Toyota Wants Me to Trade Up, Questions

Hello All,

I currently have a 2016 SR5 DCSB 4x4 Tacoma. It’s an AT. I have considered trading it for a TRDOR in the past, but never did it.

So here is the deal. I have a 3 year lease on it, and I have exactly one year left, and I am at 28k on the odometer, I am allowed 36k. I don’t drove much, and I have a commuter car so I only drove the truck when I’m going out camping or out past the pavement, or if I want to drive something nicer than my commuter. Miles aren’t a problem.

I pay $310 a month, and my residual will be $24k

I have received 3 emails and a letter from Toyota offering me to trade it for a 2018 TRDOR 4x4 DCSB AT for $330 a month. Only thing due at signing is the first payment. It would be a 2 year lease and 12k miles a year.

My question is, what would the residual be on a 2 year lease for this truck? Anyone have something similar?

And what would be the residual if I got a 3 year lease? Anyone that leases, what do you all have as your residual to buy at the end of the lease?

I normally buy vehicles, but I started going back to school, so this has helped me in that way. I am starting the last bit of the program, and I’ll be finished in May of 2020. So once school is done, I can easily pay off the truck and be on my way. As of now, I’ll be obligated to trade it for another lease or buy it in the middle of the program. That’s the part that stresses me, I thought I’d be done early next year.

Thanks everyone

 

Buy the one you have now or continue the lease. If a dealer wants you to do something, it’s in their favor and you’re going to come up short.

 

You should be able to get the residual values on the vehicle straight from the dealer.

 

Typically in a lease it’s in your best interest to wait until the lease is almost up and evaluate your position. If the truck is worth more than the residual your better off selling it or buying it and paying off the residual. If the truck is worth less then let them have it back.

Based on 2 years ownership your doing approximately 14k/year. That would put you over by ~6k miles. Your lease agreement states your mileage adjustment.

You very rarely will end up ahead if you lease a vehicle then buy out the lease versus buying from the get go. Car manufacturers often offer customer loyalty $ for returning customers. If the dealer is contacting you it’s simply because they want to sell you a vehicle and make money. You need to evaluate your own position as no one on the forum knows your financial situation.

 

I have been pretty good at adjusting terms and what not to not lose out in the past. I am curious to know what the residual is from people that know so I can gauge if I have a chance at talking them down.

And I will not go over the miles on my terms. I had a change of work position and ended up driving a lot for the first year, then got a commuter car and then got a new position, more money less driving. I drive about 140 miles a week, and mostly on my commuter

 

This is a well known dealer tactic. Has happened to me with every Tacoma I've purchased from every dealer. As other's have said you're gonna lose money one way or another, but if it makes you happy and want to trade go for it.

 

so you have already paid over 7k on the truck for 2 years, pay it off and keep it, its only 2 years old and by going up more money each month and another lease you will not be ahead, once you graduate then look at your expenses and hopefully you get a nice job then look into it....the dealer looks out for their business end, not yours..

 

blasphemy!! a taco? no mods ?

 

THIS. Im on my second Taco...after 6 months of buying both of mine I would get routine "we want your vehicle" crap. You get the low ball offer, they make money off your ride and then give you a nice new loan to pay off to keep the economy going.

 

Get the same stuff all the time for my '04 Highlander (we need your used vehicle!) and for my '13 5 lug (we have a shortage of used trucks)

What they want is your money. Plain and simple, it's what they are in business for.

So.

You're doing well to evaluate and consider your options, but don't take their marketing efforts as an indicator of a one time deal that you're running the risk of leaving money on the table.

Here's an option, since you don't use the truck too much.

Stay on track with schooling. When the lease is close to up, evaluate your position then.

Depending on your situation, you could give the truck back and do without for some period of time, then when the dust settled from other things, buy what you want.

