I would just buy it now, assuming purchase incentives are equal to or greater than leasing ones. Plus you save on acq etc
Can’t afford to buy it new. The used ones are really expensive. If I lease it for 3 years my buyout price will probably be pretty good. I know long run I’d probably pay more leasing then buying it out. However, I can’t swijg buying it outright.
With Toyota FS you’re looking at a RV that is between 70% and 75% most likely, with 3rd parties like Ally, US Bank, or a credit union it’s usually higher still. If your ultimate goal is to buy the truck after 3 years you would do better to buy it now as @max_g said because the buyout price at the end of 3 years is probably not going to be where you expect or want it to be. For reference I helped a friend of mine lease a Tacoma through US Bank in January and the RV was 82% for a $37K truck on a 3 year lease.
If buying new isn’t an option you’ll have to decide whether you want to incur the additional expense to get into the vehicle on a lease versus buying new (or even used).
The buyout price is not going to be “pretty good”, it is going to be in line with those really expensive used Tacomas. Going by the Toyota numbers on Edmunds: 34685MSRP on the truck with 76% residual (on manual model) leaves you at 26360 to finance after lease end. So you are back to square one in 3 years after paying a high money factor (4.92% interest).
Toyota has 0% financing on new, but your used car financing in 3 years will probably be ~4% (or if the world continues its downward spiral, more like 24%).
Is the reason you don’t want to buy new is because the payments will be too high?
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Sorry for coming in hard here @Slippy4 but just going to echo these guys (ran through this same conversation with a buddy recently).
The Tacomas do not lease well, and the used market is insane. Since you can easily get them new for a few points under MSRP (check TrueCar) and they are running finance incentives, the only thing that anyone on Leasehackr is going to suggest is to buy (if that’s the car you want).
If you can’t afford the payments on the buy rate with super low interest spread over 60 months, you probably should wait a little bit on getting tangled up with that kind of obligation.
I suppose the number one objective should be to find a Toyota dealer who will lease via US Bank. Why have a Tacoma? Somebody said they leased a TUNDRA SR5 for 310 this week (do a search of the posting). The key is to find a dealer who will lease via US Bank
Of course, Tacoma should also lease well if the US Bank residuals are still in the high seventies …
All you need is a dealer who will give you a 10% discount, which should not be too hard on a Tacoma since even Toyota is advertising $300 lease on their base double cab Tacoma.
If you plan to drive it forever then just buy it and do an extended term like 72 or 84 months, go through a credit union. Although for what you’ll pay over the term, you could probably lease 3 trucks over 9 years.
Yes the payments would likely be too high. I can’t get a trim level that I want. So if I talk them down, does that count when calculating the RV? Or does it not matter the RV is the RV regardless if I talk them down.
My thought was that I could get an affordable payment now. In 3 years buy the truck for 24-26k. Probably put like 10k down (maybe more, maybe less) or buy it cash if I have enough then.
A 3 yr old TRD OR with 36k Miles is still high 20’s. I know I’d probabalt pay a couple thousand more long run. But I could get the trim I want, now. If I buy used I’m gonna have to get a 2012-14 with 60-80k Miles. And they are still 23-25k!
Would 72 months not be a good idea?
Why through a credit union? 84 seems like a lonnnnnggggg time.
It is but you said you couldn’t afford the payment so wanted to lease then buy it out. How long do you plan on keeping the thing? Anyway look at it like this, I’ll use the following deal as an example why you shouldn’t buy it.
$273 * 35= $9555 $9555+675=$10230 total payments
residual $30034 * 1.10 tax rate=$33037+$10230= buyout + total payments=$43267
So leasing one of these then buying it out will cost $43267 and that doesn’t even include interest on the buyout of $33307. So take that $43267/$273=153 months or about 4.4 36 month leases. Explain to me why you want to buy one of these, of course things won’t stay the same price over the next 153 months but I would assume you could lease at least 3 trucks over 9 years for the $43k or buy one and in 10 years you’ll have a 10 year old truck that is clapped out. Oh and I forgot to add this, leasing three trucks over 9 years would cost $29484, assuming the $273/mo, not likely.
Does the residual value base off of msrp?
I guess I need to get a lower RV then?
Yes, but why would you want to do that, the payment will be more. I think your problem is that you can’t afford a $36k vehicle.
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So say the vehicle would be 33k bought cash.
There’s no way to lease it, then buy it, for a couple thousand more. Like all said and done have 35-36k into it?
I have no idea what you’re getting at, you either buy or lease it. These lease pretty well because they have stupid high residuals, if they didn’t have a high residual, the payments would be higher. It’s just math, you take $33k divide it by 60 you’re at $550/mo.
I was getting at this:
Lease vehicle for 3 years,
Buyout after.
Probably a few thousand more then just buying it but it would be an affordable option.
How’s that, the residual is still going to be high $20k to low $30k, and financing that is ~$500ish a month. High residual means lower payment and higher buyout, low residual means high payment and lower buyout. What are trying to accomplish and what’s your budget?
Well I wanted a used one under 25k. But with they way they hold there value. It kinda sucks. Like for that price you can get 5-6yrs old with 60-80k mileage. That’s why I was toying with this idea. I guess I thought the residual would be Low enough to make me only lose a couple thousand after I bought it outright.
If i was you I’d hammer out the cheapest lease deal I could get on one of these, assuming that you’ll be under $300/mo for a $35k+ truck. With that math it just doesn’t make sense to buy one, unless you drive a bunch of miles or trash your vehicles. You’ll end spending less and have higher cash flow every month. You could lease 3 new trucks over the course of 9 years or buy one. $300 x 108=$32400 lease 9 years with a new truck every 3 years, $550 x 60=$33000 purchase, 1 new truck, paid off in 5 years. These are just rough numbers but I think it explains why you should’t buy one of these.
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