#maketacomaleasinggreatagain

You're welcome

 

That's what forums are for, all useful information to someone down the road searching for info on leasing. Don't be so self centred.

 

Usually what they know is that their time is better spent elsewhere, as in making money and not being at the dealership/shop getting their car worked on. So they lease a new car (which should have little/no mechanical issues) and just drop it off every few months for the routine maintenance. They don't worry about what tires to put on it, what brand of oil to use, how many miles on it, just that it's a nice car and works when it needs to. Their lack of hassle with actually owning a vehicle is worth the money to them.

 

The misconception that leasing a vehicle somehow costs you more money (if you buy it out) shows total ignorance.

Congrats to the OP for getting a truck, enjoy!

 

I traded in a leased subaru that was over mileage and would have cost me about $1000 to dispose of but instead got $1700 down on my new subaru, which I bought that time. Effectively saved myself $2700. Not bad.

 

I look at this way... leasing a vehicle is a lot like renting an apartment. You keep shelling out money for something that you'll never own. You will always owe money to someone for something that you will physically never to get call your own.

Everyone needs a vehicle. The vast majority of people need a vehicle. Why not take steps to stop owing people money and put money down towards owning something?

Isn't that what people do when they stopping renting and can actually afford a home? Sure, homes appreciate, whereas vehicles don't, but a lot of the same principles apply.

Maybe, in certain circumstances, leasing is appropriate, possibly if it is going to be a business need. The vast majority of people end up in terrible lease deals and basically end up renting a vehicle for three years from a stealership which will just take it back and sell it overpriced again as a "single-owner, used vehicle."

And, of course, they sell you this "positive equity" bullshit just to sucker you into another shitty lease deal. The cycle never ends.

Frankly, I think the majority of the time leasing is not the right option. Leasing is mostly a scam used by stealerships to get people into vehicles that they can't actually afford. Most stealerships know that the lower they can get your monthly payment, the more likely consumers are to justify the leasing of an expensive vehicle.

In your particular example, your buyout is $25k. Do you have $25k lying around to pay cash outright? Probably not, at least you wouldn't throw $25k cash at a vehicle, so then you end up financing it for another five years just to own it. So now you're shelling out payments for eight years instead of five. Do you really think you are getting ahead with that deal?

If you think it is a better form of financing, rock on brother. To each his own. We all work hard to pay for our fun toys.

 

I know someone who keeps trading up their vehicle every time their lease is up. (wealthy people). Toyota swaps out their old ride for a new one for the same monthly payments every few years. Not my thing as I'm not wealthy, but if your into have the latest in greatest and have deep pockets, this could also be an option.

 

Depending on the vehicle you do actually build equity.
Tacomas are a great example of these depending on the deal you get.

 

Assuming that you negotiate a good deal upfront, the stealership doesn't calculate residual properly, you keep wear and tear to a minimum, and you keep your mileage below the limits, sure, you might actually earn positive equity, which the stealership will tell you to use towards your next lease. And the vicious cycle continues...

 

Look up the price for a 3 year old 4Runner trail premium, tell me if it's more than 23k (I know the answer) this is my buyout. I can easily sell it for 33-34 k. See what I mean?

The tacoma builds very similar equity.

 

Since you did $40M in real estate closings, I think a Tacoma lease won't kill you


http://www.kerdyk.com/author/wcolas/

 

You seem to be under the impression leasing is pushed by dealerships as some sort of a trick to steal money lol. First of all dealerships would prefer you finance, they average a LOT more gross on finance deals than they do on leases, its the manufacturers that want you to lease because brand retention is much higher on leases, so if you lease you're more likely to buy the same brand again in the future. Its the MANUFACTURERS pushing these hard most dealerships will try to convert you to a finance deal so they can make rate and push backend. Its only high line stores that push leases because that's what their clientele asks for, even then they'd prefer you finance.

Yes vehicles are depreciating assets but necessary for the majority of the population to simply function in our society, especially in certain cities with bad public transport, I live in San Diego, you NEED a car here to be successful. If we follow your logic the only thing that makes sense is a $5k 15 year old Corolla, NOTHING ELSE WILL MAKE FINANCIAL SENSE. But not everyone wants to drive an old POS, some people prefer a new car for the safety, some for the reliability, some for the features. Whatever your reason is there's plenty to want a NEW car. So the question isn't "should you lease a new car or buy a 15 year old beater", the more relevant question would be "ok you've decided to get a NEW car, now should you finance or lease it?" In that context why would you want to fully commit yourself to known depreciating liability?? Ever read rich dad poor dad?? Its basic financial knowledge that you want to own assets, and if someone is willing to hedge your bets on a liability you TAKE IT. That's all a lease is, a manufacturer is hedging your bets for you, why in the hell would you turn that down on a depreciating liability??

