Can you help me with this lease? Numbers inside

[FullMetalNapkin]

 

[FullMetalNapkin]

I’m going tomorrow and I wanted to know if anyone sees anything I could get wiggle room on. It’s at msrp right now. They removed the 5k market adjustment

 

[thomez]

Can you explain the trade component?

 

[FullMetalNapkin]

My 2016 4Runner. 155k miles and used like it should be

Can you explain the trade component?

 

[thomez]

My 2016 4Runner. 155k miles and used like it should be

View attachment 3049

So they are offering you $16k for your 4Runner and it still costs you ~$15k to lease a Land Cruiser for 3 years? That’s $861 a month. Seems like a lot.

 

[EOD Guy]

If you don't plan on keeping the LC after the lease, disregard everything below....

I have leased one vehicle in my lifetime and would never do it again. That being said, I did it because I couldn't afford a loan payment at that point in my life and the lease was a lot cheaper payment. I knew I was going to keep the truck after the lease expired and take out a loan then etc........ The double talk the salesman kept feeding me about residual value after the lease yadda yadda. What he didn't explain very well....... that basically in my case the lease was a loan with a ballon payment at the end of the lease for the residual balance. I had the choice of ending the lease and return the truck to the dealer and paying any fees or buying the truck, I chose to buy the truck and I ended up paying WAY more than I should have by doing a lease and keeping the truck. Basically paying the same payment for 5 more years.

 

[thomez]

If there’s $18k difference between the MSRP and the residual, I struggle to understand why you’d need to pay $31k

 

[FullMetalNapkin]

The plan was to keep it in the end

 

[thomez]

The plan was to keep it in the end

Personally, I’d struggle to lease then. You are going to end up with 8 or 9 years of payments that way if the goal is to minimize the monthly payment. I’d look at buying. $300 extra per month for 6 years and you’d own the thing outright. Also you’d always have positive equity if you wanted out.

 

[EOD Guy]

The plan was to keep it in the end

Of course it's your decision, but make them lay out the numbers.
How does the process go after the lease is satisfied.
Exactly what will the residual dollar figure be when the lease ends.
Will Toyota Financial take the loan after the lease.
What are the possible mileage penalties.
Exactly what is considered "fair wear and tear" small dents, large dents, paint discoloration.

If you decide after receiving the answers, get it in writing!

I'm just say'in, make an informed decision. I didn't and only saw the shiny and ending up paying 9 years on a truck.

 

[Evan Cabe]

I’m a fleet manager for a dealer in ca. have you lease financed with toyota before? If so they can lower the rate a tiny bit to .00310
Not much but it’s something. Looks like a base payment, what’s the monthly tax?
I see tax on cap cost reduction and some other little tax but what the total monthly payment they are hitting you at with tax.

 

[FullMetalNapkin]

I’m a fleet manager for a dealer in ca. have you lease financed with toyota before? If so they can lower the rate a tiny bit to .00310
Not much but it’s something. Looks like a base payment, what’s the monthly tax?
I see tax on cap cost reduction and some other little tax but what the total monthly payment they are hitting you at with tax.

State tax? Or sales tax?

I was told the payment would be 410 a month

 

[Evan Cabe]

Of course it's your decision, but make them lay out the numbers.
How does the process go after the lease is satisfied.
Exactly what will the residual dollar figure be when the lease ends.
Will Toyota Financial take the loan after the lease.
What are the possible mileage penalties.
Exactly what is considered "fair wear and tear" small dents, large dents, paint discoloration.

If you decide after receiving the answers, get it in writing!

I'm just say'in, make an informed decision. I didn't and only saw the shiny and ending up paying 9 years on a truck.

Tfs will take the loan after the lease assuming ltv is ok. And hasn’t driven a shit load of miles. If so may have to put money down to get ltv in a friendly range like any bank. At end of lease. Mile penalties, wear and tear only matter if you give it back to the factory. No one does this. Unless your in set territory. I’ve sold everyone of my leases the last 10 years for equity. But if your in south east toyota territory your screwed. They don’t allow third party purchases

 

[EOD Guy]

Tfs will take the loan after the lease assuming ltv is ok. And hasn’t driven a shit load of miles. If so may have to put money down to get ltv in a friendly range like any bank. At end of lease. Mile penalties, wear and tear only matter if you give it back to the factory. No one does this. Unless your in set territory. I’ve sold everyone of my leases the last 10 years for equity. But if your in south east toyota territory your screwed. They don’t allow third party purchases

Need more good advice like this on these posts!

