Camry lease question

[jkenn19]

Ok, sorry if I asking some dumb questions, but I haven't really considered leasing before, and this deal seems too good to be true. Dealer (Fitz) advertising 2011 4cyl Camry for 109 per month with 2500 down. Have a 2007 Sonata SE 6 cyl with 55k. Is this deal too good to pass up? We drive about 12k a year, so that shouldn't be an issue. Anything I need to watch out for? Thanks for any advice.

 

[jlee]

3yr lease? You'll be spending $6,424 and will have nothing when you're done.

I don't see myself ever leasing a vehicle, but the last car I bought cost $7,390.

 

[jkenn19]

Yeah, I understand leasing is not always the best way to go, but my wife drives about 800 miles each roundtrip several times a year to see grandkids, so we must have a better than average reliability midsize. I can get one year old vehicles from my brother (auction), and have never spent more than $15k on anything new or used.

 

[Bignate603]

Yeah, I understand leasing is not always the best way to go, but my wife drives about 800 miles each roundtrip several times a year to see grandkids, so we must have a better than average reliability midsize. I can get one year old vehicles from my brother (auction), and have never spent more than $15k on anything new or used.

If you keep up on maintenance the likelihood that she will have an issue driving a 1 or 2 year old vehicle from auction is almost nothing.

Often those ridiculously low price leases have ridiculously low mileage limits. They'll get the money out of you somehow.

 

[boomerang]

I've been leasing for 20 years and can't imagine ever going back. You'll have a car that will require virtually no maintenance, will not need tires, brakes, shocks or struts and will be covered under warranty for the entire time you own it. At the end of the lease you just hand it over and get a new one.

I have no interest in "owning" a depreciating asset and especially one that costs me money to maintain and operate too. Don't ever lease over 3 years. Two is optimal but hard to find. Anything over three and you need to consider the total cost of the lease versus buying.

Make the decision that's best for you. The anti-lease crowd is strong here. You're on target with the miles issue. If that's workable, you're a good candidate for leasing. You may be required to maintain higher coverage limits with a lease versus a buy. If your insurance costs are high, you might want to research that first.

 

[Bignate603]

I have no interest in "owning" a depreciating asset and especially one that costs me money to maintain and operate too. Don't ever lease over 3 years. Two is optimal but hard to find. Anything over three and you need to consider the total cost of the lease versus buying.

People keep on saying this to justify leasing, but on a lease the cost of the depreciation is factored in to what you're paying. Either way you pay the cost of the depreciation, but if you buy the car you at least end up with an asset at the end of it.

 

[jlee]

People keep on saying this to justify leasing, but on a lease the cost of the depreciation is factored in to what you're paying. Either way you pay the cost of the depreciation, but if you buy the car you at least end up with an asset at the end of it.

My $5000 Tacoma depreciated -$7,142.50.

FWIW.

 

[HarryLui]

Mileage restriction.

 

[StageLeft]

It isn't too good to be true, it is reality. I never considered leasing until getting a Prius earlier this year. Toyota evidently is still giving away their cars. I came quite close to getting a Camry 6 weeks ago and came VERY close to getting a Rav4. The lease rates are real. All I can advise is first look around because there is a LITTLE bit of wiggle room available now.

Beyond "money down", there is still going to be tax, delivery, destination, etc. and that garbage.

 

[boomerang]

People keep on saying this to justify leasing, but on a lease the cost of the depreciation is factored in to what you're paying. Either way you pay the cost of the depreciation, but if you buy the car you at least end up with an asset at the end of it.

Two camps - both firmly entrenched.

I don't want to end up with a used car. If I wanted a used car, I'd buy it used in the first place and let someone else take the depreciation hit.

Some people like to work on cars. I used to be one of them. I don't want the hassle and I don't want the expense.

If people like myself didn't lease new cars, the availability in the used car market would be significantly reduced. We each need the other.

 

[speedy2]

Don't see the point. I traded in a worn out '98 Grand Cherokee. $2,000 down. Te car we got, 2005 Grand Prix GTP, was $13,500. Talked them down to $12,100. Minus the down payment and trade in. I financed around $7,400 when you factor in taxes and everything. My payment is about $150 The car only had 48K miles on it and looks/drives like new. Even smelled new. Shop around, it's worth it.

