Buy or Lease - what say you?

Seriously considering leasing the new Tacoma but I put on fairly high mileage a year (~20K). Usually I keep a car 8 - 10 years but I have a feeling I won't be keeping this one anywhere near that long. According to a few on-line calculators the no money down lease is working out slightly in favor of a 6 year loan w/ some ($5k) money down. Just thought I'd see what others have done.

 

Unless it’s a 0% lease, it’s six of one or a half dozen of another, take your pick.

Keep in mind, dealers make a lot from a lease, that’s why they offer them. Especially, if you go over the miles.

The only lease that really makes sense are cars that massively depreciate in the first three years, ie BMW, Audi and the like.

Tacomas are one of the lowest depreciating vehicles you can buy. Something you may want to consider and just buy the vehicle.

 

Plan on using the truck, or just going to be a daily driver? Of course im sure you already know that leasing plus high mile equals bad idea... but if you want to mod or offroad it, or make good use of the bed, that would also sway my suggestion towards buying.

 

Buy it, it will work out cheaper if you keep it 3 yrs at that kind of miles, but you payments may be slightly higher.

 

This is akin to the "rent or buy a home?" debate.
I vote for "buy" - when you choose to get rid of the truck either by selling or as a trade-in, you will at least get some of your money back. With a lease, it's just gone.
Good luck!

 

I chose to lease. Not a dime down and $355 a month. No fees or first month payment due either. To purchase would have been around $500 or more I’m guessing. Didn’t want a high payment. Historically have purchased vehicles at lease end and then have some equity in it. Purchase price is 27500 at lease end and in theory could sell around 30000. If you go over your miles, just plan on buying it at lease end.

 

There are 2 trucks that have high residuals ...Jeep Wrangler and Tacoma. UNLESS you absolutely plan to return it at the end of the lease, DO NOT lease it otherwise you'll be stuck with a high residual pay off (after the 3 yr lease!).

I just did this at my local dealer on Sunday and was shocked at the $28k residual after a 3 yr lease for a negotiated net cost of $35k for a 4x4 Off Road. This was a $399/month lease with $990 cash down.

If I purchased it, payment was just over $550/moth.

I walked out the dealership cos I had 2nd thoughts of trading my X5 in ....I only have our Denali on payment which the wife does so the thought of having 2 car payments didn't sound appealing.

I'm planning to run my X5 to ground now and just enjoy my life without a car payment ..LOL.

 

That many annual miles, just buy it.

 

Not apples to apples comparison. You are paying the truck down as the residual is less than original purchase price. With a home, you don’t. Your rent is gone all the way and would probably cost more to buy a home as housing prices are skyrocketing. Unless you find a rent to own home, but that’s a whole different deal. I own my home, 2 cars and lease the Tacoma and my wife’s accord.

 

Buy with cash.

 

At 20k miles/year, the cost you're going to pay going over mileage makes leasing a terrible decision. You can get a high mileage lease, but you're going to pay for it. Since the tacoma has a high resale, it would be cheaper just to buy even if you plan to get rid of it in 3 years.

 

Well..partially true. With leasing, there's a lot of other hidden factors like residual, milege allowance, money factor, etc. With certain brands like BMW, Mercedes, it makes sense to do low mileage for 2/3 years, do a low payment, enjoy the german luxurys/tech and at the end of the lease, return the vehicle back and any post warranty issues becomes the headache of someone else and you are free once again to lease another vehicle. However, residuals can be totally brutal for some brands (as with Taco/Jeeps) so you have to really understand the ups/downs with leasing.

I work in the medical field and some guys in our leadership have been "leasors" for most of their car lifes. They are always driving newer BMW/Mercedes all the time mainly cos of leasing. Some people don't want to deal with cost of long term ownership OR be stuck with the same vehicle for 4 yrs + so leasing definitely has a upper hand plus most leasing doesn't require lots of money down either. And these guys lease NOT cos they have financial budget ($200K+ salary guys) but simply cos leasing fits their way of life.

 

Leasing makes no sense for a vehicle like a tacoma ESPECIALLY with such high mileage per year. You'll pay extra fees due to mileage and you'll also have to be very gentle with the bed as they WILL charge you for deep scratches in the bed which will happen if you are using it.

Leasing IMO only makes sense if you tend to only keep vehicles a few years or if you want to enjoy a luxury automobile but not the headache/maintenance. High depreciation vehicles are the target audience for leases, not utility trucks imo.

 

I would definitely buy. I got my tacoma brand new for 31,500 2018 OR with 5 miles on it. I literally paid less than 100% of the used with 20-60K miles.

Tacoma has the highest resale value based on KBB.

You will most likely get 70-80% of your money back after 5 years!

 

I could see leasing a high end lux that depreciates a lot like mentioned above or basic transportation like a Carolla with no $ down and cheap payments.... Not a taco especially if your going to hang out here you will add many Farkels and at the end of it all you will lose on them and the dealership might charge as damage????

 

Why can’t he lease them buy when the lease is up?

 

I would hate to negotiate 2 times for the same vehicle...

 

I got in on the 0.99% financing, so buying was a no-brainer.

 

In my experience they give you an exact pay off when you lease the vehicle.
So you lease it and they tell you ok
When you bring this back after 3 years your payoff will be this much. Bring a check and you can buy it.
My last vehicle had a lease interest rate of .06% when if I had purchased it my rate would’ve been 5.5%
It made more sense to lease and then come back and buy it when the lease is up

 

Would he be negotiating twice? I thought there's a residual price at the end of the lease that is set. Is the residual negotiable?