# Lease to buy worth doing? **URL:** \ **Category:** NYSpeed Automotive\ **Created:** [February 12, 2017, 7:53am UTC](https://forums.speedlife.net/t/lease-to-buy-worth-doing/274544 "2017-02-12T07:53:10Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Wahoo](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/wahoo/32/8265_2.png) [@Wahoo](https://forums.speedlife.net/u/Wahoo)\ **Post date:** [February 12, 2017, 7:53am UTC](https://forums.speedlife.net/t/lease-to-buy-worth-doing/274544/1 "2017-02-12T07:53:10Z")
So I went to the Auto show yesterday and really liked the Toyota Tacoma TRD Sport. I currently own my 2002 Cadillac Escalade EXT (has some rust issues 133k mileage ). I still owe $2,500 on it, will be paid off probably mid summer. But currently my monthly payment for it is like $250/month. I have a work vehicle, so I barely drive my vehicles at all. I’m just not sure if it’s worth continuing paying for my truck or trying to trade it in on a lease to own, it would probably be a wash in trade in. But then I’m driving something brand new. In reality because how little I drive my vehicles and not needing a new reliable vehicle for work, I should probably just not buy anything and drive my truck into the ground and enjoy no car payment for a little while. ---
**Author:** ![Motocrossx23](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/motocrossx23/32/5120_2.png) [@Motocrossx23](https://forums.speedlife.net/u/Motocrossx23)\ **Post date:** [February 12, 2017, 9:01am UTC](https://forums.speedlife.net/t/lease-to-buy-worth-doing/274544/2 "2017-02-12T09:01:13Z")
You answered your question in that last bit. ---
**Author:** ![Beck](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/beck/32/28683_2.png) [@Beck](https://forums.speedlife.net/u/Beck)\ **Post date:** [February 12, 2017, 9:06am UTC](https://forums.speedlife.net/t/lease-to-buy-worth-doing/274544/3 "2017-02-12T09:06:48Z")
Depends on the situation. On most cars? No. On something like a Tacoma, which holds it value more than anything else I’ve ever seen? Maybe. Too many variables to tell. Balloon might also be an option worth looking into. Keep in mind…If you’re going to lease something for 3 years and then finance it for another 5 or 6 - you’d be better off just buying it on an extended term in the first place. The payment would be a little higher, but you’ll avoid additional costs (acquisition fee, no lease bonus cash, etc) and you’ll pay a lot less in interest. ---
**Author:** ![Quattro\_Krant](https://avatars.discourse-cdn.com/v4/letter/q/ac91a4/32.png) [@Quattro\_Krant](https://forums.speedlife.net/u/Quattro_Krant)\ **Post date:** [February 12, 2017, 1:49pm UTC](https://forums.speedlife.net/t/lease-to-buy-worth-doing/274544/4 "2017-02-12T13:49:21Z")
> [@Beck](#): > > On something like a Tacoma, which holds it value more than anything else I’ve ever seen? Maybe. Too many variables to tell. Balloon might also be an option worth looking into. Still wouldn’t do it. This comes up here and there with me at work and in the end they either buy or lease, never buy the equipment at the end of the lease. > [@Beck](#): > > Keep in mind…If you’re going to lease something for 3 years and then finance it for another 5 or 6 - you’d be better off just buying it on an extended term in the first place. The payment would be a little higher, but you’ll avoid additional costs (acquisition fee, no lease bonus cash, etc) and you’ll pay a lot less in interest. Exactly. Also-the point of a lease is to have a new car because you need a new reliable vehicle. Once its close to needing something, turn it in and get another one. Leasing something when it won’t be used everyday is pointless ---
**Author:** ![Wahoo](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/wahoo/32/8265_2.png) [@Wahoo](https://forums.speedlife.net/u/Wahoo)\ **Post date:** [February 12, 2017, 2:44pm UTC](https://forums.speedlife.net/t/lease-to-buy-worth-doing/274544/5 "2017-02-12T14:44:27Z")
Yeah I mean it’s not really something I need but I’ve always owned used vehicles with higher mileage and never owned a nice new low mileage or new vehicle. By the time I buy stuff usually it’s worn out a little. I guess I’m just starting to feel like I want something that’s nice, and because I won’t drive it much it should hopefully stay nice for awhile. It won’t be used much but I guess if I had something nicer than what I currently have for DD purposes I would be more willing to use it more often. Also starting to worry about what might break on my current truck although I could probably fix whatever might break myself. ---
**Author:** ![2TurboZ](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/2turboz/32/7577_2.png) [@2TurboZ](https://forums.speedlife.net/u/2TurboZ)\ **Post date:** [February 12, 2017, 2:55pm UTC](https://forums.speedlife.net/t/lease-to-buy-worth-doing/274544/6 "2017-02-12T14:55:33Z")
Save for a year and catch one lightly used that has most of the initial depreciation gone. Buy it at longer term. Leasing something to sit is lighting $ on fire. ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [February 12, 2017, 3:31pm UTC](https://forums.speedlife.net/t/lease-to-buy-worth-doing/274544/7 "2017-02-12T15:31:05Z")
