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12,000 mi/24 months for a 2015 Highlander XLE with MSRP $39,205
$2999 down and $437.64 a month.
They have a factory lease incentive running for $2999 down and $319 a month. I assume this is for their entry level LE which lists for about $35,000. Does $4000 more translate to $118 a month?
The numbers seem right. At the end of 24 months what is the buyout amount/residual value (and does that number make sense to you as well?).
12k miles per year is pretty standard, is that definitely within what you are likely to put on it? If you think there is even the remote possibility of exceeding 12k miles per year (and you won't want to buy the vehicle at lease end), see what the numbers look like at 15k miles per year as well. Everyone I've known with just one exception, has had issues keeping their mileage within their lease agreement... when you like a vehicle you always want to take it on road trips.
I am not a big fan of leasing overall. It would seem that you are looking for a 3 row vehicle and this one is rock solid, but..... consider that if you have a big family you will be hauling around in this vehicle, there are going to be a lot of interior parts that may break and/or need replacement due to kids just being kids. I'd rather own than be renting in that situation any day.
In your position I thus would consider leasing only if you are thinking about buying this vehicle in two years (perhaps planning to have the income/savings to do so at that time). I've done this with a similar vehicle and got a great deal. I wouldn't lease again because I did exceed the mileage limitations significantly (but I knew I was going to buy it so I just kept driving it when I saw this about to happen). As an alternative, just buy a lower end 3 row vehicle instead (perhaps used) as my experience suggests that no matter what you pay, your minivan is going to be abused by your family and will need repairs each and every year.
Guess what? You don't get to "keep it" till the bank mails you the title 60+ months from now. I always love it when people would tell me this: Oh I like to own my cars-Guess what?? NO title in hand, NO ownership!!!
You kind of have a great point... but seriously, even if you have payments on a vehicle, if you have financed-to-own, it is definitely different than leasing it (renting it). I've always paid off my financed property early... a well established pattern actually, so financing to own is a good option for me unless I feel like buying something outright. On a financial balance sheet your equity in a financed-to-own situation is counted as a positive... leased or rented items do not provide you with any equity opportunity.
You can negotiate the price on a lease just like if you were buying it outright or financing it. Talk the price down and then negotiate lease on that price, not MSRP
Also what is your money factor? Multiply by 2,400 to get interest rate
I've never leased for 60 months. Who in their right mind would do that? I've leased only for 36 months and this go around it's 24 months. I leased my brand new 2014 Mazda 6 last year for $3500 down at $385 a month at 12k miles per year for 36 months. Guess what? Exactly a year later, I traded that car in for a 2014 Lexus GS350 and I had $700 equity in it!!! I'd like to see you do that in a purchase...
I've never leased for 60 months. Who in their right mind would do that? I've leased only for 36 months and this go around it's 24 months. I leased my brand new 2014 Mazda 6 last year for $3500 down at $385 a month at 12k miles per year for 36 months. Guess what? Exactly a year later, I traded that car in for a 2014 Lexus GS350 and I had $700 equity in it!!! I'd like to see you do that in a purchase...
See the part in blue, that's where your "equity" came from
I say you came out far from ahead. In one year you lost $2800 ($3500-$700). We'll figure the $385/month were costs of owning/financing a vehicle so I won't throw that into the equation.
Yes, you own it, title or not. Because you accrue equity in it. You can pay off the title and sell it, keeping the balance from the sale (unless you're upside down).
You can payoff a lease too. You can also sell a leased car. You can get a payoff quote at any time.
I can see in some cases being better off leasing than owning.
As long as one can afford it, he would be better off leasing - drive a new car with no maintenance issues, what's wrong with that?
Monthly payments? Buy the right vehicle and take care of it, and the "repair headaches" will be far less than the eternal monthly lease payments. Especially at 60,000 miles.
You can payoff a lease too. You can also sell a leased car. You can get a payoff quote at any time.
In other words, you can buy it.
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