I agree. An SUV is never a great replacement - usability-wise - for a pick-up truck. Sure, one can get a utility trailer to pull that might hold as much as a Silverado, but then you've gotta find a place to keep a trailer, license it, and unless you are proficient already, learn how to tow and back it. And there will STILL be times when the trailer is a poor substitute (like tight places). Plus, a lease comes to an end - and you own nothing. So then what, start all over with another lease? I get it that owning a vehicle involves depreciation, but at least you have a title - but more importantly, you have A TRUCK! So unless you live somewhere and in a situation where hauling stuff is NEVER a need, keep the truck. I've not been without one in my stable for about 40 years, and although it's worth spit right now, my old Dodge will be used more days this summer than my SUV...
I concede the point, but many of the responders are ignoring a crucial point: he's not talking about buying an SUV - he's talking about leasing one. Totally different value equation. When you lease, at the tail end, you owe a residual (unless leasing has really changed since I last did it). And of course, they will want you to lease a new one. Or they will grudgingly sell you the one you just finished paying for but don't own. At least, if he keeps the truck, when his payments are over, he'll own something - and that something might be valuable (as someone else pointed out). Another person pointed out that he bought a truck for a reason - I would like to give him credit and say it was because he wanted/needed a truck. Now true, if he doesn't any longer want or need one, maybe he should be downsizing - and yes, possibly a small SUV would meet his needs. He didn't state that his needs have changed, but I'll give that some cred. Still, deciding to lease a German luxury SUV in order to cash in on his truck's value doesn't seem to fit the criteria that he's "just adjusting to his needs". So Tim, I'll stick with my viewpoint and concede that you have your differing one - but as I read the story, I don't think that yours fits particularly well in this case... 😉
I 100% agree that leasing a vehicle is generally not a good idea. It's just a way to hide the fact that you are paying more for a vehicle. I've never leased a vehicle, as I generally prefer to keep them until they die (or a family member kills them). Purchased vehicles also make great hand-me-down vehicles for kids leaving the nest.
I think what Jack and I were saying was essentially the same thing: one should really look at how a vehicle (particularly a truck) has been and will be used to determine if it still makes sense to own. The older the truck, the more it probably fits the "it's worth more to me than someone else" category. Which explains how we've had the same F150 in our family for over 17 years. 🙂
I think if Brian's truck was older and paid for, his answer would be different. I also don't necessarily think his trade proposition makes much sense to me. But maybe he's tired of the way the truck drives during his daily solo commutes and imagines something more enjoyable, if certainly not less expensive to own.
Truck values have always trended higher than most vehicles. Even when the market returns you will still get more for the truck.
German SUV models all suffer the same depreciation as the German luxury cars suffer.
The key to satisfaction is to buy the type of vehicle you need vs the one that appears to be a good deal.
I have a crew cab I love. I could sell it at 3 years old for nearly what I paid. But I looked around there is nothing I want more than a C8. But no deals or available cars there.
Yeah, we've all seen examples where someone unbolted the trunk lid - maybe even torch-cut the entire body from the front seats back - in order to have some hauling space in some cheap car. Especially good if you do indeed have some manure to haul. 😂
Yes, there is a VERY old fashioned POV that says something like "buy what you need, pay for it without borrowing (or at least limit the borrowing then quickly pay off your debt), and treat what you own with respect - show some pride of ownership". But just as we were learning that way of life, credit cards, planned obsolescence, and conspicuous consumerism reared their ugly heads. Partnered with "keeping up with the Joneses (no offense JRJones, but that's how the saying goes)" and "he with the most toys wins".
I've no problem with running my truck for 200K miles. And I use it as a truck, not a status symbol. My home is paid for, as are my vehicles. A lease made sense for me once for business purposes, but from a private vehicle standpoint, it is, as you said JRJones, pizzing it away.
But as I look not only around the roads I drive on, but heck even just my own neighborhood, I realize that those concepts I wrote in the first paragraph are not very doggone prevalent nowadays.
It is my memory that vehicle leases (truck or car) were intended to service businesses and business persons to write-off on taxes as an expense.
Our shared vehicle philosophy is most effective if our purchases are informed by research and a laudable reputation. Obviously resale value is not as important, but it usually goes with a reliable vehicle. A German SUV? Well the lease is not a bad idea in that regard.
Not sure if it's the lease that's the bad idea or the German SUV, but I'm pretty sure I don't want either one of 'em. 😄
You are correct that leases were originally intended for businesses. But nearly every vehicle ad I see now - and they are directed at regular Janes and Joes, not businesses - put some lease options out there. And the more expensive the vehicle, the more the lease is pushed, it seems. It's like the old cigarette and alcohol ads, IMO, in that it's aimed at convincing younger folks that it's cool to have a "XYZ (insert fancy auto brand name here)", and here's a way "you can afford one", because lease payments sound cheaper - and it's "only for 3 years!"
My buddy Russ leased a VW diesel for his wife, and the dealer was very gracious about him bringing it back. (no hurry) I wonder how that used inventory is moving?
The question is are you really cashing in if you are spending money on the flip side? I have been in my house for just over a year and in that time my house value has skyrocketed. According to my realtor I can sell my house for $100-$150k above what I "paid" for the house. That is insane to see how much it exploded in less than a years time. It sounds great to sell except for on the flip side I probably will lose it all on the "purchase" side of the equation if I stay in the Austin suburban area. So unless I'm willing to move to the country (I'd actually be ok with this) or to another state the actual "cash" is all virtual and will never appear. Having said that I did sell off my 3 year lease 2018 Lexus IS 350 F Sport that I leased. Selling it got me 61% of what I paid over the 3 years to lease the car. So basically I had a nice sporty Lexus for under $2300 a year. Crazy times. I am waiting on the Lexus IS 500 to come out this fall so that's when I intend to jump back in but no need to rush since we both work from home and I still have the wife's 2013 IS 350 and I have my 1997 Supra Turbo. So it's not like I don't have a car right now.