FRS Leasing prices
 

Just at a curiosity how much do you spend monthly on the FRS lease payment including tax and everything because there is pure lease special for $296 with $2000 down payment and plus my Dad's friend is the operation manager at Toyota and I wanted to pay monthly about $300 total for the payment and tax.

if you go with 13 model you are gonna be right about 350 a month.

mine is $178 but I put a lot down (6k). ppl on here said I'm stupid but I would have blown the downpayment on boost the second I got the car so I am more than glad I did it.

I get 15k a year but only drive about 6, so the buyout will be very much in my favor when the time comes

Put down 25k and get 2 dollar a month payments.

Down payment luls

Damn, I bought mine and only did a 4 year loan and I'm only paying 380 a month... Leases suck still apparently.

Got mine for $285/month with $1500 down. They counted the military rebate as part of the down payment, so to Toyota, it looked liked $2000. Then they had $500 bonus cash to throw into my monthly payment so it went from $300 down to $285. Pretty much everything that was offered on the site for pure lease, they offered and I took.

Leasing is a horrible idea.

Does that include tax because I wanted to put around $3000 down payment and get around $220 plus the deal my dad can get me through his good friend that is operation manager ?

Based on what criteria? It's definitely a good option for the right person...

Put my $2k down and paying $324 month after taxes with with automatic and wheel and tire insurance. Plus they bought out my trade for wayyyyyy more than it was really worth just to make sure I was a customer. I was happy with it. They rolled my 1st payment into the lease as a whole too.

Nothing down, $350 a month OTD, including GAP. $337 without gap. 3 years, 15k miles.

$775 down
$360 per month

Leasing is like a X year rent contract. What a WASTE of money.

A few restrictions apply, but for all intensive purposes its just a different financing structure. Leasing is great for those who wish to try a car for a few years, yes overall it's a bit more expensive but not hugely so. Effectively you're paying TFS to assume risks for you - I.e. you wreck your car and get it fixed under insurance, they take the overall depreciation hit when you turn the car in.


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How so? At the end of a traditional loan you've been stuck in the same car for 5 or 7 years and it's resale value is about 30% of what you paid for it. If you trade it in before the loan is over it's the same deal. What the dealer will give you in trade in value isn't likely to be anywhere near the amount of money you've paid out for the car, and depending how far into the loan you are, probably less than what you still owe so the difference gets tacked on to new loan.

I don't like driving older cars, and end up trading in every car I get after about 2-3 years. A car is never an investment like a house, they constantly lose value, so it's not like I am going to eventually have some nest egg built up if I paid my car off in full. I'm just going to have a worthless old car. But with a lease I make the same (or close) monthly payment and I always have a hot new car every 2-3 years, and if anything goes wrong with it, it's not my car, the dealer has to deal with it.

At the end of my lease, the dealer gets a low mileage 3 year old used car (their bread and butter) and give me a great deal on my next lease of a hot new car.

To each his own.

But at the end of the day you don't "own" the car. You pay all that money for a certain period of time and end up with nothing, unless you buy it out. I don't know, maybe it's just me, but if I'm paying over $350/month I would rather just finance the car and have something to show for it.

That's the whole point. The $350 a month just comes with the territory of leasing a $25k car.

also you don't have to worry about maintenance fee after 3 years.
buying car is you don't have to pay anything after paid off but stuck with same car until you sell out + you can spend money on something else
leasing is you have to pay forever but worry-free on maintenance.
everyone is different.
i usually stick with one car for long time and spend money on something else.
some of my friends like to change a car every 2-3 years and they do lease and don't care about their car (worry-free)

Leasing is also the best way to write off your car payments as an expense if your income is primarily 1099-based.

-alex

I put down ~8K and have $125/mo payments on a 2 year lease. I plan on a 2 yr loan at end of the lease or pay off outright. Overall with this plan I may save up to ~$4500.00 in interest + taxes compared to loan for full amount.

If you finance a car, the bank holds your title. If you stop making payments, they take the car away from you. Does that sound like you own anything? Let's look at it another way, looked up some quick numbers on the latest FR-S lease:

Lease:
Cost of FR-S: $26000
Lease Residual at end of 36 months: $16900 (i.e. option to buy)
Lease Payment: $296
Down: $2000

Buy:
Cost of FR-S: $26000
Down: $2000
Financed: $24000
Monthly payment at 5%: $453
Principal left at end of 36 months: $10323

So with a loan, at the end of 36 months, you're $16900-$10323 ahead, or $6577. But, over those 36 months, you've paid (453-296)x36= 5652 more than the lease. So overall cost difference for the first 36 months is $925. Significant to some, maybe. A huge difference, no. That $925 buys you less risk, and additionally some liquidity - the option to do what you want with the money you're not sinking into a car payment (invest, party, burn, whatever).

Yeah on a car like ours, we're splitting hairs either way - just illustrating that the differences really aren't that big. Leases can *sometimes* be bad deals, just like financing a car can *sometimes* be a bad deal. Most times, manufacturer subsidized leases can be pretty good and less worry/hassle.

x2 on this. I did the same thing.

Please provide whole story cause you provided a big trade/down payment/or both to get that figure.

