Is this a good lease deal?

im furious for not buying last april when toyota had 0% during the early months of the pandemic, but what can you do now..........

 

If you leased a Tacoma two years ago and were to sell right now to Carvana,Shift,Carmax etc … you will actually have a check cut out to you since the payoff will be lower than what these companies are paying. Might actually make it where your net cost was actually zero to lease for the past two years. Now if you simply return the car to the dealership at the end of the lease, you don’t get a single penny for the equity.

 

Leasing a domicile is a sad reality of the world we live in.

Leasing a vehicle is a stupid decision for whom you have no one to blame but yourself. Money is always an object.

If you want a 4th gen Tacoma, buy an old old 4Runner cash and drive it until your new truck is being built.

 

[QUOTE="vivid02, post: 26086493, member: 348314] Now if you simply return the car to the dealership at the end of the lease, you don’t get a single penny for the equity.[/QUOTE]

Why would you receive equity for something you DONT own??????

 

Why would you receive equity for something you DONT own??????[/QUOTE]

Oh trust me…..you do.

You can read up on it on folks actually making profit from selling their leases.

https://forum.leasehackr.com/t/sold-one-to-carvana/68624/2494

 

A lot of people do not understand how leases actually work and think it’s some sort of dark magic and are afraid of it also thinking that if you don’t own it you’re losing out, that’s simply not true. I am not equipped enough to persuade anyone to the matter but I understand the point and purpose of a lease and where it is acceptable and where it is not.

 

Because you have an offer at the end of your lease built into the contract to buy it for the residual value. Say you lease a $40000 car, and the residual value is $28000. If you take care of the car and it can be sold for $35000, then you have $7000 equity. That $7000 is yours based on your willingness to get it. Some dealers will try to get you to just turn it in, but most want to make a sale to put you in a new car. So they will give you an offer on it to entice you into purchasing a new car.

The key is a Toyota dealer is not owned by Toyota Corp. Your lease is through Toyota Corp, not the dealer. The dealer is just the middle man that is trying to make a profit on the exchange. It is in the dealer's best interest to negotiate the best deal to put you in a new car.

 

Never leased a car. Suspect a lot of its based on payment. Can get more car for the same payment. Not saying leasing is bad. Just haven’t done it.

Heard a lot of salespersons ask where would you like to be on payment. I always say let’s work on a price and talk about the payment later. Generally ha be figured how I’m paying before I start looking.

 

100%

Some people are hitting serious home runs right now if you leased a Tacoma in the last few years. low residuals mixed with this insane market. Some people are selling off their leases and pocketing 5-10k. Literally like driving the truck for free for the last 2-3 years as you are almost getting all the money back you made in payments.

No matter how you slice it, your throwing away money buying/leasing/paying cash. Cars depreciate it. Your gonna take a hit no matter what on new vehicles.

Minus this insane market say you buy a brand new truck for 50k cash. 6 months down the road you lose your job and have to sell said truck. You get rid of it for lets say 42k. In 6 months you lost 8k.


Leasing can be beneficial but you really need to do your homework and analyze the deal.

 

You misunderstand the whole idea behind leasing. The idea is you are paying for the difference in value between what the acquisition cost of the vehicle is new and the residual value at the end of the lease period. So, rather than paying the entire cost of the vehicle you are only paying for the amount of value you actually "use" during the lease period, plus the money factor (loosely equivalent to loan interest). At the end of the lease you can buy the vehicle for the stated purchase option price (usually the residual plus a couple of hundred fee), you can negotiate a purchase price with the dealership (most people don't realize it's negotiable and you would want to do this if the market dictates a value lower than the buy-out amount), or you can simply turn the vehicle in and either walk away or lease another one. The fact that you don't actually own a depreciating asset and are only paying for it's use is actually a good thing, not a negative. Unfortunately many people don't understand the true advantages and disadvantages of leasing, and just think it's bad because you don't own it. The only thing I would caution the OP against is doing a large cap cost reduction. Leasing makes the most sense with no cap cost reduction $$ up front. There will be some fees and tax, nothing you can do to avoid that.

It's the same as people who think auto loans are bad even if it's a 0% loan. Even if I had the $$ to pay cash I would take the 0% interest loan and put as little down as they'd let me. I'd use their money for free and invest the cash I would have paid for the car in something with a decent rate of return and offset my cost of ownership. Paying cash is not always the smartest option.

 

Bad idea to lease. Also a bad idea to listen to anyone's anecdote about how their truck went up in value over the last 6 months. Worse than leasing a vehicle is expecting it to appreciate.

 

Why is it bad idea to lease?

 

Small advantage to consider with leasing is the car is not yours, so if its your daily driver and you get rear ended or hit then you are stuck with a vehicle with a accident on the Carfax for the remaining lease term verses owning with vehicle worth thousands less than the same car with no hit.

Coworker years ago had incredibly bad luck with his CRV lease and was actually hit 3 times, for a car with fairly good resale he was not stuck with the car at the end of the term and traded it in problem free to Honda to let them deal with it. Any loan or bought outright sale be stuck with a horrendous resale for incidents they were potentially not responsible for. Carvana, carmax, etc don't want your tacoma's with any form of a hit.

 

Nice to see someone who actually considers both sides and weighs a decision before they just say lease = bad. The OP may decide that leasing is not his best option, but it should not be dismissed offhand just because it's a lease.

 

90% of the people on here that are saying leasing is bad have no idea how a lease actually works.

 

You mean, you pay the dealer money for a specified amount of time and then turn the truck in or pay it off?

Any scenario you come up with that has the word "dealer" in it is a bad idea.

 

As far as cash buyers go, many financial advisors will tell you to keep that money in the bank if the intertest rate is low enough. You are far better off taking that 40-50k and investing it where it can make you money as oppose to dumping into something that slowly loses value.

 

You realize that a car can depreciate, and still be worth more than what a lease agreement says the residual value is right?

 

You say leasing is a bad idea but how is it any different from the guy who finances a truck for 40k and then trades it in 3 years later for 30k. Your paying for depreciation one way or the other.

 

My buddy is about to trade is his leased 2018 TRD OR. when he leased it in 2018 it had a set residual of 29k. He can currently trade the truck for 36k. He's going to walk away from the truck with 6k in pocket. Pretty nice bonus to get at the end of the lease.