^ this… I also wouldn’t buy anything I couldn’t pay off on a 5 year term unless it was an appreciating asset. ---
**Author:** ![Beck](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/beck/32/28683_2.png) [@Beck](https://forums.speedlife.net/u/Beck)\ **Post date:** [February 12, 2017, 4:08pm UTC](https://forums.speedlife.net/t/lease-to-buy-worth-doing/274544/8 "2017-02-12T16:08:32Z")
> [@Quattro Krant](#): > > Still wouldn’t do it. This comes up here and there with me at work and in the end they either buy or lease, never buy the equipment at the end of the lease. > > Exactly. > > Also-the point of a lease is to have a new car because you need a new reliable vehicle. Once its close to needing something, turn it in and get another one. Leasing something when it won’t be used everyday is pointless We have people who buy Tacomas and 4Runners at the end of the lease because the residual is 75% of what the car is actually worth on trade. If I leased a truck and knew the history of it, had the ability to buy it for $18k when retail on the same used truck is $25,000- I’m probably going to buy it out. Or use the equity towards a new lease. ---
**Author:** ![Jeller](https://avatars.discourse-cdn.com/v4/letter/j/bc8723/32.png) [@Jeller](https://forums.speedlife.net/u/Jeller)\ **Post date:** [February 12, 2017, 4:18pm UTC](https://forums.speedlife.net/t/lease-to-buy-worth-doing/274544/9 "2017-02-12T16:18:43Z")
There also seems to be no point in buying a used toyota truck, the used prices are crazy, you would be nuts not to go new given the used market. Save up and buy something new. ---
**Author:** ![Wahoo](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/wahoo/32/8265_2.png) [@Wahoo](https://forums.speedlife.net/u/Wahoo)\ **Post date:** [February 12, 2017, 5:13pm UTC](https://forums.speedlife.net/t/lease-to-buy-worth-doing/274544/10 "2017-02-12T17:13:15Z")
> [@Beck](#): > > We have people who buy Tacomas and 4Runners at the end of the lease because the residual is 75% of what the car is actually worth on trade. If I leased a truck and knew the history of it, had the ability to buy it for $18k when retail on the same used truck is $25,000- I’m probably going to buy it out. Or use the equity towards a new lease. Im a noob when it comes to leasing, so what you’re saying is if I leased a tacoma, when I have to turn it in I’ve paid off more in that time than it would be worth used on the lot, so I’m able to buy it for the residual price which would be lower than an identical one on the lot. I’m guessing in the end I’d be paying more for the vehicle over just buying it to begin with? Which makes it not worth it in the end or do people just justify it because of how cheap the monthly payments are and in the end you can own it if you like? ---
**Author:** ![BadnewsMike](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/badnewsmike/32/7419_2.png) [@BadnewsMike](https://forums.speedlife.net/u/BadnewsMike)\ **Post date:** [February 12, 2017, 6:34pm UTC](https://forums.speedlife.net/t/lease-to-buy-worth-doing/274544/11 "2017-02-12T18:34:03Z")
You have one of the best built American trucks IMO Im a big fan of the older Tahoe/Burban/Escalades other then the fuel lines rotting out and the fuel pump failing. although that is coming from a guy who drives a Jap SUV an a diesel car lol Just stick with hat you got. save your pennies while you do that and have nice down payment to buy NOT lease a new truck in the future. IT NEVER MAKES Sense to lease if you plan to buy at the end. ---
**Author:** ![Quattro\_Krant](https://avatars.discourse-cdn.com/v4/letter/q/ac91a4/32.png) [@Quattro\_Krant](https://forums.speedlife.net/u/Quattro_Krant)\ **Post date:** [February 13, 2017, 6:14am UTC](https://forums.speedlife.net/t/lease-to-buy-worth-doing/274544/12 "2017-02-13T06:14:49Z")
> [@Wahoo](#): > > Im a noob when it comes to leasing, so what you’re saying is if I leased a tacoma, when I have to turn it in I’ve paid off more in that time than it would be worth used on the lot, so I’m able to buy it for the residual price which would be lower than an identical one on the lot. > > I’m guessing in the end I’d be paying more for the vehicle over just buying it to begin with? Which makes it not worth it in the end or do people just justify it because of how cheap the monthly payments are and in the end you can own it if you like? What Beck is saying is that you only used up 25% of the value of the truck in the time you leased it. So you can pay the remaining 75% of the value and own it which would be less than buying a similar used one. ---
