Lease new 1794? Or wait and buy new Limited?

So I do plan on keeping my Tundra for many many years. The problem is I do not want to finance, and may not have enough money to buy the truck I want which is a 1794 Off-Road Package Crewmax. If I were to lease, however, and then pay for the truck three years later, I would just pay the value of the truck at that time, right?

The other option is to wait until the end of the year, where I'd have enough money to buy a new Limited Crewmax Off-Road package, but not get all the options I want (power side mirrors, memory seats, etc).

Third option is to wait until the end of the year and find a used 1794 w/ low miles (under 15k).

So again, my purpose of leasing is to avoid sales tax, and get the truck I want now, and then after the lease is over with have enough saved to buy the truck outright.

Thanks,

 

Lease the 1794 and then buy it after the lease is up...get what you want especially if you are keeping it for a while

 

Thank you! I may just do that. Is there any vehicle negotiation needed when you lease? I'm wondering if you negotiate down to invoice or below, then after 3 years you'd pay less for said vehicle?

 

That's good to know. I have over 800 credit score, and my plan is to not put money down. That way once my lease is up I can use my money saved and the private party price of my currently vehicle sold to purchase outright.

As far as mileage, I only put about 5k/year of miles on a car, so over-mileage won't be a problem.

 

Don’t get fleeced. It’s expensive financing and you would be using it to buy more than you can afford.

If you can’t pay cash you can’t afford it.

 

This^^^

I pretty much recommended the same thing in one of your other threads. Even if you do the common .9% through Toyota, the money makes more in your savings account interest rate. (Given that its over .9%).

Edit...This is also under the assumption that you have income to supplement the payment and keep your cash sum in the savings.

 

Youre going to pay on a new vehicle for at least 8 years and maybe 9 if you lease.
BRUTAL. You’ll lease for 3 years and then finance probably 30-36 thousand. That’s going to be 6-700 a month for at least 5 years unless you can pay 1000 a month for 36 months or more.
Either buy it or don’t do it IMO.

 

When you go to finance it after the lease period, you likely won't get .9% like you would on a new vehicle..

 

So your advice for the OP: make a larger purchase than you would be able to otherwise (on a depreciating asset) by leveraging credit, and using the "savings" from a low interest rate loan on the more expensive item to invest?

My response to the OP's question was that leasing IS financing, leasing is the most expensive form of financing, since the question really seemed to be aimed at the least expensive option to buy the truck - the answer is pay cash.

The tax will be paid, by you. You ARE paying interest on the money in a lease The dealer is NOT losing money on vehicles when they lease, they push leases because folks buy more expensive vehicles on leases, and they make more money in the financing.

Paying cash the average buyer will buy a lower (usually much lower) cost vehicle. It's not just about interest rate.

 

Buy a used version of exactly what you want. Let someone else take the 20% hit driving it off the lot. Just my opinion though.

 

My goal would be to lease finance for 3 years, then outright pay the $36k or whatever in cash.

 

Yeah that was my original plan. I Just don't know if I have the patience until December. I can't afford it now, I have to save.

 

my 0.02

lease or finance, truck is the same price. You already know the price you will have to pay in 3 years. now in 3 years best is to buy cash or not buy it. the APR on a used truck will be a lot more in 3 years than going with the APR on new truck. Also in 3 years from now, maybe the same truck with same miles costs more on the used market. But you already know your truck and the price you need to pay to own it. Meanwhile for the next 3 years you are only paying half of it every month. Each situation is different.

 

If you can execute that plan then go for what you want.

 

You are lucky with mileage, that would kill a lease for me, and like BTBAKER mentioned, brutal to pay for so long anyway. Leasing is like being in a black hole, you get in and can't get out, paying and paying and ending up with nothing. So I stuck with the Limited OR and financed 1/4, which kept the payments relatively low, instead of financing a larger amount on a higher model. This will make it easier to pay it off faster (already paid a year's worth since December). I don't like the vented memory seats, red stitching, brown leather and power retracting mirrors enough to finance even more of what I can't afford to buy outright. For the same reason, my CC balances are 0, their interest is insane. I would not be solvent if I had the kind of debt tied up in CCs the average person does. I would rather use that money to pay off the truck (and live my life). I plan to have a good 15 years without car payments with this truck, like I did with the last one.

 

Question, the money I use to finance the truck in 3 years, if I decide to keep it., will that go towards the price of the truck? Or will it be like buying a new truck over again (just 3 years older)?

 

you will only pay the residuals if you buy your lease. Usually 50% ish of the price new

 

let's say the truck is 40K new and you decide to lease. They tell you residuals will be $25K in 3 years well that's what you will pay to own it. Meanwhile for the next 3 years you put $5K down and finance $10K (+ whatever dmv fees) over 3 years. That's why the payments are lower. It's usually 0% apr as well.

 

Okay so the residuals include the price of the truck for what it's worth in 3 years, plus they deduct all the monthly payments you pay to lease the vehicle? Sounds like a good idea. So If I get my 1794 for say $46k, I can lease it for 3 years, and then after my 3 years is up, pay the remaining, which would be like $30 or so? Makes good sense to do that, especially if I can get 0% APR with my credit being over 800.

This would be easier than having to save $46k in total and having to buy the truck outright. Leasing will give me more money to save (while I am paying my monthly lease, of course), as well as ample time to sell my current vehicle privately, and keep that money from the car ready when I buy my truck's lease in 3 years.

I have a '17 Subaru Outback Limited 3.6l that I could probably privately sell for $31 to $32k (has lots of extras). Again I could just sell my car and pay monthly payments to finance it but, A) payments would have interest and B) the interest rate will be high (5% or more).

 

yep. pay cash to purchase the truck in 3 years. if you get a loan in 3 years on a used truck it would probably be 6 to 8% then it defeats the purpose of not buying right away at 0%APR.

sometimes residuals end up being less than price of similar truck or car on the market and the dealership might buy you back and you end up with $3 or $4K in your pocket

 

https://www.daveramsey.com/askdave/automobiles/10367

https://www.google.com/amp/s/www.ba...ar-cheaper-to-buy-a-car-than-lease-1488585027

 

Find a Toyota dealership website in your area that has 100% online express purchasing. Even if you don't buy from them you can still use their online numbers and website to play around with the numbers to see what would work better for you. The Toyota dealer's website in my area has a 1794 listed and after a 3yr lease the residual is listed @ 72%

 

note that if you plan on modifying the truck, lease is not the best option. In case you end up not buying it then you will have to remove all those mods or lose the value.

 

So what's the money factor on tundra leases these days???

 

I am going to talk to some dealerships and see if I can get 0% financing on a 1794. As long as my monthly payment isn't TOO crazy.

 

Even mods such as window tint and BA muffler?

 

0 for 72 here in gulf states region

 

Why buy at this time US bank lease rates are crazy on the tundra. I just leases a 47k trd offroad crewmax for 328 a month with only first payment down for 24 months. Use their crazy residual and save your cash

 

Never leased and never will. I believe in Texas you pay sales tax on leases just like buying. May not be as much up front.

 

yep..same in CA...you only pay whatever amount of the lease minus residuals. Anytime you buy a car you pay sales tax anyways..even on used ones here in CA..so the state gets to pocket sales tax multiple times...ugh