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Never put money down on a lease. The vast majority of it goes to reduce the cap cost. Negotiate the cap just as you would the price off the MSRP if you were buying it.

 

Nothing wrong with used if you can find..scored mine with under 7000 miles only 3 years old

 

Yep. Call me an idiot. Can walk on the lot and buy any car I want any day of the week cash. Yep I’m an idiot and it feels great!!

 

It’s a great feeling isn’t it?

 

Nothing like it. It’s awesome!!

 

You're right! I didn't think you could buy a used car for $3k:



Guess I was wrong, lol. It's ALMOST as good as a 2020 Tacoma right?

 

Use a cc and get the points. Or get the 0% financing. Why waste the cash, there’s a shortage don’t you know?

 

Not in my account,!!!

 

No one said its pretty, but if you can't afford anything otherwise, it'll work. These corollas are extremely reliable, 211k is nothing on them.
JustyJust because youayou can afford the payments doesn't mean you can afford the car.
Car payments look good on paper until you lose your job or have other expenses come up. No one needs a brand new truck, my 2005 will do almost everything a 2020 can and while it doesn't look as good, I'm not throwing away 800 bucks a month in a car payment. If you want something newer, a 2017 will be just as good!

Plus, I'm not giving a bank or a dealership my hard earned money every month, every cent I make is my own

 

Yeah, people pay 500 a month for a car, 600 for a camper, 1000 in credit cards and we are the idiots for not leasing or buying new people are brainwashed man. I'd rather own everything I got then have the bank own everything I got

 

Lol I think we scared off the OP, he's a newbie and we gave him a dose of the 3rd gen madhouse.

Battle flag lowered!

OP, there's some good advice here about leasehackr and price negotiations. At the end of the day it's YOUR call, make the deal that works for you.

Best of luck to you!

 

I’m not going to argue lease or not. It your decision.
But a negotiation starting point on a lease deal should be a monthly payment of 1% or less of the MDRP. Then get better from there. Check out leasehackr.com forum for helpful info.
As far as Ramsey, he’s a millionaire from selling books and seminars to people who should have learned his saving speel from the back when they were in grade school.

 

It’s a terrible deal.

helped a friend get a TRD OR 4x4 for way less than that, and lower residual to boot. The residual should be set by Toyota so if they are increasing it, you should be at another dealer.

 

I can say leasing works out ideally for a few, such as my mother. She drives maybe 5k a year anyways.

More particularly, she's a dialysis patient and needs to get there 3 times a week no matter the weather or what else is going on. So she needs max reliability plus the most current safety type stuff for driving in snow..

Perfect world you're right about learning finance early in life..I wish schools would offer it if not require it

 

So are you telling me that Dave Ramsey is correct with his information on 0% financing and depreciation?
When Toyota was giving 0% financing in April/May, how many were paying full MSRP and had perfect credit to get approved?
Has your Tacoma depreciated 60%?
https://www.foxbusiness.com/money/new-care-0-interest-mistake-dave-ramsey.amp

The guy is rich because idiots give him money to tell them common sense advice. Spend less than you make, that’s how you’ll become rich.

 

The Tacoma is one of very few vehicles that barely
Depreciate. If it's common sense information, how come I and millions of other people his advice has helped not know about it? He helped me become aware of my behavior when no one else did. His main thing with car payments is that instead of spending $500 a month in car financing, invest that instead and have millions when you retire. Regardless of the interest rate, you are still giving your income away.

Sure, if you finance a Tacoma with 0 percent interest you will lose hardly any money due to the nature of the Tacoma, but how many people do that? Most spend their money on some garbage BMW that loses 75 percent of its value in 3 years, and just keep trading in and digging a bigger and bigger hole.

Even though you are hardly losing money on your Tacoma,that is still 40,000 dollars you could use to pay on your mortgage, or put in 401k
no one truly needs a brand new truck, which is why his advice is buy a used 3 year old car with cash, unless your already rich and can afford it.
How is that bad advice?

Don't go calling people idiots because you want to justify throwing away money on an unnecessary truck, when Dave's advice has helped lots of people get out of very bad financial situations, including myself.

Most people have car payments, and most people are broke, and the best advice Dave gives is don't take financial advice from broke people.

