2017 Lease Payments

Sweet! Last question, do you have to keep track of mileage log to prove it is for business use? % for business vs personal.
I have another car to go to and from work but the truck will be just for "work use only" .

 

My LX is 100% business use. I use an app to keep track of mileage if IRS keeps calling, but rarely have I taken it out for personal use, since I have numerous other cars/trucks/bikes.

 

34000 divided by 60 = $566 a month at 0% interest , add in some interest and that becomes around a $250 monthly difference

 

My California pubic school math failed me once again.

 

An operating lease would be advantageous to fleet owners and large operators. As an independent sales guy, I am capital lease all the way.

 

Hey guys , new here. Leasing option for a 2017 Trd OR DCSB Jbl tech 4x4 auto is either $440/36/12000 or $435/24/12000. Msrp $38500 discounted to $345-$35500. Money Factor is .0022(5.28) Residual value for 2yrs is 79% & 3 yrs is 70%. $3k negative equity with $2k down. Which one is a better deal?

 

Answered your question in the new thread you created

 

This is not advice.

They are about the same in simplicity to an accountant. To simplify why, pretty much anything that isn't a pickup or larger is limited in depreciation for tax purposes, but lease payments get expensed no matter how high. That is why they push leasing except with very inexpensive cars or pickups.

As far as capital vs operating if you are looking to get loans in the future you may want operating because the liability doesn't show on the balance sheet.

This is actually a big issue in accounting right now. Within a few years the rule will be any lease over one year will have to be capitalized because they don't like the "off balance sheet financing".

 

Right, so if you continuously lease vs buy, you'll never pay for maintenance...which was my point...

 

Yes but Toyota care comes on a purchase or lease. If you buy a Toyota and trade every two years, you don't pay for maintenance either.

 

The question asked was is it a better deal to lease, or to buy and keep for many years. There is also very little difference between leasing and trading every two years. You'd just have to negotiate the trade value and withstand the risk of higher than expected depreciation, vs paying a 650 acquisition fee.

So the same question could be asked, is it a better deal to buy a new tacoma and sell it after 3 years to buy another one, or to buy one and keep it for 6 years. I honestly think you could come out ahead selling every 3 years or with the appropriate lease terms.

 

It all depends on the lease deal, and the resale value down the road. Many lease programs use inflated residuals that are thousands higher than what the vehicle will be worth down the road. With these you can come out ahead. Toyota usually doesn't use inflated residuals. So a Tacoma with insane resale value and the lack of a highly incentivized lease can work out well, buying and trading after 3 years.

Try financing a Chrysler car, MB, BMW, ford sedan, etc for 72 months and try trading out after 3 years and you'll probably be way upside down. Leasing just gives you a point that you are guaranteed not to have negative equity if you want to trade out. This assumes you take care of the car and build in enough miles.

If you trade every three years, and aren't buying tacomas and 4Runners every time, leasing becomes pretty attractive. But free maintenance isnt a reason to lease, because it comes with the car not matter what.

I wouldn't say a person that likes to keep cars 6 or more years should lease. If they want to make a change and trade every 3, then maybe consider leasing

 

Or this kind of customer needs to outlay their 3 year spend on a vehicle and use that as a down payment. Then you hope you have 3 years of equity from the get go. With Tacomas, this is almost guaranteed from the day it leaves the lot whether it is leased, financed or purchased. That kind of customer would still be better off with a one time up front lease payment.

 

I leased a few months ago..

17 Double Cab SR5 V6 w/ tow package Super White
$31299 Sticker
$309 monthly payment
$24460 lease end buy option
3 yr 36k miles $0 down

 

An almost final deal below.. waiting to get final numbers showing break of all costs (ttl, fees.. etc)

TRD OR 4x4 DCSB Manual - Magnetic Gray
Premium & Technology Package
All-weather floor liners/Door Sills
Exhaust Tip
Mudguards
D-Rings

Annual miles 12,000
Lease term 36 months

Interest Rate 4.80% (0.002 MF)
Residual $27,635.00 (77.5%)

MSRP $36,847.00
Selling Price $35,652.00
Difference/Reduction $1,195.00 (3.24%)
Down payment $1,000.00 (Cover first + ttl + fees)

Monthly w/ Tax $399.86

thoughts?

 

A) MSRP seems low for all that equipment, double check the vehicle
B) You should be able to get a bit more than $1200 off msrp, have you emailed your local 4 dealers for a quote? Don't mention leasing just ask for a price on a given MSRP truck.
C) I wouldn't put any money down, I would look into the multiple security deposit program. 9MSDs will lower your MF by .00072 and you get the money back at the end of the lease.

 

The msrp price is based on the email I got see ss i attached. I'm working with a broker since I don't have the time or patience for dealers. The 1,000 down is to cover first month and fees.. easier to do a whole number than something like 668 or whatever it came out to.

 

Manual is cheaper than auto

 

I wouldn't put any money down, roll in all the fees including first months payment, and put 9 security deposits on the lease. This will lower your MF significantly and lower your overall total cost, you'll just be out 3/4 grand for 3 years (you get it back at the end)

 

I have a lot of questions now lol I hope you can help me answer them. I asked my broker and he sort of dismissed it saying it's not something I need because I have Tier 1 credit.
How much is 9 security deposits and is the payment made all at once?
If I decide to return the truck after 3 years do they process the deposits back to me as a check? Or if I decide to buy the truck after or lease another Toyota can I use that money?

Thanks