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Lease vs. Finance

Discussion in '5th Gen 4Runners (2010+)' started by Taco4R, Feb 17, 2022.

  1. Feb 17, 2022 at 3:13 PM
    #1
    Taco4R

    Taco4R [OP] New Member

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    Getting into a '22 ORP and I'm considering whether to lease again or finance. I want the sweet financing rate but I like the flexibility of the lease, especially if there is a accident that depreciates the value of the vehicle and I drive low kilometers per year (around 8000km/yr since covid, but even before it was 11000km/yr).

    Given how much value these things retain (or gain), I don't think it's a huuuge difference either way as I can trade it in anytime and walk away with a cheque but interested to hear from those who have done both and which they prefer.
     
  2. Feb 17, 2022 at 3:32 PM
    #2
    2017 4Runner

    2017 4Runner New Member

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    Finance. No limits on what you can do to it.
     
    Singleminded and dxhum like this.
  3. Feb 17, 2022 at 3:33 PM
    #3
    Taco4R

    Taco4R [OP] New Member

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    true but I'm a stock guy. The only mod I am planning is KO2s.
     
  4. Feb 17, 2022 at 4:14 PM
    #4
    johnnyg182

    johnnyg182 New Member

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    Curious…Why are you swapping out of the 2021 ORP? Want a different color?
     
  5. Feb 17, 2022 at 4:18 PM
    #5
    Taco4R

    Taco4R [OP] New Member

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    pretty much yeah
     
  6. Feb 17, 2022 at 4:52 PM
    #6
    Thatbassguy

    Thatbassguy New member? Really??

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    If you trade in every few years, and don't mod, I don't see any reason not to lease.

    Sorry, I've never leased personally, so I'm speaking from second hand experience. My brother's wife leases and it seems to work for her.
     
  7. Feb 17, 2022 at 5:20 PM
    #7
    Taco4R

    Taco4R [OP] New Member

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    yeah I'm leaning toward this. When I traded my 2017 Tacoma I cut a huge cheque and with the trade they are offering for '21 I'll be cutting a decent cheque again.

    then, it leaves me open to buyout if the 6th gen is a trainwreck or something crazy I can still buy the lease at basically 50% used market prices for a clean low km 4Runner.

    only downside is if I lease then buyout to own I'll have spent more in the long run vs. if I just financed.
     
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  8. Feb 17, 2022 at 5:22 PM
    #8
    Jynarik

    Jynarik I like boobies

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    ha ha ha

    I said the same thing when I got mine
     
  9. Feb 17, 2022 at 5:45 PM
    #9
    Hallzilla

    Hallzilla New Member

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    Gonna keep it ? Buy. Only gonna have it for a few years. Lease. Simple.
     
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  10. Feb 17, 2022 at 5:51 PM
    #10
    Taco4R

    Taco4R [OP] New Member

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    hard part is I can't answer this question 100% either direction. lol
     
  11. Feb 17, 2022 at 6:08 PM
    #11
    TRDLE

    TRDLE New Member

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    You're getting rid of a '21 to get a '22. Honestly, that doesn't sound like someone who keeps vehicles very long.
     
  12. Feb 17, 2022 at 6:13 PM
    #12
    Taco4R

    Taco4R [OP] New Member

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    Yeah, I just rushed into things last year and picked the first ORP they had on hand but once I get a colour I can live with I should be okay. Had my Tacoma for about 4 years.
     
  13. Feb 17, 2022 at 8:05 PM
    #13
    S8ULATR

    S8ULATR New Member

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    Sounds like you know this, but perhaps not. Leasing provides just as much flexibility as a loan. You can trade it in (to Carmax, a Maserati dealership, anywhere and anytime), you can sell it private party, you can return the keys at the end. Unless you are leasing a terribly depreciating car (ie Maserati or some Land Rovers), pay no mind to mileage. It does not matter.

    I WISH I had leased my 2021 Tacoma, as I ended up upgrading a year later. Had I leased, I wouldn't have paid upfront tax on the entire car here in CA. That said, I still got more than I paid for it and a phenomenal deal on the 4R, especially for this market.

