Buy out my lease or wait?

The math isn't making sense to me.... Why would buyout even be a option? Think about it. lets say you walk out the door with the truck, paying 36k out the door. Your lease payments is 500 on the nose, the the residual value is 27k, so 9k difference in price at the end. you did a 3 year lease. 18 months of that 3 year lease, you paid down to the residual value so the remaining of the 3 year lease, you are pissing away that money? 9k in the garbage? Don't think that quite adds up...

 

Wow I bought mine out early and the payoff was 23k. Obviously my truck is worth way more than that so easy to feel good about. I wonder if they inflated the residual to give a lower monthly payment. There weren't any subvented programs when I got mine

 

I get what you are saying. My payments are $350.00 a month right now. Im basically paying for the depreciation of the car and tax. My plan was to keep the car under 45,000 miles so its worth more at the end of the 3 year lease. Then use it in my favor to get a better deal on the buy out price.

 

I think thats what happened. In the beginning i just wasnt sure i wanted to keep the truck. I just wanted a low monthly payment. After a few months I now want the truck but i think im gonna have to take a big hit.

 

The residuals are set by Toyota when you finance through them. The dealer cannot change them. What they can change is the annual mileage and the money factor. There may have also been an incentive program. Usually, Toyota's residuals are higher than a bank because the dealer wants the used truck that they can turn around and sell as "certified" for a few grand over book.

 

Well you could always just lease another at the end. Good thing is that you'll have options

I didn't mean that the dealer did it. Just that there weren't any programs when I got mine

 

Look what I did to my Taco. I dont think i can turn it back in easily. CmC chop, hole in the fender from the snorkel.

 

looks like you are buying it out

 

Haha yeah you're committed. Or selling it

 

Exactly. Just need to make a decision. Now or later. Right now I am enjoying the $350 a month payment. Balances out well with my monthly expenses. If i buy now payments will be atleast 475 to 500 a month. What a dilemma.

 

but what will happen if you show up at the dealer with it like that at the end if you want to buy it out? I am real ignorant with this leasing stuff...

 

I myself is wondering that too. I think they look at the value of the truck through KBB regardless if you have $4,000 dollars in suspension or mods. If my mileage is less than 45k at the end of lease then my car will be worth more.

 

They won't give you anything for the mods.

 

Considering how popular that look is right now, they'll prob give him nothing extra for the mods, then turn around and sell it for 5-10k above market value lol.

 

If I was going to turn the car in. All those mods are coming off. Im not stupid enough to just had over 10k in mods to Toyota.
Anyways, i just bought out my lease. Got an okay deal and went with it.

 

All of that money spent on the accessories and you could have just payed double payments and gotten back into the black...

 

Yea, I could of but then I wont have money for mods. I rather just make my monthly payments and be able to afford mods and enjoy my car. Not pay double monthly payments finish, wait to finish the loan, and then wait more to save for mods. Not how I roll.

 

This fella gets it

 

Leasing works for those who own their own business (possibly the wealthy you speak of) due to tax write offs. A lease payment is a 100% write off vs ownership / financing being considered an asset and requires depreciation calculations and asset values.

IMO one needs to get out their spreadsheet programs and start inputting numbers. Calculate the payments for lease, residual, buyout and trade in and any other relevant numbers. Do the same for buyout now and buy out later. It is ALL MATH. There is no opinion in this.

 

Can't write off a personal vehicle. You can, if it is done through a business. However, this can also be done with a purchase.