Lease contract evaluation, how much should i be paying?

Alright guys, I’m simply paying too much for my leased tacoma,i get it...but can someone evaluate my lease contract and see where my downfall is,i see the rent charge is ridiculous, that should be half of that correct? Rolled into it with about 3k negative equity. If someone could just tell me what i should be paying that would be great. 2017 trd sport 4x4

 

Man that’s kinda painful, 30G in lease payments, and your buyout is still 25G plus tax
What’s with the 9G rent fee? they charge interest on your lease payment pretty sure.
Anyway out of this ? What’s the penalty ?

 

That is a horrible deal. You came in with negative equity and just compounded the problem. If you keep it and buy it at the end you will pay about 54k for that truck, assuming you could pay cash in the end. If you in turn finance again then it’s gonna be even more. I would try to get out of this deal and into something cheaper. You need to stop rolling negative equity into the deal, otherwise you’ll continue to be well behind.

 

Edit: Sorry OP. I thought you were asking prior to signing this, not that you are already in the lease. Good luck resolving this.

 

Shit I'm paying a credit union 520 a month to own mine

 

What you should be paying is irrelevant, you signed a 4 year lease agreement. Assuming you can't just pay some relatively small fee and turn it back in I'd be looking at what the buyout is at this point. Don't be too hard on yourself, everybody has paid the "stupid tax" on something. Just learn and move on.

 

OP - this sounds like solid advice. Cut your losses by getting pre-approved by a credit union and do a buyout. If they make you use their financing to do a buy out, then you can refinance in a hot minute.

BTW State Farm is now in the lending/banking game and oftentimes they are beating the credit union rates. Plus they have a guarantee that if it's totaled they will give full replacement value on the vehicle. I forgot what it's called but it's like GAP insurance and it is a benefit at no cost for the life of the loan.

Don't beat yourself up about this and just find out what the way out is. No shame in cutting your losses early in the game here because it will save you thousands in the long run.

Everybody has to learn lessons the hard way every once in a while. Also don't let hundreds of dollars get in the way of saving thousands in the long run.

 

state farm has been doing loans for years, its not anything recent. ive also never had them give me a competitive rate even though i have an 800+ credit score

 

I'd been out of the car buying game for over 13 years until last year when I bought my Taco. So it was news to me at the time but I did get the impression that their banking services had been rolled out only two years prior to last year. So that seems recent to me.

I've had SF insurance for over 20 years so if their banking services have been around for years and years they sure kept it a secret. I mention their loans to people and they seem shocked that they do
loans and banking.

My credit is comparable to yours (i.e. Super prime) and I was able to get 1.89% through SF. The dealer initially hooked me up at 3% through a credit union and acted like they did me a favor LOL. Other credit unions were at somehere around 2%. BB&T where I bank at wasn't even competitive.

Just hoping to try to help OP out here with what I've learned over the past year since I bought my car.

 

Your rent charge is equal to about 6% apr. Is your credit rating above 740?

 

i understand. i had loan through them back in 2012 though so its been a few years theyve been doing at least. they just dont mention it much. just more useful info is all

 

For a 4year lease that’s not the worst looking contract, but could be better. Your negative equity is compounding it. I’ve leased multiple times in the past, only because of trading every couple of years and my view is I don’t like to buy a depreciating asset, I would rather rent it. Albeit a Tacoma depreciates the slowest, it still depreciates.

Edit: am I reading it right you bought an extended warranty?

 

Stop buying new cars! I own 4 Toyotas, the newest being 15 years old. I haven’t had a car payment in 27 years.

After 15k miles, .18/mile?

 

Some folks like me, budget a new car payment because I don’t have the time anymore to fuck with repairing the truck if it goes down. Also, I prefer to have my wife in a newer vehicle every 3 years or so ensuring the best I can she won’t be stranded with the kiddo. The monthly payment to me is worth my piece of mind. Knowing I can drop it at the dealer, pick up my rental and move along is worth it to me.

 

Most people evaluate a lease according to the payments while they should negotiate the original starting price. Some leases start at sticker (or even higher) then charge the difference between that and the residual value.

On my last lease, I negotiated the absolute best price before I told them it would be a lease. Also, I didn't accept their added charges, AND their interest rate had to be competitive as well. They pissed and moaned about it but the deal went through. Keep in mind, there is always more good deals than money, so if that dealer refuses to be fair, there's plenty of others to choose from

 

.18 a mile after essentially a 60k mile total lease is actually cheap. Most places charge .25 a mile per 10k lease

 

You should also have a bill of sale along with the lease agreement that breaks down the terms of the sale (outline your car vs your trade). Do you have that? I'm just getting to figure out how they got a 5300 cap cost addition if you only had 3k negative equity.

The good news is that leasing is often a solution to get a clean slate when you've got a ton of negative equity. You pay your dues for the term of the lease, but then you can walk away free and clear at the end rather than continuing to roll negative

 

OP my suggestion would be as you get near the 3 year mark, get out of the lease. Go trade it on another Tacoma and you will be right side up at that point as long as the truck is in good condition. It’s going to take you that long to ditch your negative that’s built in, and the fees you financed in. This way you will be fresh going into the next one. Don’t be afraid to lease again, just make sure you shop the numbers for the lease. You did the right thing by leasing this go round to help you ditch your negative for the next one, albeit you should have covered that with cash but it’s ok we’ve all made financial errors some bigger than others.

 

I have a feeling that they were "showing" 3k negative equity but that actual cash you really had more

 

I agree totally. I wonder if OP told them a comfortable payment area and they fit it in