 

I think he was a broke person when he started giving advice

Take it easy everyone, we don’t need to all be worried about anyone’s finances but our own. Do whatever works for your.

 

All very fair and valid points ...

I personally don't like Dave Ramsey. I will say that I don't think he is an idiot, though. He has built a cult like following based on some simple common sense which is good for people to hear, especially people who are broke! . He's not different than Suze Orman or any of the other what I call mainstream / popular / basic financial media personalities. Nothing wrong with that. Most Americans are broke to the bone. Most have no savings. And most have not prepared for retirement. For those folks, Dave Ramsey -- or any of the others -- creates valuable and necessary shock value. I don't care for it but there is nothing wrong with it.

A recent survey found that "nearly 70 percent of Americans have less than $1,000 stashed away, according to GOBankingRates’ 2019 savings survey." Those folks would do well to listen to what he has to say, if they possibly can. I realize some are pissing their money away on toys of all kinds but many others are in the working poor and just barely treading water. In any case, his advice is basic but worth hearing as a rule of thumb.

That said, once he moves beyond savings and into serious financial advice, most experts rightly point out he is not only wrong but completely misguided.

I also think he is wrong about car buying for the most part when it comes to strategies. Yes, he is right about leasing (except in limited circumstances). He is also right -- as many of the good folks here are -- about not owing so much on a new car that you can't save or plan for retirement or any of the other things that you should be doing. But buying a three year old car is a dumb strategy. All of the best financial models point to buying a new car, or a one year old car, getting a bumper to bumper warranty and keeping it for as long as you can. For many people their job is the most important element of their financial strategy -- as it should be. Whether they work for someone else or they have their own company (contractor, plumbing, landscaping, etc.). At that point, a good, safe, reliable car is a critical component of their financial well being.

This is an enthusiast Web site. We are spending money on bumpers, roof top tents, tires and lift kits. Another thing Mr. Ramsey fails to understand. Life is for living.

Back to the original post, though. As has been rightly pointed out, that seems like a terrible deal. On that, I think Mr. Ramsey and I are on the same team.

 

Don't be such a hypocrite, you're using a $500+ phone or a $800+ computer to respond on this forum. Those Wrangler tires and whatever other accessories you put on your truck weren't free. You're right, Dave Ramsey isn't an idiot, he just doesn't understand the real world and his advice is outdated. He's actually brilliant for getting average joes to pay him millions of dollars a year to feel better about themselves. As @averagejp stated, he has developed a cult like following, that doesn't mean the advice he gives is good. It's just like Joel Osteen or Jim Jones, get people to drink the Kool-Aid and make millions.

"Even though you are hardly losing money on your Tacoma,that is still 40,000 dollars you could use to pay on your mortgage, or put in 401k
no one truly needs a brand new truck, which is why his advice is buy a used 3 year old car with cash, unless your already rich and can afford it.
How is that bad advice?"
Actually, if you were really following the Dave Ramsey path, you wouldn't have a mortgage. He says that the only way you should buy a new vehicle is if you have $1 million in the bank and be debt free. If you have a mortgage, you're not debt free.

The reality is paying cash now a days is throwing money away. With cash back and credit card points, you're throwing cash away, by paying cash. You also lose the protection that buying with a credit card offers, be it extended warranties, travel protections, or theft/lost protection.
By having a car payment, you keep cash in your bank account, liquid assets are better than none. Even if you were to buy a 3 year old vehicle for $20k and pay cash, is it better to have a car payment you can afford or pay $20k cash and immediately lose access to that liquid asset?

Do you really feel that taking advice from someone who is filthy rich is really the best advice? That's why Dave Ramsey is rich, a sucker is born every day. You can also take financial advice from the Kardashians.

 

And, to keep us on track, someone correctly did the math. You are paying $14K for the truck during your lease and if you add in the residual of $28K, you are at $42K for an SR5. I think all of us ... the pro Dave Ramsey crowd and the anti Dave Ramsey crowd ... would agree that is not a good deal.

OP, lots of good opinions in there and worth sifting through. I don't know your financial situation but if you say that leasing makes the most sense for you at this time then I defer to your opinion on that. Only you can make that decision. But I think we are all in agreement here that this particular leasing opportunity is a bad deal.

Best of luck to you. I think you can do better. Stay with the forum, find another option and keep on keeping on ...