Quote:
Originally Posted by onewhippedpuppy
I also don't have any mileage limits (we've put 14k on my wife's 2012 F150 in 7 months), and no concerns about turning in a lease and getting nothing for my money.
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Ah you added this
If you buy, lease, take out a loan, pay cash, whatever......
vehicles will depreciate based on miles
Put 20,000 miles per year on your truck or 15,000 miles per year on your truck. Which is worth more 2 years from now?
One has 40K miles (out of warranty) and the other has 30K miles (still under warranty)
Which one is worth more? How much more?
See, you can't tell me how much more....you're at the whim of the market. I can tell you that, right now, a 2011 (two year old) F150 with 30K miles is worth $2800 more than one with 40K miles. Therefore, each of those 10,000 miles cost you 28 cents per mile. Yet you can purchase miles up-front on a Ford Credit lease for 12 cents per mile.
In other words, the lease wins by over $1600. You knew it cost you $1200 up front, worst case, when you signed the lease. If you paid cash for your truck and sold it two years later, you had no idea those 10K miles would cost you $2800.
You can put as many miles on a lease as you want. The limitation is all in your head. Regardless of what you signed up for. Let's say you signed up for 15,000 miles per year and ended up putting on 20,000 miles per year. At the end of your two year lease, you have options. Option 1: turn it in and pay a 20 cent-per-mile "penalty". That's $2000. Still a better deal than owning it and taking a $2800 hit. Option 2: Buy out the lease. If the stated residual is $10K, you can buy your truck for $10K.....whether there's 8,500 miles on the odometer or 85,000. If you think you can do better that way, sell it or trade it (same options you'd have if you owned it). Just choose the better option. Sometimes paying a "penalty" saves you money.
Again, miles are going to cost you one way or another. With a lease you know EXACTLY how much, up front.
Oh, and let's say you bought those extra 10,000 miles up front. But at the end of the lease you didn't use them. Guess what, they're refundable with Ford Credit. 100% You get your money back. Or, if you want to keep the truck, you owe that much less in residual. That money doesn't go away. A+B=C
If I had bought a $64K 2010 Audi S4 for $55K (realistic, $500 over inv), paid $3850 in sales tax up front (7% of $55K) and went to sell it three years later with 45K miles to find out it's worth $32K dollars (actual value today), what did I have to show for my money?
If I leased it, retained my $58,850 and paid 36 payments of $708 (incl tax) and had a $34,560 residual (these are the ACTUAL Audi Financial numbers this month, btw, not made up), I'd have spent $25,500, what did I have to show for my money?
Well, to own it I spent $58,850 up front and recouped $32,000 when I sold it, for a TCO of $26,850. To lease it I spent $25,500 *AND* retained my liquidity, all my cash, to invest, bury, blow, or burn as I saw fit. Again, what would a lump $58,850 principle payment into my mortgage have done for me over 3 years?
What don't you get?