2020 Tacoma Lease Payment

There are indeed reasons, but paying more in the long run seems odd when (like you said) it is depreciating faster than the payments are allowing the vehicle to be owned. From a business perspective it is smart for the write-offs.

 

Wrong, I'm not jealous of anyone. I'm currently paying cash for an Army Green Pro right now and my credit score is almost 800 and has been falling a little because I stopped borrowing money, except for my house which I'm trying to pay off. I certainly didn't mean everyone who leases can't afford it, some rich people lease, but overall it's a terrible deal for the buyer. I wasn't looking down on anyone, it's just sad to see Americans make these kinds of decisions because it holds people back. These trucks are incredible at holding their value, so why would you want to make all those payments along with a hidden interest rate to a bank while they own it?

 

paid off my house, credit report went down 30 points bc it's not on there anymore

 

I’m leasing a 2019 sr5 double cab 4wd. About 4K per year lease. At the end of five years I’ve paid 20k. If I bought it I would’ve paid 34k plus interest, tires, and brakes. Yes I’d own it and get some back but leases aren’t all that bad. I leased because I get the new vehicle itch every two years and get hosed on trade ins when I buy. Plus, I’m well under my miles so I’ll actually end up ahead when I turn it in. It’ll be worth more than the residual value.

 

There’s no hidden interest rate. All the costs of a lease are spelled out in the lease contract.

It’s just my opinion, but I believe there are more people getting screwed on bad financing than bad leasing. As someone mentioned you have bad credit you can’t usually lease. But, you can get the big old shaft on an interest rate.

But in all sincerity, good on you for having your finances in order enough to pay cash for a brand new truck.

 

I’ve never heard of a 5 year lease. What is residual on that?

Unless you have something special worked out with the dealership they’re going to charge you for those brakes and tires when your lease is over.

 

Leasing is an intelligent way to reduce risk also. If you put 14,000$ in damage on a 35,000$ truck your value is going to tank if you own it. If you lease residual value is agreed upon in the contract. As long as you pay the deductible and fix the truck and turn it back in looking like you bought it then you don’t have to pay for that drop in value. Leasing also makes the most sense if you plan on getting another vehicle in 2 years or so. Trucks are a depreciating asset. Even at 0% ape your truck will lose more money than it’ll build in equity. Unless you make large monthly payments.

 

Yes. This.

 

Obviously over five years your leasing multiple vehicles but at the same yearly cost.

 

Exactly this. I trade in every two years. I’m 41 and this is my first lease. I did the numbers and leasing makes sense for me right now.

 

Thanks. Now I’m following.

I’m 37 and after 20+ vehicles this is my first lease. I know what works for me and what doesn’t. We all choose to spend our money how we want.

 

Some people get that itch for a new car every few years. Like the rich people you mentioned, clearly if they’re wealthy they can afford to buy their vehicles but instead they chose to drop it off and walk away and jump into the next thing. Cars are just some people’s vices.

You chose to use $48k cash on a truck (when I assume you already had a working vehicle) instead of putting it toward your mortgage that you’re trying to pay off. You could have even paid $8k cash for a used Honda/Toyota while you pay down your mortgage, but part of you wanted something cool, new, and exciting. I could easily sit here and question that thought process or critique it, but it’s your money so I couldn’t care less. Instead I congratulate you for getting a bad ass new pro in that killer Army green!

It all comes down to your situation or how you rationalize things. Ain’t no right or wrong way, at the end of the day people do what works for them. So who cares who does what or how they do it, free enterprise baby

 

I think everyone just needs to chill. I would never buy a pro or spend money on lifts, tires, grills, etc. but if you do that’s cool. Doesn’t bother me. You’re not stupid for doing that and I get the appeal. Same with leasing or financing... what ever works for you.

 

The residual for that low of a payment is going to be really high.

 

Thank you. And I'm just glad I finally made it and stopped making bad mistakes with money before I got too old. I turn 40 in 2 weeks. I'm blessed

Thanks. I don't really

That's all something that I have already thought of, and it's not exactly $48k cash, because I'm getting $16,000 trade for a car I have the title to. And paying no interest or finance charges, and then having no payment is awesome! I looked at where I am financially, including how much cash I will still have, what I have in retirement, how much I'm currently saving/investing and how much equity I have in the house, and I gave myself the green light. I absolutely know there is smarter things to do with the money. It's a sizeable splurge and I don't splurge often.

 

I’m 41 and I’ve realized in life that you have to save, save, save and then go buy the things you want. After all, life is about living. Is my lease going to ruin me...hardly but only because I’ve saved a ton. I can afford a car payment and like getting a new car every two years. It’s a luxury. Do some people lease because they can’t afford to buy...probably. Some people also get into bad car loans too. I wouldn’t plop 30k down on a car only because I can invest that money and make much more than I’d be paying on interest. I can also invest it tax free. But it also matters if you find value in the money you spent which is the most important.

 

One of the most ignorant statements I've seen on TW. Both leasing and financing have benefits and downsides. Even when you finance a vehicle the bank still owns it until it is payed off. The money factor is key on a lease. Do some more research before you start trolling the entire thread.

 

While I completely agree with you...the OP didn't ask whether leasing was a good idea or not. Please don't try and turn this into a "to lease or not to lease" discussion.

 

If that's what you want to believe, I really don't care. A car lease is one of the those worst things you can do.

 

I agree with you on this. BUT, if everyone took this approach...there would be no internet discussion forums. These forums are exactly where people "add perspective and opinion". So, while I am very much a "you do your thing, and I'll do mine" kinda guy...I don't worry about others who express opinions on EVERYTHING that others do....that's just what people do on internet forums.