Leased Trucks?

Yea always a better choice. Historically housing is always an appreciable asset where vehicles will always depreciate. I will never tie up too much money in a depreciating asset.

 

Of course. Houses always go up in value and vehicles always go down.

 

Damn near always. I’ve been very fortunate with my timing of house buying. Bought first in 2003, sold in 05. Rented a room with friends until 2010. Market crashed in 07-08. Bought in 2010 when government was offering $8000 incentive and houses were dirt cheap. Sold that one in 2015 and bought current house. Will more than likely keep this one. With interest rates being up again I’ll ride with my current one.

 

I am leasing my Tacoma. I put nothing down and my monthly payment is $385, which includes GAP insurance which is $10 extra a month. That is much better for me than what the payment would be if I financed, even after a $5,000 down payment. I have already done OME 90000 + 886, ARB Summit bumper, rails, and steps, OEM TRD Pro grille, OEM roof rails with stowable crossbars, and AVS rain guards for all four windows. A little over $5,000 spent.

I am going to refinance the vehicle once my lease is up. The only reason I would sell her or trade her in is if we got a diesel Toyota option.

 

One thing about down payments on leases that I hear a lot is that if you get into an accident and the truck is totaled you just lost your down payment. This doesn't seem right.

When you get into an accident, let's say the truck is worth $30k and you owe let's say $25k. Your insurance will pay you what the vehicle is worth, not how much you owe so you should get the $30k and after paying the amount owing the difference should be returned to you. It won't be your full down payment and this will only happen if the vehicle is worth more than what is owed on it but it shouldn't be nothing.

 

That’s a perfect scenario. Let’s say you negoatie the truck to 35k and you put 2k down to get there so really it was 37k minus the 2k you put down. Now let’s say 2 weeks off the lot you total the truck. The market value is probably more like 32-33k and gap would make up the difference to what you owe ~35k, the other 2k is just gone and you have no vehicle.

 

In that scenario yes you are definitely getting burned. But couldn't the same scenario happen to someone who financed their vehicle?

 

Absolutely, but that’s not why I say never put money down on a lease. It’s because putting money down is just making your monthly payment lower, and if you need to do that, then you need to negotiate better. The way leases work it makes more sense to keep the money instead of putting it down and just use it for the monthly payments or negotiate the sale price so you don’t need any money down. It also doesn’t help with your buyout or residual at the end of the lease, the money down only buys a lower payment.

 

Leased mine. Currently going through the purchase option. Monthly's were less than financing the whole truck. I knew I was going to buy anyways. My buy out is about 5k less than market value. So at the time I knew my financial situation was changing by the end of the term. I feel like it was a good move. I wouldnt be nervous of leasing as long as you know what you're doing by the end.

 

I agree!

Most people who argue against leasing these truck don't really understand how leasing works...
I've leased a few of them and modded them too, you never lose with tacomas UNLESS you turn it back in at the end of the lease, DO NOT turn it back in.
Even if you lease, you have the power to sell or buy the vehicle at any point, all the equity is still yours PLUS, you don't get hit with $3K in taxes up front, so if you negotiate a good price you can have equity from the get go.

 

Yes, this is true. In some cases the financing may only go through with X amount down as a condition. But yes you shouldn't put more down than the minimum needed.

 

I leased a Tundra before the Tacoma. I sold it for $7,500 over my residual. But around here full size trucks are way more popular. I doubt I will see that much when I go to sell my Tacoma lease, but it will definitely be worth more than the buyout.

 

I leased my truck.

$270 a month. Not a single dollar at the time of signing. 24 months and 15k miles per year so I only owe 23 payments.

In two years I get to walk away and get a new one again with all the 2021 goodies. If this would have been a purchase I would lose over $3k in taxes alone plus a high monthly payment.

Also, I am modding it. Will return to stock or sell /trade in before the lease end.


Another benefit is if you get in a accident, the insurance fixes it, then at lease end there is no penalty. If it was your own truck you now have body work done and an accident on record.

 

Lease also looks better now that they made the improvements to the 2020 Tacoma. If the power seat can lower positions I’ll most likely be upgrading when my lease is up.

 

I leased my truck because I needed a cheaper payment at that time.

Then modded the piss out of it cause I knew I was going to buy it.

Then rolled it, and still came out pretty much even between parting out and the payoff amount.

I can see how you wouldn’t want to go crazy if you use a lease to get a new car every few years. But for me the cheaper payment and still reasonable buyout (27k) made it worth it for me. YMMV.

Also dealer didn’t care that I modded it when I went in for services.

 

I think leasing is a “good idea” if you plan on buying and need cheaper payments. I’ve done it in the past, and it saves you on APR for a short time!

 

If you have homeowners ins. you are covered for the extra equip just take pics and receipts. It's called off-premise loss, most people don't even realize they have it.

 

Leased my 18 Limited Double Cab Short Bed in Cement Gray for 400 a month.

 

The problem with this is you end up paying for an 8 year loan rather then 5 or 6.

 

I always hear equity brought up in these lease discussions. Can someone explain this to me?

I can't figure out why it matters if you have equity at the end of your lease unless you are selling it or trading it in before lease end. I've seen people happy they have equity at lease end when they bought it.

I can't honestly see why I would get excited if I leased a truck and then bought it at lease end. Cool I have equity. It does no one any good. Its not like you win the money. You already paid the depreciation to get the truck to the residual.

For example lets say you lease a truck at $35,000 for $320/month for 36 months with $27,000 residual.

If the truck is worth $30,000 at lease end and you have to pay $27,000 to buy, who cares? No one gives you that $3,000. You just aren't upside down. You would have to sell it or trade in or roll to new lease to get any of that equity.

Am I missing something?