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Toyota Lease - Too Good To Be True
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Originally Posted By: CKN
Originally Posted By: KitaCam
Taking a loan on a car should always be based on avoiding being underwater at any time during the term of loan.
If that rule was followed there would be a decline of new cars sold by 95%.......
Actually 100%...there isn't a new vehicle sold that doesn't have the owner upside down the second he/she drives off the lot...
Originally Posted By: KitaCam
Taking a loan on a car should always be based on avoiding being underwater at any time during the term of loan.
If that rule was followed there would be a decline of new cars sold by 95%.......
Actually 100%...there isn't a new vehicle sold that doesn't have the owner upside down the second he/she drives off the lot...
Originally Posted By: grampi
Originally Posted By: CKN
Originally Posted By: KitaCam
Taking a loan on a car should always be based on avoiding being underwater at any time during the term of loan.
If that rule was followed there would be a decline of new cars sold by 95%.......
Actually 100%...there isn't a new vehicle sold that doesn't have the owner upside down the second he/she drives off the lot...
Um... I just bought the CX-9 in June, and will never be under water on the loan.
Originally Posted By: CKN
Originally Posted By: KitaCam
Taking a loan on a car should always be based on avoiding being underwater at any time during the term of loan.
If that rule was followed there would be a decline of new cars sold by 95%.......
Actually 100%...there isn't a new vehicle sold that doesn't have the owner upside down the second he/she drives off the lot...
Um... I just bought the CX-9 in June, and will never be under water on the loan.
That's where the 20% down payment rule comes in!
Why people volunteer the financial tidbits and then start getting upset when other people start to point out the flaw in the reasoning? If you don't want people to comment on your financial situation don't announce that you are billionaire or a pauper.
Why people volunteer the financial tidbits and then start getting upset when other people start to point out the flaw in the reasoning? If you don't want people to comment on your financial situation don't announce that you are billionaire or a pauper.
Just read an article last night that says the average new car loan is 67 months and the average transaction price is nearly $33,000.00. Most people will have to borrow that kind of money. My son sold cars for a very large Toyota dealership here in Utah. He even stated most "cash deals" had the money being borrowed elsewhere-i.e. home equity loans, or from their own small business.
I would imagine (just a guess here) that you would have to put down at least $10,000.00 dollars (maybe a little more) to be never upside down on a $33,000.00 dollar purchase. Again, a large sum for most people. Personally, I would rather keep the 10grand for a rainy day and not worry about being "upside down". Being upside down is immaterial if your going to keep the car until the wheels fall off. I know there is the possibility of having an accident in your new car and then you would run the chance of being upside down. I think that's a chance most people take.
I would imagine (just a guess here) that you would have to put down at least $10,000.00 dollars (maybe a little more) to be never upside down on a $33,000.00 dollar purchase. Again, a large sum for most people. Personally, I would rather keep the 10grand for a rainy day and not worry about being "upside down". Being upside down is immaterial if your going to keep the car until the wheels fall off. I know there is the possibility of having an accident in your new car and then you would run the chance of being upside down. I think that's a chance most people take.
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Originally Posted By: leeharvey418
Originally Posted By: grampi
Originally Posted By: CKN
Originally Posted By: KitaCam
Taking a loan on a car should always be based on avoiding being underwater at any time during the term of loan.
If that rule was followed there would be a decline of new cars sold by 95%.......
Actually 100%...there isn't a new vehicle sold that doesn't have the owner upside down the second he/she drives off the lot...
Um... I just bought the CX-9 in June, and will never be under water on the loan.
Then you must have put down a healthy down payment, or you purchased used at a good price...
Originally Posted By: grampi
Originally Posted By: CKN
Originally Posted By: KitaCam
Taking a loan on a car should always be based on avoiding being underwater at any time during the term of loan.
If that rule was followed there would be a decline of new cars sold by 95%.......
Actually 100%...there isn't a new vehicle sold that doesn't have the owner upside down the second he/she drives off the lot...
Um... I just bought the CX-9 in June, and will never be under water on the loan.
Then you must have put down a healthy down payment, or you purchased used at a good price...
