Is this a good lease deal on an 18 TRD Pro Manual?

Seemed like the lease payment is on the high side. Aren’t residuals so high on these trucks?

 

You would take less of a financial hit to finance it for 6 years and sell it after 3.

 

I have no clue why anyone would lease a vehicle. Your going to lease that fawking thing and then when the lease is up Toyota is going to sell it for over Msrp.

Just buy a Trd Offroad and call it good. In 3 years it will be worth 5% less than you bought it for.

 

Because at the end of the year when I file taxes, it benefits me..

 

Are you thinking of keeping this truck long term? Don't lease

Are you keeping it short term? Don't lease.

The tacoma's hold their value extremely well and you can probably make more money back if you were to sell it privately.

Hell I got a 0.9% apr offer when I got mine and put $0 down and it's been a year since I bought it and I can already get $1000+ more than what I owe on it if I trade it in, let alone if I sell it privately.

 

I don't know if it is a good deal, but I leased my 18 off road for 500 a month with 1000 down. Msrp was 38k

 

Have you ever seen a 3 year old Pro with 36k mi selling for $27.5k? I haven’t.

That’s a shit lease.

 

I just looked again and your residual is less than mine, which is way too low for a pro. If you can afford it, it doesn't matter because you either trade it in before lease end and have a bunch of equity or you choose to buy it for 28k and have a bunch of equity.

 

Right? With how well pros hold their value, leases should be dirt cheap on them. I've heard of people selling them for what they paid after a year.

 

So I just ordered a 19 trd pro and compared lease to buy. With that said I work for JM Family and get employee pricing on vehicles etc. There is no special lease or pricing on the pro because they don’t have to. As far as the deal it just depends on what you want. Whether you lease or buy just know that when lease or purchase is over you should have equity and life will be good. Lease if you want no commitment and buy if you think you will want to keep it.
My humble opinion...

 

Residual is awful on that lease which makes your payment horrid. That's a full $300 more than my 18 OR with premium and tech. 5.5k difference in cap cost shouldn't be a $300 difference in payment.

 

Price is quite different to RV...

You won’t get a break on MSRP, sure. But, if you’re paying 40% depreciation on a Taco (any Taco) for a 3 year lease... I won’t state the obvious.

 

I'll try and help a bit- as unless you don't care about the payment whatsoever(100% Business write-off and you need the write-off) then IMO they are hitting you pretty hard. To understand leasing there are 3 key components and a couple other factors to weigh out - #1 Residual...the estimated amount by the lender that the vehicle will be worth at the end of the lease. #2 Money factor which is the converted interest rate of the lease #3 cap reduction, the amount, if any, that is put down on the lease. I will supply 3 links here that allow plug and play to be able to calculate your own best case scenarios. You need to also know the following - acquisition fee (amount charged to originate the lease.) termination fee( amount charged to turn in the vehicle at the end-basically equal to your last payment amount +/-.) You take your MSRP X residual % to get your residual amount. Then take your negotiated sales price if not msrp and subtract your residual to get the amount of "depreciation" you are paying over the lease term, then divide by the number of months in the lease term....this monthly payment is then the "base" rental. Now take taxes,acquisition fee, termination fee(unless paid separately),and apply any cap reduction and you have a "total" monthly payment. ALL leasing companies are not created equally- many offer different residuals on the same vehicle, manufacturers often are not the best lease residuals or interest rates. IF you have very good credit (Tier 1)- A boatload of credit unions offer killer money factors (interest rates) and excellent residuals- particularly on Tacos. Check out these links- Many dealers use CULA.

https://residuals.cula.com/vehicleresidualcalculator/consumer-lease.aspx

https://www.leaseguide.com/glossary/money-factor-calculator/

https://www.bankrate.com/calculators/auto/auto-lease-calculator.aspx

You may also find that you get a better residual on 2019's than 2018's as the model year book value will be newer when the lease is complete.

Just picking the first Credit Union option it shows 67% as their offered residual for a 36 month lease on 2018 M/T PROS and 75% residual for the same lease on 2019's.....IE: on a $42K MSRP that's almost $100 month payment difference with the 2019 being less.

using a 75% residual, $42K truck, 0 down, 1st payment and acquisition fee, plus taxes 36 mo lease at a money factor equivalent to 4.5% interest rate.....your lease payment would be under $500 mo. Hope this helps.

 

That payment is higher than my first mortgage. Are you living in the truck?

 

I am on my third Tacoma lease and none of them were based off MSRP. I was always able to get the price knocked down, I would run away from that offer.

 

That’s a horrible deal. My 18TRD Off Road with tonnau cover and premium pkg was $34,110 out the door. With $1000 down, my payments are way less than that. Regardless of what it would do for your tax situation, it’s not worth it.

 

MSRP is generally awful to go off of.. why not have the dealer start at invoice price and go from there? I think if anyone is looking at buying or leasing they should begin the conversation AT invoice price. Also dealerships have whats called dealer holdback (generally around $750) which they make $ off of so don't feel bad for them. Either way Tacoma don't lose that % of their value in 3 years so it seems terrible. Not sure the tax break is worth it, but it seems the lease certainly is not. Hope this was helpful. Use a site like autotrader/edmunds to see what your invoice is.. could knock your monthly down if you choose to go with it.

 

Tacomas are one of the few vehicles where leasing actually makes sense because at lease end your residual is likely to be way below the market value. Especially if you're like me and drive low miles. I'm sure this holds true for 4Runners too.

But yeah, my lease was definitely not based off the sticker price.

 

When you realize you're paying 28 grand over 3 years, and still have a residual of 28 grand it doesn't add up to be great. Something about paying 700 a month you might as well just buy it.

 

Don't let Toyota sell it then. I sold my own lease last time and got over $7,000 back. Leasing, especially a Tacoma, can be way smarter than paying cash if you know what you're doing. The problem is vast majority of people don't know what they are doing and how leases actually work.

OP, what is your interest rate. While Tacomas are usually great leases the Pro doesn't fall into that category usually because Toyota knows they are rare and inflate the interest rate big time. I know when I was looking the interest rate on them was horrible compared to the non Pro Tacos.