Currently leasing but want to keep the truck at the end of the lease?

Hey guys, what do you think my best option would be in this situation? I currently lease a 2020 SR5 TRD O/R Crewmax. I did a 2 year/10k lease in the fall of 2019 so my lease is up this coming fall. I did a 2 year lease because I wasn't sure If I wanted/needed a truck, plus they had really good lease deals at the time through Ally. Fast forward to now, I absolutely love the truck and wish I would have just bought it in the first place instead of leasing. Oh well, live and learn.

All that being said, has anyone ever been in this situation? Will a dealer buy it back and then resale me the vehicle? Or do I have to pay the buyout price on the lease agreement paperwork? Is that price negotiable? Sorry if this is a dumb question. This is the only vehicle I have ever leased. What do you guys think?

 

You need to talk with your dealer and see what they can do. Ive seen purchase from lease work out ok for the buyer, but I have also seen situations where it was a better deal to buy new. You just need to talk to the dealer and see what they can do. In the meantime, you should be checking with several dealers to see what they can do on a new purchase. Take the best offers to your dealer for comparison and ask for the best deal on the buyout.

 

I’m pretty sure you get it for the buy out price on the lease agreement. It shouldn’t be negotiable because the negotiation should have been done before you leased it . Up here you can get an extension on leases if desired , not sure about there though .

 

You will pay whatever your residual is at the end of the lease

You can trade it in and the dealer might buy it from the leasing company or turn it back over to them.

last 2 I leased the dealer bought them and re sold them

currently buying my 2019 with a 0% loan

 

Most of the time you would purchase the vehicle for the buy out price. Start planning now. Find out the buy out price and compare it to other trucks for sale in your area. The buy out price might be lower then what they are going for now. Prices have jumped on used vehicles.

 

With the high resale on a Tundra you may be better off with a new truck, especially if not cost prohibitive.

 

Your residual should absolutely be less than what you’ll find comparable used trucks for, especially now. And you know it’s been taken care of. You really don’t lose very much buying out a lease vs buying from the start if you have a decent lease agreement.

 

Down side is the interest rate and paying on it another 4-6 years if you have a tighter budget or not enough to put down on the buyout.

72 months is long enough on a 0% loan I can’t imagine another 4-6 on top of a 3 year lease

That’s the main reason I let my last one go at lease end many made sense to get the 2019 for 0% rather than pay interest for another 4-5 years.

not my best financial choice but it worked for me

 

That's what I'm worried about. I'm still kicking myself for not just buying in the first place. My plan would be to put 20%-25% down on a 72 month loan and most likely pay off much sooner. But I'm thinking the difference might not be that much when comparing a new truck with a lower interest rate compared to slightly cheaper used truck at a higher interest rate. Damn......

 

I haven't leased in years but what about asking the company that you are currently leasing from? When I had my first Pontiac Grand Prix, it was leased. I had about 5 months left and was deploying with the military. I called them up and told them I wouldn't be in country to turn it in at that time. They told me that if i wanted to turn in in before I left and purchase a new car, they would waive the remaining payments and also gave me a discount on the new one. The next day I went and drove home with a brand new supercharged model.

 

A great lease deal is usually triggered by a high residual or significant upfront costs. The residual (buyout) is listed in your lease agreement. That should tell you everything you need to know. If you put money down on the lease, that would increase the argument for buying the truck at the end of the lease. As you do your math, factor in what you made in lease and any upfront payments over the last two years plus the residual. If it's greater, equal, or close to the cost of a new truck, the smart choice is relatively simple.

 

I didn't think about that. Maybe I'll talk with them and see if they'd be interested in buying/taking it back early and then buying a new one.

 

i've done it with a vehicle before. they just had the residual unpaid portion or "balloon payment" arranged for me to pay.

 

I put $0 down and the buy out on the lease agreement is a little over $44k. I've made 15 lease payments so far at a little over $300 per payment.

 

You're always allowed to buy out your lease early? At least at the dealership I'm at we do it quite often. It may not be the most financially sound option but it's an option. Usually they take the remaining payments you owe, you do a 1 pay, then you buy it for the residual value. At least I think thats how it works.

Finished my lease on my last truck and purchased it after the lease was over.