Buying used is another way of staying above water...
I got Kitacam paying 33% down and 66% loan...the loan being 50% of car's value...
I'm now 1/2 way through the car's 4 year loan that's still less than 1/2 its retail value.
Staying above water takes research and patience and the willingness to buy a car you can afford.
I got Kitacam paying 33% down and 66% loan...the loan being 50% of car's value...
I'm now 1/2 way through the car's 4 year loan that's still less than 1/2 its retail value.
Staying above water takes research and patience and the willingness to buy a car you can afford.
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KitCam.
Again-whats the value in "staying above water" when your going to keep the new car until the wheels fall off. Many manufacturers offer a 100K power train warranty. If YOU DRIVE 12,000 MILES A YEAR your covered until the 5th year - when most expire.
It all comes down to a monthly payment YOU CAN AFFORD.
Obviously, this is a difference in philosophy between you and others on "what you can afford".
The only advantage I see in doing it your way is in the event of a complete total of the automobile in the first several months - and a short insurance payoff due to depreciation.
Again-whats the value in "staying above water" when your going to keep the new car until the wheels fall off. Many manufacturers offer a 100K power train warranty. If YOU DRIVE 12,000 MILES A YEAR your covered until the 5th year - when most expire.
It all comes down to a monthly payment YOU CAN AFFORD.
Obviously, this is a difference in philosophy between you and others on "what you can afford".
The only advantage I see in doing it your way is in the event of a complete total of the automobile in the first several months - and a short insurance payoff due to depreciation.
Here's another thought.
The '14 MY cars remaining are getting cheaper by the day.
By the end of the year or early '15, they'll be offered at well below invoice.
You might consider financing a new '14.
There are plenty of dirt-cheap loan rates if you have decent credit and you'd have something new that would give no trouble for the next 100K or so.
You could also then drive the car without payments for some time after you pay it off.
It is nice to be able to pay cash for everything. We like it but not everyone is in such a favorable position and it's actually cheaper to finance at the free money rates one can get than to pay cash in many cases.
Shop around via email and see what you can find in a car that would suit your use. I think you'd be surprised at just how cheaply you can buy a new car with financing.
Just a thought.
The '14 MY cars remaining are getting cheaper by the day.
By the end of the year or early '15, they'll be offered at well below invoice.
You might consider financing a new '14.
There are plenty of dirt-cheap loan rates if you have decent credit and you'd have something new that would give no trouble for the next 100K or so.
You could also then drive the car without payments for some time after you pay it off.
It is nice to be able to pay cash for everything. We like it but not everyone is in such a favorable position and it's actually cheaper to finance at the free money rates one can get than to pay cash in many cases.
Shop around via email and see what you can find in a car that would suit your use. I think you'd be surprised at just how cheaply you can buy a new car with financing.
Just a thought.
Originally Posted By: Win
Originally Posted By: hattaresguy
Oh man here we go again.
Yeah, and over a Toyota.
Yawn tell me about it, not even a car worth arguing about.
I wonder if they are offering good deals on F Type leases? A V6 drop top in green would be a fun ride to play with for a bit.
$750 a month $5k down, cheaper than an SL550 or a 911 by a mile. That's the advertised price as well, I bet they will do better!
My buddies 911 lease is $1,300, for a fairly base example.
Originally Posted By: hattaresguy
Oh man here we go again.
Yeah, and over a Toyota.
Yawn tell me about it, not even a car worth arguing about.
I wonder if they are offering good deals on F Type leases? A V6 drop top in green would be a fun ride to play with for a bit.
$750 a month $5k down, cheaper than an SL550 or a 911 by a mile. That's the advertised price as well, I bet they will do better!
My buddies 911 lease is $1,300, for a fairly base example.
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Your buddy lease is $1,300.00? Won't hear anything from me...it's all relative to how much money he makes. And he has to make a lot to keep a car like that on the road.
I say...GOOD FOR HIM!
BTW-did you know Toyota has $60 BILLION IN CASH ASSETS?
I say...GOOD FOR HIM!
BTW-did you know Toyota has $60 BILLION IN CASH ASSETS?
