I just leased my first 2019 Tacoma sport $258/mo!!! Philly area

I know the OP is gone/banned, but what a fucking SCUMMER!!

 

Why not? Wouldn't making 2% interest over 3 years on an accumulated amount of like 25,000.00 be better than paying a 2-4% interest rate on 38,000.00 for 5-6 years? And either way, still not owning the truck outright. This was the biggest reason I did it this way.

 

Who do you bank with? 2%?

 

This could still get interesting?

 

Dude sounds like the typical sleaze ball car salesman.

 

Check out Viobank online banking. Their rate now is I think 2.1% for savings, no minimum amount. That is the only reason to me leasing was a better option. At least I can make my lease residual payment work for me on collecting interest. I usually use USAA but their interest rates for savings are terrible.

 

See if I were money savy and in your shoes I’d take a realistic payment amount and set aside as if I was making a payment. Then that account would be my purchase account. Even at $350 a month over 36 mo that’s 12k.

God Inwish I could save money instead of always buying guns and truck accessories.

 

That is basically what we are doing. Rather than pay a monthly payment with interest. We are just making that payment to our savings account and collecting interest. My wife is my money saver.

 

Shoukd have sold the f150, banked the cash and then leased with a monthly payment.... If we are going to talk intrest... Unless the dealer gave you credit

 

True too. Yeah the dealer gave me about 1300.00 over the trade in value and I thought that was really good since the truck had some body damage and over 110k miles on it. Wife's thinking was no interest, no payment locked in payment for 36 months.

 

4 week t bills are over 2% now.

 

You are still paying interest on the lease. It’s just factored into the monthly payment you’re not making. They call what you did a one pay, you pay one time for the entire lease cost. You do save some money but you still payed interest, your money factor was the interest. Multiply your money factor by 2400 and that’s your interest rate.

 

I don’t know better but that sounds like a pretty good investment.

I found recently you don’t have to have your trade applied to the new car if you own the car. Instead you can request a check. A friend of mine did that for his old Tacoma and bought a Tundra. He’s using the money they gave for his trade to make the payments for now. It works great if you have something like a lemon you don’t lose that money from the trade.

My mother is currently in a “pre-lemonlaw” negotiation with FCJD because her year old Grand Cherokee had 3 transmission failures. They are wanting to give her a new car that she wants but they have to agree on price. If they don’t give you what she’s put in to the car fully it could mean her owing more than she’s hoping for on a new one. And all the trade value she has is gone since it’s in the car she did have that they are replacing.

 

Giving someone money for a new vehicle a terrible 'investment' and the decision to buy, lease, or finance is just a matter of finding the way to lose the least amount of money in your individual situation, there isn't a blanket rule that makes sense for everyone.

 

ah yes. was an entertaining thread for a bit there.

 

That’s not how Toyota leases work, you do pay a “rent charge” money factor/interest rate only in a Toyota lease it is all collected up front. That’s why manufacturers prefer leases over purchases. In a purchase if you payoff early or trade in early all of the remaining interest goes away, in a lease all of the interest is calculated and tacked on up front. The manufacturer got all your money up front and they can reinvest it and make money off your money and they don’t need to wait for a little bit of interest each month to do it. Currently a modest return on investments is over 10%, you probably spent $15,000 to “1” pay your lease, compounded over 3 years that’s between $3,500 - $4,000! But hey, congrats on the aggressive savings account you have paying 2%. I may be being a little harsh but this is really how money works, almost nobody understands it. Wealthy people lease vehicles because their liability is only half of the value of the vehicle, they put zero down so that they can invest the cash while the manufacturer takes the risk. The manufacturer mitigates their risk by collecting the interest up front and reinvesting to mitigate their risk. Wealthy people also lease because they can realize a larger tax break more often and they never put cash down.

 

My last motorcycle: zero down, 5 year 0%APR. Do I win?

 

Not even close to correct, you pay interest each month on a lease just like a purchase. If you turn in the lease early or sell/trade the car in before the end of the lease, then you have only paid interest for the months you used.

 

The several dozen meetings I sat in with Toyota motor credit where they taught me just the opposite was wrong, tell me more.