Buy or Lease - what say you?

I don't even get it for people who do not intend to keep the car. My dealer loan was 2.99 percent, so pretty decent imho. And the lease deal I was offered had me paying every penny of 5% interest in 3 years. But if I take out the loan and sell the truck in three years, I've only paid some of the interest, not all of it, and at a lower rate! The truck has still cost less overall if I take out a loan.

Now I get people talking about cash flow and investing in various things that get you a higher percentage back. But unless you're already into that stuff, for most people, it's better to pay less overall I think.

 

My lease rate was .00083 which is equivalent to 1.9% APR plus I avoided paying $3,200 in taxes up front that I would've if I had financed.

If I sell my truck RIGHT NOW I have equity (even with me putting $0 down) and I avoided about $2,500 in taxes. If I had financed it I'd be upside down and that $3k in taxes is instantly gone.

If my truck is totaled or stolen I also have equity... if I had financed I would not as my payoff would be thousands more than it is right now (again because that $3,200 in taxes is already spent).

I got my truck when 3rd gens were still new, if they turned out to be total duds which would torpedo the resale value and/or my truck was involved in a car accident and now has a bad carfax.... I can give it back to toyota at the end of the lease and let them take the financial hit. If I had financed I'd be FUCKED and stuck with a POS vehicle that has a bad carfax and is worth thousands less than what I owe.

You're right it IS better to pay less, which is why leasing is a fantastic option for most people on many vehicles.

Its not that complicated I don't know why most people have such a hard time understanding leasing... when someone offers to hedge your bets and financially shield you from liability on a depreciating asset THATS A GOOD THING. Legally avoiding thousands in taxes is just a cherry on top.

 

i have heard the worst thing you can do is hand in the keys at the end of the lease and walk away if you are over on mileage. Because then you will pay out of pocket.

I’m curious if this is a good strategy if you don’t want another Toyota: buy the vehicle at the residual value, turn around and sell it at another car company dealership assuming they will pay more than what you bought it for. That way you can pay off the loan, possibly have equity, and move forward with a new car purchase. Does this make sense?

 

I don't know why you have such a hard time understanding leasing a TRUCK.

There's two major reasons you're gonna want a truck over a SUV/Crossover/Sedan/Coupe:

* Hauling

* Offroading

That's it. If you aren't doing either of those you are simply buying a truck for shits and giggles and at that point finances are already out the window.

That being said - hauling and offroading are WAYYYY sketchier if you are leasing the vehicle - compared to owning it. I don't think anyone is going to argue that even if they are pro-lease. That's why many people don't understand leasing a TRUCK. You're either not gonna use it for truck shit, or you are and you are taking a risk everytime. If I fuck up my bed from hauling a fridge then I could care less. It's mine and I'm gonna do what I want. If you're leasing and maybe turning it back in after 3 years - you're gonna pay for that damage. Defeats the purpose of having a truck.

That's only the damages for hauling. Offroading presents even more danger in terms of liability.

 

Personally, I've leased and financed and have used vehicles the exact same way regardless. My last 3 trucks were all leases. Tacoma has gone off road. The way I figure if I damage the lease and have to return it (I would never return a tacoma as it has equity after 1 year) I pay for damages. But eventually I would have to fix the damages on my owned truck to when I go to sell it, or give someone a discount because it's damaged. Same thing to me. If you keep your vehicles for 10+ years leasing and owning really isn't a good comparison truck or not.

 

Just remember, leasing companies make money and that money comes from the lessee.

 

and...

 

This ^ they will stick it to you for any damage and over millage BIG time.

 

God its like talking to a wall with you lol, for the last time only an idiot would return a tacoma lease, are you an idiot??

 

That is one of the key benefits of leasing vs buying ffs. You have the option to return it after your lease to upgrade to a new vehicle. It's literally one of the most popular reasons people lease - to always be driving new vehicles.

 

Ive been reading this and i wanted to see if any of you would mind providing some numbers.
Especially some of you with the lower payments on a lease in the mid or high $300's..

What is the Depreciation amount and the Rent Charge in your lease agreement?

2016 DCOR sb.
The numbers should all be pretty consistent i would imagine.
btw this is a 48m lease

Trying to get my math on here.
I do have my lease under a business, just wondering if that may have been where the difference lies.

 

Right but you don’t just turn it back in, that is the stupidest thing you could do unless the vehicles value tanked and is less than the buyout. You buy it outright and instantly have equity in the thing, then you can sell/trade if you like. My truck has a residual of 27xxx at the end of my 3yr/12k Lease, a used 2018 at that time with 36k miles will be worth more like 32k, if I just handed it back in (and paid the turn in fee) that would be like giving money away.

 

But would the dealer buy it/trade it for $32k? Or would you have to do a private sale to get that kind of money?

 

I'm pretty sure toyota has lease options for 20k/yr. I think the highest I've seen was 30k though not toyota. I vote buy. It keeps the dealers arm out of your asshole and you can sell or do whatever whenever.

 

If it floats, flies, drives or fu%ks...rent it.

 

Have you run the total cost of ownership and have you accounted for exactly how you plan to use the truck?

This decision is not a fluffy feel good one, it has to consider the details. Once you do that you’re choice will smack you in the face.

 

I’d have to pull up the paper work to get the exact figures for verbiage you’re using, but my truck’s msrp was around 38xxx and final purchase number was around 34500 or so. I put nothing down and it’s $355 a month. 36 month lease with 27500 residual.

 

You can do it either way, doesn’t have to be the dealer you bought it from or even a Toyota dealer. Any dealer or online car buying company can buy it from you.

 

Trading in on new purchase saves you a ton of money on the taxes since you only pay on the sales price minus the trade in.

 

NY does this also, but not all states let you do it. NY also makes you pay taxes on the full amount of a lease upfront.