2017 Lease Payments

I only put 2 grand down and without having credit I got hit with 498 a month wich sucks but wut ever

 

There are a lot of different reasons people lease vehicles. Leases can have lower payments than purchasing, but if you chase low payments, and don't look at the entire deal, you will be doing yourself a disservice, lease or loan. I work for a leasing company and many of my client's lease because they have been buying cars on long term finance contracts, trading out early, and ending up with a bunch of negative equity. When you lease, you are just paying for the depreciation the vehicle will experience, plus the interest to carry the cost of the vehicle. Leasing gives you a guarantee that you won't be upside down (if you drive the mileage allowed and take care of the vehicle), and the bank takes the risk of resale down the road. If you want a new car every 3-4 years and will always have a payment, then you might look at leasing. If you want to drive a car 6-8 years or longer, then buying will be a cheaper option. The reason leases have a mileage penalty, is because you used more of the car than you paid for in the lease, and it depreciated more. Driving high mileage can be a reason to lease. I drive 35K a year, and don't want to keep a car past 100K, so I lease and build in 35K miles a year. My payment is higher than a 72 month purchase. If I did a 72 month purchase I would be upside down if I traded out after three years. Pay now or pay later, buy you're gonna pay.

Unfortunately leasing is complicated, and different lenders have different stipulations in their contracts. Dealerships aren't worried about setting up the finance or lease contract to match your needs, they just want you to say yes, and go away in the new car. US Bank, Ally, Ford, and some other's have what are called "true market value" leases. This means, since you don't own the car, they can add thousands to your payoff if you choose to trade the car in before the lease expires. You may have a $20,000 residual, but two months before the lease is up, your payoff can be jacked up to $25K. I see it all the time, and they won't tell you they are doing it. Honda, and Toyota don't do that. Most manufacturer leases set the residual much higher than the vehicle will be really worth. That gives you a lower payment, but if you want to trade out early, you will be thousands upside down. If you go over your mileage, you will get hammered, because you really can't trade out early with the high payoff.

Leasing is a great way to get a new car every few years and if it's set up properly, and it can be a great way to move from car to car. This is a large purchase. Always SLOW DOWN at the dealership, calculate what your mileage will be, and build in a few more than you will need. Things change. If you drive less mileage than you built in, you could get that money back, if the car is worth more than the residual at the end. Don't get sucked in to the "I'll keep this car longer than the last three cars". If you traded the last three cars after three years, you'll trade this one in three years.

 

$34,000 / 60 months is $566 with no interest. He'd be looking at a $600-$650 payment

 

Your not making $10K on a lease. No way. Leasing companies aren't so stupid to set the residual $10K lower than market value. You can sell your vehicle at the end to an individual, but no way are you selling it for $10Kover the residual. Most of the time residuals are set higher than the vehicle will be worth at the end. Toyota set's then reasonable, but check out what a BMW is worth compared to it's residual. Not even close.

 

Just ordered last week:

2017 Tacoma SR5 DCSB V6 4x4
Silver Sky Metallic
Dark Satin Alloy Wheels
Wheel Locks
Tonneau Cover
Mud Guards
Tow Package
Bed D-Rings
All Weather Floor Mats with Sill Protectors

36 month lease
15k miles per year
$0 down
$350 per month

 

Sounds Like a pretty good deal. $36K truck for $350 a month with no cash. Keep in mind, lease residuals and rates change every month, so if you ordered it last week, when it comes in, the numbers will change a bit. Probably not much, but they will change.

 

"Sounds Like a pretty good deal. $36K truck for $350 a month with no cash. Keep in mind, lease residuals and rates change every month, so if you ordered it last week, when it comes in, the numbers will change a bit. Probably not much, but they will change."

Thanks! I was happy with it...emailed 20 dealers within 2 hours or so with what I was looking for and tried shopping that offer around but wouldn't get anyone that would beat it, so I took it.

Now the waiting begins....

 

I work for an leasing company. If you have any questions, I'd be happy to help, especially if you get into the finance office, and the numbers change. I'm not trying to lease you a truck, just offing some help if needed.

 

I wouldn't sweat it too bad unless they change significantly, I worked my deal and the truck arrived 2 months later and nothing changed for me. The salesman warned me it could change when we wrote the deal and I just replied, if it changes more than a couple bucks a month I'm walking on it. lol

 

Can you share a few more details? annual mileage, what's your MF (interest), total cost of truck less/more MSRP and what the residual value is? thx
sounds like a great deal

 

You can't really see if something is a good deal by monthly payment alone.

I tell everyone, there are 3 main things you need to know and consider for a lease.

- Negotiated OTD price
- Money Factor
- Residual

 

Yep. I am a leasing manager, and lease cars all day. A $36K truck for $350 sounds pretty foooooking good. The price can be whatever you want it to be, as long as enough miles are built in, and the term isn't too long. Same with the residual and money factor. He said he shopped it to a bunch of dealers and no one could beat it. I ran the numbers and my computer tells me it's a good deal. That's about $200 a month cheaper than a 72 month purchase. I'd live in a million dollar house for $400 a month, as long as I have the option to walk away if I didn't like it.

 

Probably a stupid question but what happens when you trade in a car that's say worth 10k and you have the title etc. and do a lease that only requires $3300 which includes first mos. payment plus taxes? What will the dealer usually do with the remaining $6700 they owe you?

Sorry just can't seem to find a good answer thanks!

 

wouldn't they cut you a check?

 

Guess that's what I'm trying to understand as I've never performed this before. Always financed my vehicles with full downpayment of the trade-in...

Can anyone confirm?

 

I have only used part of my trade in for down payment a few times, and they cut me a check.

 

Interesting sure sounding better to do this financially at this point with my high mileage FJ cruiser hmmm

 

Probably have 3 options: a check, use it to reduce the capitalized cost which is like a typical downpayment, or use it to pay MSD's (multiple security deposits) to reduce the money factor (interest rate) and is fully refundable at lease end.

 

They can cut you a check, happens all the time. They will want to make sure their deal funds first, so it may take a little time. GET IT IN WRITING. No reason to put $10K down on a lease.

 

Thanks yeah I would never put 10k down on a lease so was wondering what would happen with the remaining...