Buy or Lease - what say you?

you don't negotiate twice on the same vehicle with a lease. you negotiate when you first least it. they tell you before you sign the paperwork an exact buy it price if you choose to buy it at the end of the lease .. only thing you don't know at the time of the lease is the interest rates 3 years down the road if you choose to buy.

 

many financial people will say never buy a depreciating asset. makes sense. but at 20k a year it may be hard to lease.. i've heard never go with a high mileage lease. i've heard its better to get a low mileage one and pay the overage on it. they say its cheaper.

figure if you go with the standard 3 year lease at 12k a year i think it is he will be over mileage by what 24k at the end of three years? thats if he really puts that many mules a year on it.. thats what? $4800 in mileage charges at the end of 3 years assuming its 20 cents a mile over the 36k after 3 years.... you would have to see what a high mile lease costs in comparison to see is leasing is worth it..

 

could be a smart financial decision... alwasy have the vehicle under warranty. hell you never even have to put tires on the thing. always in a new vehicle too.. lots of pluses to it over buying it for some people. others it isn't the best choice for..

 

Basic math says you are wasting money by leasing and then buying. 36 x 355 = 12,780. Now add the purchase price of 27500 and you paid 40,280 for the truck and you still have to finance that $27500 purchase price. I’m assuming like in CA you also have to pay tax on that 27500 purchase. Leasing and turning in is one way to go about it, but lease to buy seems like a rip off.

 

i chose to lease my 2017 tacoma... the mais reason i leased was because we bought a travel trailer and needed a tow vehicle. knew mileage wasn't gonna be an issue. i knew it was rated to tow what i had but wanted to make sure i wasn't stuck with it if it didn't tow like i wanted. yea ya yea i hear they hold their value and all that crap but then you have a bunch or time into trying to sell it, have to deal with all the low balling idiots that show up to just kick tires and if i go to trade it in on something they hammer ya there too.. so i figured at the end of three years if i like it i'll buy it.. price will be lower then i can buy the same 3 year old truck with the mileage it will have and i know the entire history on the truck... win win for me in my opinion... if i don't like it i turn it in and i'm done with it.. no wasting time trying to sell the damn thing

so i've had the tacoma for a little over a year. it does ok towing but i'm turning it in at the end of her lease.. i want a full size (three dogs and a daughter gets tight in the little truck) truck with a V8 in it and a larger fuel tank... so in the end i'm glad i only leased it and will wash my hands of it in just under 2 years and move on to something new and bigger..

 

No it’s not, it’s stupid to keep leasing. You’re always paying, forever, which is not smart financially. It’s easy to do and people with enough cash flow do it, but it’s not a smart financial strategy.

 

Couple of things. Mileage doesn't matter if you plan to buy at the end of the lease. You can rack them up, the residual payoff is the same. If the used market for a particular vehicle is strong you can buy it and sell/ trade-in and come out ahead or keep driving it. If you will/ might turn it in at the end buying miles up front is cheaper than paying for them at the end. Toyota charges $.05/ mile less if you buy them up front. Increasing from 15K miles/ year to 20K adds about $30/ month to the lease payment.

 

lots of financial guys say never to buy a depreciating asset. so yes it can be a smart decision.. just because its not for you doesn't mean it isn't right for someone else..

 

I leased my truck this year. But I traded in my old ford and the trade in covered the lease, so I have 0 down, 0 payments for 36 months. We are just saving the lease payment money in an online bank account with 2.1% interest rate and will make a cash payment at the end. 0% interest (basically what we have) is much better than most loan rates now a days for a new car, plus we are getting 2.1% interest on the money we save.

 

So you decided to test drive it for 3yrs at $300+ a month? Last Tacoma I sold was no different then the others. Listed it on CL, first person to see it bought it. Took all of maybe 1hr of my time between creating the ad, showing the truck and counting cash.

 

Like mentioned earlier, some vehicles like Mercedes/BMW yes. The Tacoma with crazy high resale value no it’s not smart.

 

If you buy you still have to sell it which can be a real pain. Everyone tells ya they have great resale until you are the one trying to sell it.

 

This is my 4th Tacoma, never had a hard time selling any of the first 3.

 

Lease it and mod the hell out of it! Toyota Financial has the baddest third gen on my block

Can't wait for the TW financial experts to chime in on this one

 

Financial experts please! My old Tacoma was 2008 it was not even 1 year old when I bought it and only had 12 k miles on it. Paid 15k cash and owned it till this year sold it for $9500 all I put into was wear parts no major catastrophes. That’s no major depreciation.

 

Lots of bad misinformation here about leases. I blame Dave Ramsey who is kind of like "financial advice for idiots".

Anyway, if your goal is strictly 100% what is cheaper in the long run? Yeah, you need to finance. If you have other concerns, flexibility, want trade up every 2 or 3 years, then leasing makes sense. Depends on your lifestyle and what you expect.

 

yes I do listen to Dave Ramsey and I will be retired in 2 more years when I’m 52 years old What a idiot I am...

 

Man I'd be terrified of retiring at 52. And bored. Mostly the latter lol

 

I'm so proud of you. Dave Ramsey is still financial advice for those who are financially illiterate.

 

I’m glad he walked you through all 50yrs of your life so you could retire at 52. You are a lucky man to have him guide you.