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TacomaGeneral discussion forum for the 2005 and later Toyota Tacoma.
This is a discussion thread titled "Lease vs buy?", within the Tacoma forum, part of the Truck Forums category.
sorry for so many questions but i went to my friend at the dealership again, and the outcome was that it might be more worth it for me to lease it.
I decided i probably want the TRD 4x4 DC SB maybe LB but probably not. Anyway the benefits my friend told me of leasing is that i dont need to put 8000 dollars down to have a decent monthly, i can get a new truck at the end of the lease all over again, its cheaper monthly.
My debate here is that i would definitely not mind having that 8000 dollars in my bank account but i feel like it wouldn't truly be MY truck. I cant add an exhaust or anything to it if i lease it right?
I heard you could buy out the truck at the end of the lease, how much of a loss would i take if i did that.
It's up to you man. I have always owned .... that "ownership" thing you were talking about.
If you can afford the down payment .. go for it and buy.
If at the end of the lease you won't mind letting go of "your truck" .. go for it and lease.
If you want to accept that balloon payment at the end of the lease to "own your truck" .. go for it and lease.
Of course this is just my opinion. In my case I am able to make many (2 to 4) payments a month to get the sucker paid off but I am able to do that ... not all can. For that I feel very blessed.
I am sure that those who are leasing will be able to give you their spin.
IMO, you can not afford this truck, as there is no way you could pay cash for it even if you wanted to. Of course, "affording it" means different things to different people.
Most of your questions are purely money / financing / credit related, and this here is definately not the right board for those. Try asking the same here: Money Board
That's where these questions really belong, and where you will get a much better answer to them. Much better then anything you can expect here. TundraSolutions is great for technical problems, mods, lifts, performance enhancements, you name it. Anything money related is certainly not the strength of this forum.
Anyway, if you lease you will make the guy selling the truck to you even more money then if you buy (most likely). That's why he suggested it. Leasing only makes financial sense for some very high income people or businesses with a huge tax write off who require a new vehicle every 3 years or so. It does not sound like this fits you.
Again: lean back, save your money and stay away from this purchase for the moment. Take some time and get more information. Look at the board I posted above. And if you don't want to join that board, let me know. I can post your questions there for you anonymously, and give you a link to it with the replies. I belief that would open your eyes.
Nope, there is no gain in here for me telling you what you don't want to hear, except maybe some nasty replies from others here. I am just telling you what I think is the best for you.
Good luck,
Steve.
Last edited by stevegillings; 08-03-2007 at 12:12 AM.
I'd stay away from the dealership. if you can, secure a loan from a bank and buy a used truck, it's much cheaper than one from the stealership. Forget the monthly payments if you can first negotiate the total price of the truck, once you have that as low as you can, move onto payments, your payments will depend on 3 things; principal, the amount your borrowing; your interest rate; and the term of the loan. those things you can tweek to meet your needs. longer term will be lower monthly payments but you'll be making more payments as well as paying a higher interest rate. the interest rate is flexible, but the longer the term the higher the rate. its a risk/ reward ratio for the loaner the higher the risk you pose the higher the interest rate. if you walk into the dealership and say you want the lowest monthly payment your asking for the highest price. Dont trust your "friend" at the dealership your just a commission. hope this helps.
dont trust anyone with your money
__________________
06 Taco AC TRD offroad/tow
fog light/rear diff lock mods
TRD CAI
Sirius radio
IMO, you can not afford this truck, as there is no way you could pay cash for it even if you wanted to. Of course, "affording it" means different things to different people.
Most of your questions are purely money / financing / credit related, and this here is definately not the right board for those. Try asking the same here: Money Board
That's where these questions really belong, and where you will get a much better answer to them. Much better then anything you can expect here. TundraSolutions is great for technical problems, mods, lifts, performance enhancements, you name it. Anything money related is certainly not the strength of this forum.
Anyway, if you lease you will make the guy selling the truck to you even more money then if you buy (most likely). That's why he suggested it. Leasing only makes financial sense for some very high income people or businesses with a huge tax write off who require a new vehicle every 3 years or so. It does not sound like this fits you.
Again: lean back, save your money and stay away from this purchase for the moment. Take some time and get more information. Look at the board I posted above. And if you don't want to join that board, let me know. I can post your questions there for you anonymously, and give you a link to it with the replies. I belief that would open your eyes.
Nope, there is no gain in here for me telling you what you don't want to hear, except maybe some nasty replies from others here. I am just telling you what I think is the best for you.
I dont mean to keep beating the ol' war drum but I agree with the above posts. I see where you are coming from and when I was car shopping I wanted the TRD 4x4 too, lets agree they look awesome... but do you NEED a TRD 4x4 DC SB? Can you find one slightly used in the paper for quite a bit less?
What my wife and I did was before a major purchase we "made the payment" to ourselves to see if we could afford the change in our budget. For example, when we bought our house we paid the rent + the difference of our new morgage. Then instead of paying the bank we put it into our savings account. We did this for about six months or a year and at the end you have a good portion of your down payment. Works for us, we bought two Toyota's and a house doing this.
If you "made the payment" for 4 years driving a crappy car but paying yourself you could purchase your truck outright! THAT MEANS NO PAYMENTS! Your insurance is cheaper, your credit is better AND YOUR RICHER.
