Leasing question

So I've been battling three dealerships for the right deal.
I'm wanting a quicksand! Dcsb or auto

My question is buying it outright with cash or lease.

I can't find the math that Toyota uses and they won't give me a concrete amount if I lease.

I.e. Down payment + payments + buyout price = total cost

Thanks!

 

If it's between buying with cash outright and leasing it's a no brainer. Why pay a cent in interest during the lease term? Why pay initial down payment, end of lease termination fees, mileage restrictions etc. Leasing works for some people and certain vehicles, but when this vehicle depreciates so well, why bother.

 

he is correct. Unless you have a business that has good right off running a lease and money is not issue pay cash or if they are offering real low interest on purchase like .9% then pay cash. Im waiting on the 18 and i know there will be no % deal so my credit union is 2.9% right now. So my money is only getting 2% on cd's so i will just pay cash for mine. I trade every two years usually and will be trading in my 16 Colorado diesel and it will have about 50k on it at trade time i hope which will be in Nov. We will see if i can get an 18 by then.

 

Leases seldom make financial sense. As previous poster says, if a business vehicle and you can write off the lease, then sure...might make sense. If you have the cash, I would definitely pay cash...why pay for the lease if you don't have to? If you don't have the cash (or even if you do), a 3-5 year loan can generally be had for under 2% (if you shop it, you may be able to get down to about 1%)...that is like free money...and even if I had the cash, I would prefer to use virtually free money to purchase the truck since you can certainly do better with $30-40,000 investing it and even a relatively conservative investment (i.e. index fund for example) will return more than 2% over the 3-5 year term of the loan. I have only leased one vehicle in my (long) life and it was a mistake I learned from quickly (I went over miles as many do and ended up virtually forced to buy the vehicle at end of lease...didn't like being in that situation when a smarter decision up front would have given me more flexibility.)

 

As Dave Ramsey would say, you mean "FLEECING "...

 

Desert sand?

DCSB or auto?

 

Cash, you'll be happy you did and they can't play around with the numbers as much. Money isn't going anywhere either with the high resale value.

 

Sorry meant quicksand and off-road. Was typing in a hurry.

I figured cash would be the cheapest but I was just wondering why no one ever posts what their buyout price is when talking about leasing.

 

Because it's non negotiable once The lease is signed. Most people don't post lease buy outs because they would get shamed on how they got ripped off, generally speaking.

 

The "buyout price" is the residual value. The way Toyota leases work, the residual is predetermined for every vehicle, every option, and every configuration.

The residual doesn't change.

For a Tacoma, unless you're using it for business purposes and are going to write it off, I would never recommend leasing to my clients. There's no point to it.

If you want to make payments, put down cash, and make em. If you just want to pay cash, do that.

There's no specials, no rebates, only an incentivised rate should you choose to finance. If you're able to pay cash, there's no reason to finance, as you'll needlessly be paying interest.

PM me if you have any questions.

 

My buyout is 26,000$ after 3 years. I should have 28,000 miles roughly. Highly doubt I will purchase the truck. Once I smell that new car smell again after 3 years I lose all control.

 

I'm leasing.

2017 TRD Off Road DCSB Inferno (Auto trans, tow package, all weather mats and cast aluminum running boards)

$380 a month for 39 months. Talked em down to only $500 down which covered my first payment and all fees, some of which they ate to make the deal. MSRP was $37,538, looks like they knocked off 2.5k off MSRP.

Buyout at lease end is $26,276 plus $325 fee (fine print) and tax..

I'll also add that they fully paid off my prior toyota lease that had 6 payments left and I've been told by multiple dealer appraisals and also carmax that I was about 2-3k underwater, so that was a huge factor too..It was a 2014 Prius v three that my wife drove (obviously they don't hold their value like a taco I sadly found out). Yeah I could have just kept that car 6 more months and turned it in but with above full payoff early it made sense and I now have a bad ass taco worth a whole lot more with full warranty for $50 more than the damn Prius lease. Lol. Win-Win!

I got a very good deal and I am happy. I thought about buying but the wife was not having a $600+ truck payment even after I plead the huge resale value of the taco to her. It is what it is, works for me for multiple reasons. We lease one veh and purchase the other in our household, have been doing so for about 10 yrs.

