Hello I am in Texas in the market for a truck. I know trucks don’t hold the value but I need a truck for work.
Went to the dealer today and got this offer for a lease. Was wondering if this is a fair offer and worth signing
MSRP- 61,505
Selling price- 54,973
Term-39 Months
Residual- 63%- 38,748
Incentives- 500$
Money Factor- .50/ 1.2%APR
Acq fee- 695$
Down payment i just threw a number out there and that was 6 thousand dollars $
Due at Signing 7000
Payments without taxes 729$
Ill be honest I don’t know a whole lot about leases and just trying to make sure I am not getting screwed.
Save yourself the brain damage from interacting with a gazzilion dealers all of whom are trying to hang you upside down and shake you until every penny falls out (before dropping you on the floor).
I guess if I am being honest with you I have always stuck with chevy its all I ever known as far as trucks go. Been looking in this insane market and with the truck out the door being at 54k its the cheapest by a long shot in most of texas that ive looked. Most being about 60-61.
there’s nothing wrong with being stuck on a brand. As long as you know you may be foregoing a competitors product (that comes out a significant discount), at least you are educated about your decision, and that is a win in my book.
Then there are bottom feeders like me who will bounce around to wherever the deals are, lol
Yeah, Like I said im not looking for this killer deal atm. My plan is to eventually after the lease is up to possibly buy it. Not sure who knows how it will play out. More or less wanted to find out if that offer from them is at least fair. As I stated im not super familiar with leases.
If your plan is to possibly keep it long term then that makes this even worse.
You need to do some very basic lease vs. buy calculations.
For example with this lease you’d be paying $35k to drive a $55k truck for 39 months, then you either just give it back (with nothing to show) or you would still owe another $39k if you wanted to buy it out.
Finance that buyout and this $55k Silverado turns into an $80k turd you’re paying off over 7-8 years.
At the end of the day no difference between using savings to “lower” the payment or having a higher payment. It’s the same amount of money per month at the end of the day. I’d suggest researching on why a large down payment is not a wise idea.
The TL;DR is that in the rare even of a total loss, youll likely lose any down payments. In the “old days” (aka a few months ago, LOL) when interest rates were close to zero, down payments made little sense because you could use the banks money for (almost) free. As interest rates increase, one has to think about the risk/reward a bit more.
One has to decide if this risk/reward/comfort factor balance for themselves. IMO, there is no longer a cut and dry answer.
LH needs some sort of framework to reduce the amount of these types of threads, especially for new members. The majority of the time, it is the same old song and dance. A newcomer enters with either a poor deal or a series of questions, and he/she is immediately funneled to one of the brokers.
Is LH’s function simply to spoon feed potential customers onto a brokers radar?
I understand dues are paid. To clarify - I by no means am insinuating that brokers are the devil, or that they provide no benefit to this forum. At the very least, many of the brokers provide great conservation on here (you included).
It would just be cleaner for everyone involved if some of these threads were preventing, and having people actually be funneled to a broker in the beginning. Some of these people cannot be saved from themselves - so they absolutely need a broker.
OP - this is not directed towards you FWIW. More of a discussion of broker involvement and how to improve LH…
