Leasing a new Tacoma

depreciation depends on the vehicle. Your paying for the depreciation in your lease. However sometimes the vehicle depreciates even more than the loan companies estimate. A lot of people lease luxury cars because their cheaper monthly than buying outright and you get a fancy vehicle. Yes the depreciate fast But wouldn't necessarily say a huge depreciated vehicle works best for leasing.


I've thought about this and the Tacoma is actually not a bad lease deal depending on the money factor you can get. At least with the 2nd gens they would be worth more than the lease residual so then at the end of the lease you could buy it and sell it outright. Recouping some of the lease payments you made over the course of the years.

Hard to say about the 3rd gens. It's a gamble either way. I agree though that a vehicle is the worst investment we can make. Buying used is the most financially responsible choice and then a civic or something but to each his own.

 

My opinion is buying or leasing anything that depreciates rapidly is it's a bad decision. Ok, if you must have a certain vehicle then fine, but most people shopping in the lux tier aren't price averse. Leases provide so much known info up front. The residual is a guarantee of sorts. The car is under warranty likely the whole term (36 or 48 months). The depreciation in addition to what's in the lease term is also predefined. Go over my 1000 miles, that's $150. But really nobody returns a lease and pays penalty mile charges. There are cases where returning lessees or buyers can have miles waived, just ask, you'll be surprised. But really if you lease vehicles which DONT depreciate quickly you have a good problem on your hands.

My '14 2nd gen had a residual of $20095. Toyota offered me $27000 on trade. You can imagine my surprise. I got that in writing and shopped it elsewhere. So there was equity to leverage because the truck HELD its value and beat the residual gamble. It allowed me to buy the next car because of the "free" added cash down we had. My 3rd gen isn't a lease. My situation has changed a little.

All, I'm saying is these scenarios don't play out as well when the car drops value like a rock. You'll be financing more of the car in the lease which means low residual, which means you don't want that car. And never ever put money down on a lease. That's why the payment looks so good on leased cars. Jettas for $89/mo, Civics for $139/mo. Nooooo. You come out of pocket a few grand but you get none of that back in the end, unless you buy it out. But why? The payments on a 0 down lease + drive offs are not usually that much better than a 60 or 72 month loan. But if the residual hangs high you can usually do alright.

If you need that feeling of paid off satisfaction, want no mileage restrictions or are a mod freak then leasing isn't for you. Leasing keeps you in a payment, restricts driving but keeps you under warranty for at least 3/36, conveniently the term of most common leases and has you in a new car every few years.

 

I agree with everything u said except that a lot of people that lease luxury vehicles are only getting into them to keep up with the joneses when they couldnt afford to buy it outright. Although BMW discounts the crap out of the msrp to get that payment down to 400 a month. Plus people pry pay the down payment. But I think they end up on the lower side of the residual value more times than not.

I looked at a focus st with a 35% residual at the time and was like shit I im not leasing or buying that. On the other hand like the Tacoma I'd lease if I couldn't afford the payments and just buy it outright and sell it or keep it. Since historically I think they've beat the residual by a lot.

 

Wow 35%... that's really low. My 14 Taco was 64% at 36 & 12k (which is Lexus territory). But reality was even kinder. It's that Taco magic. Not much really touches a Taco's depreciated value.

In the sedan world where my wife plays in we're serial lessee's. 36m/12k terms. We've played the game with different brands and found Accords and Camrys to have reasonable residual percentages, usually between 55% & 60% while a Fusion hovers around 45%. I hate that it's true, but the Fords just sink to dreadful percentages by 36 months. When you roll leases like my wife does it just kills to lease low residual vehicles.

Edit... just saw you're in SD. Native for 40 years, then GTFO. My 14 came from Baker in LG. I think they sold out tho right?

 

If you're leasing to save money great, but most likely you'll always be leasing and never stop making a payment. Sure, you can end up on top but how many people do you think sink the extra $20-$40/month they save into an investment or other source of income that benefits them above what buying would of? Not many. Most people I know who lease, lease because it allows them to get into more vehicle than they can afford to buy. That's a very dicey situation especially since buying out of a lease, plus the high financing for personal loans (in Canada at least), makes leaving a lease when thing inevitably go south when maxing out your income level a lot more painful.

I can appreciate someone who works out all the numbers for themselves and decides a lease is a better option for them on a vehicle they can afford. I used to do some fleet operations so I can understand that if you are always going to need a vehicle and always want it to be under a certain age to try and lock in up time then a lease is a great idea. For me though, I often modify my vehicles and want a way out on my own terms when I need to let go. Buying will likely always be the best option for someone like me on a truck. If I ever needed a commuter car though that I'd pretty much leave alone, I'd be very tempted to try one of Hyundai's 24 month leases.

 

^^^ haha +1 for the holy thread resurrection blast then adding to it, too. Lol

True, some do lease to get lower payments, which isn't a super strategy, but like I wrote, those that lease properly by ONLY paying the drive-offs and putting zero more down likely have a lease payment rivaling a 60 or 72 month traditional loan.

Those that want a cheap car, put $2500 down and lease the remaining $8k for 3 years are doing exactly what a bank won't to, which give you a loan for <$10k. It's no good.

Lease when the numbers work for you. Can you live with a car payment forever? Lease, why not. Do you drive a lot, you can still lease, at least the depreciation is calculable at any given moment.

But don't ever sweat the buyout issue. The worst thing, in addition to the tax due, is that you could be paying more for the residual than the car is worth. That is a risk if you put stupid miles on it. But so what? They're your miles and you know the vehicle history, so you're buying a used car that you have full and direct knowledge of the history. Ultimately, a lease is nothing more than a 36 month test drive with at least three end of term options.

Plus people that lease don't really think of the car as theirs and typically don't mod it. And if they do, their OK with the potential loss in the end. Obviously cars and trucks are better suited to financing if you have that tendency anyway.

 

You should read some of the other lease threads. Plenty of young guys act like a lease is a bought vehicle. It's kind of funny.

Why not jump in on a necropost, I mean you added a whole new page anyways lol.

 

Metric passive aggressive ehhh?