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Has anyone done a lease?
- Thread starter drabon74
- Start date
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ridetime
Well-known member
How long do you plan to own it? Lease is a 3 year "rental" that you turn back in after 3 years (normally) and walk away in theory. In reality you will pay for dents over a certain size, tires need to have plenty of tread or they will charge you, etc.
Also you won't be able to do most mods because you don't own it if that matters. My advice, buy Toyota, Honda rent BMW, Mercedes, Audi and other expensive high depreciation makes.
Also you won't be able to do most mods because you don't own it if that matters. My advice, buy Toyota, Honda rent BMW, Mercedes, Audi and other expensive high depreciation makes.
JayT1989
Member
I lease. while it's true that it's a "rental" for 3 years, Toyota's hold their value very well. So at the end of the lease when you turn it in, the truck is usually worth more than the buyout price. so you get a little back.
Basically, you can usually only lease brand new vehicles, but the payment is lower than if you financed it outright.
Pros of leasing:
only pay for the value of the vehicle you use.
always covered by warranty
New vehicle every 3 years.
If you continually trade in your cars, leasing makes sense because your payments will be lower.
no need for GAP insurance, it's figured into the lease payment.
Most leases have an allowance at the end to cover any minor dents and dings or minor mileage overages.
if the market tanks and the value of the vehicle is less than the buyout value, just turn it over. You don't pay the difference, but if the market is good and the value increases, you get the difference.
Cons:
you don't own the vehicle
any upgrades you put on belong to the lease company if they can't be unbolted and returned to stock condition.
can't do anything that would void the warranty, like tuners, upgraded turbo, etc.
if you drive a lot of miles, you will get charged for it at the end of the lease.
will always have a payment if you don't buy it out at the end of the lease.
I'm sure there's something I'm forgetting, but that is the general idea.
Basically, leasing is good if you don't drive more than 15K miles/year and if you buy a lot of cars so you would always have a monthly payment.
JayT
Basically, you can usually only lease brand new vehicles, but the payment is lower than if you financed it outright.
Pros of leasing:
only pay for the value of the vehicle you use.
always covered by warranty
New vehicle every 3 years.
If you continually trade in your cars, leasing makes sense because your payments will be lower.
no need for GAP insurance, it's figured into the lease payment.
Most leases have an allowance at the end to cover any minor dents and dings or minor mileage overages.
if the market tanks and the value of the vehicle is less than the buyout value, just turn it over. You don't pay the difference, but if the market is good and the value increases, you get the difference.
Cons:
you don't own the vehicle
any upgrades you put on belong to the lease company if they can't be unbolted and returned to stock condition.
can't do anything that would void the warranty, like tuners, upgraded turbo, etc.
if you drive a lot of miles, you will get charged for it at the end of the lease.
will always have a payment if you don't buy it out at the end of the lease.
I'm sure there's something I'm forgetting, but that is the general idea.
Basically, leasing is good if you don't drive more than 15K miles/year and if you buy a lot of cars so you would always have a monthly payment.
JayT
Kdbradley85
Well-known member
I have leased before, and the most important thing to do is to make sure you read and understand your contract. Make sure you know exactly what you're being charged for, just like if you were buying a vehicle. Keep in mind that your lease is going to restrict the number of miles that you are able to drive and limit most (if not all) modifications to the vehicle, as you are essentially renting it from the dealer. Most of the time, you will need to make a down-payment.
The monthly cost is typically configured by the bank/dealer determining how much the vehicle will be worth in however many years you decide to lease the vehicle and for however many miles you are expected to put on it. So for example, a common lease term is for 3 years and 36,000 miles. The bank/dealer will look at the model you want to lease and determine approximately what that vehicle's market value will be in three years with 36,000 miles on the odometer. Essentially, your lease payments are covering the expected depreciation of the vehicle. In theory, the higher the expected residual value of the vehicle, the lower your expected lease payments should be. The downside of this is that if you really like the vehicle, and wish to keep it, you will need to finance the remaining contract balance to "buy-out" your leased vehicle. This could work out in your favor depending on what the used car market is doing three years from now, but it could just as easily work against you.
Read your contract and look out for things like "rental fees," dealer "adjustment" fees (or markups), and other items that you may want to ask about that they might try and charge you for. Of course, they will still hound you to buy GAP coverage, extended warranties, and all the other typical dealer add-ons. Personally, I wouldn't consider it, but you can trust that they will be made available if you want them. Remember, it is not "your" vehicle even though you are paying for the registration and taxes.
In my opinion, financing or buying a vehicle is the better option. Even if you know you will likely be trading the vehicle in a few years, at least you have the option to accrue some equity (potentially) with additional principal payments and have more negotiating power when or if you decide to trade or sell the vehicle. The lease is designed to keep you from having any equity and to ensure that you are making payments to a bank in perpetuity. For some people, that is perfectly fine. To each their own.
The monthly cost is typically configured by the bank/dealer determining how much the vehicle will be worth in however many years you decide to lease the vehicle and for however many miles you are expected to put on it. So for example, a common lease term is for 3 years and 36,000 miles. The bank/dealer will look at the model you want to lease and determine approximately what that vehicle's market value will be in three years with 36,000 miles on the odometer. Essentially, your lease payments are covering the expected depreciation of the vehicle. In theory, the higher the expected residual value of the vehicle, the lower your expected lease payments should be. The downside of this is that if you really like the vehicle, and wish to keep it, you will need to finance the remaining contract balance to "buy-out" your leased vehicle. This could work out in your favor depending on what the used car market is doing three years from now, but it could just as easily work against you.
Read your contract and look out for things like "rental fees," dealer "adjustment" fees (or markups), and other items that you may want to ask about that they might try and charge you for. Of course, they will still hound you to buy GAP coverage, extended warranties, and all the other typical dealer add-ons. Personally, I wouldn't consider it, but you can trust that they will be made available if you want them. Remember, it is not "your" vehicle even though you are paying for the registration and taxes.
In my opinion, financing or buying a vehicle is the better option. Even if you know you will likely be trading the vehicle in a few years, at least you have the option to accrue some equity (potentially) with additional principal payments and have more negotiating power when or if you decide to trade or sell the vehicle. The lease is designed to keep you from having any equity and to ensure that you are making payments to a bank in perpetuity. For some people, that is perfectly fine. To each their own.
Duce95
Well-known member
I like doing leases. It’s a lower monthly payment and if I don’t like the car, I can always trade it in and use that positive equity towards the next vehicle.
Also google Toyota msd. You can put a refundable deposit up to a certain amount and it lowers the money factor giving you a lower monthly payment.
Also google Toyota msd. You can put a refundable deposit up to a certain amount and it lowers the money factor giving you a lower monthly payment.
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