Leasing???

Had anyone worked a lease deal on the 2022 yet? I'm waiting on a limited with a 59k tag... I'm wondering where the monthly falls on a lease if anyone has done it yet...

 

Curious to see how the pricing on this comes out. I have always purchased used vehicles because I hate the $10k off the lot depreciation bite, but the appeal of trying out a new vehicle for a few years before buying it has its possibilities.... Been looking at leasing a 4 runner for my wife until the next generation comes out, hopefully with a hybrid. The lease prices are so damn tempting because they are so cheap... Anyone have experience on how much value you lose buying out your lease vs. buying new with financing?

 

Leasing is always a bad idea financially. The only scenario where it may be modestly acceptable if you are planning to move to another country or island and know that you plan to leave after 1-2 years.
If you are ok with wasting the extra coin, then that is your choice, but dealers will always manipulate the lease terms to provide them better long term results.

 

What are you looking to pay monthly?

 

actually leasing is a much smarter move- you are not paying for a depreciating asset. Every incredibly wealthy person I know either buys cars cash and doesn’t care, or leases super high end cars.

 

Not an issue with Toyota, you don’t see a 10k drop off the lot until 40k miles or more

 

It's quite disingenuous to relate leasing a Lambo to a Toyota.

 

I'm not incredibly wealthy, so buy my Toyota's outright with cash instead.

Leasing is for suckers.

 

I bought out my first and only lease just a few months ago, not typical, just the current market at the time. It was a VW e-Golf, 3 yr lease, $1K down, $7500 instant Fed rebate off lease/purchase price, $2500 cash from CA, and $600 cash from the utility. Used it to commute for almost 2 years, carpool/HOV access, no gas payment, $10/month to charge at L2 at work, and monthly payment after taxes was less than what I was paying for gas in my Sequoia. Got a quote from Carvana that was over $6k more than my buyout. Sent a check to VW Finance, got the pink slip, Carvana came to my house and picked it up, direct deposit the full sale amount to my checking account within hours.
I’ve never considered a lease but wanted to try an EV for commuting and it made sense in my case. Now working from home for the last 18 months and only driving in once a week, I no longer need a commuter.

 

Nope. If one knows how to negotiate a lease it can make a lot of sense for some. If you lay down and accept the dealers terms you will probably get hosed....

www.leasehackr.com

 

I traded my 2016 trd 2 years ago to a lease on 2020. Plan was to get a 2022 they'd be out by now. I just turned it in. 5,669 was my ensing miles, I was paying $279/month for mine.

 

Why would you want to rent a vehicle for 2 or 3 years?
Or lease then buy the vehicle and pay for a vehicle for 7 to 8 years?

Also, buying or leasing a vehicle with the sole priority being your monthly payment is no way to negotiate a deal......

Only reason I can see leasing a vehicle is if you don't have much money and need a cheaper vehicle payment.
But if that is the case, you need to buy a cheaper used car..

Just my 2¢.

 

Anybody wanna lease a wife and a couple of children?? I need a supercharger, a gear set, and a HP valve body.

 

its about not a cheaper payment, it’s about not being stuck with a depreciating asset. For reference, I have never leased a vehicle due to the miles I put on them and the modifications I like to make

 

Leasing has an appeal and purpose.

I keep vehicles long term so I buy. Get to a payoff point and have no payments for years or decade more.

Also buying years ago there has been no depreciation and are currently valued more than when they were new. I know that hasn’t always been the case but it’s what it is now. Now buying now or 2022 and that value over the next year(s) might be different

 

Leasing is a FANTASTIC idea financially.

I get a new vehicle every 3 years for a cheap monthly fee. Think of it as long term rental.

I am trying out different brands until I find my retirement vehicle to buy.

My current truck end lease purchase agreement is $10,000 BELOW it's current trade in value.

I can't wait to make a killing on my bad idea.

 

It's just my opinion D, you don't have to like it or agree with it.
Nothing you say will change it.

Unless one wants a new car every 2 or 3 years leasing is a bad idea IN MY HUMBLE OPINION...

I like not having a vehicle payment myself.
I like not being limited to a certain mileage per lease term.
I like not being charged for every scratch and door ding when the lease is done.
As you stated, I like being able to make the vehicle my own and do whatever the fu(k I want to it.


