Good deal ?

But you can keep it at the end. The buyout price at the end of the lease is written into the lease agreement. Many people end up buying their lease when it's up.

You are a prime of example of someone saying a lease is bad when you really don't know how they work lol.

 

You're still buying the lease out for very close to the real-world value of the (now-used) vehicle. So you effectively rented it, then bought it, and got no credit (nothing to show) for the lease payments.

 

Sure, you have the opportunity to BUY it at the end. After you've already been renting it for the past 36 months or whatever. Such a scam.

But maybe everyone else, myself included, is wrong and you’re right?

 

But you do have something to show for the payments.... You're driving a brand-new car and basically paying what it will deprecate down to during the said term. You are basically paying down to what the car will be worth in the 3 years plus a couple extra thousand.

Sometimes that extra couple thousand is worth it to some people who like the flexibility to decide what they do with the car after 3 years

 

So, you think buying a new 45k tacoma at a 6% interest rate is much better?

60-month loan at 6% = $7100 paid in interest.

Sure, you can put money down to help negate that amount but you're still throwing down cash on something that steadily loses value as time goes on.

 

Yeah that’s fine, I outed myself right away anyway. So educate me! This is my current understanding:

Sounds like OP wants to sign up for $519/mo for 36 months before deciding to actually buy the vehicle. I must admit my balls aren’t that big. Anyway, three years later you’re out $18,684 and are left with a residual of ~$33,000 per the OP. So that’s when you decide to buy the car? Adding up what you’ve spent plus the residual: you’re $5k over the original price of the car in OP’s case.

I’d love to hear how leasing ever turns out better than just buying from the start. I figure we have to assume the vehicle is ultimately purchased otherwise there is not much argument for the lease. It’s just a money making tool for dealerships, indeed a great business plan for them!

 

But if you decide to not buy it out, you have nothing to show for it. And you'll always get a worse interest rate on a used vehicle (i.e leased vehicle buyout), than a new vehicle.

Buying a brand new car is dumb because of depreciation. Leasing a car is still more dumb.

Buying a used car in cash and doing your own maintenance... brilliant.

 

He would most likely pay more than $5000 in interest if he financed the truck instead of lease.

 

I do agree with buying used cash is the best option but not everyone wants to drive a 25 year old tacoma...

 

Just look at the head gasket issue on the '05 and early '06 4.0L engines. I agree, you can pay to be a beta tester or just sit back and let the bugs get worked out. Of course that doesn't satisfy the gut desire to own the coolest and latest tech which I can appreciate. The sophistication incorporated in vehicles these days means that more oops make it through testing.

 

10% interest or more on a car gets a big “lol” from me and a “see ya never” as I walk out the proverbial door that contains this thread.

 

60-month loan at 6% = $7100 paid in interest.

 

Hang on, 6% of $46,000 (msrp from OP) is $2760. Are you talking COMPOUND interest!? For a car!? Hahahahahahah there really is a sucker born every minute! The Schadenfreude is ripe, thanks for making my day!

 

That's how interest works on auto loans. Did you really think interest rates were just a percentage of the original msrp?

 

8 New Tacomas sitting at local SoCal dealer.

 

Well if only they could see the dividends that pays down the road, they might reconsider

 

wat?

 

You realize that an interest rate is continuous over the 5 year term, right?

 

It's not always a scam. A 5 year lease+buyout on my 2019 Tacoma ended up being $1k cheaper in the end due to the difference in interest rates. Gotta do your due diligence and get your final costs in writing.

 

Toyota doesn't typically offer a 5 year lease.