New vehicle dilemma!

[Jeremy airjer W]

Well I finally started shopping for a 4 door Tundra and ran into these problems.

1. I was originally intending on purchasing a used 2004 until the sales guys starting running the numbers. It appears that these trucks are holding there resale quite well. So going with a brand new 2006 with the manufacturer rebate would only be about $2,500 more. The problem is I don’t want to increase my payments to cover the extra but I don’t necessarily want to cough up an extra $2,500 to cover it. But it doesn’t really make sense to purchase used with a great deal on a new model.

2. Here’s the problem I’m really having trouble with. Payments on a 2006 would be in the $550 range, However Toyota is currently offering a three year – 36,000 mile lease for around $800 down and $269 a month. It’s an unbelievable deal on a 06 Tundra SR5 4x4 with the cold weather package, towing package, 17” wheel upgrade, upgraded trim package, running boards, bed liner, upgraded stereo package, power rear window, and fender flares to name a few.

I have never leased and know very little about it. Any pros and cons that you can think of will definitely help my decision.

Thanks for your help!

[DTro]

Quote:

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FullTilt hit it right on the head!! I do this for a living and see that 99.9% of the population with a lein on their vehicle owes a good chunk of money more than what there vehicle is actually worth. The only place equity in a vehicle comes from is from your back pocket. Take this scenario; Joe Blo walks in to trade his vehicle on a new truck, he owes $18,000 on a truck that is worth about $13,000. When the lease is brought up, he responds, "Heck no, what a waste of money, you pay all of that money and when you bring it back, you got Jack!" (Keep in mind the whole time that he owes $5,000 more than what his truck is worth!) I simply reply with "If I could give you $18,000 for your truck, would we have a deal?" "Heck yes" he says. Well, the $18,000 has to go to the lein holder, so essentially he has nothing!! But unfortunetly he cannot get that!! The whole thought behind a lease (and yes given the mileage factor) is putting less towards a vehicle, never spinning a wrench on it (at least on your checkbook) and always driving a new vehicle. You own a house, which appreciates. Why own something that depreciates. It is virtually impossible to come out ahead when buying one. And frankly, mileage wise, when you buy one and you put all of those miles on, the truck is depreciating that much faster and chances are, the term of the loan was streched out 72 mos. to keep the payment low, then he goes to trade it, rolls over $5,000 - $10,000 in the next truck, comes back three years later to trade that one...see where I am going with this! Those miles can be built into a lease up front at a smaller cost so that you are not penalized at the end. I guess I don't really look at it as a penalty though either but more a cost of driving!! As you can see, I am completely sold on leasing!! And as far as the damage at the end, for one extra payment up front, all excessive wear and tear on the vehicle is taken care of (like insurance) Not everything offered at a dealership is a gimmick folks!!Good Luck and congrats on a new truck!!

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Here's the difference. Now a days, the most popular loans are probably 4-6 years. Let's take 5 yrs. Most vehicles today will go at least double that time. So after 5 years of 500 payments vs 300 payments you have "spent" a total of 30000 vs 18000 (with 0 fees). Say you keep your purchased vehicle 5 more years. You are now up roughly 6000. Let's say you leased 4 vehicles in that 10 yr period. I'm guessing that the average down would be about 1000. That's another 4000.

Let's match that 4000 in misc repair fees on the owned vehicle.

I think it's safe to say that you could be ahead roughly 5000 after those 10 years. Not only that but if you take decent care of it you probably could sell it for a few grand or more.

I am a beliver that if it's value you are looking for, steer clear of that lease. Not saying to doesn't make sense in some scenarios, but when it comes to dollars and cents, buying it is the way to go.

[Northlander]

Duffman judging from your question you know I run a Yamaha. Didnt lease it though. I also believe Toyota doesnt make a true half ton truck. I may be wrong but they looked smaller to me.

Whats your point? I think I know where your going but only assuming and you know what that does.

