New 2019 on Lot since 3.19

Yes, European luxury car values drop around 50% in 36 months. If they didn’t offer leasing the showrooms would be virtually empty. Why is this? If you ever owned a BMW, Audi, etc. after the factory warranty expired you know why. European car are expensive to repair. An new alternator and a battery for an Audi A4 will run you around $2k in parts and labor.

 

Because by leasing, you are literally just paying for the depreciation plus some vig. That said, there are some reasons to lease, tax advantages in some situations, company car reimbursement, etc. but avoiding depreciation isn't one.

 

Does a lease payment go towards any sort of interest like a loan payment does?

 

Do a nice test drive and make sure dealer inspects everything properly including engine and transmission fluids before purchasing. Check your tires too.

 

You do realize that that's all a lease is, right? You pay estimated depreciation over the course of the lease and in the case of the Tacoma, you will be overpaying that depreciation. If you keep it, you'll get hosed on a shit used car rate for the residual. If you turn it in, you lose that equity. If you sell it, the only way you come out ahead is to sell private party, pay off your lease, then give them the title.

I get that people will do with their money as they will but I just don't understand the concept of leasing something new, paying the worst part of its depreciation for 3 years, then doing it all over again. The only reasons I can see for doing it is to drive something above your paygrade or because you have to have the latest and greatest. I swap vehicles every 4-5 years just after payoff and even that feels wasteful.

 

Battery can be a big problem after sitting that long, if you have any inkling of a failure have it replaced.

 

Pay the what? I don't think this word means what you think it means.

Leasing on a Tacoma is attractive if you were really only paying the depreciation. However, that's just not the case when even the 2019 clear-out special right now is $3k down and $260 a month for an SR5. At three years, that's over $12k invested which would be somewhere around a third of the cost of the negotiated price of a fairly well-equipped TRD but for a lesser model. Depreciation on these trucks should be around 25% at that point so you will have paid way beyond the depreciation.

You can trade in before lease end or sell off your lease but why bother? With this kind of depreciation, a Tacoma is the best case scenario investment when it comes to a vehicle.

 

One thing for sure is that there is no dealer holdback for you to use as part of your price negotiation with a vehicle that's been on the lot that long, so whatever price they're willing to make on it will not be able to have that holdback factored in. Of course, the dealers never want you to know about that but everyone buying a car should know.

 

I knew of a new 2019 Tacoma that a dealer took in Oct 2018, and it was still advertised on the dealers website and in Toyota's inventory web page in Feb 2019. I asked a salesman at another dealership what was up with it. He looked it up and said there was a hold on it. Apparently the new truck was vandalized on the lot, the GPS was torn loose from the dash and it was awaiting parts. It did sell a few months later iirc.

 

Only on the trade in value. Not the entire amount you paid. This one is usually a wash unless someone is upside down or rolling the tax into a loan and paying interest on it.

Yes. It’s called a money factor. It’s basically the part of the monthly payment that they make their money on. Similar to how a bank makes their money on the interest. The other two parts of the payment are the depreciation and the taxes.

With excellent credit, used car loans are usually only about 1% more than a new one.

You can trade in a lease also. And without getting into the bits and bolts it’s possible(and very likely on a Tacoma) to have positive equity and walk away with cash at the end of a lease.



So hers where it’s going to get difficult for you tunnel vision TW folks. Believe it or not we all have other financial things in our lives other than our trucks. Home mortgages, private investments, retirement funds, student loans and some people are trying to get old high interest debt paid off.

1- So the stock market is killing in the right area. Say that hypothetical 10k was invested there. Over a 3 year lease it could be turned into $14k. That’s an additional 4K toward the purchase at the end of a lease.

2- Or say I decide to pay that extra $200 a month on my mortgage. Over three years that will reduce my loan balance by over $7k and cut years off my mortgage with the interest saved.

I could go on, but for discussion sake let’s not assume everyone with a lease is single dimensional and spending the extra money on KO2s, leds, Pro grills and all the other things TW encourages people to spend money on. Because let’s face it, most of what’s happening on here is encouragement to spend money on mods that don’t make any logical financial sense at all.

 

You are still only allowed 36k total, the 4K that was on it is part of the total. Your lease is only allowing you 32k miles now.

 

Not true, my total allowed lease miles are about 40k. They did not count the existing miles against me.

 

Nope, this is why they record the mileage at the time of signing papers. Your mileage starts at whatever it was when you signed the line.

 

OP, since most of this thread got caught up in lease talk, to answer your original question, no worries.
Your warranty will start on the date you take delivery with the miles being notated as well. I would ask for a new battery, but that's about the only concern.

My truck was a dealer transfer that was driven around 400 miles. When we got back from the test drive the mileage was recorded and that is where everything starts. The date I signed and the mileage on it when I signed. Those transfer drive and test drive miles do not count toward me.

 

I bought my '17, when the 18's were coming out and saved $4K. (So it sat on the lot for awhile). I was about to lease for 5 years and switched to a 6 year loan instead. The buyout price is what convinced me to switch.

 

I may have mis-used the word depreciation, meaning actual year over year costs when you are a habitual trader, say every 3 years.

 

Even knowing I was going to keep my truck for a long time, leasing was the way I went.

I pay 500/mo on a 4 year lease, residual will be 25k when buying out in 2021. Will I pay a shit load in interest? Absolutely, but for ME that beats paying $800+ a month financing from the beginning.

Do what works for you in your current situation. Definitely negotiate the price and ask them to throw in a new battery.

 

What’s really stupid is if you add up your lease plus buying after is spending 49k on on truck. Whether you lease then buy or buy out outright 49k for a truck is foolish.

 

Oh good! Everyone here in the 3rd gen forum loves it when you stop by to discuss leases.

 

Personally I don’t care if people lease or not, it’s not for me. But if you wanna lease no biggie. I’m just saying to spend that kind of money on a truck is crazy.