SR5 4x4 DC $255 for 36 mo, with $2999 due at signing lease opinions

Not sure where to post this, so thought maybe here. Having hard time finding access cabs with what I want on lots in my area of NJ. They do have 3 SR5 that qualify for this 10,000 mile a year lease. Only negative for me is not the 6 foot bed I want to put my bicycle in back. The lease end purchase is $29,177. So if I buy at end of lease I would be paying about $41,100 for a Tacoma that stickers at $37,876. So I’m guessing this would be a 3 year rental, as I think it would be cheaper to buy with the 72 month @ 2.49%. Any opinions on this lease, or strong pro/cons with leases? Not knowing what I’ll be doing/financial situation 3 years from now, and price of gas, and if electric cars really do take over, makes me want to consider this lease. Is $255 a good monthly payment, or have you seen Tacos with lower payment?

 

Sounds reasonable. Tacomas have good resale value so they can have lower monthly payments and make $ back selling the lease.

Don't forget to spread the $ do at signing to the monthly payments

 

Also, thinking this same model/options Tacoma in 2024 could be much more than $41,100 if we have issues with chips, materials, and labor costs to build these vehicles. So if I had to buy, the after end of purchase total of 41k might not seem that bad.

 

I leased my TRD OR (MSRP over $41K) for ~$280 per month with $4K down for 39 months and 39K miles. Keep in mind that you can extend a Toyota lease for an extra 6 months for the same terms. Having moved to Cape Cod and driving my truck on the beach regularly, I like the lease option for rust (I don’t care). If the lease miles work for you then go for it if they have the truck you want. If you plan on leasing then buying then just buy it now while interest rates are very low. Navy Federal has 2.29% for 72 months.

 

72 month? Who wants to pay on a vehicle for 6 years? That's insanity

 

10 year loans are the new normal, who cares about putting food on the table as long as you keep up with jones’

 

Renting a vehicle doesn’t make sense to me, pay for it, and give it back.

 

I don't mind 6 years. I also don't like the idea of leasing a $40k vehicle. I'll lease a phone, but a truck that I want to throw mods into that isn't actually mine? Eh..

My dealership quoted me an unbelievable monthly price for my sr5 and when I questioned it, they were like "ya its a lease program. You sign this contract for x dollars a month and then when your lease is up, you can finance x amount or turn it into us for another lease on another vehicle"

It was at that moment I realized this might be why there were so many used less than 40k miles 2-3 year old tacomas on the lot. Floating $30k auto rental sounds like a worse investment than renting an appt or a home lol. Maybe I'm weird tho idk

 

. These trucks have great resale .as long as you get a good interest rate and negotiate a purchase price all you are doing is just stretching out your loan .this is great for some who don’t want to have high payments .

 

OP, ask them the following, and we can give you the hard numbers vs buying

• What is the money factor? This is the interest rate in the lease.
• What is the residual value? The hard number and percentage.
• What is vehicle sale.price, and also taxes/fees at purchase?
• Of what money down, how much is capital cost reduction and how much is security deposit? Many don't realize but putting money down on lease is often not smart at all. And you can often do multiple security deposits to lower the money factor and therefore your payments, and the difference being you get the multiple security deposits back vs. Not with cap cost reductions.

Leases only make sense when the money factor is stupid low and the residual value is higher than market conditions. Meaning they think the car will be worh MORE at the end of the lease than it really will be worth. The other time is when you are using it for a business as the IRS tax deduction rules are different on leases vs finance.

In this market now of 2-3% or even lower finance rates, it's going to be hard for leases to be a good idea. Leases used to be a savvy way of getting crazy low interest rates. Now if you have potential credit challenges and can only get a 5+% loan on your vehicle. Then leases can be attractive approach still. The old saying that you can just lease and get a new car every few years is just dealer mumbo, most leases can still be bought and sold like a regular finance contract and selling a car now is easier than ever with vroom, carvanna, carmax. Leasing should only be used as a financial tool, because the math is in your favor, unfortunately it rarely is and people just don't have the knowledge to decode it yet.

You may find that when you ask the above questions the dealer may not like you, because they want you thinking monthly payments. Don't fall for it. Get these numbers and we can run a side by side for you.

 

I leased a Tundra once. Shortly after that, it bothered me because I was on the fence about some of the mods I wanted to make.
Maybe just me but I want to own it, not rent it before I sink mod dollars into it.

