I'm surprised at leasing rate's

[Falls]

I was at the stealer today and was talking about a the 4R. They asked if I was buying or leasing, I said I have to buy because of the amount of mile's I put on . The sales mgr. said not so , and told be I could have a 27k per year lease with no money down except my first payment. They would write me a check for the equity I have in my 04 Tahoe to do what I wanted with it. My payment's would be the same , actually 50.00 per mo.cheaper and I can take my equity out of the Tahoe. After 3 years turn it in. Ive never leased anything before because on American Vehicles it never panned out because the residuals were alway's so low. I told him I run my stuff 3 year's and dump it.

The price difference between the v6 & v8 4x4 would be $6.00 per month, and it has the upgraded tune system to boot. The monthly payment would be covered by my car allowance from work.I've never leased anything before so it kind of caught me by surprise.

I don't see how I can go wrong with this or am I missing something ?? They said If I want to put bigger tire's on that would be fine , but no lift.

 

[phillyd2]

I leased my last two cars and its pretty straight forward. Just make sure you read all of the fine print. If you do not plan on keeping the car after the lease its a good option. If you want to buy afterwards your final cost will be at or over MSRP.

Don't forget that you can also haggle the various rates but I think Toyota is offering very good lease rates these days.

http://www.leaserite.com/

 

[greentoy]

I leased my very first vehicle in 96'. It was a Toyota Tacoma. It was a 3 year lease and I liked the truck so much I decided to buy it. It kept my payments low leasing it, and I bought it under MSRP after my lease was up. So it worked out fine with me. Good luck!

 

[Mark86]

My previous 4Runner was leased. I will never lease another vehicle again. The deal seemed very nice at the beginning, but I didn't realize how much I would enjoy the 4Runner. I had 15k a year so I was basically only able to use it as a commuter. I wanted to drive it a lot more!! On the other hand, 27k per year seems like more than enough mileage. How much would your monthly rates be? To me, something seems to good to be true here.

 

[EDGE]

I've leased several vehicles and put several people into leases cause I showed them how it would cost less to lease then buy it then just finance it.

I don't understand what the buying it at or below MSRP is after the lease is up, maybe Im reading it wrong but at the lease end you usually buy it for what it would be worth after say 3 years, the residual value, thats just how it worked out for me.

 

[ovrrdrive]

Keep in mind you have different insurance requirements on a lease vehicle because technically it isn't your truck... I think they require 100/300 and a few other minor clauses.

They also put everyone of driving age in the house on the policy. A buddy of mine's wife leased a car and after they signed the paperwork the dealer wrote the policy and made them put him on the policy. He has a DUI on his record and it was a sports car so you can guess the rest. I think it was over a few thousand dollars a year for the insurance alone and they were already trapped into the lease by then.

A lease is a good way to get an expensive car for less, you just have to make sure you read the fine print and be ok with the fact that at the end of the lease you have nothing.

 

[Bluto]

If you only keep them 3 years, leasing may be a good option. The 27k/year is good.

But you won't have any equity in 3 years, like you do in the Tahoe.

Work out the numbers both ways and decide.

You can probably price used 2003 4Runners to get an idea how much the 2006 will be valued in 2009.

 

[Jeff Kleb]

LEASING


I leased my '05 SR5 4x4 and it has been a very good deal from a financial standpoint. Of course, I have a low-mileage lease that limits me to 36,000 miles over the course of the 36-month lease.

I am able to do this because I have a "beater" Nissan Sentra that I use for daily commuting. I drive over 20,000 miles a year, so I would go way over my mileage limit if the 4Runner were my only vehicle - not to mention the $$$$ I have to put in its gas tank.
:bash:

Also, Toyota charges you 20 cents a mile for every mile over 36,000 at the end of the lease, even if you want to keep it. Ouch! So far, I am okay because I have had it for about thirteen months and only have 10,000 miles on it.
:awais:

My payment is about $300 a month less than what it would have been for me to purchase my 4Runner outright. This is because the Toyota has a rather decent residual value. At the end of my closed-end lease, I can walk away from it or buy the vehicle for about $19,000. (As of now, I do not plan to keep it after the lease -- but may get a RAV-4 or possibly even a {Gasp!} Camry for 2008.

