Lease Equity

Question about my lease. I’ve read a couple different posts about people getting equity at the end of the lease and getting paid out. I don’t remember the salesman saying anything about this when I got the truck. Can anyone explain how this works? Thanks. I love my truck, just trying to decide if I want to opt for 4wd when the lease is up, haven’t really needed it, but there has been a couple of times it would have been nice to have

 

if you have equity you can use that as down payment or if the dealership will allow it get them to cut you a check for the equity. ive done it

 

Is it ever substantial? I put down I think 5k when I signed the lease, any chance I would end up with close to that amount of equity?

 

it's possible but ive had 4 tundras and ive gotten a couple of thousand on one of them and a few hundred on most of them. i don't drive a lot though

 

Cool thanks. I’ve got awhile before that time comes but saw a couple posts about it and wasn’t familiar with lease equity. The only other lease I had I bought at the end

 

Ouch, never a good idea to throw that kinda money down on a lease. Hopefully you have gap insurance

 

Gap insurance is to cover the difference between what an insurance policy would cover and the remaining balance left on the loan/lease. So in reality, I have provided my own gap insurance by putting money down because I was already ahead in equity.

 

I was told the same by my salesman... that the market value is higher at the end of the lease that what is left in the balloon payment. We'll see... I've leased plenty of cars before and always walked away from them.

I will say... I looked at used... and the value was high, even those older models with super high models... so I am optimistic.

Actually... what's funny is that this is my first truck... and thanks to you folks and this damn site, i'm starting to do upgrades. I may push the value per above and help, or it (mostly likely) is just lost money. I've been wondering lately If there is an equitable way to move a lease into a finance deal.

I'll most likely wait a couple of years, go to new model and finance... but still wonder about just buying this one so I can sync more money into it guilt free

 

Just returned my 15 TRD OR was worried as I was 31k over miles agreed to 15k/year ended with 76k but had 4K equity so it was only ~$500 penalty. Picked up a 17 TRD OR with jbl and mat for $39k. Long story short and if numbers are confusing, I was amazed at the equity my taco maintained over 3 years!

 

I just bought out my lease. Payoff was 23000, I think the truck is probably worth 27

 

It all depends on what the real market value is at the end of the lease. If you are under the miles, odds are your value will be over the residual. If you are over the miles, your value may be lower, and you'll have to pay the mileage penalty. 9 out of 10 sales people don't know how leases work anyway. The finance people take care of that side.

You can easily figure this out by knowing what your residual is (its on your paperwork), and knowing what the current value is. Tacos, and T4Rs hold value incredibly well. There aren't any other vehicles I can think of where this ever happens.

 

My point exactly. If you totaled that thing out, you’re the one taking the big hit. A few extra bucks a month is much better than taking a 5k hit.

Luckily for you you’re leading a Tacoma. Any sales person will tell you it’s not a good idea to put a lot of money down on a lease. Very few leases can you actually pull equity out of. Out of curiosity what’s your term and what’s your monthly payment?

 

Being that he put such a large down payment there is no "Gap", thus no need for him to buy Gap Insurance.

 

I understand that, but then you’re screwed because that’s your money your not going to get back if it gets totaled. A vehicle is a depreciating asset. Granted the Tacoma is one of the top 5 vehicles for retaining value, however after the insurance pays off the lease After a total loss, there won’t be much you’ll be getting back.

Basically what I’m saying is you’re better off not putting that kind of money out of pocket, and pay the extra few dollars a month for gap insurance Incase that scenario happens and you still have your 5k in the bank

 

Smoke & Mirrors accounting. They get you one way or another. Trucks are depreciating assets .

 

On this forum, however, with all the armchair internet millionaire cash paid Tacoma owners, Tacomas are appreciating assets

 

This guy is correct. A lease payment has gap built into it anyway. If that truck was totalled on the way home from the dealer, you're going to be out your down payment, in most cases. Any balance on the lease is covered by insurance / gap, not the owner. Besides, gap for 3 years is not 5 grand.

 

So then this statement is completely contradictory. I don’t need gap insurance. Maybe I shouldn’t have put down so much, but the plan is still to buy at end of lease, and I wanted lower lease payment.

 

Correct, that statement doesn't make sense. The less you put down the more you'd need gap