Highlander platinum lease vs buy

Ask the Hackrs Buy/Finance
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1

Highlander platinum, dealer location: SoCal

Other day I was at the Toyota dealership in SoCal but decided to walk away at the last minute while I was signing final contract as I realized this vehicle was missing digital rearview mirror. Obviously, they were quite upset.

MSRP was 49572 (silver color) and I was leasing for 3y/12k, 9k down. monthly after negotiation was 500$ (residual 31230). Do you think this is a good deal? Since then they told me the vehicle is still there and they will still honor the deal.

Now I am also wondering is it a good to lease (given it seems to much hassle and obviously extra bucks) or to buy. I plan to keep this vehicle beyond its warranty period…long hual.

I was putting down 9k for lease but I may be able to put down up to 15k for buying option. I was trying lease as monthly lease payments were lower than buying options.

thanks for you input.

2

$750/mo is a lot of money for a highlander

3

Yeah, no wonder they are still willing to honor the “deal.”

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4

thanks for reply @mllcb42 and @cruiserchuck . Is there another way to get my monthly down to a range of 500$ for financing option (putting more down?) or some other way. I read about ballon financing in some thread but have absolutely no clue.

thanks.

5

Check the marketplace i think it will be your best option

6

The problem here is the total cost to lease hust doesnt make sense. You can put $0 down or $20000 down, either way its too expensive.

Dont focus on the monthly payment. Focus on the actual cost.

This is definitely a vehicle to buy instead of lease if you have to have one.

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7

So then buy it.

The finance charge on a new car loan is going to be way lower than (a) the rent charge on a lease plus the acq fee and any lease-end purchase fee PLUS (b) the finance charge of a used car loan to finance a 3yr old vehicle at the end of the lease.

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8

Thank you all for your prompt replies. I think it makes sense to buy and be hassle-free since I wanna keep this car for several years. They offered me 2.99% 72 months as a buying option when I was at the dealership, is there a room to negotiate on APR or MSRP (another dealer actually gave me 300 off on MSRP but this dealer is 80 miles away so decided to go to one near me).

Now thinking back seems I made the right decision to walk away…even though I did that for another reason and great to find this forum…loving it… so much knowledge and information here.

sharing below quote - initially they gave me 595 and after negotiation they came down to 500$ but of course I have no clue what other fees will be there in lease contract- dealerships are so shady.
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9

I’m at $9k down $462 with 7.75% tax :sunglasses::+1:

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10

DO NOT EVER PUT MONEY DOWN ON A LEASE, especially $9k. You do NOT own the car. Read this until it sinks in.

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12

Agree. I understand now why. I am heading to the dealer tomorrow again, will keep you posted.

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