And to be fair above deal took some time and effort and I have bought multiple cars from that dealer in the past and have a rappore with them. Initial lease payment they offered me was laughably high though i.e. As expensive as a payment on a purchase so I called them on it and it kept coming down slowly and eventually to rock bottom where I am at now. A different even bigger Toyota dealership would not budge off a very high $500 lease price on an even cheaper TRD Off Road Manual tans as they insisted on rolling in lots of neg. equity, no thanks. Lol.



With the last 2 fed rate hikes you ain't gonna be finding many if any 1-2% long term type loans anymore from a bank or credit union unless maybe they go for a rate match. My Credit union which is very competitive is up to 2.69% for up to 72 months now with the last fed hike. Last year this time most anyone could get a 1.9 for 72, some are mid 3's now for tier one.

Amazing deals can be had on the leftover Camrys, Ravs and corollas though through TFS right now. 0% for 72 and even 1.5k cash back on top of that for the RAV4, sadly no such amazing finance offers available for the Tacoma.

 

While this is true 99.98% of the time, till Oct. 5th we have 1.9% for 60 months on 2017 Tacos.

$3,500 rebate on Camrys, $3,000 on Rav4's, whole bunch of truly exceptional deals going on right now.

But of course, there's typically nothing on 4Runners, Tacomas, and Land Cruisers hahahaha!

 

Just have them work it up. It's all there. Buy it for cash if you have the funds. Why pay the interest ?
I personally can finance lease or pay cash. I just pay cash. Even if I don't want it in a year or two I still come out ahead as I did not pay any interest .

 

I'll also add:

-A lease doesn't count towards your revolving credit (if looking to buy a house etc, this can be beneficial).

-You can potentially turn in a lease with multiple accidents on it at lease end and not have it affect value as long as it has been fully repaired to spec. Try trading in or selling a multi accident Carfax car and it not affecting value... who would buy it, not me.

-You save tax leasing (I heard not so in TX which is odd)! You only pay tax on your payments each month so it makes sense to roll into a new lease if you have been leasing. If I would have bought my truck I would have had to pay over 2k in taxes either up front or rolled into finance, no tax credit going from a least trade to a purchase.

-The obvious lease perks are you always have a vehicle that's under warranty and that counts for something, toyota care and roadside assistance too for as long as they last.

Either way, whatever. I love my new truck and have it for at least the next 38 months now give or take

Like I said above I own one of my cars and lease my new Taco.

 

I have had good luck getting dealer finance managers matching my bank rates. Just tell them you'll finance elsewhere and if they know you are serious they will work some "magic" to keep it in house. Trust me it's not Magic

 

I did the math when they offered me the lease and a five year loan. The lease and loan were basically the exact same cost EXCEPT I would pay all the interest in the first two years, and then be stuck with the lease payout at the end of that. Which means I either pay all that off at once (a lot of money) or take out a loan to buy my truck. Which means I get to pay all the interest on the full cost of the truck, PLUS paying all the interest again on a used (by me) truck. Makes no sense.

Also, you can do the math yourself for the total cost of the lease. Down payment + Payments x months + buyout = cost of the lease right?

 

You only pay the taxes on a per payment basis with a lease and you are basically paying for the projected depreciation of a veh. On a purchase you must pay all the taxes up front.

The "Money factor" is your "interest rate" on a lease. Some cars lease better than others. I.e. Lower money factor = lower interest = lower payments and less money needed down possibly. Some cars make sense to lease some do not at all.

Buyout at lease termination is not part of the lease cost as you put it, but it is an option you have at that point. If you chose to buyout your lease at the end or at any point in between you can do so and yes you would pay the tax on the full buyout price at that point in time. Buyout = Residual and that's predetermined based on MSRP and is clearly stated on your paperwork when you sign.

Your lease payments are based on your negotiated veh price, plus "money factor" plus monthly tax on however many payments you agreed to.

But yes, you will always end up paying less in the long run if you purchase a vehicle out right as opposed leasing a vehicle to full-term and then purchasing it, but it's nice to have that option and flexibility.

Another potential option with the Tacoma which as we all know holds it's value extremely well is to just trade it in at a different dealership or at a CarMax early before your lease ends and I've heard that you can pocket some money this way or have some equity towards a new car / truck.

Hope this helps.

 

i have leased 4 Tacomas. I would highly recommend it

 

That varies by state. In Maryland, leases are treated as sales and is subject to tax on full price instead of use/sales tax on the payment.