Questions about Lifting/Moding and Leasing

[gundrted+t4r]

Im sure your broker will tell you this, but its crazy to prepay a lease.

I agree and have been told this by my broker. He said never put money down because all you are doing is paying down your payment. You really never get that money back. Sure you save a little in monthly tax unless you are putting a large amount down I don't see the benefit. If you are trying to get a monthly payment .. sure maybe its worth it, but overall I've always done 0 down. Anything I get from a trade goes into the bank and used for making monthly payments or upgrades like tinting or clear bar. I have a local guy that does it close to cost and looks amazing.

 

[bofa]

TFS allows you to put upwards of 9 security deposits on a lease, a security deposit is equal of 1 monthly payment and reduces your apr by .00008. 9 security deposits would be upfront money equal to 9 of your regular payments and end up reducing your money factor by .00072, which translates into roughly 50 dollars per months. this money you get at the end of your lease wether you buy it out or trade it even if you return (which you shouldnt) as long as the car is in good condtion. from the past i can tell you it ends up being 4500 upfront that you get at the end which saves you upwards of 2200. better than money sitting in the bank earning you nothing, here it is earning you upwards of a 50% return.

The whole point of leasing is keeping your money liquid, whether its monthly payments or downpayment/deposits. On a 4R the lease rates are crap right now. You can save more than 1.7% by doing traditional financing.

Really, unless the manufacturer is subsidizng the MF (less than .00095 or so), leasing doesn't make sense for non-commerical purchases.

 

[jwkilgore]

If you can afford to pay for a $50K vehicle in 3 years I say fill your boots.

I bought a 2011 SR5 at the end of 2011 for $31k plus taxes and fees. I didn't splurge on a Limited or Trail. I made a down payment which brought the total borrowed amount down to $28k, financed for 5 years at 1.8% (I have a very good credit rating). I rounded my payments up to $500/month for 4 years, then I paid off the remaining few thousand with a nicer than average Christmas bonus.

I've been payment-free on this vehicle since November, 2015, and plan to continue payment-free for at least the next five years.

You, on the other hand, will never stop making payments. Several hundred dollars a month, every month, for the rest of your life.

*IF* I had to buy another one I would repeat. Current MSRP for an SR5 is $34, though after reading this forum I *might* splurge on a TRD Off Road (Trail) for $37k + taxes and fees. I would have a little cash from selling a current vehicle (another advantage of owning vs. leasing), so finance maybe $35k. Financing for five years puts payments at a little over $600; for four years puts payments at $759.

Facts:
1. Debt is bad.
2. Continuously paying to keep a new vehicle instead of driving a reliable older one doesn't make good financial sense, whether that vehicle is leased or straight-up bought. But priorities aren't facts, and maybe you have different priorities than I do. It's your money and your life. :hippie: :kiss:

Yes, the current iteration of 4Runners hold their value and sometimes actually appreciate. But using an object that can be destroyed in an instant as a financial investment doesn't make good financial sense. A friend tried that with a Harley Davidson motorcycle back when used ones cost more than new. He totaled it two years after buying it.

 

[2005v8sport]

TFS allows you to put upwards of 9 security deposits on a lease, a security deposit is equal of 1 monthly payment and reduces your apr by .00008. 9 security deposits would be upfront money equal to 9 of your regular payments and end up reducing your money factor by .00072, which translates into roughly 50 dollars per months. this money you get at the end of your lease wether you buy it out or trade it even if you return (which you shouldnt) as long as the car is in good condtion. from the past i can tell you it ends up being 4500 upfront that you get at the end which saves you upwards of 2200. better than money sitting in the bank earning you nothing, here it is earning you upwards of a 50% return.

I just picked up my new Cement TRD Pro today and they told me you can't do MSD's, did they lie to me?

 

[SnowTrail]

I just picked up my new Cement TRD Pro today and they told me you can't do MSD's, did they lie to me?

I am in PA for Central Atlantic Toyota and we do them here. Could be not done there? but I highly doubt it. call Toyota consumer line and find out!


And Congrats! Post some pictures!

