Advice for leasing a 2024 tundra

Hello everyone, I am new to this group. I need some advice. I am looking to lease a new 2024 tundra with 0 down. I am trying to figure out my monthly payments. I am also trying to figure out the residual price. The truck is a 4 x 4 SR5. Could the dealership include gap insurance? If so, how much should I pay for that? I know typically when you go to purchase a new vehicle you always want to ask what is the outdoor price for the vehicle and you want to get all of those numbers upfront? What are some things that I should ask for Upfront to make sure the dealership is not adding in additional cost and secretly trying to raise my monthly payment. The dealership tried to tell me on a lease for a $52,000 truck 0% down my payments would be $749. My taxes from in TN would cost $3,000. These numbers seem very off. Please help.However-they did tell me, at the end of thelease, I could buy the car for $35,000.Again-first time leasing here please be nice.

 

I can reverse math it . Lease is 3 main things.

cap cost, residual value, money factor.

all else is negligible or can’t be controlled like taxes, acquisition fee, etc.

Go to Edmund’s forum to request or view current MF, RV, and incentives.

 

What are your questions specifically?

Without asking about your personal financial situation or financial literacy it’ll be hard to help with a “should I” post.

The options they give you for 0 down payments will be the options they give you. Can’t say the guys in the internet said my payment should be 300 ha.

Are you asking if their math is correct?


I’d recommend not leasing this truck at all, zero down or not, but you’ll do whatever you want so, how specifically can we help?

 

I've never understood the value in leasing. I know of only one situation where it worked to the owner's favor. A friend's lease ended during the peak of used car pricing a few years back and he bought the F150 when the lease ended at the predetermined price which was about $15-20 grand below what the truck was actually worth at that time.

 

What dealer at Tennessee are you looking at? If I can make some suggestions, I’d check with Peppers Toyota in Paris, TN or Fox Toyota in Clinton, TN. I personally go to Pepper’s and deal with Amy (she’s awesome!). Rest of the dealers seem to be pretty crappy when it comes to sales.

 

I’ve only leased once.

2018 CRV EXL. $250 per month. During Covid I sold it with like 8 months remaining on lease. Sold it for $27k with a $19.3k balance . Came out slightly ahead after fees .

 

If you lease you don’t need gap insurance as it is not your truck you are just paying to drive it for X amount of time and if you go over specific miles you pay extra!!
I forgot you have to cover the lease do yup you have that option of getting the gap ins.

 

Tax benefits to some businesses. Leasing high depreciation vehicles like kraut burners it can be cheaper.

Also used to be for underwriting review in a mortgage application a lease of shorter term with no way to be underwater scored better than a longer length zero for car loan with underwater potential even if payment was the same

Leased are totally made up gerrymandered numbers. Occasionally used to be you could hit on a heavily subsidized lease deal that is really cheap. I got a zero down $349 lease for 39 months and 50k miles on a loaded GMC Acadia Denali for the wife in 2013. The lease was right at 1/2 the payment for a zero down loan. Cost me $14k in payments instead of $20k+ in depreciation.

But now a lease deal is as much as the purchase.

 

Sounds like you are much better at math than the average "I love that color" buyer.

 

I was a homebuilder for a decade. It provided a PhD in taxes, loans, and the civil court system.

 

It's called a F"lease" for a reason! Unless you can afford to walk away with no equity for the car or need it for a business deduction I'd steer clear of one.

 

$750/month lets say you have a 3 year 36 month lease which means you will burn $27,000 in payments that go into thin air. You're literally giving them $27,000 to drive a car around for 3 years. You still have the option to buy for $35k at the end of the lease but that $27,000 from the last three years is just gone. You're probably better off finding a truck for $30k and trying to get a loan on it and then when you pay off that loan you own it. Look at it this way if you can't afford any kind of down payment to get your lease payments lower then why would you think you can throw away $9000/yr for the privilege's of driving a vehicle around?? You'll throww away $9k a year but can't come up with a down payment?

With a zero down lease you very well may need lease gap insurance in case you can't finish out payments due to a total loss and that depends state to state and lessor to lessor. Now if the question is do you need it? Thats a question you have to answer and it may be required for a zero down lease.

The number one thing dealers love to hear is "what's my monthly payment going to be". Ask friends or family members that may be knowledgeable in car deals to explain all this to you because your questions are very open ended and not at all easy to explain with out knowing your knowledge base first. I'm not saying this to be a dick here its just words of warning "all the things you've said in this post point me to believe you are literally the type or person dealerships rip off and rip off real good and in the end they're going to get you into a vehicle you can't afford"

Other number one rule at a dealership is if it isn't written down and signed by both parties don't believe a single fucking word they "tell you". As in literally you know the dealer is lying to you because words are coming out of their mouth.

 

Preach

Leases are for dummies. OP don't be a dummy.

 

With the limited numbers provided, that sounds roughly spot on for a lease.

$52000 vehicle plus $3000 taxes, and $35000 residual, with 0.00292 or 7% money factor = $777 per month for 36 months with zero down.

https://www.calculator.net/auto-lease-calculator.html

However, this includes no incentives or deals on the MSRP, and you should not be paying MSRP on a '24 Tundra these days. Discounts seem to range from $4000-$10000. If you get a $4000 discount, you should be paying under $650, and if you also get a better interest rate on top(like 5%), you might be down to $570.

 

How can they charge tax when you’re not buying anything?

If it’s not part of your tax strategy for your corporation I would agree with everyone else and just buy something lightly used.

