Question for those who have bought out their lease

ToyoTaco25 · Aug 20, 2022

aStrauss[OP] said: ↑

Let me try to rattle off how it worked, as I had never leased before and was previously against the idea.
My truck, new, had a sticker price of about 38k. The dealer had it marked down just below 33 iirc. Monthly payments on a 6 year loan would have been 5-600 bucks, maybe more, don’t remember exactly but it was more than I could comfortably afford to pay each month. I signed a three year 36k mile lease, during which time the truck was expected to depreciate to a value of almost 28k (Residual Value). The monthly payments toward the lease(36 of them at roughly 350 each, totaling about $12,000) are intended to make up the difference between the MSRP and the residual value, so that the dealer can resell it when the lease is up without losing money.

So the very quick math is this:
Lease payments — 12,000
Residual value —— 28,000
Total paid————— 40,000
(-) MSRP ——————38,000
Total paid over MSRP = 2,000
*not accounting for money factor / interest rate because the lease’s money factor and buyout interest rate should be similar in my case, and for simplicity’s sake.

Now, I get to buy a used 3 year old Tacoma with 52k on it that is the exact trim level, bed/cab config, and color that I wanted, with the mods that I wanted, and from a first owner who I know and trust (myself) for 28k, which I will have to finance but can manage the payments.

The story was very different for a new Wrangler Rubicon that my fiancée inquired about in August 2019. I don’t remember all of the numbers exactly, but at the end of a 3 year lease, and assuming she’d buy out in cash (which she wouldn’t) she would have paid almost 12k over MSRP, even more in the real world with a loan for the vehicle and interest rate accounted for. So leases do make better sense in certain cases and from certain manufacturers than they do others.

Now the fun part, my truck should be worth around 40k at the end of the lease, which is 13k more than the residual value as it was projected pre-pandemic. That means there is a chance at selling it privately and scoring a decent profit. I don’t see the sense in getting into a new Tacoma, because I don’t think it would be significantly better than my current one and I’d have to start over on mods. So the plan currently is to take advantage of a good price on a used truck that I have already “owned” for three years. But I *might* also look at numbers on buying out and taking advantage of the equity, and trading in on totally different truck. I won’t jump for that deal unless I’d be stupid not to though.
Click to expand...

Gotcha! Sounds like you are going to come out smelling like a rose. Sounds like timing wise you hit the sweet spot with getting it just before prices went crazy. And now with the crazy prices you locked in the low “cost” to you and can now capitalize big time on it.

RIX TUX · Aug 20, 2022

you should be able to finance 100 percent with no down pmt, try credit unions first for better terms

vivid02 · Aug 21, 2022

RIX TUX said: ↑

you should be able to finance 100 percent with no down pmt, try credit unions first for better terms
Click to expand...

I just bought out the lease for wife’s Lexus RX350 using my credit union.
We have Logix Credit Union here in California. They took care of everything and made it super easy.
No need for dealerships. The credit union paid Toyota Financial directly and they handled the DMV ownership transfer.

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Question for those who have bought out their lease

#21
ToyoTaco25 Well-Known Member

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RIX TUX no ducks given

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vivid02 Buy a Tesla…..I need the gas.

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Question for those who have bought out their lease

#21 ToyoTaco25 Well-Known Member

#22 RIX TUX no ducks given

#23 vivid02 Buy a Tesla…..I need the gas.

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#21
ToyoTaco25 Well-Known Member

#22
RIX TUX no ducks given

#23
vivid02 Buy a Tesla…..I need the gas.

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