was just wondering is it it possible to lease a hd truck for towing?not talking about any brand directly but a 1 ton truck does not come cheap ,well maybe in stripped work configuration, but certainly not fully loaded, but i was wondering if one can lease a hd truck,and yes i am aware about mileage restrictions and other lease regs. Thanks .

[Gdetrailer]

Mtwoodson wrote:
I was wondering about leasing too, so did some research and googling. Came to the conclusion that it didn't make sense for me. By the time it was over and done, I'd have spent nearly half of what a purchase would cost and have had no equity. The tax part didn't do enough to help out. Good luck.

You have learned well, little grasshopper!

Yep, you put a pretty large "down payment" UP FRONT on it, then you will pay nearly half the cost of the vehicle for three years and then turn it in (and have nothing for that money you just paid for other than the use of it) OR you buy out the lease on what is known as a "balloon payment"..

The balloon payment you are basically paying the REMAINDER of the FULL ASKING PRICE (MSRP) when you agreed to the lease PLUS INTEREST and other fees and taxes.. For the most part the payment will require you to secure a new loan which will cost you more in interest payments..

Most folks get into a lease because the PAYMENTS are smaller than what a loan would be.. Gives the buyer a false sense that they can "afford" a vehicle above their means..

Only a few times where a lease may make sense but I would question that..

I worked with a guy once that he told me that he got "bored" with vehicles and figured he would ALWAYS have a payment.. So, he always leased.. Well he also had a nice big house but could not afford to buy furniture for it (had lawn furniture inside) and often his phone was disconnected and even electric and gas turned off.. But he sure drove some nice looking vehicles!

[Mtwoodson]

I was wondering about leasing too, so did some research and googling. Came to the conclusion that it didn't make sense for me. By the time it was over and done, I'd have spent nearly half of what a purchase would cost and have had no equity. The tax part didn't do enough to help out. Good luck.

[batavia02]

Thanks for the replies several good points for us to consider, we are also looking used probably carmax.much apprecate all responces

[Golden_HVAC]

What about looking at a lease returned truck? Perhaps you can find a gently cared for truck that was turned in with 24,000 - 36,000 miles on it, and only 2-4 years old. They sell these for about 1/2 - 3/4 the cost of a new truck.

When a leasing company 'invests' in a truck, they purchase it at a fleet rate, then have to spend money on a loan with that truck backing it. 100% is financed, at whatever rate they determine. So say it is 10% per year, and the truck has a $50,000 MSRP. So they will figure they need to pay $5,000 first year in interest, and $4,500 the next year.

They figure that the truck will be worth $40,000 - $35,000 at the end of 2 or 3 years, and figure in this 'lost value' too.

So they are out to make money, and charge the lessee a fee over what they are making (for their profits).

Also the leasing company is the vehicle owner, and what happens if the lessee gets in a accident? The leasing company pays what the insurance company does not pay for, and perhaps if the vehicle is totaled, the insurance value is say $35,000 but the other accident cars total $25,000 in losses, then the total coverage for this vehicle is say $60,000, but there is a total loss of $75,000 in all the cars involved, then the insurance company is only going to pay off the first $60,000 in losses. The vehicle 'owner' pays for all the rest.

So the leasing company typically requires $100,000 - $300,000 insurance coverage with huge amounts in there to protect their investment and them! That insurance will cost you more money each month, where buying the truck, you are allowed to buy as little as $30,000 minimum state required insurance (silly in these times) and can opt to buy only $50,000/$100,000 coverage, or something a little more protective such as $75,000/150,000 that is reasonable cost while protecting you well. .

So add up the amount they expect to lose when selling the vehicle, interest costs, and all the money that the leasing company expects as a profit, then put on top of that any extra insurance costs that you will need to get the lease, and it becomes apparent that the leasing company is not out there to save you money, but to cover all their costs plus make a profit.