 

I hear you, and I paid off the loans on my two previous vehicles in 19 and 13 months. I hate debt, so I pay off stuff as fast as possible. 2.29% is close to free money, some would argue that you can do better with investments and should slow pay that 72 month loan. If I had gone in and financed a $41K truck (including sales tax and fees $46,031) with nothing down the total interest paid on $46,031 for 72 months at 2.29% is $3,279 with a payment of $685. I think buying a vehicle that way is irresponsible, but everyone’s financial situation is different and they can make their own decisions.

I rented my $41,980 MSRP Tacoma for $14,800 all in for a 39 month lease with the intention of just renting it as a bridge until my 2021 Ford Bronco arrives. I had a feeling the Bronco rollout would get screwed up, my first 24 hour reservation was kicked to 2022, so I’m very glad I got the Tacoma. I have no intention of keeping the Tacoma past its lease, so why outlay $26,715 in 39 months rather than $14,800? I could afford to buy a Tacoma for cash, but I’m saving for a 20% down payment on another house so keeping my debt numbers low and cash in my account is also important. If the Tacoma is worth more than its $30,500 residual value maybe I’ll trade it towards something else at the end of the lease where I can capture the equity, if not I’ll hand them the keys and walk away. Either way, I know what I’m paying for and am ok with it.

The other benefit for me personally is leasing will prevent me from doing major mods. I spent $5-10K+ in mods on previous trucks. On the Tacoma I have spent $400 on a hard tonneau cover, $300 on a plug and play fog light kit, $220 on a console safe, and another $175 in locking tailgate and bed LED’s from Toyota. All those mods are easy enough to remove and sell or cheap enough I’m not worried about it. If I owned the Tacoma I would’ve dropped $8-10K+ in suspension, wheels and tires, audio, lights, bumpers, etc. Leasing reminds me to keep it stock.

 

I agree with most of your post, but I would challenge why it’s “often not smart at all” to put money down on a lease? Buying down the capitalized cost reduces the amount of interest paid and lowers the payment accordingly. If you wreck the vehicle that money is probably gone, but otherwise why not take the lower capitalized cost and lower payment? On the back end you can extend a Toyota lease on the same terms for an additional 6 months, so a lower payment makes that cheaper. I have a buddy who leases his wife a new Highlander every few years. He puts 90% of the lease capitalized cost down to make the payments $30 per month, then extends for the 6 months every time before turning it in. He figures he gets 6 months and 6K more miles for $1 per day doing this. He’s on his fourth cycle of this currently.

Many of the OEM’s are now refusing to sell leases to Carmax and others, they want that inventory back to resell themselves. Even trading to another brand vehicle dealership can be denied unless that dealership group holds a franchise for whatever the OEM is.

https://www.cnet.com/roadshow/news/...e-lease-buyouts-to-rivals-following-gms-lead/
https://cars.usnews.com/cars-trucks/lease-end-options-restrictions

 

I always go with 72 months if it’s available and just pay it off early. My last 3 vehicles were like that. 72 months keeps the payments super low every month, (in case you have a bad month of other expenses) then when you can afford to double or triple payments, you do. I like the flexibility to pay more if I come into some money but not the obligation to pay a high rate every month. May not make sense to everyone but it’s what I do. I’ve never taken the whole 72 months to pay off a vehicle, usually takes 36-48 months

 

Yeah I was generalizing a bit. But my normal reason is the loss in the event of accident (get gap on all car purchases) and the assumption that the interest rate / money factor is low. This is predicated that you invest your money.

I am with you on the new restrictions leasing are having and they make them even less appealing. Tesla for example now doesn't even have a purchase option now. They want the car back. So now you are legit just renting with no flexibility, so you again for a lease to make sense, that money factor and residual have to be right.

 

‘19 DCSB here, previously owned an ‘05 DCLB

While i do miss my ‘05 at times, i’ve never felt like i didn’t have enough room in the bed with my ‘19. My cannondale topstone fits fine, i’ve hauled lumber, drywall, etc. without issues whatsoever.

fwiw

 

^^^^^this is correct.

 

Way too many variables to worry about it too much. Most important thing is, does leasing work best for your current situation and make you comfortable. If it does, negotiate the best deal, and go for it it.

 

I was not aware of this, 6 more months of low payment. Will this 6 month extension be in the lease contract, or is this just the current policy, and could change in 3 years?

 

I would have to pull my lease paperwork to check, but I just moved and that would be an undertaking. Let’s assume it’s current policy, but I know others have done it as recently as my folks in January 2021. I could see them changing and not offering it right now because they want the used car back for resale while supplies are constrained.