    As I see it and most "in the know" see it, unless you know you are going to keep a car for 10 years, a lease is definitely worth considering. It is basically a free "out".

    Downside of leasing is not many can calculate the payment itself. Dealers know this, so it is easy to trick people. The money factor (interest rate on a lease) is presented as 0.00xx or similar. Multiply that number by 2400 and there is your interest rate. The actual payment calculation is a touch complicated, but there are tons of calculators on the internet.

    Not sure what the lease residual and money factors are on 4R's right now, but worth looking into. Good luck, and on moving from a 21 to a 22, do what makes you happy. We all only live once.
     
  14. Feb 19, 2022 at 1:49 PM
    #14
    Taco4R

    Taco4R [OP] New Member

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    yeah I think I'm decided on a lease. it's funny when I asked the sales manager.. "so what's stopping guys who have Tacomas and 4Runner from just walking their lease in every year or 2 years for basically a free upgrade and a cheque" and he was like "honestly? just trust."

    for me financing to own carries no more ownership than than leasing, in both cases the bank really owns the truck and you are just driving it. unless you are giving them a briefcase filled with cash, which unless you have millions of dollars no one would recommend anyone do fiscally, there is no such thing as 'owning' a new car these days.
     
    S8ULATR likes this.
  15. Feb 19, 2022 at 2:09 PM
    #15
    ridetime

    ridetime New Member

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    Recently some manufacturers have restricted your options when it comes to getting out of the lease. I recently traded a BMW in for a 4Runner. I had to purchase the lease before I could trade it. BMW and many others do not allow a third party individual or dealership to pay it off.
    My options were keep it 3 years, trade in to BMW dealer only or buy it. This is due to the crazy values of used vehicles in the current market conditions. I would make sure Toyota doesn't have the same policy before signing.
     
    4runGirl88, gsdlvr and Ironguy like this.
  16. Feb 19, 2022 at 2:19 PM
    #16
    Taco4R

    Taco4R [OP] New Member

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    nah, I've been through it with a Tacoma before. Basically someone has to buy out the vehicle, but the value of the vehicle is worth more than the actual cost of buying it outright.

    So lets say I need 50K to pay off the lease + residual and own the truck. Well dealer is offering to give me 53K for it. The truck is paid off, dealer gets the truck, I pocket 3K and we start a new lease agreement.
     
  17. Feb 19, 2022 at 2:31 PM
    #17
    ridetime

    ridetime New Member

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    Yes that's how it works if you trade a Toyota lease in at a Toyota dealer. If you trade the same leased Toyota to another brand that is definitely not how it will work. The dealer will attempt to pay it off and the payment will be rejected.

    https://cars.usnews.com/cars-trucks/lease-end-options-restrictions
     
  18. Feb 19, 2022 at 6:32 PM
    #18
    DallasTRDPro

    DallasTRDPro New Member

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    I leased this 4R. Plan is to see what 6th Gen looks like. Keep it if I don't like it.
     
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  19. Feb 20, 2022 at 3:56 AM
    #19
    RLHOK

    RLHOK Keeper of the smoke and all things BBQ

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    Having done both, finance.
     
  20. Feb 20, 2022 at 5:09 AM
    #20
    dxhum

    dxhum New Member

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    I've only leased once in my life and it wasn't worth it. It was a second car and it only had 9000 mikes after 2 years on a 3 year/36,000 mile lease. I took it back to the dealership a year early, and they charged me $1000 to take it back. Can you imagine; they charged me $1000 when it was only going to cost them $45 to do the required paperwork on the title. I did it anyway because I was still saving $7500, even after paying the $1000.

    My point is that leasing or buying isn't right or wrong. Its a case-by-case consideration.
     
    4runGirl88 likes this.
  21. Feb 20, 2022 at 5:20 AM
    #21
    Thatbassguy

    Thatbassguy New member? Really??

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    Well said!
     