Good advice in all the above posts. Here's my brief take on vehicle leasing, at the risk of repeating what has already been said:
Leasing will cost you more, especially if you exceed the allowed amount of miles -- and at the end of the lease, you either give the vehicle back, or buy it. It simply makes no sense for an individual, unless you can deduct the cost of the lease (write it off as a business expense).
Basically, buy what you can afford -- or don't buy until you can afford it.
i make about 800 dollars a week, my only expenses are insurance on my current car (around 150-250), my cell phone 30-40, commute to the city for work about 230, and thats my only needs. I'm a union carpenter and every year for the next 3 years my pay scale increases 15%. So basically il be 15% more able to continue paying it off, its just i was trying to decide what was best to do. The reason i have my heart set so much on buying the Tacoma is because i want to get into side work for extra money on the weekends, which cant be done in my current car, the eclipse.
I have a final question though involving down payment and total cost. Lets say i dont sell my car by the time i want to buy the truck, leaving me with say 4-5000 dollars for a down payment instead of 8-9. My monthly payment for the 8-9000 dollar payment is about 430-80 for 72 months. Lets say i put only 5000 down, and the payment goes up to maybe 550 or something. Can i down the line as i have the extra money, put it into the car to reduce my payments every month. Like if i make 2800 a month after taxes, i put 800 to the truck and insurance, etc to my other stuff and have 1000 left over. Can i put that in to the payment to lower the overall monthly cost? Sorry if i didn't explain it that well but im not too good with financially related things.
Basically in short what im saying is, if i put a lower down payment on the car, can i eventually balance it out and not take a loss somewhere.
Thanks alot everyone who's helping me with all my questions.
That will depend on your bank. Will you have a loan with a prepayment penalty and how does your lending institution handle pre-payments? Nobody here will be able to answer that, it's a question that you will need to ask your lender.
Quote:
My monthly payment for the 8-9000 dollar payment is about 430-80 for 72 months.
That means you will pay a total of sowhere between $39,000 and $44,000 for that truck, depending on the final terms of your loan. You are aware of that, right?
One final piece of advise: If you do go for it (which, no doubt, would not be a smart move), make sure there is no prepayment penalty. If something was to happen down the road that would force you to sell the truck then you would most likely be upside down on the loan if there was a prepayment penalty. That would be even worse then the whole thing is anyway .....
It just hurts seeing young people throwing their money away ....
Last edited by stevegillings; 08-03-2007 at 06:21 PM.
no not really but i cant deal with my current car any more and finally have the money for something i want for once. I just don't see why leasing would somehow be bad though hence why im asking the questions to find what is best to not throw away money. I'm paying 13680 dollars plus insurance for 3 years to lease it. And at the end of that three years i get a new truck all over again no? Where can it hurt me?
leasing is renting, are you sure you want to pay 430-80/month to rent a car? plus using it for sidejobs, could rack up your mileage and cause damage, all you'll have to pay for in penalties at the end of your lease.
Making a lump sum payment in my loan doesnt effect the monthly payments it shortens the term of the loan. At the end of your lease you dont get a new truck you have to put down another down payment and start all over again wouldnt you rather have a truck when your done payments, not keep making payments for the rest of your life. I got 22 months and my truck is mine. why not start a poll for this? my vote is buy!
__________________
06 Taco AC TRD offroad/tow
fog light/rear diff lock mods
TRD CAI
Sirius radio
I'm paying 13680 dollars plus insurance for 3 years to lease it. And at the end of that three years i get a new truck all over again no? Where can it hurt me?
How many miles are included in that lease?
Let me try to explain the lease thing: Let's assume you do the leasing twice in a row. So you paid $27,360 in 6 years. That is a little more then what I paid for my 4WD DC TRD OR. So after 6 years, you paid more and you have nothing to show for that money. I have paid a little less and still own a 6 year old truck after those 6 years. Do you see the difference?
Now add in that in the second term the price for that lease has increased, which it certainly will. Plus there will also be a down payment on that lease, right?!?! Make that two downpayments over the 6 years, actually.
Looking at the loan payment numbers you have posted, you'd be getting a 18% or so interest rate if you have a bank buy the truck. That's outrageous (spell: ripoff) and not really smart either.
Buy a used truck that you can actually afford and save your money so later you can afford the truck you really want. Or go ahead and get it now and live with the fact that you are throwing away your hard earned money and that you have a good chance of being a slave to the lending industry for a looong time to come.
Your friend at the dealership is trying to screw you out of your money big time either way.
Good luck,
- Steve.
Last edited by stevegillings; 08-03-2007 at 10:51 PM.
They did a super job explaining a lease to you. Generally, the dealer makes more profit on a lease too.
FYI ... Leases are rarely discounted (lower rebates, if any) like a sale unit would be.
The exceptions here are the "Premium Cars" like BMW, Lexus and etc. .... They discount a lease to hide their year end discounts and not make their vehicles look discounted.
Plus, many who get into those premium vehicles .. lease them and write them off too.
Unless you can write it off .. I would NOT touch a lease.
SOS
.
Last edited by SOSHeloPilot; 08-03-2007 at 10:42 PM.
gdctaco,
If I understand it correctly, then JFD can't really *buy* the truck of his dreams because he doesn't have the money. (otherwise this thread probably would not exist). Now if a bank buys it and lets him use it, that would come at an interest premium of around 18% (give or take a couple percentage points) for him judging by the numbers he posted. Probably not much (if any) better then the lease.
So I am not sure I'd recommend that either .... because that's insane!
Last edited by stevegillings; 08-03-2007 at 10:52 PM.
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Lease vs buy?
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