Lease then Finance the Residual

[NateKY]

I need some input and opinions. Soon to be purchasing a JTR. Initial rate will not be great, so we will automatically be refinancing in 6-12 months. Would it be a better option to lease for the first year or two and then finance the residual on a shorter term with a good rate?? Not sure if paying the interest at a higher rate is worse than leasing for 1-2 years.

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[WXman]

That's a tough question and a finance person should chime in. But I do know that on a short term lease your payments are going to be high. If you're only talking 12 months, I personally would rather go ahead and "buy" it from the get-go.

However, if you're talking a 24-48 month lease then that might make more sense. I'm doing the 48 month lease and I'll make a decision at the end. Keep in mind that each time you refinance, it's like buying a used vehicle all over again which means you're paying sales tax all over again and on these trucks that'll be a substantial amount of cash.