**Author:** ![Beck](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/beck/32/28683_2.png) [@Beck](https://forums.speedlife.net/u/Beck)\ **Post date:** [February 13, 2017, 8:20am UTC](https://forums.speedlife.net/t/lease-to-buy-worth-doing/274544/13 "2017-02-13T08:20:40Z")
> [@Quattro Krant](#): > > What Beck is saying is that you only used up 25% of the value of the truck in the time you leased it. So you can pay the remaining 75% of the value and own it which would be less than buying a similar used one. Yes. This. Simplifying numbers and being crude, if you lease a $35,000 truck for $475/month - your residual is essentially $18,375. Now let’s say that you only put 20,000 miles on the truck at this point. If a three year old 20,000 mile Tacoma retails for $28,900 - why wouldn’t you want to buy yours for $18XXX? Likewise, if it’s worth $23,000 on trade and you can buy it out for $18,375 - you could hypotheically apply the $4625 towards a new lease. Now you’re leasing a Tacoma for $350. Rinse and repeat. When it comes to 4Runners/Tacomas - Using this school of thought…your first lease is the most expensive. It gets much cheaper after that. ---
**Author:** ![Norb\_O](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/norb_o/32/5189_2.png) [@Norb\_O](https://forums.speedlife.net/u/Norb_O)\ **Post date:** [February 14, 2017, 6:51am UTC](https://forums.speedlife.net/t/lease-to-buy-worth-doing/274544/14 "2017-02-14T06:51:05Z")
Keep your Escalade and pay it off. You have a boner for the Tacoma because it smelled new and was all shiny on the showroom floor, in reality it can’t do anything your current truck isn’t capable of. No debt \> new car feeling ---
**Author:** ![maxwell](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/maxwell/32/6524_2.png) [@maxwell](https://forums.speedlife.net/u/maxwell)\ **Post date:** [February 14, 2017, 7:13am UTC](https://forums.speedlife.net/t/lease-to-buy-worth-doing/274544/15 "2017-02-14T07:13:51Z")
> [@Norb O](#): > > No debt \> new car feeling This. ---
**Author:** ![Wahoo](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/wahoo/32/8265_2.png) [@Wahoo](https://forums.speedlife.net/u/Wahoo)\ **Post date:** [February 14, 2017, 7:30am UTC](https://forums.speedlife.net/t/lease-to-buy-worth-doing/274544/16 "2017-02-14T07:30:09Z")
> [@Norb O](#): > > Keep your Escalade and pay it off. You have a boner for the Tacoma because it smelled new and was all shiny on the showroom floor, in reality it can’t do anything your current truck isn’t capable of. > > No debt \> new car feeling This is true. Damn autoshow got me wanting to spend all my moneyz! I’m just gonna keep saving. I am tired of my truck but once it’s summer time I have 2 other vehicles I can enjoy and drive to places in. ---
**Author:** ![JayS](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/jays/32/15375_2.png) [@JayS](https://forums.speedlife.net/u/JayS)\ **Post date:** [February 14, 2017, 7:38am UTC](https://forums.speedlife.net/t/lease-to-buy-worth-doing/274544/17 "2017-02-14T07:38:05Z")
> [@Norb O](#): > > Keep your Escalade and pay it off. You have a boner for the Tacoma because it smelled new and was all shiny on the showroom floor, in reality it can’t do anything your current truck isn’t capable of. > > No debt \> new car feeling Truer words were never spoken on this board. :tup: ---
**Author:** ![TradersBASE](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/tradersbase/32/5321_2.png) [@TradersBASE](https://forums.speedlife.net/u/TradersBASE)\ **Post date:** [February 14, 2017, 11:52am UTC](https://forums.speedlife.net/t/lease-to-buy-worth-doing/274544/18 "2017-02-14T11:52:06Z")
> [@Norb O](#): > > Keep your Escalade and pay it off. You have a boner for the Tacoma because it smelled new and was all shiny on the showroom floor, in reality it can’t do anything your current truck isn’t capable of. > > No debt \> new car feeling x5 ---
**Author:** ![Deathproof](https://avatars.discourse-cdn.com/v4/letter/d/dec6dc/32.png) [@Deathproof](https://forums.speedlife.net/u/Deathproof)\ **Post date:** [February 15, 2017, 2:48pm UTC](https://forums.speedlife.net/t/lease-to-buy-worth-doing/274544/19 "2017-02-15T14:48:23Z")
We need to get that wall up. This country is going to hell. I thought this was America? Go into debt. Keep up with them Jones’s. New stuff rules. ---
**Author:** ![Josh](https://avatars.discourse-cdn.com/v4/letter/j/45deac/32.png) [@Josh](https://forums.speedlife.net/u/Josh)\ **Post date:** [February 15, 2017, 4:34pm UTC](https://forums.speedlife.net/t/lease-to-buy-worth-doing/274544/20 "2017-02-15T16:34:46Z")
Only time a lease is smarter is if you’re looking for a vehicle under 6,000lbs GVWR and you have a business to write off the utilization against. I do this on one of my vehicles because of the fact that the depreciation tables on owning a higher end car under 6,000lbs GVWR are terrible, but if you use it for business enough, you can claim the majority of the lease as an expense which actually greatly exceeds the depreciation write-off of owning the vehicle. Dependent on the actual depreciation tables of the vehicle, you can actually end up ahead buying it at the end of the lease if you do it all right. That said, that same rationale is why I bought my wife’s G wagen instead - because it’s over 6,000lbs GVWR and she legitimately uses it well over 80% for the rental properties since neither of us commute to an office, so we can depreciate a fuckton of it very quickly. For personal use only? Fuck leases. Drive your truck. Buy something later. Or, to Deathproof’s point, go into debt because new stuff rules, God bless America. [Next page](https://forums.speedlife.net/t/lease-to-buy-worth-doing/274544.md?page=2)