With great anguish, I have to ask a serious question...

But that’s the beauty of the lease, they could just walk away at the end and never pay that much for the truck. The only way they overpaid if they put money down. But let’s say they put 0 down and the lease if for 36 months, they paid 374 x 36mo and that’s it’s, assuming they turn it in at the end (also they’d pay the disposition fee if they didn’t buy/lease another one). So if someone else did the same term and had same payment but residual was 26k, it wouldn’t matter if they don’t keep it they both paid the same for the truck over the lease term.

 

Probably the worst advice possible. Stop paying the lease and leave the vehicle at an address the lease is associated with. They will come and get it.

 

You always calculate a lease by residual value plus monthly payments to get the total cost. You only want to pay for the portion of the vehicle that you use anything above that is profit for the dealership. If the vehicle is destroyed in an accident 30 months into a 36 month lease and the primary insurer values the vehicle at 26k without the proper gap insurance rider policy on top of regular insurance you owe the difference that’s why the residual value is important and if the residual value is high then the cost of the insurance will also be high...in the end you pay for it in your monthly payment. The case here the residual is 36k and not 26k that’s why it’s a bad deal...shopping on monthly payment rather than total cost is the mistake made.

 

So let’s say I pay 374 a month for 36mo (13,364) and my residual is 26k. And then someone else pays 374 for 36mo (13,364) and their residual is 36k. Now I’m leaving acquisition and deposition fees and taxes out of it, so we both paid 13,364 for the lease. We both turn our lease in at the 36 month mark each paying 13,364 for the term. Who overpaid?

 

Doesn’t work that way cherry picking numbers but okay.... total cost of the lease is calculated by taking the residual value and adding the monthly payments on top. The residual value is the agreed-upon value of the vehicle at the end of the lease. So if the vehicle is worth 28K and the residual is 26k you get the difference.

 

How am I cherry picking, you don’t add the residual if you never pay it. I’m not sure how you don’t understand this. At the end of a lease if you turn the truck in you never pay the residual.

 

The residual is the value of the vehicle at the end of the lease nothing more...what your not understanding is the monthly payments are based on that figure. You can’t have a monthly payment without knowing the value of the vehicle at the end of the lease. A lease is a contract in order to have a contract there has to be a meeting of the minds. In other words you have to agree on a price for the vehicle. Whether you rent or buy or turn the vehicle in at the end of the lease it doesn’t matter.

 

I fully understand leasing. And actually the lease payment is the sales price - residual plus any other fees, interest, and taxes that are added in. It is absolutely a numbers game, that’s why I’m leasing my truck for 340 a month with zero down. MSRP is was 39k and residual is ~27k, money factor was high but Tacoma’s lease well because of the high Residual values. Again if I myself and another person both have a Tacoma for 3 years for 374 a month and then turn it in at the end, who paid more? The residual only matters if you buy out at the end, which with a lease you should unless the value tanks. It’s clear you don’t understand leasing but want to argue anyways, and that’s ok but you still are confusing total lease cost with the total cost to own, that is if you buy the vehicle at the end of the lease.

 

I can’t dumb down anymore brother but you did prove my point in your second sentence. You can’t have a lease agreement without a residual value stated in the contract. Whether you exercise that option or not it has to be there that’s all I was saying. Leases have to follow UCC law. To answer your question they paid the same....my question to you is how did you arrive at 374 a month without a residual value in order to calculate the sale price of the truck or in this case the rental price since the vehicle is being turn in to the dealer at lease end? Since you have stated over and over that the residual doesn’t matter...

 

I went off this post where you said his residual was too high so he paid too much for the truck. The higher the residual the less you pay monthly, so either you misspoke or don’t understand leasing at all. First of all residual is based off MSRP and MSRP cannot change from what the manufacturer sets it at. In saying this then just going off the residual does not determine that you over paid on a vehicle, this is where you’re wrong. I’m pretty sure he is quoting his payoff and not his residual since no off road Tacoma will ever have an MSRP of 50k. We both went off on a tangent and it was probably due to misinformation.

 

My ex-wife leased a car for our son years ago that there was no way in hell she could afford. It was kind of a dirty trick to lease a VW Golf GTI for a 16 year old and then never pay anything on it to speak of. I drove the car back to the dealership, walked in, put the keys on the sales counter and told them "there's your car back." They say, "sir, we don't........."

I walked out, never heard anything else about it. It didn't impact me or my credit in any way, but it solved a problem. I ended up buying him a different similar car that he had to help with the payments on.

 

Dealership took OP to the cleaners.

Good luck OP, you aren’t getting out of this without a substantial hit to the wallet. Unless you find someone dumb enough to take over your lease.

 

He would have people lined up to pay 374 a month for a 2018 tacoma

 

Dumb enough? $374 per month is a fantastic price for a new Tacoma OR 4x4.

You aren’t obligated to pay the residual at lease end. If you do, you are nuts.

 

You’re my new best friend. So many don’t understand leasing, no wonder dealers love it so much.

 

Drop it off at the lease place and walk away.

 

Is the lease is assumable, someone in New Jersey should jump on it.

 

Not sure who told you that with a higher residual value equals lower monthly payments....that’s total bullshit!
You want the residual to be as low as possible because if the vehicle is worth more you get the difference. Monthly lease payments has everything to do with depreciation and dealer profit.

 

Oh wow I gave you the benefit of the doubt but you actually have no idea what you’re talking about. You should stay out of any lease threads, we don’t want members getting horrible information and scare them into not leasing.

 

Oh okay...I deal in facts cuz what you don’t know about leases I can just about squeeze into the Grand Canyon!