Lease new 1794? Or wait and buy new Limited?

So I just spoke to the saleswoman who sold our Sienna 3 months ago. She said that she would recommend to buy it, rather than to lease it. Her words are that you'd spend more money leasing it and buying after 3 years, then buying outright. Is this even true, or is she trying to talk me into a regular sale so she can get more? She did offer me a "friends and family discount". Anyone know how much that is worth?

I may try to get the .9% rate, and try to negotiate the best price I can under invoice.

 

^This is a good question that should be know before ever talking with a dealer about a lease. That and the residual along with all discounts and incentives that are applicable.

 

Way to listen to a high school dropout. Do the math your self. I am driving a 47k truck for 328 a month, how much to buy it?

 

Money factor is a standard .0016 or so but the residual is 80% for 24 months via US bank. Its stupid good

 

sounds like you may need to brush up on the math yourself.

you're not driving a 47k truck for $328 a month. You 'renting' the small part of it that you are allocated, and then you have to give it back, or buy it out at some inflated price. (and quite possibly pay to start a new lease...) There is a reason why lease vs finance. The fact people lease a pickup truck is mind numbing.

 

Dave Ramsey makes some great points but I’m not on board with everything he says. I bought my truck at 25, my second vehicle ever for 19k out the door. No sales tax in MT. I put $2k down and financed $17k and a pretty low interest rate. My payment is $275 a month, on which I’m paying much more than that. I could have put MUCH more down and practically paid for the whole thing cash (Ramsey way) but used that cash instead as a down payment to purchase a house. Used the truck to move us, as well as not be SOL all winter without at least 1 4WD vehicle. It has since taken us on quite a few road trips though the state, to CA and back, Utah, and Idaho. The value of the truck is having a reliable vehicle to get us where we wanna go. If you can pay it outright great....but if you can get a great financing rate and you’re gonna pay it off way faster than the term anyways....have at it and get the vehicle. Cost difference isn’t too terrible, just run the numbers. The joy of the truck will outweigh the cost difference, just my opinion.

 

not completely sure of this, but I thought you couldn't mod leased vehicles?

 

Ok once again guys do some simple math at this payment it would take 12 years to pay the same amount. 47500/328 i can drive 4 brand new truck while you are driving your old 12 year truck. I am not including tires and other maintenance that you have done and paid for. On top of that if i have my cash of 47k invested and just get a avg market return of 8% the truck is pretty much free. Cars are depreciating liabilities and not investments.

 

Not that simple but whatever works for you sir.

Having a car loan doesn't prevent someone from investing what they haven't paid into the loan yet, and the truck doesn't depreciate to zero over 12 years.

 

I don't know about the new Limited package but my 2nd gen has the power heated mirrors and memory seats.

 

As others had said if you’re considering a lease you are financing.
At that point I’d say just buy the truck you want even if you have a payment for a couple years.

 

I need the power folding mirrors so this behemoth can fit in my garage. The Limited does that have that. Also the leather on the Limited is not comfortable and very STIFF. We have the seat leather on our '19 Sierra SE, and it is not of good quality. I absolutely fell in love with the seats of the 1794 when I went for a test drive a few month ago.

 

Yeah I'm considering that. I'm trying to see if my dealer will go $47k on a new 1794 w/ Off Road package right now. If she can get that low, I may consider privately selling my Outback, using that towards the truck and financing the rest with .09%.

I'm still considering a slightly used 1794 Off Road with less than 15k miles in my area, but no luck. There is one in Omaha that has 30k miles, but that is a bit too high than want I want. Plus it has the 20 ugly chrome-clad wheels with the basic suspension for $36k.

Here is a nice used one: https://www.autotrader.com/cars-for...e1=TOYOTA&modelCode1=TUNDRA&clickType=listing

 

You left the part out where you have other cash invested to pay for your rented truck. That doesn't make it so bad, if thats what you prefer to do with your investment money. Kinda like what I was saying about having your cash sum savings interest pay for or exceed your loan interest.

The way I see it, is if you are always willing to have a car payment and always want a brand new truck then leasing is the cheapest option. Buying and selling a car every 3 years will always have you upside down for the most part. If you are trying to buy a truck and keep it for a long time, then purchasing is the best option.

 

lol whoever sold you into this lease man, dont listen to car salesmen with your money.

as @big_jarv said, it isnt as simple as $4000 x 12 years = a 47k truck. because at the end of the 12 years you are still driving a 'rented' truck, actually you're driving no truck cause you turned the last one in. What's a tundra worth in 12 years? prob not much, but you arent left with nothing.

further, lets say the average lease is 2 years, so in 6 lease cycles you will conservatively spend $2000 each time in inception fees, $12,000 paid over 12 years as a 'fee' for the 'convenience' of leasing. This isnt including any state taxes, registration ect...

Leasing has its advantages, this is not one of them... just finance a vehicle you can afford for 4 or 5 years, and plan on keeping it. Might not be flashy and 'cool' but it works. If you want a pricey new car every two years and dont mind flushing a little money down the drain, lease.

 

Okay I need your guys help again! So my salesperson said she would offer me a truck like this for $47,000 flat, IF I do the financing through them (no .9% APR), or if I wanted the .9% interest she'd have to add the $2,000 cash and sell the truck for $49k.

