$350 for AC I4 vs $400 DC

My concentration this time around is in accounting, very easy to find work with that. I guess you can say we don't know what we are talking about since leases in Canada have nothing to do with A=L+SE, we are outside of our expertise.

 

I will say that pricing, etc. - calculating residual values, etc. - and possible Toyota pricing sounds very different up there. Not to mention dealers are probably far more spread out and less willing to negotiate. Where I live there's probably 8-10 dealers within a 30 minute drive. I can get a Tacoma for a few hundred over true dealer cost (less holdback most likely) - and know that I'm getting that price. And if it's that tight, my buddy who owns a number of dealerships is friends with the owners of a Toyota dealership, but so far I haven't had to play that card. Saving it for when I really need it. One of my best friends uncles used to be a partial owner in a Toyota dealership, but unfortunately his drug habit got the best of him and he lost it... bummer.

 

I have found that my "friends" that work at car dealerships are just as likely to try and rip me off. You obviously have better friends than I do. I can see how things are different in Canada than they are here, especially if supply cannot keep up with demand, but if you still have to resort to leasing, you should probably resort to looking at cheaper vehicles, but gotta have it > common sense. You also know from being around dealerships cash speaks volumes and is a nice way to circumvent all the tricks and tactics that one might face. I paid cash for my DC and just that alone got them to come off the price 4K before we even started negotiating. I still feel like I paid too much though.

 

And one does not need or should not need a CPA credential to understand this.

People will rationalize anything to their own ends. If they cannot afford to buy they will find 1000 reasons leasing is a good thing. People who are stuck on buying new using someone else's money, will find 1000 reasons not to buy a used vehicle (despite the fact that every single vehicle everyone sees on the road is ..well used...ALL of them.)

There are millions who buy used cars everyday many of whom can afford to buy new but understand the value of money and frankly have far better and more resourceful things to do with that great tool that can duplicate itself. For example someone who saved $7000 a couple years ago on a new car and invested it in Caterpillar or Apple has the equivalent today of what they paid for their used vehicle!!! In other words their vehicle was close to free and now they have enough to buy new AND still have some left overs.....

Those who would rather watch their money grow appreciate those who lease and buy new cars and spend their lives paying interest in a roundabout way to us. Just don't whine about how the rich get richer. That is exactly how they do it.

What a great example. Someone who has the degrees and great earning power who understands numbers and finance and drives an 04 when I am sure you could easily buy new every three years. Something wrong with this picture to many I suppose

 

That's because they get a commission... my friend owns the dealership (he's a long time, close friend - not just an aquaintance). It's $100 over his cost.

 

Hey, it's America! Easy credit... and have to have a new shiny one! And if you cannot afford to buy a new one, come on in my office and let's talk about how low the lease payment can be...

My wife and I both have decent jobs, and we have no kids (just pointing out our general financial situation - we can afford new cars if we wanted to take on the debt). Over the last 10 years we've bought three used cars and paid them off. We just bought our first new car together (a Scion Xb for here - under $20 for a nice, reliable fun car). I used to go to the auction under my friends dealership ID, and get cars at wholesale. I probably should've done that for my wife's car, but it's a PIA to get out there now, and my ID is expired (getting a new one is a pain). I must say, that I am planning on getting a new Tacoma at some point (when the next gen comes out) - but I'm planning on driving it at least 10 years. For now, I'm happy with my 04 Tacoma 4x4 that has about 50K miles on it. The good news for everyone here is that I'll be selling it at some point and it's in amazing shape!

 

Awesome !

But the OP is in Canada

 

Although I come off that way, I don't think there is anything intrinsically wrong with buying new IF you can easily afford it and plan on keeping it well past the traditional cycle.

The problem comes for those who are making payments on long term loans. The "new car payment" in years 4 and 5 long after the shine has worn off the new car thing are being made on a used car and most of the interest has been paid so it really doesn't make sense to pay it off then.

Then the dealer is bombarding you with offers to "lower your payments" (using your precious equity up of course) to get into a brand new car..........If there has been a body style change in the meantime they are HOOKED and dragged in the boat and obligated for another 5 years and the cycle continues....

We are looking at a 2011 Sorrento for the wife. Hoping to find an unwind. Her RAV is using too much oil for my tastes Toyota won't do anything about it (even though it was certified unless its less than1.1 Qt every 500 miles) So we decided to look around and the long initial Warranty on the KIA and new body style, creature comforts and far better MPG puts it in the mix for about $10K out of pocket and the RAV. She puts more miles on a vehicle so in her case and for that kind of money a newer car seems reasonable. IF we wait until the 2012s come out we could likely get a far better deal on the 2011 then or a used one but right now they are offering $2000 under invoice plus another $1000 if you have a RAV or CRV LOL .

