Any Opinions on Lease?

First off. I know this is ultimately my decision, but I have no experience to go off of and I would appreciate any help you may give on my situation. I have been looking at getting a new vehicle and chose the Tacoma. I have the dealer looking for a 2011 Access 4x4 AT with Sport package (My dream truck since I was 15).

A little background info,
I am still in college until I graduate in May. I work part-time but I have hardly any expenses since I still live at home. I have excellent credit but I just didn't make enough apparently to be financed from Toyota. But the General Manager got involved and set me up with a lease option for me. The lease is for 36 months.

My driving habits are very minimal. I don't drive many miles, 10 miles a day to work/school, and then only small errands around town. I won't be doing any mods, except maybe running boards/steps. Another plus to the deal would be to have the option of getting a new Tacoma if they redesign within the next few years.

I think the offer is very good for my situation.

 

I leased a vehicle once, never again. If it makes financial sense for you and you won't rack up miles, might be okay for you. Unless you need a car now I'd just save what you'd be paying per month on the lease and wait to you graduate maybe they will finance you once you have a full time job.

And we all say we're not doing any mods, that doesn't last long haha.

 

mine is a lease

 

No it isn't at all. Just say no to a lease in your situation. You should be looking for a used Tacoma that you can afford. You can't afford this one and you don't want to be hit with the hidden fees and charges that always arise when your lease is up.

 

I could afford the payment if they would finance me and I already have a job for when I graduate. Also with the savings in payments I would be able to save plenty to buy the lease at the end of the term.
But I am more interested in these fees you are talking about?

 

I have leased before, definately do not, there are too many restrictions on them, for instance at one point I wanted to park the car and I couldn't put it on theft and vandalism over the winter without going through a long drawn out precedure, and in then end you will have spent almost enough to buy the vehicle in the first place
If you owned a business it would make more sense because your payments would be a write off. Just buy a used one man, I'm sure you can find one with the options you want

 

My suggestion?

Get an older, used vehicle to get you through your current situation. Graduate, get a job ... pay off some student loans if you have any and get your feet on the ground.

There is always time for a new truck ... and your time will come.

Now as far as leasing vs. buying. There are pros and cons regarding both.

Already there has been a post that one member leases his vehicle.

My slant on this is that it is never your vehicle ..... it will go back unless you decide to make a hell of a ballon payment at the end which the dealer will be more that glad to sell to you.

Borrow only what you can afford to pay back.

Best of luck .... as you stated .... it is your decisioon in the end.

 

A lease....lets someone with out a whole lot of down payment cash $$$ get into or afford a vehicle's monthly payment which other wise they might not be able to afford if they purchased the vehicle.

I have not heard very many happy endings with regard to leases. Leasing is a fancy word for renting IMHO. If you lease, be sure to really read the "super fine" print.

I don't lease and never have, so, I cannot reccomend it.

Some people lease and like it. Its not for me.

 

The car I leased was a 2007 Impala SS. Was supposed to be 3 years but I paid to get out of it early. I was allowed 32,000 miles, didn't realize how much I really drive and already had 29,000 after 2 years. Between the remaining years payments, and overage charge I would have incurred for my miles overage the car would have cost me 4 grand more. I paid 1k and got out of it a year early. Also the balloon payment to keep the car had I kept it the full 3 years was more than the car was already worth a year before that payment would have been due.

I learned my lesson. Only upside is that the monthly payment was low, I was able to save a lot and was able to end up paying cash for the Taco.

 

listen man a lease make prefect sense. i leased mine. this is how i figured it me and my bubby got two new 2008 trd dc 4x4 at the same time. he bought his with 2000.00 down 600 month for 60 months. i leased mine no way could i pay 600 month.okay here the deal 370 month for 60 months lease. i dont worry about the miles because here my option buy it at the end of the lease for 13000 or trade it in before the lease is up and have some equity in it. look if i finance the 13000 residule at the end of the lease basically the only differents is a little more fimance charge than my bubby.it was the only way i could afford it and i would do it again so do what you can afford. beside i have never kept a truck over 5 years anyway

 

The only guy who wins on a lease is the bank. You insure it. You maintain it. You rent it from them for the term of the lease. When the term is up, you have the opportunity to buy the same vehicle from the same bank at a generally inflated price. Calculate the payment stream; factor in all of the costs you'd have if you purchased it and compare the relative costs of acquisition. I'd rather own a truck of lesser value than lease a current model.

 

i had a friend that i think came out on top of his lease but the only reason is he had destroyed the truck, he worked for a trailer company and had leased an F-250 almost every mile on that lease was towing very near the max tow rating, the truck was falling apart by the time he turned it back in. he had really raged on the drivetrain the entire time he had it. i feel bad for whoever bought that truck, nice looking body.

 

Here is the quotes: $276 for 36 months. The Residual value of the truck is $17,886. So I could buy it after the lease for that, if I understand correctly. That $17,866 is cheaper than I could buy a used 2007 right now, and at least I would know how hard it had been driven.

 

I would never, ever get a lease. It's a waste of money. Plus, if I want to put 40k miles in one year, that's my call, not theirs imo. It's not that much more to buy.

Also, try other places, credit unions, USAA online banking, ect to get pre-approved. The dealer is not the end all for approved or not.

That said, I would wait until you get a secured job after, get some thing cheap and used at this point that gets good millage (or even a first gen)... With this economy there's no guarantee you'll have a job that pays as much as you think.

 

I leased a Jeep starting about 6 months before I graduated. The deal was right at the time and I could afford the monthly lease payments while I was finishing up my degree. But I also drove a lot when I started my job after graduation. As things turned out, I exited my lease and purchased a Tacoma (I financed it) before my lease term was up. (Quality/service issues with the Jeep were 90% the reason).

From what you wrote, it doesn't seem likely that you will rack up the miles, but beware of fairly steep per-mile penalties if things change.

The prospect of a new vehicle at the end of the lease term is great, I guess, but having purchased my Tacoma I enjoy it so much (it's the vehicle I wanted prior to graduation but couldn't afford) that giving it back would suck. Yes, you can always buy the vehicale after the lease is up.

Just my .02. Enjoy the truck , however you arrange to pay for it.

 

How much money down?

 

They gave me a print out of both a financing and lease. The lease ends up being $1000 more. I think that is ok for the peace of mind of the low payment.

 

I will put $2000 cash down, $1000 College Grad rebate, $2000 trade-in

 

That's way to much on no return... imho.

 

Another thing to take into consideration, while your payoff amount in this instance will atleast be less than the truck is worth(whereas with me the car was worth less) will you be able to afford a 17k balloon payment? If you're not going to be able to afford to cut them a check for 17k and you want to keep it you're going to have to refinance that amount for however many years.