Canadian 3rd Gen Thread

Yeah, Im really hoping the 36 or 48 month rate drops below 2% within the next 2 months...an added bonus while I wait for my damn truck

 

I was referring to red tag deals with respect to Tacoma's. Right now its 0.9%/60 months on 2015's.

Even dropping to 1.9%/72 months would save over $4500

 

I see a lot of people discussing bi-weekly payments over a long term:

I used to run a Toyota dealership and considering Toyota's re-sale value, my advice is to lease them. In particular the 40 month option (right now). My TRD came in at +-370 per month - 0 down - returning my previous lease (1.5 years early but had $4500 equity to lower the payment- I love Toyota's). Then i'll decide if I'm buying it out after 40 months (if I make it that long).

People are worried about KM's and Accessories but most dealers are wiling to work with you on that.
Besides, these only apply if you plan on dropping the vehicle off at the end of your term. If you trade in early or keep the vehicle it doesn't really matter anyways.

The main reason the dealerships are trying to get you to finance over a long term: They receive a kickback from the bank.
40k over 96 months typically means that the dealer will receive a couple of grand from the bank. (on top of the regular mark-up)

I hope this helps & good luck..

 

Do you have to get all the servicing done at the dealer ship when leasing a vehicle?

 

Huge lease fan. That's what I do. The 40month one is perfect. I like the 14,400km option since we have 3 vehicles and that's all I would need. If you have a Toyota you get 1% lease break still? My Tundra is leased at 0.9% over 60 months. Huge equity at end of lease. I previously sold 2 leases (Foresters) and made 5-7k at the end of each lease since they were worth more than residual. You pretty much never give them back to dealer as you can make money, unless they've been in huge accidents and value market value has dropped. I am guessing same would be true on a vehicle like a Tacoma with great resale value.

 

You don't have to do anything different than a financed vehicle as far as service. Meaning, you can take it for service anywhere you want. I service my Tundra at Toyota because oil changes are no more expensive than anywhere else and I live very close to one dealer.

 

No, if the dealer tells you that; they are lying.

I couldn't agree more.
I'm not sure if they still have the 1% loyalty but I'll try and find out.
In the case of accidents, yes the value would be lowered but this is true regardless of leasing or buying.

Tacoma's have some of the best resale value I've seen out of any vehicle. Particularly the double-cab TRD's. Leasing one of those would be a safe bet.

Cheers!

 

Can't modify a lease. It's right in the contract. No matter what the dealer says he will do don't trust it unless it's in writing.

 

I thought we were talking 2016s .

 

I have a remote start and different filter on my Toyota lease. Dealer doesn't care. I'm sure they wouldn't care if I lifted it or did other mods. If I returned it to them, I'm sure they would want it back to stock. But I have no intention of ever turning the lease back in so it doesn't matter. The only other thing is if something I modded caused a failure, they could deny warranty (no different than finance)

 

Yes, if you plan on keeping it you are fine. Unless the dealer is an ass. I've heard stories of dealers throwing shit fits over lifts and rims on lease trucks from friends. If the dealer does it for you I'm sure it's fine. If you do it though or have a shop do it I wouldn't put it past a crummy dealer to try and throw the book at you.

In general, if the lease rate is lower by percentage and you are comfortable being locked in for that period of time, it's financially advantageous to lease. I for one never will lease. I do too many modifications and, for example when I just tore off a piece of bumper offroading, I don't want to worry about fixing the truck up to exactly the way it was should something go wrong. I also like the increased flexibility from financing in terms of insurance, driving, and selling (dumping off if it's a lemon) options.

Have you ever wondered what would happen if the filter did void the warranty on the engine and something happened? For a financed truck you can go pull a wrecker engine and drop it in yourself. For a lease I believe you have to have a new engine installed... That would hurt financially. I'm just speculating here, I know there are various outcomes to that problem but the fine print says you have to put in a new Toyota authorized part, in that case the engine, IIRC.

 

Not sure about what happens if you need a new engine. A financed car you don't really own either until it's paid off. Toyota Canada would have a lien on it. But yes everyone has their reason as to why they do lease, finance or cash. What works for one may not work for someone else.

 

Nope. You own a financed car. Toyota has a lien against it, or whoever has it financed. However, legally, you can do pretty much whatever you want to it as long as it's insured. Much like a mortgage on a house.