 

This maybe apples to oranges but when I purchased my 2018 TRD Sport, the residual was around $25,500. My purchase price was 32,600 + tax/fees. I calculated that if I paid $70 more a month by buying instead of leasing, in 3 years I would only owe around $18,000. In my area, 3yr old Tacomas with about 35K miles were selling for 28-29K. At that point it made sense to pay th extra $2,500 over 36mths because I would own the vehicle and I knew I would be able to get more out of it if I decided to trade it in.
The money factor (essentially the finance rate) on this truck lease if I remember was around 2.7 which is high. From my understanding in talking to a finance manager Buddy of mine, that money factor rate is equivalent to 6%. I got the 1.99% promo from Toyota Financial.
If you can swing it, sell your current truck and purchase (not lease) your new one. Just my 2 cents.

Oh and sell it private party. I know it’s a pain but you can easily get about 2K more than what you’ll receive from the dealer.

 

Do you NEED a TRD OR? Has your SR5 not lived up to its expectation on your trail runs?

Personally, I would just keep your truck. If you absolutely need more off-road prowess, I'd rather modify your SR5 than buy a new TRD.

 

The dealer or the captive finance company sets the residual. No one here is going to be able know where your dealer is going to set the residual. It sounds like you're only thinking about monthly payment instead of the big picture. Everyone gets those emails and letters from the dealer saying they want you trade up - of course they want you to trade up so they can make more money! That shouldn't come as any surprise, and you shouldn't take the bait especially considering you're in school. FYI the shorter the lease term typically the worse it is for the lessee (you) and better for the lessor (them) especially on a vehicle that doesn't depreciate very fast. The residual is most likely going to be artificially low meaning either you have to come out of pocket more, your payment is higher, or they're taking advantage of any equity you have in your current lease. Generally speaking, you lose no matter what.

 

After 8 years they seem to have given up

 

Keep ignoring them and the bastards will start calling too. All they want is more of your money. I can assure you this is not in your interest, they don't make money looking out for you. This is just a tactic to get more money out of you and keep you paying and paying. Keep what you have and pay it off. Then you'll have something for yourself. The only one looking out for you is you in this deal and not them.

 

If you’re going back to school and money is a consideration, figure it if you even need the truck. It’s s toy, and there’s nothing wrong with that. Is it a time to circle wagons? Is it a time to reduce expenses? You can get rid of that truck payment, insurance, and registration. Just use your commuter car for now. When you finish school and get the next better paying job, you can treat yourself.

 

Why not play dumb, go to the dealer and let them know you want to trade as
- newer truck
- lower payment
- unlimited miles
AND put their number in all public rest rooms "for a good time call ........"

 

If you want to piss away $300+ a month I can give you my checking account number and routing number.

Don’t fleece vehicles. Buy outright in cash. Then buy what ever you want. And no it does not help you go back to school it hurts you by $300 a month. Zero car payment helps you with school.

Fleecing is a waste of money always but especially on these trucks. I have a 2013 that has depreciated $5k in 5 years. So really I should be paying like $80 a mo for a lease with no down payment LOL
They should be paying me to drive it actually haha.

In all seriousness:
I think you should keep school a priority and not trade up in vehicle. If and when you graduate youll be swimming in money to pay cash for a newer truck just wait until then.

 

Toyota's been doing this for a long time. My gal still owns her 31 year old Celica GTS with 78,000 miles and they hit her up with a trade-up letter for years finally giving up in the 90s. They only hit me up a few times when my truck was 3 and 5 years old. I believe it's because they make much more profit on trade-ins than they do on new vehicles. They rob you on the trade in by giving you about half of its worth, then tacking what ever inflated trade in allowance extra they give you to hook you onto the cost of your new truck, then re-selling your trade in for what it's actually worth-more profit for them. What a game.

 

Not for me. When I bought my truck, financing rates were down right ridiculous. Pretty much free money. Why would I throw $40k into a depreciating asset, when I could put it into the many investment vehicles out there and earn (at minimum) 8% return? Thank you, Toyota.