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Lease end coming up

Discussion in '3rd Gen. Tacomas (2016+)' started by JackHenry, Feb 11, 2019.

  1. Feb 11, 2019 at 3:03 PM
    #21
    Tehkoema

    Tehkoema Well-Known Member

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    My payments plus my buyout total around $32,500 USD, which is about right for this trim. Financing might have saved me $1000 or $1500 but you wouldn't have the flexibility of the lease.

    Ultimately leases and buyouts are two separate transactions, but even if you rolled them into one in my case at least it isn't that much more than buying outright.
     
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  2. Feb 11, 2019 at 3:08 PM
    #22
    ramoer

    ramoer Member

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    Thats not bad, it depends on the MF and residual value you got your lease at. I'm sure some of the trucks are good deal leases, but Tacoma leases obviously arent as aggressive as other models.

    I got a recent lease quote and after lease payments + buyout I would have ended up paying 5-6k more than if I had originally just bought and financed the truck at a low APR.
     
  3. Feb 11, 2019 at 3:08 PM
    #23
    LDrider

    LDrider Well-Known Member

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    Saying the buy out is good/bad doesn't mean anything in a vacuum. You need to add the total lease payments, taxes due on purchase (if you buy out at end of lease), end of lease fees, etc, etc.

    The sum of those fees/payments/taxes/end of lease buyout will determine the total cost. That is the important thing.

    For 99 percent of people leasing is always more expensive.

    EDIT: I found that many people were amazed when they did an end of lease purchase that they had to pay sales tax. That would add another $1,000 or so.
     
    Last edited: Feb 11, 2019
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  4. Feb 11, 2019 at 3:14 PM
    #24
    Tehkoema

    Tehkoema Well-Known Member

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    For sure 1:1 leasing costs more than financing, no arguing that. How much more is a different story. Considering that you have lower overall monthly payments plus the fact that you can get out early is the advantage of leasing.

    An extra $1000 or $1500 is definitely something but it's not as bad as some make it out to be. But of cpurse it depends on your interest rate and how you negotiated the price of the vehicle, etc.
     
  5. Feb 11, 2019 at 3:19 PM
    #25
    NunyaBizness

    NunyaBizness President of the jberry813 fan club

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    Stop worrying about mile penalties...

    Look up your end lease buyout, that is your payoff.(25000)
    List your tacoma up for sale and do your best to get more than your lease end buyout.

    Honestly if you have taken care of your truck, you shouldn't ever turn a tacoma lease back in at the end. Its a waste of money. A tacoma holds its value well enough to never need to use turning it in at the end as your primary end preference.

    List it now, sell for as much as you can over your end buyout amount. And use the difference to put down on a purchase/lease of your next tacoma. Either that or refinance your lease into a purchase on your current tacoma
     
  6. Feb 11, 2019 at 3:22 PM
    #26
    Ronzio

    Ronzio Well-Known Member

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    True...but leasing is a financial product created for those who can’t afford to own.
     
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  7. Feb 11, 2019 at 3:27 PM
    #27
    NunyaBizness

    NunyaBizness President of the jberry813 fan club

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    False, sometimes leasing is a better financial decision than a purchase.

    If you tend to switch out of vehicles often leasing is the better route regardless. You take less of a risk by only financing a portion of the vehicles life vs all of it.

    Most of the salesman/management that I worked with in the car business would lease over purchasing. It makes more sense if you dont intend on keeping it for ever. And it had nothing to do with their financial situation. All of us made very good money. But no point in financing 40k when you only really intend on having it 3yrs or less. Better off financing 12k or less on a lease.
     
  8. Feb 11, 2019 at 3:32 PM
    #28
    Tehkoema

    Tehkoema Well-Known Member

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    So is financing. Unless you paid every nickel and dime in cash when you picked up the truck then you're also paying in installments for an amount of money you do not have immediately available.
     
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  9. Feb 11, 2019 at 3:36 PM
    #29
    Ronzio

    Ronzio Well-Known Member

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    I would agree on a American car...but with the Tacoma and it’s high resale value it’s always better to buy.
     
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  10. Feb 11, 2019 at 3:37 PM
    #30
    NunyaBizness

    NunyaBizness President of the jberry813 fan club

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    Thats the logic that needs to be reversed.

    The high resale is exactly why leasing it is so cheap.
    Thats a common misconception when it comes to leasing
     
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  11. Feb 11, 2019 at 3:40 PM
    #31
    Tehkoema

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    Shhh they'll catch on.

