Wow… if I had to make a choice here I’d lease this as well with that payment
Lease 3 years—> 18k
Purchase/finance—-> 48k
Yes this is a terrible terrible deal for an accord but dude just save himself a ton of money not financing an accord (assuming he didn’t put like 9000 down to lease @550).
He got screwed in both scenario but much worse with financing.
Need some advice:
One of my family members actually has the WORST Toyota Tacoma lease you will ever see. They started this lease in March/2020. MSRP is $38,000. They have a good 760 credit score. But they are inexperienced when it comes to leasing and fell for a $700/month payment, 60 month lease. I looked over the lease contract and there is an almost $12,000 rent charge! they also sold them every maintenance and damage protection plan they could think of. I don’t even know where to begin, so any help would be appreciated.
Buy it out themselves, or sell it to a third party.
Yes, that is a good option. We will try to get the buyout amount tomorrow. Do you know if the buyout amount is going to be ridiculously inflated due to the rent charge?
That is unbelievable. Friends do not let friends shop alone should be the plan going forward.
Buying it out is an option. Icing on the cake is they only get 10k miles a year! Not familiar with the car but I cannot believe that the MSRP is only $38,000 and they will be paying more than that over the lease term. I am wondering if any consumer protection laws were violated, probably not but I am not familiar with the rules in California but if you have any friends who are attorneys I would ask.There may even be consumer protection divisions at your local DA or state’s attorney (no idea, not from California) who can give you an opinion. That is egregious. Make sure anyone you ask for help knows how much above MSRP they are paying. Once you know whether you have any specific rights in this situation because the dealer took advantage (again no idea if you do), then I would call the leasing company (they technically own the car and you are paying them rent as a lease payment until you return it at the end of the lease term or decide to buy it) and see what you can negotiate. Obviously if it is just, you made a bad deal that is a different situation than if there were any consumer protections that were not taken into account.
The buyout amount, may on your most recent monthly statement. In some states it includes tax not sure if that is true everywhere.
Some suggestions https://www.hg.org/legal-articles/i-feel-i-got-ripped-off-at-the-auto-dealership-what-can-i-do-33392
Additionally, each state is responsible for establishing its own laws related to consumer rights. Check if there are any unfair trade practices that were committed or any other consumer protection law that may be applicable to your case. An online search of these terms can help you determine the actual laws in your state.
The leasing company is not just going to renegotiate the terms of an already approved and funded contract just because they leasee found out AFTER the fact they got hosed on the deal.
I will say that one thing strikes me as absolutely off. Is the number of payments made. Your family member is making 60 monthly payments on a lease? Was this even leased with Toyota financial? If they had good credit, why did they not get a lease with Toyota Financial for a 36 month term?
Something does not seem right. Is 38k MSRP just the BASE trim Tacoma and your family member got a TRD trimmed Tacoma? The TRD’s go for around 44k I believe and those would make sense for the agreed upon selling price.
Most of the times these packages can be cancelled and pro-rated refunded. Check the contract details. I’d start at cancelling these packages and getting a refund whereever u can.
And then start with thinking about buying out. However you slice it, its going to be expensive.
This should almost be illegal.
I got the buyout from Toyota Financial and it is $44,100 so there is still some hope. This amount has hardly moved after 7 payments so we will go with the buyout option. Has anyone had any luck negotiating a buyout amount this early into a lease?
You cannot negotiate buyout amount regardless of how long you are into lease. When the lease is signed you commit to all the conditions of the contract with selling price, interest rate(money factor), contract duration and end of lease buyout (residual value). Afterwards it’s just a typical banking/credit math, nothing to negotiate. Bank have paid the money you borrowed, they care nothing if you were wise or bent over. That stays between you and the dealer that has no interest in talking with you unless you want to buy another car.
There is literally no incentive for them to negotiate the buyout, they’d rather collect the interest.
At this point, your best bet is to buy it out. Worst case, think of it as buying it at MSRP with TTL included.
Then get refunds for all the extra warranties and protection. Look into all the fine print though… sometimes these packages have different administrators and terms/conditions.
That’s the funniest thing I’ve read in awhile! 
I love the complete lack of details too, yeah the serious inquiries will be pouring in!
My Highlander lease is literally half of that or almost for an XLE
It is something to look into although chances are it is a bad deal and there is not much to be done. There are consumer protection laws in many states, no idea if this violates any but I would consult an attorney licensed in that state (if you have a friend who is an attorney who can answer your question as a favor) or you can call the local DA or states attorney and ask.
My point @StingerTT was if it is only a bad deal then there is nothing to do except buy it out from the leasing company, whomever that is. If possible cancel the extended things as someone suggested provided it does not cause other problems.
However if it rises to the level of a violation of consumer protection laws in that state, then there may be other options in terms of dealing with the leasing company since they agreed to the deal but @dennisp63 would have to consult someone who is licensed in that state to help him determine that as suggested by this article
Also while I would not have thought so, it appears that Toyota Financial will do 60 month leases although who knows if they did this one
@dennisp63 As for the residual, in leasing 6 or 7 cars I have asked if there was any negotiation on the residual buyout and always been told no although I have never tried with a Toyota. With other companies, they said take it or leave it even when it is the end of the lease term and the residual is way above the used price of the car. I am sure in each case the car was auctioned off for less and they would have been better off negotiating but I think there is some policy reason they will not, having nothing to do with me but guessing here. Note this is dealing with the financing arm of the car company and usually they are pretty flexible on other things such as not charging me for excess wear and tear (when not buying it). I think this is something most will not change. Ask to speak to a supervisor, maybe given how bad this deal was, they may cut you a break, try to negotiate to the real MSRP although I doubt it will happen.
As for the current amount, does that $44000 include all taxes? Otherwise it does not sound right. They said the capitalized cost was $46,500k pre tax. You paid $648 x 8 more or less which is $5184, of which $198 per payment is interest more or less, so $1600 is interest. I would consult an amortization schedule. Maybe they are doing interest only at the beginning but something seems weird with that number
The “funniest” part of the ad is where it states they don’t have the income to pay for it. Then, why the heck lease a $700/month Toyota in the first place?
If it wasn’t FWD I’d be all over it… heh
Man these TFS leases are pure robbery.
This is a recent lease proposal I got on a loaner 3 series with 1,001 miles. I wanted to see how the market is doing and how far I can negotiate. MF marked up to the max (correct me if I’m wrong) and paired with a laughable discount (INCLUDING incentives- conquest ($1k, lease cash $750, and Penfed $500) also let me note that this is “the BEST offer”. I’ve gone back and forth with the dealer for about two days. Onto the next one