 

Well don’t do what I did and sink a lot of money in upgrades only to let it go. lol thankfully I negotiated a better trade offer to comp some of the upgrades. But lesson learned. Shiny things and me do not mix well when it comes to the wallet and the desire to be one of the cool kids on the board. Not like there’s any peer pressure at all here lol

 

Used are worth huge numbers. Could you make $$$ over the agreed residual as a trade for a replacement?

 

This is interesting. The price of a new tundra is far higher than it was in 2019. What is your residual value in the contract? I’ll bet it is lower than that exact truck would sell for used today

 

The purchase option at the end of the lease on the contract is $44,262.37.

 

Based on that number I would let the lease run out and buy new.

That number seems does seem high to me. I would have thought you'd be around $38K-ish.

I tried doing this with a 2015 silverado but the truck sucked so I let the lease run out and bought a tundra

 

The MSRP when I got the truck was just a little under $50k. I believe it was $49,8XX.

 

I’ve never leased before but maybe you could buy it out now? That way your monthly payment is going toward your PURCHASE rather than your “rental”. Contact your dealer and see if this is an option. Get a loan from a credit union- they usually have better rates than regular banks.

 

Ahh ok! That makes sense. If you really love the truck I would try to buy it now. Quick math you might lose out on $1000 in total from the lease interest.

Especially if you plan on paying it off early I would go the 72 months. The interest rate wont really matter at that point.

Its like you paid a little extra to test drive it for a little over a year. Not a big deal at all. But if you really like it I would call the leasing company and buy it now

 

That's a great idea. I didn't think of it like that. I will definitely reach out to them and see what the options are.

Thanks for all the input everyone!

 

Hmmm 44 for a 2 year old truck sounds high, but maybe your area has bad supply. See what comparable 2 year old trucks go for. There is a little bit of peace of mind that you know the history.


Msrp for an SR5 of 49k though sounds really high. Is that canadian?

 

I'm in Western NY. Had a bunch of extras that added up. SR5 upgrade package, TRD off-road package, spray in bed liner, rail system, all weather mats, step boards, hard trifold tonneau cover, etc...

 

I leased a 2019 SR5 4x4 fully loaded the sticker was 49,000 lease payment was $250 for 24months I only put 7,234 miles on in 2 years the buy out was 39,256 with the it was $42,000. Can't beat that deal nobody had one with low miles like that for that price

 

The lease contract gives you the right to buy out the truck, the only way for the dealer to get the truck is if you decline the buyout option. The price is fixed within the contract but with the current market you would have to be broken not to buy out the truck outright. Even if you didn't want the truck, you could sell it on the open market for a higher price.

 

I have traded in 2 of my previous leased Tundras and came out on top. I only drive about 6-7k miles a year so the trucks value were higher than the residual. I took them to my local Toyota dealer and told them why would I give you back a truck that is worth more than the residual and walk away? First Tundra, I was able to get about $6k towards a new lease and the second Tundra was about $5k. My lease is due in March 2022 and I too am not sure what I am going to do. Currently I have 16,980 miles on my 2019 Tundra Limited. My residual is $38k and the truck is currently valued around $50k according to KBB. I’m sure I could get more private sale or on Vroom or Carvana. I love my Tundra and want to buy it when my lease is up but the Gen 4 will be out and that might make things a little more complicated. We shall see.

 

Actually, this is a very bad idea *if*.

The *if* being if you only reach out to the leasing dealer. Go to any other dealer, Carmax, Vroom and see what they will give you for the vehicle.

At least in NJ- and many other states- you can sell your lease directly to someone as long as you are making payments. The key is as long as your are still making payments. Once the final payment is due and the vehicle lease is up, you have considerable less bargaining power.

Why is this important? Real world example- my twin leased a Lexus 2 Door RC F-Sport AWD- white w/ red leather interior. He took good care but happened to back into a bollard and put a small crack in the rear bumper.

Had he traded it in- they would of dinged him for that and other things and he would of most-certainly came out of pocket. Instead he went to a GMC dealer to pick up an AT4.

They paid his last 2 months, paid off the lease, and gave him a few thousand to put towards his new vehicle. If you are going to get rid of it or are entertaining the idea- go to a different Toyota dealer and see if they will buy you out and give you extra money. This is if you want a new one.

Edit*****read -TwistedTad’s- post….do not just turn it in. You took good care of her and should be walking away with money.