I drive a ford f-150 and have 170,00 miles on it. Yes I have to make repairs as will anyone who drives a truck the way I drive mine. Its a truck and gets treated as such.

From what I have heard from Toyota owners they are a very reliable vehicle and hold value. Thats cool. I also heard parts are very expensive when you need them. But then again arent they all.

Im old fasioned I guess. FORD F-150

[Valv]

There is no equity in a vehicle, never did and never will.

You pay cash at $ 25,000, drive out of the lot, make a u turn and go back to dealer and it's worth $ 2,000 less (and not because dealer says so).

Only way to build equity is to do like I do, buy repairables.

My example, 1999 Dodge 3500, light damage paid $ 4000, added $ 3000 repairs + upgrades, total $ 7000, truck is worth $ 14000, I can sell it in a blink of an eye for $ 12000. That's where you build your equity.

Stay away from leasing, no matter how good they make it look. You will find it attractive if you lease more than 1 vehicle and split the usage on all of them, but for a daily driver/commuter vehicle, BUY IT.

[Duffman]

Just giving you a little grief Steve, cause I figure you probably spend more time being pushed around by a rice burner out on the river vs time spent in the F150 during the summer.

All the trucks made these days are good units, you just gotta hope you don't get a bad one, some brands just give you better odds against getting stuck with a lemon.

With all of todays trucks being made by multi-national corporations, does it really matter which CEO's pockets we're filling up? I couldn't care less. Toyota is supposedly building a plant down in Texas, and they plan on building truck models to compete with the big boys of Chevy and Ford, that is if those two companies are still around. lol

Just funnin youse guys....

[YukonDew]

Every vehicle owner has different expectaions and plans for their vehicle. It is painting with a broad brush to sudgest to Airjet which way is best to go based on payment terms alone. I am assuming that the goal is to keep the cost of owning a truck as low as possible. A certain amout of clarity comes from knowing if Airjer will keep his truck for 10 years, sell it after he makes the last payment, or trade it in and roll over a loan. Without that, the best we can do is assume Airjer's plan for his truck are the same as ours would be and I think that is too much to assume to give good advice.

[Jeremy airjer W]

Well I signed the lease on Saturday. Heres why I went with it. The biggest reason was to sidestep the large monthly payment.

The other two factors where

1. The buyout is in the price range I was looking for, so if I decide to purchase at the end of the lease I still sidestep the large monthly payment.

2. If a better deal comes along in 3 years I turn in the keys.

A brand New 06 4 door 4x4 V-8 for under $300 a month you just can't beat a deal like that.

o what a feelin'

[Valv]

..I don't see the Cummins logo on it ....

Congrats Airjer, that's an awesome truck, nice color too.

[Ralph Wiggum]

I'm jealous!

[upnorth]

I always stayed away from the leases based on the mileage limitation, many if not most are around 10,000 miles a year and I drive way more than that. And if you go over you pay dearly. If you don't put that many miles on they are a pretty good deal.

[Rost]

I have never leased a vehicle and probably never will.

At one time, three of my best friends were leasing their trucks AND THEY DROVE ME NUTS!!! Any time we had a trip planned they had the milage issue as an excuse not to drive. "I can't drive, I'm over my miles this month", I got so sick of hearing that excuse! They would skip out on fun things just so they did not have to put miles on.

Congratulations on your new truck Airjer! But just remember when it's your turn to pull the boat to Canada, don't gripe.

[PerchJerker]

Hey Rost, those friends of yours sound just like my friends that leased vehicles. I pretty much felt that their mileage issues were not my problem.

[Jeremy airjer W]

I thought about the mileage issue for quite a while. Then I figured out what I was actually driving every year which averaged about 10,000 miles. Perfect!! Since I moved I have to drive 7 miles to work and back instead of just under 4 I think thats where all my mileage is going!!!

Rost, When are we going to canada?

[Rost]

Are you pulling my boat?

[Tully]

Perfect solution to keep your lease miles down. Buy a motorcycle in the spring. I didn't drive my SUV for two months this summer.

Tully