New England B.S. Thread

This one is gonna be wild.

 

Depends on a lot of factors.
I leased the Tacoma, wasn't sure on keeping it initially. Lease was up during covid. Truck was MORE. They wanted it back(for obvious reasons). I shopped around. Bought out the lease, which was my best choice at the time.

Depending on where we end up in the future, since she's working full time now, she'll probably end up in a lease, just to keep me sane....

 

what's the down payments for each though? Is the lease a lot less up front? Lower payments?

Typically a lease you're just buying the depreciation out from the dealer. They get it back, CPO it, and sell it again. Nice if you swap out every 3-5 anyway, bad if you don't. Also nice if you get in a collision, or go through major maintenance work (blown engine under warranty, etc) - that loss in resale is shouldered by the dealership.

You don't see much about leases on Taco world because it doesn't make sense (usually overall) to lease some vehicles that hold their resale so well - tacomas, wranglers, 4runners, etc.

Tundra is top of the list for highest resale

 

Yeah, I'd have to actually add all the numbers up. The "estimates" I see from Toyota online don't make sense to me. If it truly has a 42k residual, the payments add up to one heck of an interest rate (or factor, or whatever it's called on a lease).

I always thought leases made more sense with higher resale value and were a terrible idea on something that drops like a rock, like most luxury brands.

I doubt I'd do it anyway. I always just buy vehicles, usually have them paid off or close to it by the time I want another. Not that that's a great financial move either, but my truck is kind of the one thing I splurge on.

 

Well, one of us is right. Haven't a clue who is though

I get the itch to replace but at the moment, no desire to sell the truck. I keep surfing around Facebook for something fun. Could be a miata, could be a wrangler, could be a BRZ, could be a Dakota. She's in good shape, needs some wound fix here and there but otherwise, she's got another 200k in her.

 

I go back and forth on getting a commuter, but although a third vehicle would be nice to have, nothing's cheap anymore. There would also be some annoyances, like right now we can both park in the garage during a snow storm and it makes it so easy to clear the driveway. We also never need to shuffle vehicles around.

 

Not a bad idea to lease in that case since it sounds like you kept mileage down. My truck was a lease when it was new.

True, though to be fair you are someone who drives a hell of a lot more than average so that is part of why you aren't really in the free zone for long if ever. Though I relate, in the late 2000s my wife and I went from zero to 500 a month in car payments. My Chevy was about 325 of that and was planned, her 96 Tacoma getting taken the next year wasn't and we made out well overall but it still sucked to add a payment. Plus side is hers was 3 years only and in that time we had really no issues besides oil changes.

Sometimes leasing in general is better for the person. A coworker of mine does it because she lives alone and doesn't have the luxury of another vehicle in her house if her primary one is broken.

 

I don’t see an OR that’s 5 years old going for 24k

 

Too cheap...

 

You do a cruise? Nice...I love them...my family tries to do a group cruise every other year...I have family that goes every year or more...
We're doing one next summer a long one around the Uk/europe/iceland....
Presently you can't beat NCL with their included open bar...

 

So...
No dice on my Tacoma wish...dealer called today to say they are just about to halt 2023 production and the configuration I was looking for 4 cyl Access cab is 86'd already....
I've been calling around in case it's gamesmanship on their part but it seems so...
Now I'm going to have to get a V6 and that changes all my parameters...
Oh and why are there so many with the SR5 Dynamic Navigation Package....ugggh...As far as I can tell it's an out of date nav system that already sucks compared to carplay with waze/google maps

 

Well, for those who really want to know, here is how a lease is calculated:

Walk Through a Sample Lease
To best explain the calculation steps, we are going to create a sample lease.

For our example, we are going to lease a car with an MSRP of $23,000. This car will have a residual value of 57% and a money factor of 0.00125. We will have a $1,700 down payment, and the car will have a $500 rebate. Assume we've negotiated a sales price of $21,000 (before the rebate is applied) and will have $1,200 in various fees. For this example, we will not have a trade-in.

Step 1. Take the vehicle's MSRP and multiply it by its residual percentage to get the residual value.



$23,000 x 0.57 = $13,110

residual value = $13,110



Step 2. Take your negotiated sales price and add in all the fees you'll have to pay. For our example, we've negotiated a sales price of $21,000 and have $1,200 in fees. Add those together and we get what's called the gross capitalized cost.



$21,000 + $1,200 = $22,200

gross capitalized cost = $22,200



Step 3. Take the total amount of the down payment, trade-in equity or rebates and add them together. In this example, we have $1,700 cash and a $500 rebate. So our total down payment is $2,200. This is called the capitalized cost reduction.



$1,700 + $500 = $2,200

capitalized cost reduction = $2,200



Step 4. Subtract the capitalized cost reduction of $2,200 from our gross capitalized cost of $22,200. The amount we are left with is called the adjusted capitalized cost.



$22,200 - $2,200 = $20,000

adjusted capitalized cost = $20,000



Step 5. Subtract the residual from the adjusted capitalized cost. This is your depreciation amount, which is the basis of your lease payment.



$20,000 - $13,110 = $6,890

depreciation amount = $6,890



Step 6. Divide the depreciation amount from Step 5 by the months of the lease. In our example, we are using 36 months. The result is our base payment. Don't get excited by this small number just yet. We still need to add interest and taxes.



$6,890/36 = $191.39

base payment = $191.39



Step 7. Take the adjusted capitalized cost and add it to the residual. Multiply that amount by the money factor. The resulting number will be the amount of interest charged per month. This is called the rent charge. Here is what that would look like, using our money factor of 0.00125.



($20,000 + $13,110) x 0.00125 = $41.39

rent charge = $41.39



Step 8. Add the rent charge to the payment you calculated in Step 6 to get your pretax lease payment.



$191.39 + $41.39 = $232.78

pretax lease payment = $232.78



If you're lucky enough to live in a state that doesn't charge sales tax, you're done! If you're like the rest of us, you'll still need to add tax. Luckily, that's easy to do. In Santa Monica, California, for example, our sales tax rate is 10.25%. So we have one more step before we're done.

Step 9. Multiply the payment by the local tax rate to get the total monthly payment.



$232.78 x 1.1025 = $256.64

Total Payment = $256.64

 

We did, it was the NCL Pearl. Was a concert cruise, Headbangers Boat 2023.
Had a good time. Might do it again next year.
Drink package isn't worth it for us.

 

Ah yeah that’s what I mean, no way it’s only 60% retained value

 

Oh if you don't drink yea...but if you even have wine with dinner the "free drink package" on NCL is a game changer vs Royal Caribbean...Those are the only two I'll sail bang for your buck...


I hope be on the water in the north atlantic at night and see some northern lights...in the 5 hours of night...

 

Oh...no...you got the optional Shag Carpeting....that does not resell well...

 

I was sad I didn’t get birthday wishes here..

then realized I had kept it on private

 

Happy birthday James

 

HAPPY BIRTHDAY!



(you desperate for attention 8th grader )

 

Happy birthday bud!