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Leases don’t require a down payment. And if you ask most here on this forum they say to never ever put money down on a lease. I don’t know all the details why, but people on here freak when someone put any money down on a lease.

 

Correct. Down payment on a lease generally defeats the purpose of a lease in the first place. You want to spend as little as possible over your lease term. Putting a down payment just exposes it to risk. If you write it off early, that down payment is gone. If you want someone to take over the lease, you will have a very hard time getting them to give you any money to recover the down payment. Generally, with low interest rate, putting money down saves you very very little in interest. 0 money down on lease is generally the way to go.

 

Be sure to see if the the lease includes GAP insurance in case of a total loss. If the lease doesn't incl. GAP coverage, see if your auto insurer can add it as an endorsement to your auto policy, I've found that it's priced very reasonably at least by my insurer. It's risky to have a leased vehicle without GAP coverage since you're on the hook for the entire pay-off in the event of a total loss. You often have negative equity in a lease since you haven't put any money down. Just food for thought.

 

Good call, I've opted out of GAP when dealer financing before because my insurance providers cost is considerably cheaper and makes canceling it easier since its a monthly charge. If you total a vehicle that's on a loan its no different than a lease, both are property of the financing institution until payed off. Down payments help to minimize risk.

 

I agree with that and if you have to finance a vehicle for over 4 years then a lot of financial advisors will say that you can't afford it..

 

Also, in a lease you pay the whole amount with the interest. There’s no savings paying it off early like a traditional loan. Plus, you pay sales tax on a lease, which is nuts. You don’t pay property tax on renting a house.

 

No, but your landlord does. That cost gets paid somehow and it just means they pass it on to you when they determine what their rent charge needs to be.

 

Is it a 4x4? If so, that seems to be a great deal, almost too good to be true if it's a 4x4.
Edit: Is it $250/month plus tax or Out The Door? They advertise and negotiate(typically) in terms of "plus tax" but don't tell you that until later.
Another Edit: I leased the same truck ('18 SR5 4x4 DCSB) prior to getting out of that lease into a purchase of my current TRDOR and paid $300/month total after pitting 3 dealers against each other.

 

I’m aware of how it works. The landlord doesn’t determine the price, the market ultimately does. My point is dealerships turn a personal auto lease into a triple net commercial property lease where the leasee pays tax, insurance and maintenance.

 

Ummmmm what

 

For a dealership a sale is a sale. Whether it is financed or leased is irrelevant.

In finance, the finance company pays the dealer for the vehicle

In case of lease, the leasescompany (TFs/Chase), pays the dealer for the vehicle

 

You still pay sales tax where applicable

 

For a purchase, if your state has sales tax, you pay the sales tax on the full amount of the truck

If you lease, and your state has sales tax, you pay the sales tax on the monthly payment amount only and not the full amount of the truck price

On a $22,000 truck in California if you purchased, sales tax is $2145

On a leased $22,000 truck in ca, over 36 months, sales tax will be about $612

 

You’re paying out the lease whether it be 2,3 or 5 years, even if you turn it in. Which is my point that you pay sales tax on a vehicle that you’re not buying and I don’t agree with the tax.

 

No but my point is in both scenarios the tenant is paying the tax, its just presented differently. The rest of your statement is irrelevant. While yes you cant shave off money by paying it off early, you cant pretend like there arent other benefits to a lease - otherwise nobody would do it. It's a trade off and nobody should be pretending that the reason to take a lease is to save money. It's to have convenience and advantages in other areas. Some people get wayyy too caught up on just examining the bottom line of "which route saves me the most money" without realizing not everyone cares about pinching the last penny.

 

To the OP, Yeah that seems like a pretty damn good payment for $0.00 down. Assuming the sticker price of the vehicle is over $25,000. Toyota must be assuming the residual is pretty substantial to be offering a deal that good. $250 X 36 = $9,000 Out of pocket + Taxes. I'd be interested to hear what the residual is.