 

[gundrted+t4r]

And this is why I will never go back to a dealer again. You don't get this BS from a reputable auto broker.

So coming back to my question that started it all .....

• Just like what I'm used to with my Jeep, you'll never see an ROI on a mod.
• Mods that don't physically change or make it a neice product shouldn't make a difference.
• If I lift it, keep the OEM parts so I can have the option of returning it to stock later.

Overall use common sense and think about what the general buyer would want.

 

[SnowTrail]

And this is why I will never go back to a dealer again. You don't get this BS from a reputable auto broker.

So coming back to my question that started it all .....

• Just like what I'm used to with my Jeep, you'll never see an ROI on a mod.
• Mods that don't physically change or make it a neice product shouldn't make a difference.
• If I lift it, keep the OEM parts so I can have the option of returning it to stock later.

Overall use common sense and think about what the general buyer would want.

Not all of us are bad, Brokers are not the greatest either, their fee comes from what could have been negotiated off your deal as well, but again not all brokers are bad either. Some of us are hardworking people that till a great extent care.

 

[bofa]

Not all of us are bad, Brokers are not the greatest either, their fee comes from what could have been negotiated off your deal as well, but again not all brokers are bad either. Some of us are hardworking people that till a great extent care.

Totally agree with you on this. Some are good - people just have to watch out for themselves and understand the game.

[MENTION=152304]gundrted+t4r[/MENTION] What does your broker charge? Ive often wondered if I'm making out better without one.

 

[gundrted+t4r]

Totally agree with you on this. Some are good - people just have to watch out for themselves and understand the game.

[MENTION=152304]gundrted+t4r[/MENTION] What does your broker charge? Ive often wondered if I'm making out better without one.

Sent you a PM

 

[2005v8sport]

I am in PA for Central Atlantic Toyota and we do them here. Could be not done there? but I highly doubt it. call Toyota consumer line and find out!


And Congrats! Post some pictures!

it's weird, the SOutheast is supposedly not owned by toyota( can't quite understand how they described it to me) but it's not Toyota Motorcorp. I tried to ask about a part I ordered from TRDparts4u in texas and my local dealer didn't even see the part number in system. Said different territories.

I ended up getting under MSRP and what I felt was good deal on the lease on mine, so I am happy.

 

[SnowTrail]

it's weird, the SOutheast is supposedly not owned by toyota( can't quite understand how they described it to me) but it's not Toyota Motorcorp. I tried to ask about a part I ordered from TRDparts4u in texas and my local dealer didn't even see the part number in system. Said different territories.

I ended up getting under MSRP and what I felt was good deal on the lease on mine, so I am happy.

Sick truck, congrats again!

 

[gundrted+t4r]

Not all of us are bad, Brokers are not the greatest either, their fee comes from what could have been negotiated off your deal as well, but again not all brokers are bad either. Some of us are hardworking people that till a great extent care.

In all fairness. Most most of time the issue is NOT the sales person. They are just trying to make a living like the rest of us.

Its the dealership and how it chooses to run its business.

 

[Northern 4Runner]

I bought a 2011 SR5 at the end of 2011 for $31k plus taxes and fees. I didn't splurge on a Limited or Trail. I made a down payment which brought the total borrowed amount down to $28k, financed for 5 years at 1.8% (I have a very good credit rating). I rounded my payments up to $500/month for 4 years, then I paid off the remaining few thousand with a nicer than average Christmas bonus.

I've been payment-free on this vehicle since November, 2015, and plan to continue payment-free for at least the next five years.

You, on the other hand, will never stop making payments. Several hundred dollars a month, every month, for the rest of your life.

*IF* I had to buy another one I would repeat. Current MSRP for an SR5 is $34, though after reading this forum I *might* splurge on a TRD Off Road (Trail) for $37k + taxes and fees. I would have a little cash from selling a current vehicle (another advantage of owning vs. leasing), so finance maybe $35k. Financing for five years puts payments at a little over $600; for four years puts payments at $759.