 

[Evan Cabe]

State tax? Or sales tax?

I was told the payment would be 410 a month

Hard to see on the print out. I’ve seen lots of print outs that break down the payment a little further. Doesn’t hurt to ask if they can send you the “lease worksheet” that they have to give to send tfs.

If you can afford it. Do a one pay lease, lowers the money factor a little more.

I put as much down to get it to a little under 80% ltv, that’s my safe number to not worry about worrying about gap insurance

I’m leasing mine because I don’t want to finance the full tax of the car at these crazy rates. ILease, finance rates are very similar. Might as well lease, then when rates come down; take the bigger tax hit at a lower apr. If I like it’s I’ll refi. If not, I’ll sell it. I’m sure I can get more than the residual when the time comes. When you lease you’re only taxed on the cap cost reduction and monthly tax. Tax on doc fee in most states. Not the entire car. In my state, remainder tax is due on whats due when you convert it from a lease to a buy. Believe that’s most states

Food for thought. Never seen a Tacoma customer, not have at lease 5k + equity in their car after their lease in the last few years. Pre pandemic, possibly a little less but still came out ahead.

Sorry for rambling, I suck at gathering my thoughts and typing them on a phone.

 

[RUN-8]

The plan was to keep it in the end

If that’s the case then leasing is a bad idea. If you can only afford to drive it by leasing I suggest pumping the brakes on getting a new vehicle. If you can afford to finance it to purchase go for it.

Leasing a Toyota makes no sense unless you need a business write off. They’re vehicles you hold for the long term, as you plan to do. For non write off purposes leases should be limited to things like BMW’s etc that you do not want past warranty periods and don’t want to get soaked on the full price for a shiny pile of garbage.

 

[FullMetalNapkin]

Is the deal good? I’m going tomorrow to decide but I was trying to get feedback. I’ll ask them to lower he % that you mentioned.

The ltv.. is 70% is that good?

 

[Mookie242]

That's a solid lease I would say in this day and age. How long was the lease? 36 months? How many miles? If I'm reading everything correctly, you will pay $31,900 over 36 months.

My total over 36 months is $38,430 but I only put $1,600 down and I wanted to pay extra for 12k miles per year. My MSRP was also $6,000 more than yours ($64,195) with more packages.

When it comes to leasing or buying, to each their own. For me, it's always been cheaper to buy - but I now prefer the convenience of leasing. I get a brand new car every few years, and I'm completely covered if anything major happens. I also get free oil changes and tire rotations. When you lease, you also don't have to worry about debt, getting a bad car, putting a large amount of money down, or the hassle of selling a car. With the way car technology is rapidly increasing, I made the decision to lease from now on. I no longer feel comfortable owning a vehicle for 6-10+ years. In 2-4 years time, most cars will drive themselves and be much more efficient than today.

We also did well getting the 2024 Land Cruiser! The 2025's are basically the same car for thousands more is my understanding.

 

[EOD Guy]

My experience with the one lease I've ever had............ Leased a new truck with the plan to purchase it in the end (at the time couldn't afford the payments on a conventional loan) I was happy with the monthly payments and life was good for 3 years, the lease was up and I was all set to switch the residual balance over to a conventional loan, that's when I realized what residual value meant.......... went to the Stealer's to do the paperwork, was hit with "Your ballon payment (residual value) is "X" dollars, due today", "it's a used vehicle and your interest rate will be (insert crazy number here) and as a used vehicle the length of the loan is limited to 3 years." "Your payment will be "X" more than lease payment and you barely qualify for the loan, so there is no negotiation, unless you'd like to flip the lease to another vehicle, then "X" processing fees will be rolled into the new lease."

I ended up financing through a credit union with a much lower interest rate, but the "used vehicle rules" still applied etc.......... and I ended up paying many thousands more than if I just purchased it out right in the beginning. I did keep the truck for 12 years and it was a good truck.

If you plan on keeping the vehicle, just be prepared for the end of lease dramatics.

 

[Mookie242]

Yep. It's usually best to pay cash at the end of a lease if you are planning to buy the car outright. Otherwise, you get hit with more fees and interest.