You can do okay with leasing, provided you keep the vehicle in excellent condition, don't alter it (lift kits, body work, etc., etc.) and watch your mileage. Also, your payment will be greatly affected by your credit rating and whether or not you do your 'homework' before even contacting a dealer about driving off in a new 4Runner. (Don't tell them ahead of time that you want to lease, or they'll try to up the "capitalized cost" to fatten their margins.) Be sure to get what their lowest 'sale price' will be, and then determine your "use" amount of the value by subtracting the residual value.

This is my first lease on a personal vehicle, although I have leased work trucks before -- but that's a different animal.

 

[Falls]

I honestly can afford to buy or lease, so that's not the issue, but I could put the cash equity from the Tahoe to much better use. That's the intrigueing thing to me I guess and since I rotate vehicle's every 3 year's and at about 80k mile w/the exception of my Tahoe.....the nickle & dime problem child , but I still love it.

 

[BlackFive]

"Premature termination" is a small-print item, but it sure can become a big problem if, for some totally unexpected reason, you have to get out of the lease early. Some termination clauses require all payments in full, but can be waived if your next car is with the same dealer. So get a copy of the lease before you sign and read that small print!

http://www.federalreserve.gov/pubs/leasing/

Burned once, shy twice.

 

[Jeff Kleb]

"Premature termination" is a small-print item, but it sure can become a big problem if, for some totally unexpected reason, you have to get out of the lease early. Some termination clauses require all payments in full, but can be waived if your next car is with the same dealer. So get a copy of the lease before you sign and read that small print!

Good point, B5......I never even mentioned that. I suppose it is always good to consider that you might be 'stuck' with the car for the entire lease term, instead of being able to sell it at a loss after one or two years into it.

I don't plan on getting rid of my 4Runner before the lease expires (January of 2008), but it would probably be very "hairy" if I wanted to do so.

My biggest decision is whether or not I will buy it at the end of my lease. I can purchase it outright for roughly $19,000 - or walk away from it. I guess the real market value (of what will be a very nice three-year-old 4Runner SR5) is going to have a lot to do with the price of gasoline at that time. If it stays close to $2 or less, it won't be so hard to turn around and sell it for 21 or 22 grand, but things will be worse if gasoline stays above three bucks! Anyway, that's why I got a closed-end lease.

 

[drake3]

Re: LEASING

Also, Toyota charges you 20 cents a mile for every mile over 36,000 at the end of the lease, even if you want to keep it. Ouch! So far, I am okay because I have had it for about thirteen months and only have 10,000 miles on it.
:awais:

Jeff, That is pretty strange for a lease. I have never, ever seen that in a closed-end lease contract before. Did you lease with an open-end contract or do a business lease (which many are open-ended)?

On all closed-end leases the residual value is set and you are only liable for that amount (and possibly a few other fees) if you wish to purchase the vehicle. If you want to turn it in then you need to pay any milage charges.

It sounds like an open-ended lease because with those you have to make up any difference between residual and market value, which of course if affected by milage, at the end of the lease.

Paul.

 

[Jeff Kleb]

Re: Re: LEASING

Jeff, That is pretty strange for a lease. I have never, ever seen that in a closed-end lease contract before. Did you lease with an open-end contract or do a business lease (which many are open-ended)?

On all closed-end leases the residual value is set and you are only liable for that amount (and possibly a few other fees) if you wish to purchase the vehicle. If you want to turn it in then you need to pay any milage charges.

It sounds like an open-ended lease because with those you have to make up any difference between residual and market value, which of course if affected by milage, at the end of the lease.

Paul.

Yes, it is a closed-end lease. I get to either 'walk away' at the end of the term (January of 2008), or I can purchase the vehicle for its pre-determined market value - about 19k and some change, if memory serves me correctly. I have to pay 20 cents a mile for anything over 36,000 miles, but plan to keep it below that by driving my Sentra most of the time.

I was able to get very favorable terms because of my good credit rating and doing my homework ahead of time.