'16 Lease Residuals (not for everyone, I know)

This thread helped me lease after never leasing before. I looked at buying vs. leasing and leasing for this new Tacoma was the only way to go for me. Money factor was .0018 and I paid down 5 Msd's for a total of $2000 which will be refunded at the end. The interest rate dropped from 4.32 to 3.38 over the 3 years. I will most likely buy it at the end of the lease. You need to do your research but leasing this truck is a good idea even if you want to own it after the end of the lease, but you still have the option to get a new one after 3 years too. This thread was by far the best advice I had before my purchase.

 

It's actually not a good idea to lease then buy out because the residuals are soo high.. If you add what you will be paying for the lease then for the residual it's a shit ton of money.

 

When your residuals are high, you pay less depreciation in your lease. Look at all the extra loan interest you pay when you buy. If you do identical no money down, your loan may be $600/ month to buy and only $389/mo to lease. (Say $37,000 cost) Lot of that is extra interest, which will be more than the $650 lease startup fee over the length of the loan. If you do the numbers you will be money ahead by leasing over buying and even more so if you do Msd's.

 

Leasing and then buying is a losing proposition no matter how you slice it. You almost always end up paying thousands more to buy after a lease. Hypothetically speaking, even at a ridiculous money factor of .001, that $37k is roughly $350 with a little over $2100 down to cover taxes and fees here in NC. Assuming the residual on mine of $26980 (trd OR w/premium/tech) after 3 yrs, that's close to $43k even if you pay cash to buy it outright after 3 years. Even a 6 year loan with that same $2100 down @ 2.49% comes out to just under $42k with a payment of $550.

 

I was hoping someone could help me understand this. I have never leased.
Id be looking at the 40 month column.
Can you break it down so i know what each part of this means? Thx in advance

Vs. A 6 year finance at 4.89% i do plan to buy the truck! But things change.

 

Is this thread dead?

 

multiple posts in the last week.....? something to say?

 

I posted the other day,#186 hoping someone could help me understand the lease. I would eaither lease and buy or finance. If someone could help that would be great, im not a numbers kinda guy

 

Got a 36 month 12k a yr lease and will have a roughly 62% residual. Granted I got the base model and got it while toyota was running the lease deal for the toyotathon.

 

yeah sideways table was a turnoff, makes it tough.....take total sale price, subtract residual, multiply by interest rate, add tax....unless youre in texas, then its completely different......no sale price shown so cant tell much

 

Just trying to figure out what is going to be better short and long term, things change everyday, like the canadian economy for instance. I feel pretty safe at work but the lower rate leasing seems better right now, but in the end will it be better if i plan to buy it out anyways. Hope someone can help. Id be looking at the 40month 2.99% column or the 4.89% 6 year finance. Unless i can get a lower rate. All the credit unions and banks i called were higher. I figure low rate on lease save the difference in monthly payment and have some protection. Then a lower rate on the last bit to buy it out with a shorter term.
Any advice greatly appreciated

 

I leased at 52 months because of the high interest rates currently and my tendency to not keep my vehicles. 52 was the same rate as 48 and it made it a nice round number for me.

Tacoma has such a high resale that you can terminate most leases without penalty after 2-3 years, so if the economy keeps tanking in Alberta I plan to ditch the Taco and go back to beaters.

Also buy back is awesome with Tacoma because you can buy it out and sell it for more after the lease is over.

I'm happy with my decision to lease, but I live 5km from work and don't have any family out of town.

 

As mentioned before, leasing and buying is always a losing proposition. At least financially speaking. You end up spending thousands extra in the long run. Unsure of the exact tax rate there, so the number below for lease end purchase excludes tax.

Total Cost to purchase up front: $39,131.40 ($652.19 for 72 months @ 4.99%)

Total Cost to lease: $18,189.20 ($453.73/mo for 40 months)+any up front fees.
Total Cost to purchase: $24,480.08 residual ($517.66 for 36 months @ 2.99%)= $25,624.89+lease end fee
Total Cost to lease+purchase: $43,814.09+fees

 

This......pay a couple grand more but payments are more manageable and longer term, just a decision

 

So the financing roughly comes to 46900, over 72months.
Basically 6000 in interest.
Or lease then buy is roughly 44000
Either way im paying interest just needed to see what the long term number is, thanks for helping me understand.

What kind of fees would there be upfront?
And is the toyota "wearpass" a good thing to have?

 

have you talked to the dealer, they should have let you know any fees up front for whatever deal youre getting....
I find it odd youre interest rate is so high on purchase but low on lease, is this what youre approved for or a lease calculator

 

I'm New to Leasing as well. Looking to get a TRD OR DCSB AT. I've talked to many dealers and even test drove one on the lot (though not in the QS color I want). and this thread has helped considerably in my search. however I have a few questions.

first my scenario:
My main issue is that I am currently about $2500 upside down in my finance with my BRZ. Once I get this caught up, I intend to trade in (to pay off the lean) and lease.

Second: I put about 20k miles on my car this year and expect to do the same with the truck. I've been told that lease terms can be set for higher miles, but is it worth leasing still?

after building my Tacoma on Toyotas site, it showed an MSRP at $37,750
the PDF listed shows a residual of 70 for the 7544
I have great credit which should help keep the MF around the .00019???
and if I have money to put down it will be around $2k which I understand I should use MSD?

all considered does it seem reasonable to get a high mileage lease at less than $350 /month?

thanks,

 

not likely.....at that mileage your residual will go down or you will get charged out the a$$ for mileage....you are not a good leasing candidate....if you are in texas, not a chance

 

Thanks I am in PA. do you think leasing for a shorter term might help? I plan on buying the vehicle out after the lease.

 

not a great strategy....i was thinking about same thing 3 months ago....leasing was still too expensive, its different in texas though.....I lowered my standards, got an SR5 4x4 for about 4k less than the TRD. I'll lift/level it, and put wheels and tires....maybe trade for a 2017 TRD in quicksand in a year or so with equity on a trade in