I was hoping she'd be able to do both, $47k PLUS the 0.9% financing. Is this something I can really push and haggle for? The price of truck 47k is a good amount under KBB invoice, but may be screwed with a high interest rate.

Here is the vehicle :https://www.cars.com/vehicledetail/detail/758587881/overview/

Thoughts?

 

stick to your guns, tell her you want .9 and 47k, then ghost her. they will come around in a few days, they know you are serous buyer. i think many here are glad to see you are coming around to financing instead. I think you said you had a good credit score? check out other means of financing while you wait, (lightstream?) you may get better financing terms.

 

This is great advice...walk away for now and explore other financing options. I am willing to bet they come around in a day or two. They are testing you, IMO, to see how bad you want it and what your patience level is. They know you are a serious buyer, use that to your advantage.

 

Thank you very much! I'm going to see what happens. I wasn't planning on getting a new 1794 this early, but if they offer me %0.9 APR and sell me the truck for $47k flat and give me the trade value for my car, it may be a go!

 

Good luck hope everything works out.

 

Chances are if she offered you that price, she has room to go. As said before, stick to your guns.

Out of curiousity, is that price 47k with taxes?

 

No, that's without taxes. I'm hoping with my trade in it won't be too much to pay. Also along with my trade in I'm going to throw $7,500 down, so that would be like an $11k loan, at %0.9 interest rate. Should be okay with the wife as my monthly payments would be under $200/month.

Yes, I'm hoping she'll go down some more. I am personal friends w/ the director of finance at this dealership, so I can always call on the big guns if I want this deal to work. Going to see what I can finagle on my own first though.

 

This sounds like a better deal. For about the same monthly payment as the lease you will now actually be paying off on your own vehicle. And then, since you were planning on some serious savings to buy outright at the end of the year, keep that plan and use those savings to pay the truck off sooner. Or use it for something else if you are okay with the length of the loan, but at least you have options. Good luck!

 

Minor point, the TRD offroad suspension isn't hugely better than the regular black shocks, and you can upgrade to bilstein 5100s for very little cost. The 5100s are comparable (a little better) than the TRD suspension and lifts the front a good amount, up to 2.5".

 

Heck in Texas they decided they were getting cheated on sales tax on used cars because everyone wrote a bill of sale for a wrecked vehicle. Now they are using NADA which has the highest values on vehicles. I will add that leasing works for people that do not want to do mods and like to drive new vehicles every 3 years.

 

This is how they get you, it’s too confusing. I would never negotiate the price of any combination deal.

Always negotiate the cash price of the vehicle separate from anything else.

Toyota incentives are added after you negotiate the price.

Then you can trade in or sell your rig private party (I would never trade in).

Then you can pay cash, or finance through your lender (same as cash to the dealership) or ask them to beat your lender.

My credit union rates are 2% variable, 3.75 fixed on 2020,2019,2018 models.

You mentioned 11k @ <$200/mo I’m guessing that’s a 60 mo loan @ 188/mo.

She selling you on a low interest rate combined with a higher price which is a sales tactic to make more profit. For comparison, the difference between 0.9% and 3.75% on 11k over 60 months is only $826 which means you could have a substantial savings if you can pay less in purchase price even if you pay a higher interest rate.

Never shop on payments, shop on cash sale price. The math is easy this way.

Good luck.

 

I am not shopping on payments. I'm just stating what my payments would be per month for the loan. That is a good point about the interest rate though, since I am only financing a smaller amount, 3.75% over 60 months is under $1000. She is saying that if I use their financing it would be 5%, where again she is trying to get more money.

Bottom line is if she doesn't give me the 0.9% financing at that agreed upon price, I will either take my business elsewhere, or check with my bank to see if they could give me something like 3.75%.

 

^^^ Yes yes and yes.

You walk onto the lot as a cash buyer. You're going to cut a check. Negotiate the best deal you can and once you've got a quote in hand you're happy with, THEN you ask what financing options might be available. Only then. Salesperson won't like you much, but they'll respect you for knowing the game and you'll walk away with the best possible deal.

 

It's a little too far away from the end of the month for her to come down. Stick to your guns until the end of the month. In the meantime, try to get a credit union or other bank to match the .9 rate or below. Once you get the financing elsewhere, gladly accept the $47K price. Negotiate as a cash buyer. Also, if trading in, your state may allow the sales tax to only apply to the difference between the new vehicle and the trade.

 

I'd ask for a written agreement on this by the party you are buying the merchandise from.

I do not like this option. You wait and still end up with what you do not want. Keeping in mind that you are going to keep this truck.

This ... Remember when you buy or lease then buy, you are the one getting hit by depreciation. Why not buy used, someone trying to get rid of their car or even a dealer trying to get rid of older year models in their lot, and do not loose money right away compared to buying new. If this was my money, I'd do this.

I am not a financial advisor but I've lived with someone who owns a very successful fiduciary finance firm and have met lots and lots of self made millionaires(yes there is a difference between self made and inherited ones) and I have been told the same thing by all of them "If you can not afford it, do not buy it." and "The key to being rich is knowing how to reserve your assets" aka do not create payments if you do not have to.

With all the sales they put out starting from the fall season to make room for upcoming new year models to all the way to xmas etc sales. If you have the option to buy the truck outright at the end of the year, do that. No doubt end of discussion if this was my own money.

Good luck