5th & 6th Generation (2002-2006 & 2007-2011)Toyota Camry Discussion for years: 2002-2006 & 2007-2011
Topics of discussion range from fuel economy, safety, modifications, performance all involving America's favorite family car, the Toyota Camry.
My girlfreind is in the process of getting the paper work together for leasing an 07 Camry LE. Unfortunatly she is not in the position right now to finance, so it is down to leasing. The dealer is offering her a 5 year lease, $15,000 miles per year limit with $0 down and payments at $250 a month. The car is prcied at $21,400.
Basically I would like some feedback if you guys think this is a smoking deal or if any of you out their are getting a better lease deal.
$250/mo not bad.....BUT....it's a lease!! never in my life will a salesman con me into leasing a vehicle.
depending on your girl's car situation, does she really need it? 5 yrs is a loooooong time. you can't mod, including tint, and if you go over the mileage, you're screwed. living where i do in florida, you'll put 15,000 miles a yr just going back and forward to work. also, hope she's not inclinde to accidents, b/c they'll tag fees at the end of the lease for any damage that they think is more than normal wear and tear.
leases are good for someone like my dad who only drives only to church and the vehicle stays put in the garage otherwise. he does 24 mo leases, so he gets a new vehicle every 2 yrs. 5, dang....that's a long time, and it's not even going to be hers!
of course, this is only my opinion, but you asked for it.
Maybe she should look at a Used Vehicle....can she finance those?
Leasing is like renting an Apartment...no equity. Unless you can write it off your taxes then it is not a good deal in my view to lease. Only buy what you can afford....
__________________ "We can't solve problems by using the same kind of thinking we used when we created them."Albert Einstein
It seems as if Im the only one on this forum pro-lease and that is after selling cars (both new and used). I do not recommend getting a lease longer than the bumper to bumper warranty i.e. 3 yr/36,000 miles. The capitlized cost i.e. sales price is negotiable, make sure to check out carmax.com, edmunds.com, kbb.com and autos.msn.com to make sure she's getting a good deal on the price. And I used to be a cash buyer, i.e. no lease, no financing.
Old Dood,
Just to clarify the term "equity." The only TRUE equity is in an appreciating asset such as a house or land. There are some car's such as the older Ferrari's that appreciate in value and therefore build equity. You are never going to sell a used Toyota for more than you paid for it, agree? Therefore you have NO equity. The only "equity" you create in a car is the money you paid for it.
At the end of my lease of my Highlander, TFS believes the car to be worth $18,000. If in 3 years the market for SUV's has dried up and a 3 year old model (2006) with 36,000 miles is only selling for $15,000 at the dealers, TFS takes the hit. On the other hand if they are selling for $23,000 at the end of my lease, I could sell mine for between 18,500-22,000, pay the residual i.e. $18,000 and walk away with $500-$4000 back.
Lease's are misunderstood. I can actually negotiate moreso on a leased car than a new car because I can throw into the negotiation that I WILL be back within 3 years to get a new car so give me a good deal now and I'll give you a nicely maintained used car to sell.
The average car BUYER keeps their car for 3 years, in that case the lease is MUCH better for them than financing, 3-6 year owner cycle you have to calculate, sometimes its better to lease, sometimes to buy, in my case the numbers broke even, and 6 years + it's DEFINITELY better to buy. Jon. p.s. check out leaseguide.com for a TON of info.
Careful what you believe 07_4bangrl! I leased my '07 Camry LE I4, and I have modded it plenty. It all depends on where you get your lease from. I have window tint, installed an aftermarket GPS unit, and have 18" Arelli wheels on the way.
15k miles a year is more than the national average. If you are driving that much, and just going to work and home, you live too far away from work! (15k / 365 days = 41.09 miles per day) And if you are in an accident, most leases include GAP protection, so your car is covered! And I don't know what these fees are you are talking about. The only "fee" you can have is the per mile charge if you go over the alloted miles.
The biggest mistake people make when leasing a car is leasing it through a dealership! Dealerships don't know how to properly structure a lease. I got my car through autoflex leasing, and it rocks! My credit isn't wonderful, but I got my LE loaded the way I wanted it, (sticker was $29,400) and my payment is $400.00 a month on a 4 year lease. If I tried to buy the same car, it would be like 500-600 a month.
You can mod it as much as you want but most dealers want the vehicle brought back to stock when you return in. I have modified all my other vehicles, my Camry and Solara I've probably put 10k into each with modifications so to me the lease is a good way to control that urge . Don't assume GAP is included, I went through my car insurance for GAP and pay $18 a year for it. BTW I leased through the dealership on a 2006 Highlander V6 4WD with a 3yr/36k and pay $320 a month. Jon.
yea, GAP isn't always included. In Texas, it is almost always included now though. Something to do with state law. But JMS is right, you can get it through your regular insurance person cheap. In fact, people are even starting to get GAP on a car purchase... just makes sense.
