First off, leasing isn't for everyone. I'm showing you what a lease is and how it works. Also, I'll give the benefits and drawbacks for both financing and leasing a new vehicle. What are your thoughts? Thanks for your support of my channel! Jeff
Ya you have to be real careful on a lease. I got a lease quote from VW that said I was getting a $5000 discount on the MSRP. After I added up my down payment, my 3 yrs of payments and the residual value at the end of lease it would be the MSRP not $5k cheaper. Honda gave me a lease quote and it added up to $2000 over MSRP after down payment, monthly payments and residual. So is there a way to lease and not end up paying MSRP?
It is so interesting to me that people don’t feel the same way about renting a place to live??? You pay your rent (lease) payment for a term, you build no equity in your rental property at all ( you actually do build some equity in a leased vehicle) when your term is up you can buy it, or give it back. You may be able to renew your rental agreement or move. However leasing is looked at with such disdain whereas renting a home is not, but you have to live somewhere and in most situations you have to drive 🤷🏽♀️
I leased for first time in over 50 years. A Toyota Venza Limited. I added the cost of 3 consecutive leases, and it would be $ 10,000 over a purchase price. I thought ”what.” I’ve been cheated. Then I realized, the first 3 years of a car life is the best and most expensive, whether owned or leased. A car owned in years 7-9 is worth a lot less in terms of enjoyment, reliability and technology. So, no I wasn’t cheated. It all makes sense after looking at it that way.
I’m a fan of finding a vehicle I love, leasing for 3 years and then finance it at the end of the term. When you do that, you know exactly what kind of car your getting, how it has been treated, and you have a lower monthly payment up front. Of course, it is possible to have so much resale value that your financed payment will actually go up from what you were paying as a lease, but that depends a lot on the terms at the time of lease and the time of financing at the end of the term. On the flip side, you hold the option to turn the vehicle back in and re-lease another vehicle that you love, so that makes it more comfortable in case you are concerned that you might change your mind about the vehicle during the lease term. I love Toyotas, so I can’t say that I’ve ever come across one I didn’t want to own after a 3yr lease. Good stuff Jeff... thanks for providing the education!
Ya you have to be real careful on a lease. I got a lease quote from VW that said I was getting a $5000 discount on the MSRP. After I added up my down payment my 3 yrs of payments and the residual value at the end of lease it would be the MSRP not $5k cheaper. Honda gave me a lease quote and it added up to $2000 over MSRP after down payment, monthly payments and residual. So is there any way not to pay MSRP?
I've purchased 5 new vehicles since 1974. Leasing you have shown me is going to be my next way to go, thanks for the well put together chart on finances Jeff.
Jeff,I am new in the car business -- I sell Toyotas. I appreciate all these informational videos that you put our for free. They are extremely helpful in building my foundation of knowledge about the product. Thank you!!
Hey Sage! Thanks for your comment...I just saw this. Let me know what types of videos you'd like to see and I'll do my best to help you out...Jeff....you can email me at toyotajeff1@gmail.com
I would say that if my payment is always 250 per month then it is an acceptable amount and i always will have a reliable vehicle. If something were to happen it's at the cost of the dealer. I follow a plan of 250 per month on a 4 or 5 year old vehicle and recycle that process over and over. Every 4 or 5 years.The vehicle is always newer but usually there is no warranty and you have to fork over for repairs when they may occur. I also aim for 60k miles or less. The less features, the lower the miles and still hitting 250. More features but then closer to 60k miles. If I were to lease a 2020 tundra sr5 4x4 crewmax with 3k down my payment would be 250 per month. The only draw back would be that I need 3k every 2 years and could need extra miles under certain circumstances. However, I pay for ZERO maintenance and oil change costs. Also, tires wont be an issue either because i will use my personal winter tires for 3 or 4 months of the year so factory tire wear should be minimal. I believe this is why leasing would be good for me. No resale hassle, no repair hassle and always current with a respectable vehicle Only draw backs are miles over limit, possible damage or tire fee. Also, not owning it. However, when you finance who actually has the title until paid off...not the driver.
You put not even 10% down and financed it over 60months so when it's paid off the resale value is junk. Whenever you refinance anything the interest rate changes and the payments may be lower, but they are usually extended over a longer period of time at that new higher rate.
Thanks man! Leasing isn't for everyone, but it helps to give a couple examples so people really understand all the figures and what's involved with each. Jeff
At some point, I will be buying a vehicle from you (most likely a 2020 or 2021 Tacoma Pro), which I will be financing. Love your videos! I think the missing element to the video is the total cost of ownership over X years. Accounting for the option to resell a financed vehicle, I believe the finance route to be the least $ per month.
Hi Drew! That would be great if you decide to work through me to buy your 2020 or 2021!!! How fun! You're right....there are so many different ways to look at lease vs finance.....it makes my head spin haha...jeff
What happens when you purchase extra miles just to be on the safe side and you never go over…do you lose that money or do they prorate it for the next deal?
This guy wanted to show that lease is beneficial than financing and he succeeded. However he did not pointed at the higher interest rate on the lease term. Leasing is always in best interest to the dealership but not for the owner. Dealership is making hell lot of money when you are leasing due to higher interest prices. Owner will be always on the loosing side when leasing unless if the car had an accident.
That’s what I was wondering. I’m getting that same vehicle in 10 days, but how do you negotiate price when so many people would snatch it up in a second.
@@roxxigirl1320 Well I learned the HARD way that you CANT. I did get the advertised APR of 2.99% Make sure you ask for all promotions and deals that are offered for your vehicle
This was a very informative video, Jeff. It would be helpful if you could do a follow-up video on this topic. It would be interesting to hear more about leasing a Tacoma with the new 2020 model arriving soon. I would also appreciate if you could explain money factor and how it is written differently than APR. Thanks, - Sage
Never lease a car. That's how dealers make the most money. You also risk owing money for extra mileage. Also they can charge you a fee at the end of the lease for anything they think need to be replaced. Tires for example. The reason the payments are low is cause your basically for half a car, the depreciation value
I like your video. But the info here is all treating, when you financing a car, you can sell it at the end! It is never the monthly payment! It is all about the total amount!!!!!
What happened to "I don't want to pay huge depreciation every year" as a reason to finance instead of leasing? He's not being totally up front with the objections. His remark about ownership being the same is misleading. Why does these guys push leases so hard unless they're better for THEM?
I would say that if my payment is always 250 per month then it is an accepted amount and i always will have a reliable vehicle. If something were to happen it's at the cost of the dealer. I follow a plan of 250 per month on a 4 or 5 year old vehicle and recycle that process over and over. Every 4 or 5 years.The vehicle is always newer but usually there is no warranty and you have to fork over for repairs when they may occur. I also aim for 60k miles or less. The less features, the lower the miles and still hitting 250. More features but then closer to 60k miles. If I were to lease a 2020 tundra sr5 4x4 crewmax with 3k down my payment would be 250 per month. The only draw back would be that I need 3k every 2 years and could need extra miles under certain circumstances. However, I pay for ZERO maintenance and oil change costs. Also, tires wont be an issue either because i will use my personal winter tires for 3 or 4 months of the year so factory tire wear should be minimal. I believe this is why leasing would be good for me. No resale hassle, no repair hassle and always current with a respectable vehicle Only draw backs are miles over limit, possible damage or tire fee. Also, not owning it. However, when you finance who actually has the title until paid off...not the driver.
