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Lease Pros and Cons

Discussion in 'General 4Runner Talk' started by Caltech90, Aug 16, 2018.

  1. Aug 16, 2018 at 8:38 AM
    #1
    Caltech90

    Caltech90 [OP] New Member

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    We are looking into buying/leasing a new 4runner or Highlander (Wife's Choice). I'm looking for some advice on leasing. I've never leased anything, but if we go that route I would probably buy the car at the end of the lease. Thanks!
     
  2. Aug 16, 2018 at 11:04 AM
    #2
    brownbear

    brownbear Relax

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    NFab side steps TRD matte blk wheels K&N airfilter, go rhino rear hitch step,
    Pros: more vehicle for less down payment and less on a month by month vs finance. Need better credit for lease, mileage per yr is a factor some 12k per year some 10k. If high mileage driver, you can buy miles upfront. Value for end of term set up front. Cons: need to keep in better than avg shape if you don't plan to buy. Any mods that alter "factory specs" will be charged to you if you do not buy it at end of lease. Hope this helps.
     
  3. Aug 16, 2018 at 11:25 AM
    #3
    brochacho

    brochacho New Member

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    I researched leasing when I bought my Sequoia. What I found is that it is only a good option if you don't want to put a lot of money down and are the type of person that wants a new vehicle every few years. If you do it make sure you only put down a small amount that you are willing to part with because if the vehicle is stolen or totaled the insurance company will only pay off what is owed to the leasing company. For example if you put down say $10,000 dollars you will have a nice low lease payment but if the vehicle is totaled or stolen you will never recoup that $10,000....it's gone. That was the reason we did not do it.
     
  4. Aug 16, 2018 at 11:34 AM
    #4
    brownbear

    brownbear Relax

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    That's the point of leasing. No money down. Not for everyone. Weigh out what works best for your situation.
     
  5. Aug 20, 2018 at 12:46 AM
    #5
    Caltech90

    Caltech90 [OP] New Member

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    Thanks for the replies. We ended up going with a lease on the Highlander. As bad as I wanted a new 4runner, it just wasn't as practical for an everyday family vehicle. I figured up the cost (leasing vs. buying) and it makes a lot more sense for us to lease based on the fact that we never keep our family cars for more than 3 to 4 years. Either way I was glad to see that Chevy Traverse go.
     
  6. Aug 21, 2018 at 1:05 AM
    #6
    r0nnierae

    r0nnierae New Member

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    Raezor
    San Jose, CA
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    2016 SR5 Magnetic Gray Premium 3rd Row, Tints, LED internal, LED backup light, amber marker lights - grill, amber fog lights, black out kit - emblems, night shade - tail lights, smoked front marker lights, hitch step, plastidip roof rack, N-Fab nerf bars 3inch, AVS external visor, AVS hood protector, Bilstein 5100's shocks all around, Old Man Emu Springs 3/2, JBAOffroad UCA's
    im leasing to own. reason for doing so was a lower monthly payment. either way is fine if your ultimate goal is to keep it. the rest is common sense... dont put after market stuff on something your just borrowing.
     
    cheehab likes this.
  7. Sep 18, 2018 at 8:36 AM
    #7
    rkwfxd

    rkwfxd New Member

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    I leased a 2016 Porsche for two years for a couple of reasons. One, minimal down payment and a VERY reasonable monthly. Two, I wasn't sure I REALLY wanted to own that car. Three, I did not want to pay that kind of money for a Porsche and get into a "non-totaling" accident in the first couple of years and then be forced to keep a repaired vehicle. Four, at least with Porsche, if you decide to purchase at the end of the lease you can buy it as a "Certified Pre-Owned" vehicle which includes an extended warranty (six years I think).

    I looked at the lease payment as tuition for an education on that car and Porsches in general. It was a great car but in the end I decided it was not for me and purchased a 964 instead.

    That was the only car I have ever leased. All others I have purchased outright and typically keep them for 10 + years.
     
  8. Sep 18, 2018 at 10:34 AM
    #8
    gdvan01

    gdvan01 New Member

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    I thought leasing died with Disco...