That stated apparently to the OP, his main concern his monthly payment amount..

It's kind of a silly question to ask, there are too many variables on that amount.
Money down and terms of the lease, that payment could be $800, it could $200, but you already knew that...

From what I've seen lately, leasing is for someone that is short on income and wants to drive something they can't afford.

 

You better trade it in soon, this market isn't going to last forever..
Also enjoy that forever vehicle payment..

Good luck Bro...

 

You got it

 

So I’ll make my leasing statement and keep it simple

You pay for the depreciation. The buyout at the end plus the depreciation equals the original purchase price of the vehicle.

not sure where people get the idea of leasing is wasting your money? In the case of Toyota, the buyout is usually 10k less than the vehicles value, so if you buy it out and trade it in at the end of your lease, you still gain that 10k in positive equity.

if you keep vehicles for 10 years then leasing isn’t as wise as financing, but if you do a 3-5 year lease I don’t understand the difference, where I live usually the lease rates are less than the comparable term financing rates

 

In my case this opinion does not apply. Good luck to you!

 

People who don't know much about leases are against leases.

If you aim to own your vehicle and keep it for years afterwards, then leasing is stupid.

If you always finance your vehicles and trade them in after having it for 4 to 5 years, then not leasing is stupid.

 

exactly, I live in a harsh climate in the northeast of Canada and like a new vehicle every 3-4 years. That and I claim 95% of its use as work use and get back a little over 50% of my payments at income tax time.

 

I have leased my last 4 Toyotas. Zero down, lower monthly payment and after 3 years I’ve bought the lease and sold for a $5k-$10k profit. All over the allowable mileage. Invest the proceeds and snag a new truck. I’m honest with myself that I’m not keeping any longer than 4-5 years so dumping a down payment on a depreciating asset doesn’t make sense for me.

 

When I first handed back in my very first lease, I did not realize the end lease purchase value was $5000 below private sale value.

I am a bit wiser nowadays.

My current truck's dealer calls me every 2 months, asking if I would like to "return my truck early, no penalties"!!

 

It’s funny how many people don’t know how leases work. You’re not renting a car from Hertz. You determine purchase price before you decide to buy or lease. You don’t pay more if you decide to lease. You also don’t pay the sales tax on the entire amount of the vehicle at time of purchase. And if you decide to buy it after the lease is up, other than a few hundred bucks for fees, you pretty much paid what you would’ve if you bought it from the start. This gives you time to decide if this is really the car you want to keep.

Now, leasing and returning the car every 3 years will cost you a bit more. Depends on the residual value. Vehicles like toyotas have really high residual values so you actually have pretty low payments. But there are so many other advantages. If you get a lemon, you only need to tolerate it til the lease is up. If you bought it, you’re stuck with it and now you have to try to sell it on Craigslist. If you get sick of it and want another car, you didn’t already pay the sales tax on the majority of it. If you bought it, that sales tax is already down the drain. You may always have a payment, but they’re much lower than purchase payments… like half. You’re always under factory warranty and never pay a repair bill and get a loaner if it goes in for repair. You don’t ever have to buy tires. You get free oil changes. You don’t even have to fix your door dings. But most importantly, you get to continually drive a new car and get to change it up every 3 years and you always have that new car smell.

 

A few misconceptions about leasing:
1. There is a payoff that follows your leased vehicle, just as it would with traditional financing. You can trade it in at any time.
2. You only pay for mileage or wear overages if you hand the keys in at the fulfillment of the contract without leaving in another vehicle. Otherwise it gets treated as a trade in (see #1). Wear and mileage overages depreciate a vehicle equally regardless of finance terms.
3. You have an upside option that doesn't exist with traditional financing: You can opt out at the end of your contract - with the only downside being #2.

 

Lease a Ford or Kia that has a 3-4y life cycle, sure.

Lease a Toyota that has a 10-15y life cycle, nope.

There is a reason the dealers push leases, even when you walk in and tell them you want to buy.....it makes them more money.

 

After a few people have described on here how leases work, explain to me how the dealer makes more money leasing? Besides the ill informed people who turn in their lease with positive equity?