Leasing question

[Rdfish1]

I normally pay cash for my vehicles but decided to explore leasing since i heard i could make a lumpmsum pmt to cover the lease for all 3 yrs and not incur the money factor,int rate nor be bothered with making monthly pmts. however, the dealer said he advises against thiqs bc the leasing co owns the vehicle, not me, so if i pre pay and there is a claim or problem, my insurance pmt goes to the owner of record, the leasing company not me. For exampe, if i paid 15k$ upfront and the car was stolen in month 3, the insurance co would pay leasing company for loss despite me having pre paid $15k for use of vehicle for net 3 yrs

While much of this makes sense to me, im wondering if it is entirely true. I really prefer to pay upfront and avoid money factor but dont want this kind of risk if it is true

 

[1engineer]

Just buy it then. No problems. You will lose either way. Buying a Toyota means losing less money than others but you will lose just the same. I leased once...never again. Too many worries such as the one you listed. Then there's the mileage, then there's the wear and tear, then there's the settlement, and the worst part for me is I always felt like it was a rental car. In the back of your mind it is just not yours. Lease if you want to drive something you can't afford. Otherwise just buy it. My lease was 25 years ago and never again.

 

[Jeremy556]

Leasing is for Range Rovers.

If you don't plan on keeping it for more than a couple years, and don't plan on modifying it, why a 4Runner?

 

[Rdfish1]

There is no doubt, im not buying it if the lease doesnt work, im going back to a tahoe, a 2 yr old that is 40 percent off. Im just looking for input on the question at hand. My first and only lease was i. 1998 and it was a terrific experience, but i like the lu p idea save for the above mentioned concern.

 

[1engineer]

...If you are not adverse to either a 4runner or a Tahoe then your question would best be adressed by a bank then instead of an Toyota enthusiast's website. Good luck.

 

[FrontRange4Runner]

Why would you pay a huge lump sum up front on a vehicle that you wont ever own? Trouble waiting to happen. It sounds like you have the money to simply auto pay it every month without any issue and that takes a total of 10 minutes to set up one time. Or you could just buy the Runner and sell it in a few years......Unlike the Tahoe, it will not be 40% off
--Side note, Paying monthly will allow you to have $15K in the bank which if used correctly, would help offset any small amount of interest paid on a loan.

 

[Jeremy556]

I think you should go for the Tahoe, or a used Sequoia. Those vehicles and the 4Runner are meant for different things, and it seems that you are considering the 4Runner based on price point and/or resale value (the leasing company making a profit from renting you a car).

 

[Rdfish1]

...If you are not adverse to either a 4runner or a Tahoe then your question would best be adressed by a bank then instead of an Toyota enthusiast's website. Good luck.

This is an excellent point it is a finance question not forum. Imwill do that.

Also the reason is, i accululate cash monthly in anticipation of buying my next car when i buy this one so when it is time to buy, i have enough to pay cash. A dicipline that has worked nicely. The lease idea is a new wrinkle on the runner that got me excited but im seeing holes in my approach. I know this is a runner forum so you apprec this less but i do love the tahoe having driven one for 10 yrs but they do deprec badly the 1st 2-3 yrs but that makes them a great buy on the used market bc the deprec drops drastically from that point on the runner drops significantly less in the same period and less over the useful life making it a good choice for long or shorter term ownership.

 

[Curt Sauve]

I have never leased a vehicle that didn't have a manufacture's subsidised lease with a 0% money factor. My wife leases a new Camry every 3 years and always with a TF 36 mos. 12K mile lease with a 0.00001 money factor, which is equivelent to 0% financing. She only drives 5-8K a year so it works out well for her. The only T4R I have ever leased was my 08' Sport, it was the only time that Toyota ever had a subsidesed lease on the T4R. My 14'LE is financed for 75 mos. at 2.9% to keep the payments low, I also had subsantial equity in my 11' that I traded in, but I will trade it in 3 years anyway, so, in effect I am leasing that as well. I carry gap insurance on both vehicles so in the event of a total loss I don't lose my equity.

 

[Bouts]

This is the first vehicle I've leased. Always owned them before. At this point in my life, the lease was the right option. Four years, 24000 kms per year, for me no problem. In 3-4 years drop off the keys, get a new vehicle. No worries, no major maintenance issues. I consider it my truck, I treat it like it's mine, I love it. To lease or buy, it's really based on personal need and situation. One thing I noticed, lease payments are less than if I were to finance it. When it comes time to change, no worries about how much I lose, how much is the trade in, who's screwing who, trying to sell it privately and the hassles that come with that. Nope, right now the lease was the right option. Anyways, when the lease is up and I decide I want to keep it, I pay the payout and get my initial deposit back, and walk away with a great truck and money in my pocket. Or, I drop the keys and get a brand new 2015(?)6(?) depending on when the dealer calls me up and says "It's time."

 

[Blacksunshyne]

How many miles to you put on a vehicle in a year? What are the mileage restrictions on the lease? If you go over the mileage agreement they will make a lot more money off of you.

More information would be needed to get the correct advice I would think. :driving:

 

[Curt Sauve]

Leasing works as long as you get a low money factor, plus you can still haggle on the final price of the car, don't go over the allowed mileage and maintain the car well. Also you never want to put money down on a lease because you only pay sales tax on the payments and not up front because it's not a purchase, and it doesn't lower the payments much anyway. The worst thing you can do is pay cash for a deprecating asset when interest rates are as low as they are now.