Trading 19 TRD pro for 21 Limited double cab

Got my 19 TRD pro tundra in October 2018. I got about 35,000 miles on it. Unfortunately I’ve had two accidents with it totaling about 11k in repaired damage. I paid 51,250 for it. I was at the dealership picking something up for another car and was talking to the salesman that I’ve been dealing with for over 10 years. For giggles I asked him how much it would be worth on trade in. First thing I regret about buying that truck is the black color as nice as it looks when it’s all fresh and clean. The second I miss is the 6 1/2 foot bed that I had with my previous double cab. Additionally very disappointed in the sound system and no sensors at all. They only have one coming in which will be the beginning of the month, an army green double cab limited with the TRD off-road package. The truck is 48,950 and they’re giving me 50,000 trade-in for my pro even with the previous repair damage. I owe 22K on the pro so they going to cut me a check for 28,000 and I’m gonna sign a lease for the new one. I’ll put about five back into the truck for a cap and accessorizations. I’ll post pics as they develop.

 

Welcome from LA (Lower Alabama)! But a LEASE? You might want to read all of the fine print first!

 

I didn't think you could mod/accessorize a lease ?

 

I think you can, as long as you return it to stock before returning it.

 

Leasing is an alternative form of financing. I'll buy it out by paying the set residual when it's time. The lease factor which is equivalent to an interest rate is what you pay on the balance and since it does not pay the amount off sooner it takes better credit to get a lease. I have been leasing vehicles and often times purchasing them at the end of the terms since the 80's. If the residual is set at 34k which is what this one will be, after three years if it's worth more than that the difference can be used as an equity trade in if you want, financing that amount or just turning it back in. Leases are the most misunderstood form of financing out there yet have the most flexibility of choices. The purchase amounts are negotiable on them as well as all you are doing is financing the difference between the purchase amount and the set residual.

 

Congratulations on the new Tundra.

 

Sounds like a fair deal to me. I would want to unload that PRO myself after a couple accidents and the fact you’re still getting 50 makes it a no brainer. Do it!

 

Hmmm. . . Interesting. I've never looked at a lease this way. Congrats on the truck upgrade either way!

 

Welcome from Ohio

 

Yea, I'll admit I'm not that well versed in Leases

 

I leased my 1997 then new 4Runner because I was going through a divorce and needed a small monthly payment for a reliable vehicle.
I then purchased the vehicle after a 3 year lease, but I had a car payment for 7 years on the same vehicle..

It worked for me at the time, but I'd never do it again.
I now keep vehicles years after they are paid off.
Sure is nice not having a vehicle payment...

Whatever works for you is cool with me.
I like the way you justified it to yourself to make is sound like a good option.
But unless one wants a new car every few years and/or loves having a long term vehicle payments on one vehicle, I wouldn't recommend leasing..

My last 2 Tundra loans (2005 and 2014) were 0% financing, paid a little more each month than the amount due, and paid them both off a few months early.
That certainly beats any lease option..

Congrats on getting what you want, I love my SR5 DC..

 

The reasoning behind the justification is as follows: If there was 0% on Tundras it would make a difference but there hasn't been that for several years, if it were that definitely would be the way to go. The current lease rates are comparable to the current loan interest rates. So, yes, you are paying over a longer period of time but it's a lower payment over 7 years vs five years but when you add up all the payments with both scenarios it's close to the same (within hundreds, not thousands of dollars). Relatively simple math. I could just finance the 22k I still owe on the current one and still may do that, just weighing out the other vehicle payment on my wife's Rav4 that will go away with the trade in funds.