Buyout Lease Early

I feel like some leasing 101 needs to be a new thread.

It doesn’t have to be complicated. Basically, Add up all monies paid, down payment, payments. Take total and add to payoff. If that adds Up to more than about 2000 above typical new truck value you got a bad deal if you plan to buy out. If you plan to turn in...different story maybe.

Sometimes you’ll see advertised deals, $99/month nothing down. Run your miles and turn it in. If you are leasing as a “layaway program” to buy. Better do your math.

 

By way of a test...OPs payments plus payoff is wayyy too high. Bad buy out lease. However, 335 a month for 15,000 miles with nothing down is a nice deal. Just turn it in at the end. Everyone saying to buy it out is throwing more money at a bad deal. Ride it out, turn it in. Get a new deal. Not trying to play expert but any other advice doesn’t understand how this works.

 

Thank you for your information, I do appreciate it. We did "the math" the night we agreed to the lease deal and it seemed OK. Now I do it and we are "a couple thousand" above a couple thousand... You know what I say?... O-well.

We have the truck now, the monthly payment is OK in our book now, we are driving it and enjoying it now... God knows what is in store for us later... Literally.

Peace.

Sincerely,
Justrfb

 

Just enjoy it and chalk it up to a learning point. Yes you overpaid, but luckily you leased and at the end can trade it towards something else and not be stuck with it. Right now your cost to own over the next 3 years is about 20k, which is very high. By the time you get to the end of the lease if you attempt to buy it you will have paid about 49k before the additional interest on a new Loan for the ~30k payoff.

 

I know... And I didn't think I/we are stupid people...

Until we walked into a Toyota dealer a few weeks ago... Again...

O-well...

Thanks!

Justrfb

 

This happens a lot and that’s why leasing gets a bad name. They make it very confusing to where almost no one understands what’s happening, and then you get a low payment and think wow what a great deal. You’re not the first to be taken advantage of, just enjoy and amazing truck for a low payment.

 

How do you arrive at $20k over 3 years? Isn't it 339*39=~$13,200?

 

5500 down

 

The person I quoted is paying 374/mo for 39mo, and they put down 5500. Not talking about OP.

 

2 different examples.
OPs is ok lease, bad buyout.
Justfrb’s is kinda bad all the way around...

Don’t beat yourself up. It does happen and most of us have been there.

 

Gotcha, I didn't notice there was another lease being discussed, my bad!

 

Sorry.

I really did not mean to hi-jack the thread.

Bad etiquette...

Sincerely,
Justrfb

 

No worries, OP seems to be scared off anyways.

 

This.


Stash every penny you have left at the end of the month and put it away. Pay cash for the truck at the end of the lease.

Pay cash for the full value of the truck when the lease is up.

 

Pay 42K for an SR5, yea thats sound financial advice.

 

Thats why leasing is STUPID.

But not a whole lot he can do at this point smartly other than getting out of the lease and going to buy a junker.
But honestly once you make a deal with the devil its hard to back your way out of it and save face financially.

He needs to get himself in a situation where hes in a vehicle for full cash. However best he can make that happen he needs to do that.

Buying out the truck now vs later does not necessarily save him cash in the end depending on what interest rate hes going to get on a now used vehicle.

I would just bust my ass for the cash between now and the lease up to pay for the vehicle.