Leasing new Tacoma?

No i don't, he needs to know and be aware of the residual though...

 

You may have the title but you are still paying for the truck every time the odometer ticks over another mile. If someone can get a 1.99% interest rate and invest their money in a fund that pays 3% instead of tying it up in a depreciating asset, they're doing better than you cavemen who shout "ThE bAnK doEsnT oWn mY CaR!!111!" every time someone mentions leasing or financing their vehicle.

 

So borrow 30k@1.99 let’s say for 5 years. You would have to invest that same 30 @ 3 and make one percent basically. That’s a shitty roi. Buy quality used Tacoma and pay cash. Now take that same 60k and Invest (I can assure I can make 8% all day) who’s ahead in 5 years and not crappy 1%.

 

Sorry, was asking as I don't fully understand the lease..

 

Residual is what is owed on the vehicle after the lease is over. Can decide to buy it or sell it or turn it back in.

 

I started putting money away with a plan to pay cash or mostly cash in 2 or 3 years for a Tacoma. And then Toyota Canada offered 1.99% for a 3 year term or 2.49% for a lease. I pulled the trigger on the loan because I have no mortgage and can afford the higher payment vs getting the lease with a much lower payment (only financing part of the vehicle and part of the taxes) but higher cost of borrowing.

The sales manager's main involvement was to get confirmation that I was willing to put $5000Cdn down (credit card acceptable). They never asked for income confirmation even though I told them that I was a pensioner and my monthly payments would be covered by an annuity that I had just purchased.

My trade-in was prob worth $1500-$2000 wholesale + my $5k down payment means that the drive off the lot depreciation was probably only $4000 or less, putting Toyota Canada Financial Services in a positive equity position should I default on the loan.

 

Pretty sure that is not what residual is.

 

Your surely incorrect

 

I see what you are saying now. I was thinking about it in the perspective of what the expected value of the vehicle is at the end of the lease. Same way of saying different things.

 

Right, but you'd want a high residual if you were moving to something else & a low if you were gonna buy it, right?

 

I had 5k disequity when I traded my 2017 Jeep renegade trail hawk ( don’t ask... drove a 15 challenger srt8 before that and a 12 srt8 before that) my payment was about 480 on an off-road. I deployed... turned it in when I deployed then paid 10k cash on an 18 off-road.... my payments are 370 now (loan and lease was a 50 difference). I had over an 800 credit score.

 

Residual is 74% on 3yr/36

 

Stop leasing vehicles people, there’s a reason the dealers love them.

 

And here she is!

 

You're missing the point. There is no reason to have $30k lying around in the first place except for a large emergency fund. Ideally, you would already have far more than $60k in the market so your returns more than cover the interest on an auto loan.

 

You say you can invest $$ and get 8% ROI. If so it would make a lot more sense to NOT tie up your $30k cash for a new or used Tacoma. Instead the smart move would be to get the 1.99% financing, and then invest the cash at 8% (cash that would otherwise be spent on the Taco), for a net ROI on the $30k of 6.1% AND you would have a Tacoma in your driveway.

BTW I just bought my Taco and financed $39,530Cdn at 1.99% for 3 years with Toyota Canada. Monthly payments are $1132.09 and total interestt for the 3 years amounts to $1224. Or I could have just saved up the cash in small amounts for the next 3 years and then watch my trade-in drop in value by more than $1224.

 

I just got into a Calvary Blue 2019 with $1000 down for $351a month with 12k a yar on a 2 year lease. The Truck stickers for $43500. Get a price then let him call u. have a number in your head and Don't let them talk u up.

 

In 6 or 8 months the Chevy will still have negative equity as his payment is mostly interest. I would hold on to the Chevy until I had some cash to offset the negative equity.

 

Ford is doing 0% for 5 years or $259 leases on Ranger right now.

 

I leased mine before I bought it. 2014 trd sport 2wd dcsb with $2000 down payment was $320

SoCal!