You could probably find a really nice limited for 52

 

I was just about to post this same logic. If you have to buy the truck at the end of the lease for 35k and you've already spent 27k that adds up to you spending way more over the life of gaining access to ownership. And if you turn it in at the end of 3 years you basically rented the truck for a hefty price tag to you. You're not winning in either scenario. Buy a cheaper truck used that you can afford.

 

Sometimes less is just more @Red&03Taco...very well said.

 

@Itsasouthernthing please report back that you made the wise decision and didn't set your self up for financial ruin.

 

Wait wait wait..... a second did a 2nd gen'er saying something positive to a 3ed gen'er??? Not even a mention about my engine exploding??? What is this world coming to?

 

I absolutely get a kick out of people's mental gymnastics they engage in to try and convince you leasing is smart

 

It's a freaky Friday sir lol

 

The purchase argument makes sense and if we were talking about a 2021 Tundra, this would be a good route to go.

With the 2022's and on, a lease could give you the out to dump the truck since it isn't yours. Giving it back to Toyota and letting them eat the loss of value would make sense to some.

Our goal has always been to purchase and keep for a decade but it seems that this approach is muddied by this declining value of our Tundra with these recall issues.

My business owns our Tundra and after the last few months of discussions about my truck with my dealer and Toyota Canada, it has lost about 1/2 of its value in 18 months and with less than 5k miles on it. And that no one wants it as a trade. This seems like we have lost more than we would have lost by leasing.

A newer Tundra might be outside of the engine bubble but who knows at this point.

Just my 2 cents on this crazy situation!

 

I see your point, but I think people should just be more judicious in their vehicle selection, but still stick to purchasing over leasing. Justifying throwing money away at a lease, simply because you picked a car/truck that depreciates faster than used underwear isn't a financially sound strategy.

*Disclaimer: I'm not trying to rip on 3rd Gen Tundras in this post, plenty of other threads exist where I can go do so.*

 

When we got our Tundra, we certainly didn't see it as a lead balloon. We were basing our choice on the stellar reliability of the 2021 and earlier Tundra's. So our expectation was to have this vehicle for the long term.

As the current situation unfolds, we are seeing the value plummet by let's say $30,000 in 18 months. Now there will be depreciation that takes a bite out of this. So if I take $13,000 (20%) off what we bought it for. That leaves $17,000 loss due to it being a Gen 3 Tundra.

Toyota has managed to take almost $1,000 per month extra out of our pockets (by building an engine with a self destruct mechanism). Seems like a lease would be less expensive for us with this vehicle.

 

There's still a good chance values rebound following engine replacements, and then after 3 years when those who leased turn in their's (after paying ~30k to borrow a truck), you'll still own something that hasn't depreciated by $30k (meaning they're still out more than you).

If I'm wrong and the values never recover then the early 3rd Gen Tundras will just fall into the category of car/truck you shouldn't ever buy OR lease (because again you shouldn't lease anything period).

 

@Red&03Taco

I certainly hope that your speculation is correct and things return to normal. At least we will have another engine to replace our engine that has 4,600 miles on it, when and if they figure out the remedy to fixing all these trucks.

Then I am back on the "Purchase" side of the fence!

 

I also think that values will rebound once the recalls are fixed and all the fear fades away. Toyota as a brand needs this problem to be resolved to build back any waning perceived reliability issues.

 

What if they own a small business and want an operating lease to keep it off the balance sheet?
What if it is more convenient?
You’ve got big black and white opinions?

 

I leased in 21, in my business name. Things were crazy, prices were rising and there wasn't a good truck 1/2 ton option available at the time outside the tundra I was interested in. Just bought it out for 34k, with 26k miles on it. I don't think I came out too much ahead, but trying to find my truck now and buying it would be closer to 40 after everything factored in. ONLY because of covid and inflation did my lease make sense and work out, along with tax deductions helping our business. I don't think I would lease again, especially considering I am rough on my exterior and the amount they would probably ding me for using it as a truck would remove any "savings".

So OP, are you going to keep your truck pristine? Will the write off make any real difference? Right now, I'd only lease an electric vehicle because they are basically giving them away, but IRL I won't actually own an electric, so thats moot.

Do what people on here are saying, get a nice used truck and save some money. Or even wait a few months if you can and save up, put a downpayment on a new one and have the dealer take 6-10k off. New and flashy is great driving around and impressing friends, when the money is flowing. It's stress and no sleep if you are on a budget though and I would say not worth it.

 

@Itsasouthernthing

You have gotten good responses. If you choose leasing you want the highest residual value at the end because your payments are based on the first part of the vehicle life up to the end of the lease date. The higher the residual value the lower your payments up to that point in an apples to apples comparison. Its also based on whether Toyota or the Dealers have specials going on. You need to discuss this with them.

from (Edmunds) site

https://www.edmunds.com/calculators/car-lease.html

Plug in the info for the different model trims and also F150 GM Ram for comparison.

Tundra SR5 67% 1794 63% Capstone 58%

So the heavier trimmed models have lower residuals. Your payments are higher on them.

The biggest advantage is no obligation to buy it and you get into a new vehicle every 2-3 years. And you are not financing the whole amount up front. Just the planned portion you are going to use. Thats worth alot to alot of people. For business - the higher fees paid if applicable are ok because they go against your income so you pay less taxes - depending on your tax bracket. just saying. I did this "leasing" for many years. I would never do it today.