    :facepalm:
     
  9. Sep 18, 2018 at 4:50 PM
    #9
    DGP1961

    DGP1961 New Member

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    Leasing's hotter than ever with the price of new cars today. Many cars you probably see out there and think "wow nice rig they must be doing alright" probably a 50/50 chance it's leased for "relatively" short money.
     
  10. Sep 18, 2018 at 9:07 PM
    #10
    PCRIDE4RUNNER

    PCRIDE4RUNNER New Member

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    Leasing locks you in and the dealer told me the biggest benefit for them is you keep coming back every lease period to get a new car (customer for life). The good thing about leasing 4Runner or TACO, is the resell value is one of the highest of all vehicles and of all Toyota's. In fact a 3 year old 4Runner with 40K miles will still run around 32-35K $. The residual value for a 4Runner is about 29K, this means after leasing it, the dealer MUST get 29K $ back. you can choose to buy it at this point. Which would be a more reasonable auto loan payment.

    Cons:
    The down payment is money your throwing down the drain. Pure profit for the dealer. Yes you get a lower and easier managed monthly payment, think of just paying up front via lease down payment to the max monthly payment a conventional loan would give you. Conventional loan on 40K 4runner, your payments will be around 600-700 with no money down, or even just a few thousand down. With that same few thousand down, a lease will come in around 350-400$ a month with good credit.

    The only way to get out of the lease is to buy the vehicle at the end of the lease

    If you decide to walk away from the lease after the lease period ends, you'll end up owing another 3-4K in "Usage repairs". Oh you have normal wear and tear on the seat $500, you have normal wear and tear on the carpet near the gas petal from your heal $500, oh you have a wear mark on the stearing wheel $500, basically they have the right to charge you up to $500 for each of the following areas. They try to sell you an insurance plan for this and don't make it clear you only need it if you plan on turning the vehicle in at the end of the lease. Its like another $40-$70 a month. This is such a scam.
    • Interior
    • Exterior
    • Engine
    • Tires/Drive train
    • Plus any additional damage
    • Never do this option!!
    • Exceeding 12K miles per year will kill you in extra $$
    Any money you put in it (tires, lift, tint etc..) will help sustain/increase the value , but you will lose this money and basically get ripped off from the dealer.

    Pros
    New car every 3 years
    If leasing 4Runner, in 3 years if the 4runner is worth at least 29K (Buy back value) and it will probably be worth more, like 33-35K, then you just apply the overage to a new down payment on the next version 4runner.
    Low monthly payment
    Any money you put in it (tires, lift, tint etc..) will help sustain/increase the value
    No need to worry about the 12K miles per year quota, that only applies if you are walking away and ending the lease. If you plan to lease again, as long as the dealer get the residual value out of it after the lease period, you are good to go
    The dealer tells you the residual value up front before you sign any documents

    The real value of a lease is being able to have an affordable monthly payment, with little down
    The ability to have a new car every 3 years
    By Law if its wrecked beyond repair, the dealer owns all responsibility. You just get a replacement vehicle and keep paying your lease. They explained it to me but there is a law that protects consumers. Because its a lease.

    The key is the residual value. Ask for what this is at the dealer if you are planning to lease. If you lease a honda, and the residual at the end of the lease is let's say 25K, and its only worth 20K because the economy slumped, or it just doesn''t hold the value, guess what, you ow 5K!
     
  11. Sep 18, 2018 at 9:09 PM
    #11
    PCRIDE4RUNNER

    PCRIDE4RUNNER New Member

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    The dealer told me in Utah that over half of their 4Runner and TACO purchases are leases.
     
    gdvan01[QUOTED] likes this.
  12. Sep 19, 2018 at 4:31 AM
    #12
    DGP1961

    DGP1961 New Member

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    we've leased two vehicles in the past a Maxima for the wife and a leased Civic for my daughter while in school. Actually on both vehicles we never ran into any issues with them wanting any money upon return. Daughter had your typical couple "dings" from other doors and even a little burn on her back seat from maybe a cigarette ash. They do claim to allow "normal" wear and tear obviously leaving the question open to what's normal. Both vehicles were no money down and nothing owed at return.
     

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