Anyway, it is true the dealership usually wants it back in original condition, but since I leased mine through a private company, they aren't as worried. (Probably because they are going to sell the car at auction instead of sticking it on a used car lot.). Just make sure you understand your lease, and its all good. Besides, all the mods I'm doing are for comfort or appearance... not like I'm going to change anything mechanical.
And, as a fringe benefit, my leasing guy can get me alot of stuff I want for the car at his cost... like tires, aftermarket GPS, wheels, etc... I just tell him what I want, and he gets it through a reseller cheaper than I could get it retail! I've never heard of a dealership that would sell you anything other than their own product, and sure as hell not at cost!
Careful what you believe 07_4bangrl! I leased my '07 Camry LE I4, and I have modded it plenty. It all depends on where you get your lease from. I have window tint, installed an aftermarket GPS unit, and have 18" Arelli wheels on the way.
15k miles a year is more than the national average. If you are driving that much, and just going to work and home, you live too far away from work! (15k / 365 days = 41.09 miles per day) And if you are in an accident, most leases include GAP protection, so your car is covered! And I don't know what these fees are you are talking about. The only "fee" you can have is the per mile charge if you go over the alloted miles.
The biggest mistake people make when leasing a car is leasing it through a dealership! Dealerships don't know how to properly structure a lease. I got my car through autoflex leasing, and it rocks! My credit isn't wonderful, but I got my LE loaded the way I wanted it, (sticker was $29,400) and my payment is $400.00 a month on a 4 year lease. If I tried to buy the same car, it would be like 500-600 a month.
i'm basing my "opinion" on personal experience thru a toyota dealership. the company that they had inspect my car when i turned in my lease had a huge check list they went by. tint was not allowed. you may have modded it, but have you checked w/ the lease company as to what is all allowed? aftermarket gps & rims can be removed and returned back to stock, so that's no problem.
as far as driving 15k a year, i live in a huge city. (biggest county in america) and it's easy to put on 40 miles a day for normal activities.
I respect your opinion. Thats all we have here right? And personally, I would never had modded anything on the car unless I checked first. That would be pretty irresponsible, but I realize some people don't actually use the lump of meat between their ears.
And not to split hairs, but unless you live in California, you are not in the largest county in the US.. Los Angeles County is the largest... followed by Cook County where I grew up in Illinois. http://en.wikipedia.org/wiki/County_(United_States) or http://geography.about.com/library/weekly/aa010102a.htm (based on 2000 census).
Regardless, the 41mi/day includes weekends and is just an average... I probably do 20-25 a weekday and 40-50 weekend.
Again my point was never do a lease through a dealership. Private leasing companies have more wiggle room and more options than a dealership. Dealerships have to offer the lease programs provided by the manufacturer and maybe 1 or 2 local banks. A national leasing company can use any program they want, and restrictions are not as stiff because (a) they buy the cars at cost from local dealerships and in volume, (b) they don't intend to resell, but rather take them to auction.
also, if 15k isn't enough mileage, you can always structure the lease for more. If you are getting $250 a month for 5 years thats a damn good deal. The national average for a car payment is somewhere around 400-450. Check around and see if you can find a lease for 20k a year mileage and 4 years... even through a bank / credit union, if you have a firm sales price on the car ( stats for average car price http://www.edmunds.com/help/about/pr...6/article.html)
I respect your opinion. Thats all we have here right? And personally, I would never had modded anything on the car unless I checked first. That would be pretty irresponsible, but I realize some people don't actually use the lump of meat between their ears.
And not to split hairs, but unless you live in California, you are not in the largest county in the US.. Los Angeles County is the largest... followed by Cook County where I grew up in Illinois. http://en.wikipedia.org/wiki/County_(United_States) or http://geography.about.com/library/weekly/aa010102a.htm (based on 2000 census).
Regardless, the 41mi/day includes weekends and is just an average... I probably do 20-25 a weekday and 40-50 weekend.
Again my point was never do a lease through a dealership. Private leasing companies have more wiggle room and more options than a dealership. Dealerships have to offer the lease programs provided by the manufacturer and maybe 1 or 2 local banks. A national leasing company can use any program they want, and restrictions are not as stiff because (a) they buy the cars at cost from local dealerships and in volume, (b) they don't intend to resell, but rather take them to auction.
also, if 15k isn't enough mileage, you can always structure the lease for more. If you are getting $250 a month for 5 years thats a damn good deal. The national average for a car payment is somewhere around 400-450. Check around and see if you can find a lease for 20k a year mileage and 4 years... even through a bank / credit union, if you have a firm sales price on the car ( stats for average car price http://www.edmunds.com/help/about/pr...6/article.html)
The $250 does seem a little high for 5 years. Here in San Diego, you can get a Camry LE 4 cylinder for $269 on a 3 years, 12k per year with only total drive off of $850 (includes DMV and 1st pmt). A 5 year loan would run about $420 a month. In this case, I would say finance it if you can afford the extra payment, because after 5 years you would own the car. I agree with JMSinMD in that you lease the term of the bumper to bumper warranty, since it isn't your car.