380*48 = 18240

I did a 5 year with 500 down and mine is 455/month:

27300 + 500 down = total cost $27800

My car was 25959 on the sticker.

I don't know anyone (including myself) that has issues writing off a financed car as an expense. I do.

My lease is $330/month with $0 down for 36 months & 12k/year(0 taxes, 0 fees, 0 everything except first month & $180 plate transfer)

Car also came with a spoiler, wheel locks, and rear bumper applique

I went to about 5 dealers and 3 were about $385/month for base and only one could come close to the deal i got. Westchester Scion ftw!

I put 2k down and I talked them down to 22800 also I got 0.99% financing.

Okay, sure. But if you stop paying for the car (for whatever reason) then you probably shouldn't have bought it. Living outside your means is a horrible thing. Anyways, sure the numbers 'seem' better but lets not forget all of the terms and legality into leasing a car versus buying it. For one 'anything' that you do to the car that eliminates the manufacturing warranty is prohibited if I'm not mistaken. If you're like me and everyone else that likes to modify their cars you wouldn't want something that doesn't allow you to do what you would want.

Lease vs. Finance is a never ending argument, and the person that decides has to live with that choice for a certain time period.

Actually only thing they care about is how the car is returned. Return it with a bunch of mods and yes you're at risk for fees. So true, if you want to heavily mod your car then leasing might not be the best. I'm not really arguing that pricing is better etc., just attempting to dispel the myth that leasing is a horrible idea. Just another financing structure.


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It's a never ending argument because leasing vs buying is for completely different people. It's generally pointless to convince people who lease that it's a waste of their money. That's because for people who like switching cars every few years, leasing is the cheaper and more hassle free option than buying via cash/financing, then selling/trading in. Now if someone is leasing just because of the lower monthly payments, then yes, that is ultimately a waste of money. In the long run, they are always making at least a few hundred dollars in car payments. If they bought, they'd eventually stop making monthly payments.

For my situation, I keep a cheap, fuel efficient, easy to fix car that I commute in, or drive if I just want to save as much gas as I can. I keep a second car on the side that I drive for fun. There're lots of fun new cars out there, so leasing lets me cycle through the options quickly and with little hassle.

Plus, as long as I follow the recommended service schedule, any problems the car has at the end of the lease is the company's to deal with.

I'm sorry but I personally (from experience) disagree with you.

When you buy (if done properly) you are:

• Paying more towards prinicipal of car
• Not mileage restricted
• Building equity in your vehicle much faster

Every purchase I have made has left me better off than leasing. When I go to trade in the vehicle I can always get more than my payoff, even if I only keep the vehicle for two years. Example: My two year old 2011 Prius with 50k miles traded in back in March got me $1500 more than payoff. That was cash I used to put down towards the next vehicle I bought.
When leasing you never have the chance of coming close to positive equity on your vehicle after the lease. Sure you can trade it in on another but you loose all the money you put in on it. If you decide to keep it now you have to refinance the damn thing and take an even bigger screwing.

For individuals the only reason leasing exists is to let people drive vehicles they really cant afford.

Own business, lease 2 cars.

Expense that shit.

Btw. It makes a lot more sense to lease a bmw for 3 years and then lease a new one than it is to buy out at the end of 3 if you consider the out of warranty costs and depreciation on a european lux car. No reason not to lease one with zero down given those rates.

So no, leasing is not for poor ppl.

Yeah, and my Toyota dealer approached me last year about ending my RAV4 lease with cash incentives to purchase because the residual on my RAV was lower than resale at that time :) Again, just different financing structures. Your last statement, btw, is just ridiculous (both financially and statistically speaking). Cheers! :cheers:

Your example is a tricky situation because you put extremely heavy usage on the car - 50k miles in two years. If I was gonna do that much driving, I would have bought my FRS instead.

After 3 years 45k miles, I'd have to get a trade-in value/private sale of roughly $14,500 to be financially even with leasing if I bought with cash. I'm not too confident about that, especially if issues with the car come up.

Like accident damage/repairs to the car, even if repaired very well, will still depreciate the car.

The only thing the service manager said to me was to return it as stock as possible when my lease is up, anything I do to it between now and then is at my full digression. I plan to buyout asap so Im treating the car like It's mine already anyway. Don't give a fuck! YOLO!

All good points ... no perfect answer .... depends on the individual situation.

I will add:

1. Leasing works in a business because it is a DIRECT write-off. Owning a car means you would have to depreciate it, keep track of mileage, etc. etc.
2. Personal car that you intend to keep or modify .... buy it.
3. Lease disadvantages: mileage restrictions, possible lease turn in fees, car has to be in good shape or you will be hit with other fees.
4. Lease advantages: new car every few yrs.
5. Keep leases to 24-36 months MAX. Leasing for longer than 3 yrs does not make sense.
6. Negotiate the lease rate ... just like a finance rate.
7. In certain rare situations .... a lease car can gain equity if it is worth more than the residual at lease turn it.

Own business, buy 2 cars, 5 years straight depreciation, transfer zero value cars from business to yourself, sell car and get cash in your bank.

Own business, lease 2 cars, expense takes profit away from business, but you will never transfer cash to yourself without paying tax for it.

This is based on assumption that your business is making too much profit and you don't know where to spend it.