Not to even mention the fact that there's often lease incentives not available on purchases. Even ignoring those most states you're not only shielding yourself from depreciation but also from taxes. Perfect example when I was with BMW I leased my cousin a 328i, her father swore up and down she should just purchase it! Well guess what, she got rear ended and the car was totaled. Because she leased she ended up with $2k in EQUITY, if she had financed it like her dad told her to she would've OWED over $1k, since on a lease you don't pay the taxes up front her payoff was over $3k less on the lease than it would've been on a purchase. Sure she could've bought GAP insurance (already free on many leases) but that would've added cost to the purchase and she still would've ended up with $0 instead of walking away with $2k. The accident wasn't even her fault and people get screwed like this ALL THE TIME.

Another scenario lets say you purchased a new Tacoma and get rear ended but its NOT totaled. 3 years down the line you realize the "turd gen" is a POS, resale value isn't as strong as the last generation, plus your truck now has a bad carfax. You go to sell it and its only worth $22k but your payoff is $28k, you just got fucked. In that same exact situation if you had leased you would just hand the keys aback to Toyota and let them take the hit, because they hedged your bets for you.

A more simple and indirect example of why leasing can be advantageous: everyone in the business leases. Talk to any finance manager at any dealership and there's a 95% chance they lease their vehicle. These are the experts that do this everyday, no one knows auto financing better than they do, and yet they almost all universally lease, why is that?? If leasing was so horrible you'd expect the experts to avoid leasing at all costs yet in reality its the exact opposite, why?? Its because they know what they're doing and when you do it correctly leasing is better. Again these same people would prefer you finance because they get paid more when you do...

 

It's called fleecing, do not do it, save your money and put more down..

 

1. Negotiating a good deal up front is the exact same if you finance or lease so this is a moot point.


2. Dealerships don't determine residual values manufacturers or banks do that, if it "wasn't calculated properly" then you'd have to resign as the lender wouldn't accept the contract.

3. Having positive or negative equity is the same rather you finance or lease so don't know what your point is here. If you drive a shit load of miles on a financed vehicle it'll effect your depreciation just the same as if you had leased. The difference is if your car has negative equity on a purchases that's 100% on you, but on a lease its not always on you as you have a GUARANTEED residual value set by the lender plus less skin in the game to begin with, so you'll have MORE equity when there's equity to be had.

You might be thinking of open ended leases from the 1980s, those aren't around anymore, every lease I've ever seen in my 10 years in the business has been closed end.

 

Another perk of leasing is not having to worry about maintenance.

Figure if you keep a car 5 years or longer, you'll probably have to replace or fix something. If you're not mechanically inclined that can become super costly.

 

Congratulations!
Any pictures of the new ride?

 

You can lease a brand new Civic right now for $200/month with nothing out of pocket. To me that's a freaking cell phone bill lol. Leasing isn't just for rich people.

Imagine an hourly worker that lives paycheck to paycheck. If they can budget that $200 properly they're set.
I've seen plenty of people in that same situation buy a $5k beater only to be surprised by a $2k repair bill 6 months later and then they're totally fucked because they can't afford the repair and now they can't even get to work to earn money to pay for the repair.

 

Yup

Around here, Civic is leasing for $89 a month with $3000 down and Accord is $99 a month, with $3000 down.

 

I could come up with similar nightmare scenarios with a leases vehicle. Excessive wear and tear, going over your mileage limit, etc.

Bottom line for me is in four years I will no longer owe money to anyone because my Taco is paid off. I will keep it low mileage and running well parked right next to my paid off 2002 TJ.

Everyone can spend their money as they see fit, no harm no foul. Get a new phone every few years. Or upgrade your leased vehicle every three years. Doesn't make financial sense to me to throw money endlessly at an asset that will never earn you anything. I much rather prefer to put in my coin, own something, and put my cash into something else that will return me some value.