    But seriously the residual on these trucks is absurdly low compared to their used market value.
     
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  12. Feb 11, 2019 at 3:40 PM
    #32
    NunyaBizness

    NunyaBizness President of the jberry813 fan club

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    True. Which is why turning it in at the end should be ones last choice. :thumbsup:
     
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  13. Feb 11, 2019 at 3:41 PM
    #33
    Cudgel

    Cudgel “Tonka”

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    ICON8 Lift -285s on FUEL Recoils -KCs on bars (+).
    If you were paying$430/month for 3 years why would you drop that to $300 for 5 more. My rule of thumb is never buy a car you can’t pay for in 4 years. But since that ship has sailed you need to look at your total cost of ownership and work backwards.
     
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  14. Feb 11, 2019 at 3:41 PM
    #34
    LDrider

    LDrider Well-Known Member

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    Your points are valid and worth mentioning but....
    A LOT depends on what you are leasing. Tacomas more than any other vehicle (dead serious) are one of the very few that makes little sense to lease. Want to lease a Benz? Sure! How about a turbocharged AND supercharged Volvo with air suspension? Go for it!! Those vehicles and most others are maintenance nightmares once the factory warranty is up.

    The Tacoma is another animal entirely. It has the highest resale value (despite what Raptor owners say) and is about as reliable as a rock. It is VERY reasonably priced, hasn't changed in a decade and has earned a great reputation, yadda, yadda, yadda..

    Those attributes make it a GREAT vehicle to purchase (not lease). You can get out of Tacoma purchase after a year or two (and get this!) for less cost than it would out of a lease.

    Yes, you can get out early in a lease. Same with a purchase but the purchase will cost you less. Yes, your payments will be lower on a lease (that is why people do it!), but your overall costs will be higher whether you get out early or not.

    Not having a mileage restriction? Priceless!!

    I'm not saying anything you probably don't know...I'm kinda rambling ;-)
     
  15. Feb 11, 2019 at 3:42 PM
    #35
    NunyaBizness

    NunyaBizness President of the jberry813 fan club

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    I agree with that... although I tend to give people the benefit of the doubt and say if you need to finance for more than 60mo to afford the payment, your on too much vehicle
     
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  16. Feb 11, 2019 at 3:46 PM
    #36
    LDrider

    LDrider Well-Known Member

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    He will probably have to add 10 percent to that for fees/sales tax when he purchases.. Let's call it $27,000
     
  17. Feb 11, 2019 at 3:46 PM
    #37
    Tehkoema

    Tehkoema Well-Known Member

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    No, no, you're right and if the person is only leasing and jumping from one lease to another perpetually then yes Tacomas are the last things you want to lease.

    But if you're going to buy and you're just using the 3 or 5 year lease to have lower payments for awhile then Tacomas are the best vehicle to lease because it will always be worth way more than the buyout price on your agreement. You could buyout and then sell it on the used market the next day for a gain of thousands, sometimes even as much as 4-5 thousand depending on mileage.
     
  18. Feb 11, 2019 at 3:47 PM
    #38
    Cudgel

    Cudgel “Tonka”

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    I’ll give that without arguments. My first 20 years of cars were ALL shit boxes, then, as I had more savings, I’d finance cars with enough savings for only 36 months and those were at 0.9, 0 and 1.9%. Now in my 50s I only do cash or 0% deals.
     
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  19. Feb 11, 2019 at 3:47 PM
    #39
    NunyaBizness

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    We are all allowed our opinions...

    But again I consider it the other way around... the fact that the Tacoma holds value so well is exactly why leasing it is such a good option.

    Think of it this way...

    A lease is the same as financing a vehicle, however you are only financing the amount that the value of the vehicle will drop over the term of the lease plus lease fees(basically interest rates)

    If the tacomas value dropped like say, a Chevy Colorado you would need to finance more and pay more over the term of the lease due to the fact that the Colorado would be worth less after 36k miles than a comparable msrp tacoma would be at 36k miles.
    At the end of the day the tacoma is the better lease choice than most vehicles out there.
     
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  20. Feb 11, 2019 at 3:54 PM
    #40
    LDrider

    LDrider Well-Known Member

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    I know how it works, we did a lot of leasing at the store I was at ;-)

    Payment shoppers love leases...

    We loved them (leases) because we knew an up was walking back in the door in 24/36/39 months without a car that they owned ;-)
     
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