Agreed on the rest. I would suggest though that first time leasers CAREFULLY SLOWLY read what they sign.

 

Well, you can. You just need to make sure A. you keep original parts and B. that the modifications aren't decreasing value
Again with the resale value being so high, the only way this could be an issue is if you actually want to drop the vehicle off after the lease is done. (I have leased about 7 vehicles so far and not returned one. I have traded in early or sold the vehicles myself)

Apart from crazy mods such as 12 inch lifts, engine swaps or irremovable hello kitty stickers there isn't much you can't do.
Smoking in a vehicle will cause more depreciation than most mods.

 

So will your boss cross out all the Lease BS about no modifying the vehicle from it's original specifications when I slap on coilovers, 33" tires, and new UCA's? I'd like to see that. Somehow I feel like you sell Tacoma's .

I get it. Some dealers might allow you to get away with it no big deal. However, the legal writing in the contract says differently and that's not a situation any sane individual should put themselves in with regards to a contract on a +40K truck.

Sure, mods don't cause depreciation... they don't add value though either so there's a thought.

 

Good point, I've seen some funny examples in the past.
As for the engine: If my engine failed due to an air filter (aftermarket or not) Toyota would have their hands full if they chose not to cover it under warranty.
Dealers and TCI may throw a bit of a hissyfit but will end up settling unless they can prove (without argument) that your mod caused the malfunction.

That being said, most dealers are reasonable in regards to mods nowadays and as long as you don't butcher the install of your mods you should be fine.
Again, lease vs finance, if you need a new engine, you need a new engine. either Toyota covers it under warranty or they don't. no difference.

To clarify; you do not own your vehicle until it is paid off. I don't care what the bank says.

 

They won't cross out anything haha, but if you have the original parts then i'm sure they would be fine. but again this is only applicable if you want to return the vehicle no questions asked at the end of the lease. Any other circumstance it doesn't matter what you do. It would work the same as a vehicle that was financed.

I don't sell Tacoma's anymore but I used to run a dealership, I'm basing this of my own and my 10+ years of Dealership Management experience.

I do not disagree with your last statement. People should always read carefully and make sure they understand the terms & conditions.
But just like any contract or legal agreement, there is alot of stuff in there that looks scary....

 

For part A, there is a big difference between buying a wrecker engine for $2K and dropping it in yourself or buying a brand new 1GR and having Toyota install it for you. I'm guessing no Toyota shop would do that for less than $10K. That's a big difference.

As for part B that's simply not true. Toyota cannot come and get my truck back without a huge set of non payments. Nor do they have any ownership rights as defined by law on my vehicle. Sure, you can say anything with a lien against it is unowned. In that case almost everything in the world is owned by the banks. Even the shit you've paid off because the moment you use credit is the moment a company can place a legal lien on you in Canada. Crap, Telus just missed paying some fiber optic installer in my home town and now several home owners have liens, legally, on their houses. I guess they don't own their own house anymore, mortgage or not.

 

Famous last words, I'm sure you didn't run a business on other peoples "I'm sure it will be just fine"

It looks scary because it can be. If you aren't willing to obey the terms of a contract then don't sign it. Right? I'm not saying any of this to be an ass, but people need to know the negative side of leasing too. A quick google search will bring up more than a few cases of that scary stuff actually happening to good people who didn't think something bad could happen to them.

 

I ran and successfully run the business I work for based on relationships I've built with client. (although no longer in the automotive sector) There is always a need for legal contracts but as a dealer you can't point at a piece of paper whenever something goes wrong. I'd rather work with my clients and try and get them looked after. in return they reward me with more business.

I'm confused, my purpose wasn't to point out that you can just bring back any vehicle modded like crazy without consequences but that most people would either keep the truck, sell the truck or trade in early anyways. In all those cases none of the above matters. Including the engine issue you outlined.
Even though your example is what I would consider a "worst case" scenario, if you run into that highly unlikely issue, you can still opt for the 2000 wrecker engine and then either keep the truck or sell it. no difference. Toyota (might) not accept a simple drop-off at the end of the lease and even still I'm not convinced they wouldn't.

Toyota can't come and get a truck that is leased without a good reason either. But you basically make my point for me with your Telus explanation haha. Having a "Lien" on your house actually does prevent you from doing certain things, so in a sense, you do not have complete ownership....