 

[cbrsurfr]

At $109/month you really can't go wrong. That's the equivalent to a cable bill. KBB private party value on my 3 year old car is $8250 less than what I paid for it. $6,424 seems like a decent deal for renting a car for three years.

 

[Slew Foot]

I can fully write off the lease on my taxes. So yeah leasing FTW!!!!!

 

[KentState]

3yr lease? You'll be spending $6,424 and will have nothing when you're done.

I don't see myself ever leasing a vehicle, but the last car I bought cost $7,390.

If you buy the car, you will loose $6,000 in depreciation in 3 years and have a car without a warranty. So basically, you net out after 3 years leasing and can buy it if you really like.

To the OP. Putting $2500 down is the downside. If the lease ends early, you will not get that money back. For example, you drive the car off the lot, 6 months later and the car is totaled. You basically paid $3100 or $500/month to lease the car as you will not get that money back. If you do lease, put $0 down.

 

[jlee]

If you buy the car, you will loose $6,000 in depreciation in 3 years and have a car without a warranty. So basically, you net out after 3 years leasing and can buy it if you really like.

To the OP. Putting $2500 down is the downside. If the lease ends early, you will not get that money back. For example, you drive the car off the lot, 6 months later and the car is totaled. You basically paid $3100 or $500/month to lease the car as you will not get that money back. If you do lease, put $0 down.

This is true. I always buy used, so I don't get hit with nearly as much depreciation. I've also never had a warranty (other than long-term stuff, i.e. Toyota frame warranty )...so I kinda forget about stuff like that. :/

 

[jkenn19]

-To the OP. Putting $2500 down is the downside. If the lease ends early, you will not get that money back. For example, you drive the car off the lot, 6 months later and the car is totaled. You basically paid $3100 or $500/month to lease the car as you will not get that money back. If you do lease, put $0 down. -


Thanks - I read about that issue - anybody know what "gap insurance" typically cost? Also, if the dealer is advertising the $2500 down, what are the chances they will want to drop that to zero? Does it just depend on how desperate they are to take the lease especially since I will have a trade worth about $8000 that they would be writing a check to me? I'm making a list of questions for dealer to email them tonight.

 

[StageLeft]

Have you even gone in yet? I am almost positive the dealer won't care much either way over the $2500; The reason they are asking it is so that they can say "OMG Carmy for $109/month!". That's it, they shouldn't care much either way; none of the toyota dealers by me do.

 

[KentState]

-To the OP. Putting $2500 down is the downside. If the lease ends early, you will not get that money back. For example, you drive the car off the lot, 6 months later and the car is totaled. You basically paid $3100 or $500/month to lease the car as you will not get that money back. If you do lease, put $0 down. -


Thanks - I read about that issue - anybody know what "gap insurance" typically cost? Also, if the dealer is advertising the $2500 down, what are the chances they will want to drop that to zero? Does it just depend on how desperate they are to take the lease especially since I will have a trade worth about $8000 that they would be writing a check to me? I'm making a list of questions for dealer to email them tonight.

Depends, but it's rather inexpensive. GMAC for example includes it in your lease to protect both parties. The only thing that gap insurance will cover is the difference between the value of the car and the buyout on your lease so that you won't have to make up the difference. The last time I leased outside of GMAC, gap was like $10 every 6 months.

The $2500 down is make the lease look more appealing. Means the lease is closer to $200/month. The only exception is if your credit is bad and they require to have money up front. Typically you have to have a score above 650.

 

[RU482]

the crowd that frowns on leasing generally also frowns on buying a new car. they tout the greatness of buying a 3-5 yr old car that has already experienced a large portion of it's depreciation. A statement of buying with cash usually comes up as well.

while I agree with the fiscal advantages of this purchasing model, I do not understand the smugness with which some people feel they need to preach on to others who do not abide by their ways.

in the grand scheme of things, if no one ever buys (or leases) a new vehicle, then there will be no low mileage 3-5 yr old cars. So, if this is your target purchase, wouldn't it make sense to encourage others to buy/lease new vehicles (and thus maintain a steady supply of low cost, low mileage, 3-5 yr old vehicles?)