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Originally Posted By: Vikas
Why people volunteer the financial tidbits and then start getting upset when other people start to point out the flaw in the reasoning? If you don't want people to comment on your financial situation don't announce that you are billionaire or a pauper.
Excellent advice. I have stated here before that I am uncomfortable discussing personal financial info on a public board.
Back OT, I hate leases in general. Just a cheap way to rent a car, and I have heard many tell me about huge repair costs at turn in.
Other than fleet trucks, which we buy as needed, we seldom buy a new car. When we do, we shop extensively and get the best deal on it, then keep it for ten years or even more. Then you have a real asset that commands top dollar in the used car market instead of an empty wallet and no car...
Why people volunteer the financial tidbits and then start getting upset when other people start to point out the flaw in the reasoning? If you don't want people to comment on your financial situation don't announce that you are billionaire or a pauper.
Excellent advice. I have stated here before that I am uncomfortable discussing personal financial info on a public board.
Back OT, I hate leases in general. Just a cheap way to rent a car, and I have heard many tell me about huge repair costs at turn in.
Other than fleet trucks, which we buy as needed, we seldom buy a new car. When we do, we shop extensively and get the best deal on it, then keep it for ten years or even more. Then you have a real asset that commands top dollar in the used car market instead of an empty wallet and no car...
Originally Posted By: grampi
Then you must have put down a healthy down payment, or you purchased used at a good price...
Actually, I managed to make the purchase with zero cash up front. They gave me $7,500 for the RAV4, and about $7,000 total in discounts. I walked out with about $26k financed on a new vehicle with a sticker price of $39k and change. By far the most pleasant car-buying experience I've ever had...
Then you must have put down a healthy down payment, or you purchased used at a good price...
Actually, I managed to make the purchase with zero cash up front. They gave me $7,500 for the RAV4, and about $7,000 total in discounts. I walked out with about $26k financed on a new vehicle with a sticker price of $39k and change. By far the most pleasant car-buying experience I've ever had...
Now somebody is going to tell you why did you trade in a perfectly good RAV4 (if dealer gave you $7500 for it, then it was worth $10000 in private sell; and if the vehicle was worth $10000, it means it still has lot of life left!)
Do you see how volunteering *any* information opens you for criticism from the peanut gallery?
Do you see how volunteering *any* information opens you for criticism from the peanut gallery?
Originally Posted By: leeharvey418
Originally Posted By: grampi
Then you must have put down a healthy down payment, or you purchased used at a good price...
Actually, I managed to make the purchase with zero cash up front. They gave me $7,500 for the RAV4, and about $7,000 total in discounts. I walked out with about $26k financed on a new vehicle with a sticker price of $39k and change. By far the most pleasant car-buying experience I've ever had...
I'm glad you had a pleasant experience, but...
You sold the Rav4 to them for $7,500. You then immediately handed them that $7,500 back as cash up front.
jeff
Originally Posted By: grampi
Then you must have put down a healthy down payment, or you purchased used at a good price...
Actually, I managed to make the purchase with zero cash up front. They gave me $7,500 for the RAV4, and about $7,000 total in discounts. I walked out with about $26k financed on a new vehicle with a sticker price of $39k and change. By far the most pleasant car-buying experience I've ever had...
I'm glad you had a pleasant experience, but...
You sold the Rav4 to them for $7,500. You then immediately handed them that $7,500 back as cash up front.
jeff
Originally Posted By: Vikas
Do you see how volunteering *any* information opens you for criticism from the peanut gallery?
Duly noted.
Though Edmunds' calculator said that $8,500 would have been a fair price for a private sale, so I don't think I came out all that badly.
Let the peanut gallery chatter.
Do you see how volunteering *any* information opens you for criticism from the peanut gallery?
Duly noted.
Though Edmunds' calculator said that $8,500 would have been a fair price for a private sale, so I don't think I came out all that badly.
Let the peanut gallery chatter.
Originally Posted By: leeharvey418
Originally Posted By: grampi
Then you must have put down a healthy down payment, or you purchased used at a good price...
