Paying off truck

Dave Ramsey fan also and he thinks fleases are nothing but trouble. Cash is king he says. Anyone run numbers on a purchase vs lease to see? Also, where can you get a fair deal buying a truck?

 

If you buy a new truck and borrow $100,000 for 60 months at 8% interest, and make the payments of $2027.64 you will pay $21,658.37 in interest alone, it will be yours at the end with no buyout or ballon payment. I can't say what that same $100,000 would be when done as a lease purchase thru some bottom feeder company, but I am sure it would be much, much more.

 

I think what they speak isn't a lease purchase from a company, you can buy a truck from a dealer on a lease and have it be paid off when you make all the payments. in that scenario all of the lease payments can be deducted from taxes, same as my purchase of trailer from mercer, I have been able to deduct every penney I have paid on it, 2 more payments and its mine, by the way, I also purchased my apu in this manner, I have deducted the entire amount paid, as I have the tractor I drive on a dealer lease. the tax savings are beneficial, but don't confuse with a fleece-purchase

 

Like any vehicle a brand new semi is not worth what you pay for it

 

Not true! From: http://www.bankrate.com/brm/news/auto/20010827a.asp

"In 1992, the U.S. Congress outlawed the use of the "Rule of 78s" formula in closed-end loans longer than 61 months. . . Whether a lender can apply the "Rule of 78s" method to installment loans of five years or less is a matter of state law. Currently, 17 states prohibit the practice."

Nope. Simple interest is calculated on the unpaid balance of the loan. This allows for paying off your loan with no prepayment penalty. Your mortgage looks "front-loaded" because it's for such a long term. If you take your balance owed multiplied by your interest rate and divided by 12, you'll see your approximate monthly interest due.

Again, from: https://www.lbcefcu.org/prodserv/loan_interest.html

"All credit union loans are closed-end loans (as opposed to open-end credit, such as a credit card). All loan interest is calculated utilizing the "Simple Interest Method", which is the least expensive way to borrow money since you only pay interest on the unpaid balance of the loan for the period of time the money is outstanding. Lenders such as credit unions who charge simple interest calculate it on the unpaid principal when each payment is made. The payment amount is first applied to any interest due (plus late charges if any), and the remaining amount is then applied to reduce the loan principal balance."

 

If you decided to buy a 2014 truck which make and model would you get?