In fact, I just leased a Highlander Hybrid last night. MSRP: $33,912. 36 mo 12k/yr w/ total drive off of $1,500. Lease pmt is $325 + tax. 5 year loan payment on this would be about $600 a month.
Leasing are good if you can keep the car in good condition, stay within the mileage restriction, and enjoy changing cars every few years. If you compare what you pay out on 3 year lease with with what your net cost would be if you sold the car 3 years into a 5 year loan, the difference may be about a 1,000 in favor of the finance. If you are not sure if you want to keep the car, then leasing may be good. plus you don't have to deal with trying to sell the car.
In addition, many times manufacturer offer excellent lease rates. For instance, with my Highlander, the lease rate converted to interest comes out to be about 1.8%. I can put the extra amount that I would have made on a finance payment (in my case about $275 a month) in my bank and earn interest on it, which will help offset some of my lease cost.
Although $250/month doesn't sound too bad, if you think about it, after the 5 years is up you would have paid $15k towards a $21k car only to hand it in and start the cycle over again. That car will have plenty of life in it beyond the 5 years and if you were to have bought it outright, every year without a car payment greatly reduces the cost of ownership of the car.
Leases are great for business and people who like to have new cars all the time, but it sounds like this lease is to afford a car that is otherwise not affordable. I think it might be financially wise to consider purchasing a slightly used vehicle instead. Just my 2 cents. Good luck.
Although $250/month doesn't sound too bad, if you think about it, after the 5 years is up you would have paid $15k towards a $21k car only to hand it in and start the cycle over again. That car will have plenty of life in it beyond the 5 years and if you were to have bought it outright, every year without a car payment greatly reduces the cost of ownership of the car.
Leases are great for business and people who like to have new cars all the time, but it sounds like this lease is to afford a car that is otherwise not affordable. I think it might be financially wise to consider purchasing a slightly used vehicle instead. Just my 2 cents. Good luck.
Yes! Anything over a 2 year lease is really not worth it. Buy a used car and safe up some cash. Or fix up the old one.
__________________ "We can't solve problems by using the same kind of thinking we used when we created them."Albert Einstein
It seems as if Im the only one on this forum pro-lease and that is after selling cars (both new and used). I do not recommend getting a lease longer than the bumper to bumper warranty i.e. 3 yr/36,000 miles. The capitlized cost i.e. sales price is negotiable, make sure to check out carmax.com, edmunds.com, kbb.com and autos.msn.com to make sure she's getting a good deal on the price. And I used to be a cash buyer, i.e. no lease, no financing.
Old Dood,
Just to clarify the term "equity." The only TRUE equity is in an appreciating asset such as a house or land. There are some car's such as the older Ferrari's that appreciate in value and therefore build equity. You are never going to sell a used Toyota for more than you paid for it, agree? Therefore you have NO equity. The only "equity" you create in a car is the money you paid for it.
At the end of my lease of my Highlander, TFS believes the car to be worth $18,000. If in 3 years the market for SUV's has dried up and a 3 year old model (2006) with 36,000 miles is only selling for $15,000 at the dealers, TFS takes the hit. On the other hand if they are selling for $23,000 at the end of my lease, I could sell mine for between 18,500-22,000, pay the residual i.e. $18,000 and walk away with $500-$4000 back.
Lease's are misunderstood. I can actually negotiate moreso on a leased car than a new car because I can throw into the negotiation that I WILL be back within 3 years to get a new car so give me a good deal now and I'll give you a nicely maintained used car to sell.
The average car BUYER keeps their car for 3 years, in that case the lease is MUCH better for them than financing, 3-6 year owner cycle you have to calculate, sometimes its better to lease, sometimes to buy, in my case the numbers broke even, and 6 years + it's DEFINITELY better to buy. Jon. p.s. check out leaseguide.com for a TON of info.
I whole-hearted agree, No longer than the warranty.
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. Don't assume GAP is included, I went through my car insurance for GAP and pay $18 a year for it. BTW I leased through the dealership on a 2006 Highlander V6 4WD with a 3yr/36k and pay $320 a month. Jon.
And personally, I would never had modded anything on the car unless I checked first. That would be pretty irresponsible, but I realize some people don't actually use the lump of meat between their ears.
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