Actually, I managed to make the purchase with zero cash up front. They gave me $7,500 for the RAV4, and about $7,000 total in discounts. I walked out with about $26k financed on a new vehicle with a sticker price of $39k and change. By far the most pleasant car-buying experience I've ever had...
Like I said, a healthy down payment...your trade-in counts as a down payment...
Originally Posted By: grampi
Then you must have put down a healthy down payment, or you purchased used at a good price...
Actually, I managed to make the purchase with zero cash up front. They gave me $7,500 for the RAV4, and about $7,000 total in discounts. I walked out with about $26k financed on a new vehicle with a sticker price of $39k and change. By far the most pleasant car-buying experience I've ever had...
Like I said, a healthy down payment...your trade-in counts as a down payment...
Originally Posted By: SlipperyPete
Originally Posted By: grampi
I cannot afford to pay $10K cash for a used car, but I earn a 6 figure income...are you telling me I can't afford a $10K vehicle?
If you earn over $100K and can't lay your hands on $10K, no sensible person should pay any attention to your financial opinions.
Spot on!
Originally Posted By: grampi
I cannot afford to pay $10K cash for a used car, but I earn a 6 figure income...are you telling me I can't afford a $10K vehicle?
If you earn over $100K and can't lay your hands on $10K, no sensible person should pay any attention to your financial opinions.
Spot on!
So many angles on buying/leasing.
My $.02:
First and foremost- do not overextend yourself! You can still overextend even if you pay cash...
If you're continually trading/buying new cars, then there is a great importance in not being upside down... However if I finance a car, the odds are overwhelming that I'll have it WELL beyond it's scheduled payoff date. Therefor it's value to debt ratio means little.
Also I'm glad to see that cost per mile was mentioned a few pages back. That to me is very important. I buy used cars CHEAP, repair them and drive them till dead. Sometimes I get the defibrillator out and zap them back to life and do it again. Doing this was means a very low cost per mile driven. This should also be used when considering a financed purchase/lease.
As for the o/p- personally I would not lease the car. Work hard to pay off the current car loan ahead of time and just drive. You have a reliable car that will more than likely pencil out to quite low $$$/per mile driven- take advantage of it, then put yourself on a payment schedule and make those would be lease payments to your safe or mattress. It'd be a good idea to have that kind of cash on hand.
My $.02:
First and foremost- do not overextend yourself! You can still overextend even if you pay cash...
If you're continually trading/buying new cars, then there is a great importance in not being upside down... However if I finance a car, the odds are overwhelming that I'll have it WELL beyond it's scheduled payoff date. Therefor it's value to debt ratio means little.
Also I'm glad to see that cost per mile was mentioned a few pages back. That to me is very important. I buy used cars CHEAP, repair them and drive them till dead. Sometimes I get the defibrillator out and zap them back to life and do it again. Doing this was means a very low cost per mile driven. This should also be used when considering a financed purchase/lease.
As for the o/p- personally I would not lease the car. Work hard to pay off the current car loan ahead of time and just drive. You have a reliable car that will more than likely pencil out to quite low $$$/per mile driven- take advantage of it, then put yourself on a payment schedule and make those would be lease payments to your safe or mattress. It'd be a good idea to have that kind of cash on hand.
Originally Posted By: Jarlaxle
Originally Posted By: SlipperyPete
Originally Posted By: grampi
I cannot afford to pay $10K cash for a used car, but I earn a 6 figure income...are you telling me I can't afford a $10K vehicle?
If you earn over $100K and can't lay your hands on $10K, no sensible person should pay any attention to your financial opinions.
Spot on!
AGAIN, "laying your hands on" and "paying cash for" are not even remotely close to being the same thing...
Originally Posted By: SlipperyPete
Originally Posted By: grampi
I cannot afford to pay $10K cash for a used car, but I earn a 6 figure income...are you telling me I can't afford a $10K vehicle?
If you earn over $100K and can't lay your hands on $10K, no sensible person should pay any attention to your financial opinions.
Spot on!
AGAIN, "laying your hands on" and "paying cash for" are not even remotely close to being the same thing...
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