Depreciation is a bitch which is giving me pause, but I suspect like their brother Hyundai the quality has exceed the reputation which will catch up on the resale market while Toyota struggles to keep their reputation intact . But with a $25K vehicle selling for $22K and no used ones with the entirely new redesign we either wait, jump or find a 2009 Escape with 12k miles or less.

 

While I appreciate the general sentiment, and agree, I disagree with used being the best value all the time.

I've bought a couple of used vehicles and got plenty of value.

When I realized the tacoma was the only mid-sized truck worth its salt, I priced them out. It turned out that 1-2 years used with 30,000+ miles saved about $3,000 off what I could negotiate the dealer down to on a new vehicle. I decided it wasn't worth it and negotiated on a new truck.

Counter-example: First gens are the biggest waste of money on the used vehicle market right now. They are phenomenal trucks, built great, but I've seen too many 04's exactly like the poster above's go for $18k +. For a USED truck!

I agree that in general, used vehicles are the best, but I think we can all agree that you simply do the math and see what works out, then pick the best deal. I also am pretty unsure of the OP's dodgy lease math.

 

too bad you don't live out here, kia is one of the dealerships he owns.

 

right, i pointed that out in some other statements, essentially backing off my original points as i do not understand the Canadian market, pricing, etc.

 

The issue with "pricing used out" is people in the market for new don;t really know what they could have purchased the used vehicle for until they make an offer on it and the dealer agrees. THEN the comparison would be more valid. People see "asking" prices never making an offer because they are biased towards new and they use those asking prices as further rationalization to buy new.

I completely agree used is not the best value ALL the time. New model years with huge incentives make new worth it. Cars with long initial bumper to bumper warranties make it worth considering, A dearth of used models in what is desired also force the new card. financing as well.

however Dealers are selling used Tacomas for $4000 under 'asking" price and still making a couple Gs. Mine was (and I didn't get a slam duck whoopee deal only good) Others who bought used here are claiming the same. Because we were biased towards used, Believe me if I could have purchased the NEW PreRunner with TRD OR Package equipped like my used one for $3000 more I would have. But the dealer knew I was biased toward used and even offered me a leftover 2010 PR without the package new but even it was $5000 more. New was $7000+ more plus another $900 in aftermarket parts I got on the used truck.

I like the Sorrento, but only the 2011. So if she wants that, we will have to buy new. For me it would not make sense since I don't put 6k on a year. For the wife who does 15K it makes more sense on a safety level as well. But I won't spend more than $10K out of pocket for one which means we need to get a great price for the RAV. She keeps cars well over 5 years unless there are major issues and no warranty left. She had an Izuzu Rodeo for 10 years before the RAV and we would keep the RAV if I wasn't putting a Qt of oil in it every couple weeks.

 

Well, for your information and also op's information, I live in canada.

And I say it again kingfrog=barstar. This guy just have too much time to lose trying to educate people of his own and only way to think.

 

All good brother

 

I dont mean to be rude at all, but did you actually read my posts?
Lease to buy = $40 000 payout in the end to 100% own the truck
Finance to buy = $42 000 payout in the end to 100% own
-
So by your logic, leasing and buying out in 4-5 years with cash would be the smarter thing to do.
-
Heres why I dont understand why people think I shouldnt lease.
I can afford a $600 car bill. Why spend $600 a month for 7 years to own one?
Why not spend $400 to lease for 5 years (at a MUCH lower interest rate), and then save the extra $200 myself in the end? 200 x 60 months = $12000. Thats almost what they buyout is. Then I am basically sitting owning a 5 year old tacoma for 40k in stead of a 7 year old tacoma for 42k

 

So you think I should pay the extra $2000 to finance? Why? My main goal is to fully own the truck as soon as possible for the lowest total price. Explain

 

You guys have to also understand that buying a used car is impossible here unless you pay full cash, or finance though a dealer (usually way overpriced). While looking at banks and most dealers, the lowest interest rate you can get is 6-8%. Im not paying the bank thousands of dollars to loan me money. Not happening

 

it's not a matter of if you'll be paying interest, it's to whom you'll be paying interest.

 

what i don't buy is your numbers. show me a 5 year old tacoma in that model you can buy for around $12K. i doubt that's the terms.

there's so many other assumptions - input price for the lease, versus the buy, etc. not to mention, are you sure you can't get a better interest rate on a loan? i see right on the webpage for a toyota dealer in nova scotia that toyota is offering a 3.9% interest rate. i just can't believe toyota would put their residual around that number - it's too far below. i'm also betting the purchase price will be quite a bit different than the amount they input to base the lease calculations off of. that alone could make a significant difference.