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  22. Feb 20, 2022 at 6:20 AM
    #22
    ecoterragaia

    ecoterragaia New Member

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    Right now my wife and I have two vehicles that we bought new and paid off. We're always in it for the long haul, which is a big reason for getting the 4Runner in the first place (reliability). If I was going to lease or knew I was going to sell in a couple of years, I might have gone for a vehicle with more power, better handling, more creature comforts, etc. but was maybe less reliable.
     
  23. Aug 5, 2022 at 7:03 AM
    #23
    cantakowep

    cantakowep New Member

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    I've done both, and I definitely prefer the lease. I like the flexibility it gives me, and I don't have to worry about the value of the vehicle depreciating if there's an accident. I also drive low kilometers yearly, so it works well for me. You might consider getting an insight into financial planning. When I was doing my medical residency, I reached out for counselor advice at guys from https://www.thefinitygroup.com/financial-planning-for-physicians. Financial planning has many benefits, including peace of mind, knowing that you are on track to meet your financial goals, and having a plan to deal with unexpected expenses.
     
    Last edited: Aug 8, 2022
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  24. Aug 5, 2022 at 8:46 AM
    #24
    mac1usa

    mac1usa New Member

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    I am sort of old school. I buy it with the intent of keeping a vehicle 15 plus years so leasing does not make sense.

    When your car is paid off keep allocating that payment into a fund for large down payment on the next one.

    If you can save $400/mo for 8 years driving it after it’s paid for you have $38k to put down on the next one.


    I am sort of old school though. I don’t spend more than I have and live modestly. I just try to plan it out and to me I like keeping a vehicle a long time. It’s not for everyone l
     
  25. Aug 5, 2022 at 9:28 AM
    #25
    dxhum

    dxhum New Member

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    Really? I've never heard this.
     
  26. Aug 5, 2022 at 9:37 AM
    #26
    kmeeg

    kmeeg Less code less bugs, same story for a 4Runner.

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    Only if you have GAP insurance. Lease or Finance you owe the full amount the vehicle if it's totaled.

    If you trade in a leased vehicle before the lease maturity period anything impacting depreciation you would have to carry over to your new loan or pay out of pocket to settle the full amount of the leased vehicle.


    Edit - I don't know what happens at the lease maturity as I used to trade in before. I would assume at the maturity the inspection day they would inspect for current damages + mods + any previous accident reports that impact. Again I have no experience on lease maturity.
     
    Last edited: Aug 5, 2022
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  27. Aug 5, 2022 at 10:51 AM
    #27
    Tmiesowicz

    Tmiesowicz New Member

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    My wife leased a rav4 in 2018…early into the lease during a wind storm the neighbors shitty roof shingles smacked the whole passenger side and more all night needing glass replaced and a half of paint job…she was going to buy it out but after that Happened we were happy to dump it 2 years later. Nothing ever said about the insurance claim or anything, just sucks for the person who purchased it in 2021 at a very high price as the paint job was already showing it wasn’t ‘perfect’
     
  28. Aug 5, 2022 at 11:47 AM
    #28
    dxhum

    dxhum New Member

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    Ah... yes, well, you don't have to worry about the depreciation related to an accident because you offed the vehicle. But your aren't blanket-protected from depreciation because it is a lease.
     
  29. Aug 5, 2022 at 12:18 PM
    #29
    BearBio

    BearBio New Member

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    I've never leased but I've heard horror stories from friends and relatives. When I retired, we sold my Frontier (paid off) and traded the wife's Xterra. Took money out of my 401 (k) and paid cash for a used 4Runner and RAV4, both with very low miles. No payments=happiness!
     
  30. Aug 5, 2022 at 12:53 PM
    #30
    mac1usa

    mac1usa New Member

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    With the way the way inflation is going and car prices, then add further insult to that with higher interest rates its going to pinch people regardless of whether purchasing or leasing.

    At some point especially with the cost of electric vehicles if they stay high we will see a certain class of people who can longer own a car financially. Suddenly the people who work in our grocery stores, shopping outlets, those who clean our homes etal will not be able to afford a reasonable used car let alone a new car.
     

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