Lots of people seem to forget that a Leased vehicle can become a purchased vehicle at any time. One reason why I dont understand the "Mileage" debate or the "Cant modify the vehicle" debate. If you start driving a bunch more miles, Call the finance company and pre purchase some miles or finance the vehicle outright. Oftentimes the traditional financing price is pretty similar to the lease terms at that point as you have paid down some of the principal. If you decide to become the next Baja 1000 champ and need to use your Tacoma, buy it outright and have at it.

Something else to think about is that if the car happens to be a lemon or have substantial repairs over the course of the ownership tend to not screw over the owner as much. I leased a Ford which had a whole slew of issues within the first 20,000 miles and ford actually took the repairs seriously once I reminded them the car was theirs (Ford corporate not the dealer).

Leasing is nice because you're locked into a rate which only fluctuates as taxes do at least in California.

Financing rates can change (usually refi deals for even lower prices) as well as the initial depreciation of the vehicle.

Look. Purchasing depreciating vehicles really is what most people fall into and there is no free lunch, even for the hoitty toitty I paid cash crowd. Fully depreciated vehicles are oftentimes unreliable and require another kind of payment (Service/ repairs/ stranded etc).

 

As someone who's worked in the car business I'm just laughing at all the terrible information about leasing in here lol.

Leasing can be amazing IF you know how they work, some vehicles that are fantastic to lease right now: Tacoma, 2018 Wrangler, Honda Clarity, Civic, Fit, any low-mid trim BMW, Infiniti Q50 has a crazy lease right now.

Vehicles that are almost universally terrible to lease: any POS Nissan/Hyundai/Kia/Ford.

You just have to know how it works and only like 2 people in this thread seem to understand leasing lol.

No leasing isn't "renting" and on a strong residual vehicle like the Tacoma you don't even have to worry about excess miles because only an idiot would return a Tacoma lease at the end of it.

On the tacoma in every single scenario other than you keeping it long term leasing is way better.

If its totaled thank god you leased. If its in an accident and diminished value but not fully totalled thank god you leased. If you sell it or trade it in thank god you leased. If your lifestyle changes and you need to get a different vehicle thank god you leased.

Leasing shields you from a lot of liability and only partially commits you to a depreciating asset limiting your exposure which is a GOOD thing.

 

I've found that Leasing is one of those subjects that people have the strongest pre-conceived notions about how it works and no desire to educate themselves. I blame people like the ever popular Dave Ramsey who is essentially "paint by numbers finance" for idiots who cant manage their own money and calls them fleeces. Naturally they are only fleeces because the kinds of idiots who need a person like him to give them tips cant be trusted to make good decisions regarding leases.

 

I think it comes from the fact that there was a time when leasing fucked over a lot of people, back in the days of open ended leases with no consumer protections and no regulations a lot of people got genuinely hurt, this was the 80s and 90s. Even young people that were too young to drive back then still have the same repulsion because their mother or uncle or grandpa got taken down hard and they'll never forget, so they pass it along to younger generations "never lease its a scam!" and people just sort of believe it.

So the terrible reputation is well earned, same with the car business in general it was truly an awful business back then and really did fuck people over immensely.

But these days theres so many consumer protections and disclosures its not even possible to truly rip someone off anymore (and no paying MSRP isn't getting ripped off)

Back in the day you could stuff someone into an open ended lease with a .013 money factor (30%+ APR equivalent), make $4k in finance reserve and pencil it at 85% residual when the car will actually be worth 50% fucking them out of another $8k+ at the end of it. Oh and sell the car for $5k over sticker because window stickers weren't required and the internet didn't exist. You could literally make a $15k profit on a $18k car and literally BANKRUPT some poor grandma that didn't know any better. Thats where leasing gets its bad reputation.

Nowadays lenders won't even let you mark up the rate and if they do its minimal, they won't lend over a certain % of book so you can't charge an insane amount over MSRP, the residual is fixed and the lease is close ended so the liability there is now on the manufacturer. These days leasing fucks over manufacturers more than it does consumers, I remember circa 2013 Nissan too a BATH on lease returns because 3 years prior they had inflated their residuals to push units, all those POS cars came back a ton with bad transmissions and Nissan lost like $3k a copy times hundreds of thousands of cars. It was so bad it played a role in Nissan getting bought out by Renault