#maketacomaleasinggreatagain

Yep. Most of that is the "rent charge" or basically interest paid on the value of the car you are driving and depreciating. Of course, you'd have interest on a loan too, but a lease is never about the lowest overall out of pocket. It's about options and/or lower payments on something you probably can't afford to buy. Many newer BMW and other high end cars on the road are actually leased.

 

Need to know the selling price, money factor and tax rate to actually calculate but based on the numbers you give that likely isn't a very good deal. If you are upside down on the trade then don't trade. Sell it yourself. You'll probably do a bit better. Unless you don't mind paying a dealer $1500 to take your car off your hands.

Negotiate a selling price of closer to $33K or even less. I got close to 10% off MSRP. You can too and some get even better.

Based on your numbers, an assumed selling price of $33500, money factor of .00225 (not great but typical right now), typical acquisition and DH fees, etc. you would be around $330 plus whatever your tax rate is. Negotiate a better selling price and your payments would be even lower.

Also, that's a rather high residual. Tacomas are closer to 70-73% but that might depend somewhat on trim level. Good thing is high residual means lower payments but more chance of owing more at the end than it's worth. Which is fine if you just return it and walk away. Bad if you want to have some trade in value or buy out.

Use https://leasehackr.com/calculator/ to check their numbers and make sure they aren't adding in BS fees or something. Dealerships are skilled at stealing people's money.

 

The thing with leases is, since they aren't technically financing, the disclosure rules about the cost of capital (Ie interest rates) don't apply.

This let's them typically charge an effective interest rate that you would scoff at (eg 10%+).

https://www.fool.com/knowledge-center/how-to-calculate-capital-lease-interest-rates.aspx

I'd suggest doing a cost of capital calculation on it.

Leasing usually doesn't work out mathematically, but I'll admit I don't know the ends and outs of business tax laws. Just be careful not to justify making a bad lease for $100 in tax discounts.

 

The guys mind is made up. He's going to lease, regardless of what anyone says.

So why not quit nattering over why or why not, and those who are actually in a lease just answer his question like @Sandycheeks4x4 did?

 

You sir are a gentleman and a scholar!

 

3%-7% over invoice. Pay that. Use toyota's online build and price calculator and what it says you pay, pay that. This is what I did. Tell them you'll sign the papers today and make a deal. Took me 10 min to make the deal. If they know you're serious and sign the dotted line they'll deal.

 

What deal did you get, for which model and which dealer??

 

OVER invoice? No way. I've never paid more than invoice except on my very first new car where I got screwed. After that I use a site like edmunds.com and figure out what is common for the car and work until I find a better than average deal. People say dealers won't deal on Tacomas but they will. Mine had over 20 on the lot. I don't recall the invoice on mine but my selling price was below invoice. Dealers have things like hold back and other incentives for their profit and the whole reason they sell new cars is to get used cars where they make a lot more of their money.

The edmunds average for mine was $38,400. I paid about $2K less than that.

 

Not necessarily. I want an expensive truck but want to keep my payments down. I want a permanent vehicle and plan to buyout. My initial payments are low and my buyout actually lowers my payment. Even though its an "8 year" plan, I plan to pay it off in 5.

 

You said you are paying the negative equity as part of the down payment so it doesn't get factored into the lease. You essentially have $500 down. Use the calculator and only put $500 for the down payment. Biggest things you need to negotiate are the selling price and money factor. Might not have much leverage with money factor (unless the dealer will do what's called multiple security deposits) but get that selling price down and it's like having a higher down payment.

 

This is very ignorant, you clearly don't understand leasing.

Its true on most cars leasing isn't optimal but there are still often times leasing makes way more sense. Leasing a Tacoma through a third party lease program has zero downsides and only positives. You'd also be a complete idiot to finance or pay cash for a Honda Accord hybrid right now and leave $thousands$ in lease cash on the table, itd actually be smarter to lease it and then immediately buy out the lease if you're really THAT agaisn't leasing.... I worked for BMW and people much richer than you almost universally leased, are they just dumb millionaires?? Or maybe they know something you don't

 

If you are talking purely dollars then that is correct. Leasing isn't the cheapest way to BUY a new car. However, there isn't anything wrong with leasing if you have other priorities. In fact, if you like the "buy" a new car every three years and have it under warranty then buying it would be a horrible decision. You'd have huge payments and may still be upside down 3 years in. If you are poor and need lower payments then leasing is also a good option. Of course, if you are poor maybe you shouldn't buy expensive, new cars but again different people value different things and leasing can meet those needs. However, if you don't know what you are doing and have real reasons for doing a lease then you'll like get ripped off but plenty of people get ripped off buying too.

 

Not where I live. I used an online site that gaurentees lowest price, or they'll buy the truck back. Tacoma sales are a regional thing, I know where I live they sell for msrp because people pay it.

 

My deal was with a 30k trade, owed 16k on it, so my numbers wouldn't mean anything to you as far as deals go.

 

To the 2 or 3 of you that shared your numbers out of the million useless posts I salute and thank you.

I inked a deal this afternoon. Probably the worst deal of my life because I won't own it in 3 years. But it's cool. It will make a fine fishing mobile. #makeleasingtacomasgreatagain

 

Unless you make huge payments you wouldn't own in 3 years if you bought it either. Cars depreciate. Takes a long time to get on top or huge payments. Enjoy the truck and don't worry about if it's a great deal or not. It's great if it's what you want. However, we shared, so what deal did you get?

 

Pretty sure we just had a sign and drive, for $375 a month on a TRD sport crew cab without tech. I think I deleted it off our message center but I'll see if it's still there

 

I leased mine and probably got screwed a bit somewhere but i didnt have the best credit to really have leverage in negotiating it down. I figured lease for 3 years improve my credit then buy at a much lower APR than i would get right now if i was to buy.

I went to two different dealers, one in San Diego originally was trying to sell me on a SR5 starting at 500+ a month and got them down to $379 but they wanted 3K down.

I worked with a dealer in Hemet to get a Double cab TRD off-road for $31,700, i was approved for tier 4 money factor but was told he got me up to tier 2 and with $3k down my payment is $389. $10 more a month for a much nicer truck.

 

I was being sacrcastic given all the lease fearing responses I got on this thread. Deal was for TRD sport, DCSB, inferno with tech package msrp was $35,xxx. $1150 total out of pocket $354 tax included. $12,7xx over 3 years and then I can get another one. Or maybe a chevy, dodge or Mitsubishi who knows. Lol.

 

To each their own. I get a fairly expensive loaded truck (was either getting a TRD OR Taco, or a newer BMW or Merc as I already owned a BMW prior), under warranty, and pay less than the same person who would loan. Generally most individuals don't keep their vehicles for more than five years anyways. My buyout is at approx $25K on my lease. Because Tacomas retain their value so well, I can trade it in at the end of the lease (You can do that, its kinda cool when you actually know what you're talking about wow) for roughly $28k in a few years, make $3k, and not owe nearly as much as the same dude who is financing and paying more a month. If I like the car I get to keep it at a lower cost buy out rate since used Tacomas with near end of lease mileage still go for $28-30k retail easily. Honestly, its just a better form of financing.

Oh and on my lease, MSRP was near $41k, $1500 down, talked down to $38K before tag and title but had some negative equity prior. Ended up paying $550 a month, for 48 months, 12,000 miles a year.