2017 Lease Payments

Yes Leasing is good for those that need new vehicles all the time and will always have a vehicle payment, but because I didn't buy, I have not had a payment on my truck for the last 5 years, and now trading it in I am getting 13.5 towards my new truck. I don't care what the vehicle you are getting, they only offer leases because they money off them.

 

Agreed. Lease is great for people who want a new vehicle every couple years, and don't do a lot of miles.
I do about 40,000 miles a year on my daily driver, and my wife does 35,000 miles in her minivan, so none of these would be an option for lease. My Tacoma on the other hand sit in the driveway during the week, I only drive it some weekends and mostly short Home Depot trips or camping/biking etc. trips - doing maybe 4,000 miles a year. Lease would be an option for my Tacoma if I wanted to have a new one.

 

Advantages and disadvantage can be made for both sides, I'm sure many people can just purchase a car and have no payment for many years, I understand that dealers make more money off leases and I don't see anything wrong with that. It's helping keep the economy going and people have jobs. My point on this is that I have noticed people saying things that are completely false regarding leasing, I like it because I like trying different things and I'm sure many others feel the same way. I also have no problem with people buying and keeping it for 20 years.

 

Actually, I think this is the problem with our society. Every one want the newest things, and just toss away our the year old stuff. It gives us a false sense of a good economy. We need to stop our consumerism. People complain about the quality of products, why would a company spend the time to make quality, when they make a new product every year and sell by the quantity.

I love how people talk about the tax breaks with using a lease, but yet the media is tearing some one a new ahole because they used these tax loop holes. We are such a hypocritical society.

 

Hmmmmm.. Wonder who you're voting for.

Consumerism has always driven our economy. Have to have it or we'd see a great depression again. You want us to stop consumerism so the economy tanks and your candidate has a better shot at getting elected???

Kinda ironic too that on your post you're telling people to stop buying things, and your signature has a 2017 Tacoma on order. Then yell at other people for being hypocritical.......

 

I don't disagree with anything you are saying, much of it makes perfect sense. Each person has a prefernace and if they have the funds to make it happen than great. Like mentioned before I was just pointing out that each side has its positives and negatives.

 

To get back on track... OP's question asked about his deal. From most of the useful information above it seems like it is a decision based on personal preference and planned use of the vehicle. The $399/month starts to get close to the cost of buying the vehicle, but with $600 down probably still about $200/month shy of it, so it would make financial sense (short term) to lease OP. If possible, put that $200/month that you save away and when the lease term is up you have that money available for the next down payment. - That's the biggest downfall for me about leasing is that when you return the lease you have nothing. If you purchase you usually have some equity that can be used as down payment on the next deal.

 

I paid 32K for it. OR 6 speed manual all weather mats.

 

I think you are not understanding the commitment part of leasing a vehicle that automatically has equity. You are making cash on a vehicle that you do not even own. If you lease a vehicle that tanks after it leaves the lot...absolutely you will have to be committed to it throughout the lease. All leases also have the option to buy at any time. Your buying option on a Tacoma will no doubt be less than what the market value of the truck is.
My company gives me a flat rate for the vehicle and a discounted mileage rate. They also will not pay for my vehicle if it is older than 3 years. I roll that into my vehicle every month which turns out to be ~$1,000 a month. I go way over my mileage all the time but I am paying for what I use so I never incur any penalties. When my lease matures, I typically have paid the vehicle off by then or I can buy it super cheap because of the equity I have in my lease. This does not even scratch the surface on the tax breaks or tax payment conversation which for me is the single biggest advantage. This has absolutely nothing to do with being able to afford the truck or not but limiting my liability and taking advantage of the tax breaks.
And just to be clear....all businesses are in business to make money.

Some of these people that want to trash leasing do not comprehend the motivations of people to do so. They automatically think lower payment means you can not afford the truck. Most people that lease are not concerned about the payment but need the flexibility that a good lease offers. I think these people will be surprised if they were to visit a Mercedez, BMW, Porsche dealer and find out how many of those transactions are leases.

 

Good post.

I basically only lease new vehicles so I can put my money to work elsewhere. Also I have sold every single of my leases (except the Odyssey which we bought out). In my opinion leasing is more flexible than financing. One thing I like is that if I smash the vehicle up I don't have to worry about lost value I can just give it back vs if I financed I would be stuck with it. Thankfully that hasn't happened yet. As someone said Tacoma is one of the best vehicles you can lease due to its residual value.

 

Here is what I did on my lease

2016 TRD Sport with tow package and step sides

Negotiated the sale price form 37,500 to 34,200

Put 4300 down and I pay 239 a month

Thats 15k miles and 24mth lease. One thing you have to remember it doesn't matter if you put zero or 5k down your gonna pay the same amount at the end of your lease.

 

Ya, I am trading in my 2009 because my family no longer fit in it. And no you don't have a clue who my vote is going to. As I don't even know yet.

 

Typically it's a good idea not to put any money down on a lease. One reason is you're exposing yourself to losing that money in case of a collision or theft. Even if you get gap insurance. Other reason is you're usually required to pay tax on any down payment. The point of a lease is to defer cash outlay as much as possible. Another reason is if you go to have someone take over your lease early on, it's going to be very hard to get that down payment back as usually you're the one that needs to be flexible on having an incentive to potential customers. And finally you probably could make better return on that down payment somewhere else as long as your lease rate is low.

 

We financed ours at 72 months @ 4.25%.

Truck, tax, tag, title and fees were $38k with no money down.

Came out to $611 a month.

 

Yes, but for how many months?

 

Or, you can always buy it after 3 years and then the down payment helps. On Tacomas typically you will have equity built after 3 years.

 

Exactly. To me, life's too short to drive the same thing for ever. There are plenty on nice cars out there to stay with the same.

 

A lot of people talking about miles on here. Miles on a lease don't matter if you do the smart thing and trade it in or buy it when the lease is up.

 

Equity (while on a lease) depends on many factors, but yes - entirely possible to have positive equity during the lease term.

We started a 3-year lease on a 2015 Honda Pilot just a little under 2 years ago.

We just sold the the car a few days ago for 29K, and the payoff was 24K.

And no, we didn't buy a new car. We took it to a big dealer's buy center by our house and was in and out in an hour.

We have successfully done the same for 2 subarus in the past. None of the cars have ever gone full lease term.

 

I'm glad you mentioned this, I have so many friends that always ask me how they can lease and not go over the mileage, I always say don't be stupid and turn the car back to the dealer. I know a guy that drove 40k miles in the first year because of a new job and traded the car in for a new one.