My sister used to purchase cars for a leasing company. Things may have changed in the past 30 years, but not that much. . . They try to buy the car at the lowest possible price, but will still charge the lease at the MSRP if they can get away with it. The leasing company usually keeps all the rebates (unless they must pass them on to the lessee in order to close the deal). They normally require a down payment, and sometimes have a provision for lease termination fee.

Add the down payment to your lease payment to get the true cost.

SO I recently saw a ad for a smart electric car at $139 per month. 36 month lease and $3,000 down payment. I was thinking "I am spending $300 a month to buy gas for my car, why not?" I went to the dealership to find out that it required $3,000 down payment, and also I had to purchase a 240 volt charger, or use the included 120 volt charger (that sits outside the car ready to be stolen if not locked up in a garage) that would take hours to give the car a full charge.

Two things turned me off right away. The charger that sits outside the car while plugged in. The front seat does not accommodate a 6' tall driver very well.

The total cost of the lease you add about $100 a month to make up for the $3,000 that you put down over the 36 months, for a real cost around $250 per month. Add to that I would be insuring another vehicle, and that put me over the $350 I would save in gas costs. So it would not really save me anything, and I would be driving a tiny car, not my comfortable one.

Leasing can make sense if you are running a business and need to drive the car to visit the clients. You can write off the total cost of the lease, and all it's expenses. Fuel, oil changes, ect.

Sure you can lease the truck, install a fifth wheel hitch, and tow with it. Buy the truck with a towing package, installed brake controller, and all the options that you desire. They will take back the truck with the 4 holes in the bed, and should not charge you extra for that. Somewhat normal wear and tear on a 3 year old truck.

Good luck,

Fred.

[Gdetrailer]

Possible, yes..

Practical, no.

Unless they have changed things a lot, "leases" hit you with an up front fee or down payment..

Then YOU are responsible for ALL of the "wear and tear" items not covered by warrantee such as tires, brakes rotors, oil changes, filters and so on for a vehicle YOU don't and will never own (unless you are silly enough to pay the "balloon payment" at the end of lease).

You will get heavily penalized by any mods or changes you do to the vehicle (good and bad), not to mention dings, dents, scrapes, torn seats, damaged interior, missing parts and so on..

In the end, you are not saving money since you are nothing more than renting it for a long term and at the end of the term you have to give it up (and lose all the money you paid in) or you have to pay a balloon payment (basically paying twice for the vehicle) which is typically more than the actual value of the vehicle.

Personally I won't touch a lease, I want to have "something" that is mine at the end of the loan..

If the only way you can get the vehicle is a lease, then you NEED to step away from the whole idea and walk away.. It is too expensive for you..

I would recommend looking at a LESS LOADED or smaller cab vehicle, there is no shame in buying a lower trim level or less bells and whistles or even a smaller cab.. You may NEED to order this type of vehicle, most dealer lots will have only the fully loaded versions..

Think of a vehicle as a means to get you from point A to Point B.. Doesn't have to have Leather heated seats, doesn't have to have navigation, bluetooth and so on..

I would also recommend considering a older used vehicle, the previous owner took the hit on depreciation and you don't spend as much money on it..

There are a lot of online amortization calculators, use them..

[batavia02]

The thought is definetinly leaseing. We have silverado 1500 that is the daily driver. The early thought is lease because the tow vehicle will be set up towing the 5th wheel .

[atreis]

"Lease" or "rent"? Both are technically leases, but one tends to be very short term. Rentals usually have very strict limitations on what the vehicle can be used for. Leases (from a car dealership where you retain the car for 2-3 years) usually don't - they have clauses for excessive wear and tear that they'll hit you with at the end if they don't like how you used it.

[Jack_Diane_Free]

Have leased 2005 Silverado 2500HD, 2008 F-350SuperDuty, 2011 F-250SuperDuty, and current 2014 F-250SuperDuty. Used all for towing. Even turned in the Silverado and F-350 with holes in truck bed from the 5er hitch with no worries.