Facts:
1. Debt is bad.
2. Continuously paying to keep a new vehicle instead of driving a reliable older one doesn't make good financial sense, whether that vehicle is leased or straight-up bought. But priorities aren't facts, and maybe you have different priorities than I do. It's your money and your life. :hippie: :kiss:

Yes, the current iteration of 4Runners hold their value and sometimes actually appreciate. But using an object that can be destroyed in an instant as a financial investment doesn't make good financial sense. A friend tried that with a Harley Davidson motorcycle back when used ones cost more than new. He totaled it two years after buying it.

You missed my point. You didn't finance $50k. I bought a 50k truck and it turned out I didn't want to keep it. The way I am doing it I can try out the 4Runner for 3 years and if I like it buy it out. In the end I am still paying what the vehicle is worth, just spread out over a longer time. Like I said 0.9% interest so that is a small amount to pay to insure I like the vehicle.

Also you live in TN and while a vehicle may last many years there, that is not a reality here in the harsh north eastern climate of Canada where I live. A new vehicle sometimes is cheaper than running a higher mileage old vehicle and the reliability with a family on long road trips is worth it to me. This is a price I'm willing to pay, gotta spend your money somewhere...

Now if I only knew the trd pro 4Runner was coming to Canada I may have held out a little longer. Those cement ones look bad ass!

 

[jwkilgore]

You missed my point. You didn't finance $50k. I bought a 50k truck and it turned out I didn't want to keep it. The way I am doing it I can try out the 4Runner for 3 years and if I like it buy it out. In the end I am still paying what the vehicle is worth, just spread out over a longer time. Like I said 0.9% interest so that is a small amount to pay to insure I like the vehicle.

Also you live in TN and while a vehicle may last many years there, that is not a reality here in the harsh north eastern climate of Canada where I live. A new vehicle sometimes is cheaper than running a higher mileage old vehicle and the reliability with a family on long road trips is worth it to me. This is a price I'm willing to pay, gotta spend your money somewhere...

That's different. The "try it before you buy it" idea is a valid reason to lease, and is basically the OP's situation. As long as you do eventually buy it, pay it off, then keep driving it with no payments.

But you're still off on the reliability issue. Several decades ago a 100k car was at the end of its "reliable" life. Expensive things started to rapidly break, and you gave serious thoughts to safety and maintenance before leaving on a road trip with the family.

But times have changed; by 100k a modern Toyota is just getting broken in good. I have a Nissan Pathfinder with 125k, and I would have no worries with reliability if I were to decide to drive it to Canada tomorrow. We're planning on selling the Pathfinder this summer because it no longer meets our needs (I want a smaller commuter vehicle with better milage), but it's perfectly reliable. I hope to keep my 4Runner to at least 250k, slowly transitioning it to be more and more off-road capable.

Trading in a 5-yr-old 4Runner because you're concerned about "reliability", even with salty Canadian roads, is kinda silly IMHO.

 

[Northern 4Runner]

That's different. The "try it before you buy it" idea is a valid reason to lease, and is basically the OP's situation. As long as you do eventually buy it, pay it off, then keep driving it with no payments.

But you're still off on the reliability issue. Several decades ago a 100k car was at the end of its "reliable" life. Expensive things started to rapidly break, and you gave serious thoughts to safety and maintenance before leaving on a road trip with the family.

But times have changed; by 100k a modern Toyota is just getting broken in good. I have a Nissan Pathfinder with 125k, and I would have no worries with reliability if I were to decide to drive it to Canada tomorrow. We're planning on selling the Pathfinder this summer because it no longer meets our needs (I want a smaller commuter vehicle with better milage), but it's perfectly reliable. I hope to keep my 4Runner to at least 250k, slowly transitioning it to be more and more off-road capable.

Trading in a 5-yr-old 4Runner because you're concerned about "reliability", even with salty Canadian roads, is kinda silly IMHO.

I never said I was concerned about reliability after 5 years. Was commenting on your statement of keeping a vehicle for 10 years +

Your 2011, payment free since November 2016, and you want to keep it at least another 5 years. A 10 year old vehicle for me would have 500k and see a lot of abuse from work.

Different strokes for different folks. arty: