Poll: Lease vs Purchase Your Bronco?

[mpeugeot]

And stop gloating, I've been "asking for permission" for over 30 years now, well I guess it should be called "compromising", but you know.

Well now I am not going to be gloating because as far as I know I have been bumped to Feb 2022, and as a result, I may actually cancel my order. I am more than a little annoyed at military auto sales, they have jerked me around a few too many times now.

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[Moya7]

Well now I am not going to be gloating because as far as I know I have been bumped to Feb 2022, and as a result, I may actually cancel my order. I am more than a little annoyed at military auto sales, they have jerked me around a few too many times now.

If I can’t convince my husband on the 4 door BD with soft top I have my VIN on ya want mine?

 

[mpeugeot]

If I can’t convince my husband on the 4 door BD with soft top I have my VIN on ya want mine?

Depends, does it come as a package deal with you and the dog?

 

[Moya7]

Depends, does it come as a package deal with you and the dog?

Ha ha ha, you’d love the dog but I’d drive you nuts, just ask my husband.

 

[Moya7]

Depends, does it come as a package deal with you and the dog?

Actually I'm pretty sure my husband would oblige as I just bought a new car and have my VIN for the BD, and reserved a Lightning for the future...

 

[Efthreeoh]

You're pretty much the first person on here who has any financial understanding it seems. New vehicles are the equivalent of going to the bank machine, withdrawing a large sum of money, and lighting it on fire. Great investment. Even for a self-employed person, any write-off is only a percentage of your marginal tax rate so you'll never come out ahead as depreciation will outstrip it, and whatever you save on tax-write-offs disappears as your asset does too when the lease is over. What part of that is not to love? (You don't think the car companies thought this through 500 ways from Sunday???) When you consider the bottom 50% of Americans own 2% of the "wealth", and the next 40% (so, 90% total) only bring that number to 30% of the wealth, and the new car business is booming, you can get a picture of why the stats read as they do.

Here's where it gets important. I'll finance mine at 2.5% which I can easily recoup with an equivalent investment, so 0% financing, BUT *no one* here, except for you, referenced the opportunity cost of buying the vehicle. NOR, has anyone taken into account their marginal tax rate on the new vehicle. When you put it all together, let's say your new Bronco costs $40,000, you will probably have to earn $80,000 to pay for it. Read that again. Your $40,000 Bronco will cost you $80,000. (This varies by income, tax rate, investments, etc., but you get the idea.) You might want to reference the first paragraph again.

I too have *never* bought a new vehicle. (My current vehicle retailed for over $60K in 2009, I paid $20 for it in 2013, and had less than 30K on it - yes, it's a "luxury car". Still smelled new. Perfect in every way. I really thank the first owner for buying half of my car for me. Thanks, bro! It's still a beauty today!) Honestly, financing anything based on income, not savings, is financial suicide. Personally, I cannot justify any more than 5% of my income going toward any (rapidly) depreciating asset. I'm going to buy my Bronco new, just because I've waited a looong time for this moment, mod it as I want, not get side-tracked by "shiny" (reminds me of those old Samsung commercials that poked fun at Apple because they changed the placement of the headphone jack on the iPhone and people were just blown-away), and drive the wheels off it. But that's me.

If you look at vehicles as an investment, then sure the financial implications are bleak. Look at a vehicle as a transportation tool, then it is more mentally healthy. Any evaluation of the economic cost of vehicle use (owning outright or leasing) comes down simply how much the vehicle costs you to drive it per-mile. If you are buying the Bronco as a toy, then chatting about opportunity cost is pretty much pointless; it's a toy.

Lease a vehicle for personal use and the cost per mile is north of $2.50 for a vehicle around $30K BEFORE fuel cost and maintenance. Buy the same car and drive it for 150,000 - 200,000 miles and the cost per mile drops to around 50 cents, all costs accounted for.

For a leased vehicle, the owner determines the cost per mile you pay. If you own car, you *mostly get to decide how much the per-mile cost will be. *depends on what the vehicle's average maintenance cost per mile is, which on newly introduced models can be somewhat of an unknown, but educated guesses can be made on that element of ownership.

 

[mpeugeot]

Actually I'm pretty sure my husband would oblige as I just bought a new car and have my VIN for the BD, and reserved a Lightning for the future...

LOL, you aren't cheap to keep. Update: I did finally get my VIN.

 

[e90steve]

I've leased in the past as a means to purchase. Allows you to put very little down upfront, have a low monthly payment and live with the vehicle for an extended period of time. I've actually been so far ahead on a few of them that the "trade in" at the end of the lease is more than my residual. I've actually had dealers pay me to take my car (or at least apply it to the next vehicle).

 

[mpeugeot]

I've leased in the past as a means to purchase. Allows you to put very little down upfront, have a low monthly payment and live with the vehicle for an extended period of time. I've actually been so far ahead on a few of them that the "trade in" at the end of the lease is more than my residual. I've actually had dealers pay me to take my car (or at least apply it to the next vehicle).

Well, honestly, I can put 0 down on the purchase with the financing on a purchase. However, the monthly payment is not necessarily low (on a zero down $60k vehicle loan, it is just about $1050 per month on a 60 month term at 2.19% APR).

I am torn between paying cash (my original plan) or taking advantage of what is a loan that is clearly going to be below the rate of inflation. It seems foolish to pay cash at the current interest rates.

 

[ilbastarge]

I'm voting both because I'm looking at the flushed used market. Where the BLs and BBs get traded in because they aren't plush enough.

3 years down the line with the "lower" than wonderful mpg and more purpose built ride could give some really good value on a low mileage vehicle.

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