Toyota Lease - Too Good To Be True

Status
Not open for further replies.
Joined
Feb 16, 2005
Messages
910
Location
Scituate MA
My 02 Camry, 150K, I probably put 12k or so a year on it. I saw Westborough Toyota (MA) $70 a month on 14' Camry...2K down. I still owe 2k on mine and I'm paying 70 a month now so I said I have to call.

Yes that is the deal...BUT...with taxes/lic/reg/ and by the time it is done it was about 3800 down. Little too much, I could have put the 2K down but can't go with 3800 and I'm sure it would end up 4k with added miles and other little add ons.

Guess I will just keep the 02 going for another year.
 
Is it too good to be true? IDK!
You have to read into everything in the fine print. I'm sure you have already!

If you still owe $2K that will be added to your lease/purchase price of course. I'd keep your Camry until it's paid off and then drive it till the wheels fall off. They're great and long lasting cars that are quite easy to work on, especially the 4 cyl's. Which engine do you have?
 
I don't think he is $2000 "upside down" on his Camry, so it wouldn't be added to the lease. Without doing some research I would guess he has a nice chunk of equity after paying off the balance.
 
If financial stability is anything you ever want in the near future, don't get that car.

Also, why are you paying $70 a month and still owe $2000 on a 13 year old car? Make four $500 payments and pay that thing off.

I just looked up their website
http://westborotoyota.com/Toyota-Camry-Zero-Down-Lease/

It a 2 year lease, 12K miles per year. All told its actually almost $4000 down including "Acquisition Fee ($650), taxes (MA Tax @ 6.25%), license, and doc fee ($395)"

So do the simple 3rd grade arithmetic, adding in the $2000 you still owe plus current equity, and your $70/month actually equates to about $200-220/month. AND you don't get to keep the car in two years and will be back in the same boat looking for something new.

Just pay off your current car and drive it into the ground.

By the way, these "sales" are popular at tax refund time. People cant scrape up enough for a down payment on a car during the year, so they wait until tax time. They would be much better off buying a used car, paying it off, and driving it as long as the repairs don't cost too much to maintain.
 
Originally Posted By: mtndew_dad
I don't think he is $2000 "upside down" on his Camry, so it wouldn't be added to the lease. Without doing some research I would guess he has a nice chunk of equity after paying off the balance.


The cars trade in value is somewhere in the neighborhood of the $2000 that he still owes, give or take.
 
I can't imagine anyone being foolish enough to get wrapped up into a lease on a vehicle. Unless you're one of the very few cases where it makes sense, you'll always end up on the losing end. Car companies push them hard because it makes them lots of money, not you.

And quite frankly, if you're still making payments on a 14 year old car with 150,000 miles on it, then you need some serious help to get yourself on solid pecuniary footing.
 
I'm not a fan of leases to begin with, but I would never consider one which requires a "capitalized cost reduction"(AKA down payment)...
 
Originally Posted By: Pop_Rivit
And quite frankly, if you're still making payments on a 14 year old car with 150,000 miles on it, then you need some serious help to get yourself on solid pecuniary footing.


BINGO
 
Originally Posted By: bubbatime
Originally Posted By: Pop_Rivit
And quite frankly, if you're still making payments on a 14 year old car with 150,000 miles on it, then you need some serious help to get yourself on solid pecuniary footing.


BINGO
Toyota Lease - Too Good To Be True
 
If you've got the money to put down, I'd pay off the outstanding debt first. Having any type of loan on a depreciating asset is not good.
 
Yeah, I guess I will just buy some new floor mats and keep'er going. I really don't mind. We have a newish Honda Minivan so we have one reliable rig. That is what I figured, just keep'er going.

For the financial experts
: I would appreciate you holding off on dispensing your "expertise". I bought 3 years ago with 90K on it for 5K. 5 year loan from the bank. 4 Kids, mortgage...not a lot left over at the end of the month. Lot of 'variables' that you may not be aware of.

I come here for advice/recommendations and friendly comments, not to be judged on my financials.
 
Having a new car and only being allowed to drive 12K miles without a penalty is like having a piece of your favorite cake and only being allowed to take one bite, then having to sit there and stare at it for the rest of the evening. There are other comparisons about promising to do something only a little bit but I won't repeat them here.
 
I'd LOL if the 2 year old lease-end camry sold for $2k less than new. Then the dealer & finance company would just be pocketing $70 a month.
laugh.gif
 
Originally Posted By: Pop_Rivit

And quite frankly, if you're still making payments on a 14 year old car with 150,000 miles on it, then you need some serious help to get yourself on solid pecuniary footing.


So true!
 
Why are people so down on the guy for making payments (and only $70/month) on a used car. Do you assume he bought it new and still hasn't payed it off? Sounds like he made a wise decision to buy a cheaper used car as a second vehicle, and he financed it.

I agree, pass on the lease "deal". Also, private party value appears to be $3500-$4000. Used Camry's in reasonable condition are easy to sell, but that seems irrelevant at this point.
 
Originally Posted By: mtndew_dad
Why are people so down on the guy for making payments (and only $70/month) on a used car. Do you assume he bought it new and still hasn't payed it off? Sounds like he made a wise decision to buy a cheaper used car as a second vehicle, and he financed it.

I agree, pass on the lease "deal". Also, private party value appears to be $3500-$4000. Used Camry's in reasonable condition are easy to sell, but that seems irrelevant at this point.


I guess they think everybody has a money tree in their back yard and should just pay cash for their vehicles...I liked the "just make four $500 payments and pay it off" comment...not everybody has the income to do that...
 
Originally Posted By: grampi
I guess they think everybody has a money tree in their back yard and should just pay cash for their vehicles...I liked the "just make four $500 payments and pay it off" comment...not everybody has the income to do that...


Not to put too fine a point it, but borrowing on things like older used cars makes it far more difficult to ever get to a comfortable financial situation regardless of income level.
 
Originally Posted By: coopns
Yeah, I guess I will just buy some new floor mats and keep'er going. I really don't mind. We have a newish Honda Minivan so we have one reliable rig. That is what I figured, just keep'er going.

For the financial experts
: I would appreciate you holding off on dispensing your "expertise". I bought 3 years ago with 90K on it for 5K. 5 year loan from the bank. 4 Kids, mortgage...not a lot left over at the end of the month. Lot of 'variables' that you may not be aware of.

I come here for advice/recommendations and friendly comments, not to be judged on my financials.


I had a feeling you bought the car used and was 'budgeting' your money.

Not everyone can pull a wad of cash out of their pocket and buy a new car.
 
Originally Posted By: grampi
I guess they think everybody has a money tree in their back yard and should just pay cash for their vehicles...I liked the "just make four $500 payments and pay it off" comment...not everybody has the income to do that...


The guy has $2000 for a down payment on a new car, yet owes $2000 on a 13 year old car. Last I checked, interest rates were NOT good on old cars such as this, probably in the 6-8% range, or worse. If you have the $2000 now, just pay off the car.
 
Status
Not open for further replies.
Back
Top