Lease vs. Buy for 3-minute commuting wife...

Comments

• Michaell Moderator Posts: 241,012

  February 2016

  stabone131 said:

  Lease is up on my wife's 2013 Rav4. She'd like to get the XLE Highlander as we have a new kid on the way. However, her job is literally 3 mins. from our house - so she only put 20K miles on her Rav4 on a 36K-mile lease. With next kid, she won't drive to work for 6 months so I'm guessing we won't even come close to 20K in the next 3 years.
  
  Does it make sense to lease when we're nowhere near the 36K lease max? Does it make more sense to buy?
  
  Toyota Highlander XLE
  State: NJ
  MSRP: $40,973
  $1000 down
  Dealer 1st lease offer (36 mos.): $400/month
  Dealer 1st buy offer: $689/month
  
  

  Toyota does not offer 10K leases, but other brands do.
  
  If you are averaging about 7K per year, you should buy it and keep it for 10-15 years - after 15 years, you would have just barely broken the 100K mark, and the car would have been paid off for most of those years.

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  2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

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• carboy21 Member Posts: 760

  March 2016

  Just buy out your 2013 RAV. Its the best deal you will get.

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• Mr_Shiftright Member Posts: 64,481

  March 2016

  I think they want something a bit larger carboy.
  
  I agree with Michael, as long as you are ok with keeping the Highlander at least 5 years. With that low mileage, you should have plenty of equity in it if you do decide to sell it in 5 years or so, and calculating your monthly costs of a 5 year ownership vs. 3 year least, you'd come out considerably ahead per month in cost to own.

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• stabone131 Member Posts: 6

  March 2016

  Thanks for the replies. Yes, we do need a bigger car so keeping the RAV4 is not an option.
  
  Would it make sense to lease the Highlander for 3 years (saving about $200/month) and then buy it out when lease is up?

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• Michaell Moderator Posts: 241,012

  March 2016

  stabone131 said:

  Thanks for the replies. Yes, we do need a bigger car so keeping the RAV4 is not an option.
  
  Would it make sense to lease the Highlander for 3 years (saving about $200/month) and then buy it out when lease is up?

  Not necessarily. There are costs with a lease that don't exist when you buy. If the intention is to keep it many years, just buy it from the start.

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  Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!
  
  
  MODERATOR
  
  2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

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• stabone131 Member Posts: 6

  April 2016

  Update/Question:
  
  We decided to buy and have been shopping around. The best offer we've received to date is:
  
  NEW JERSEY:
  
  Toyota XLE - Midnight Blue, Captain chairs, Protection Plan, NAV, Sunroof (all not-optional options as we specifically want a midnight blue one with captain chairs).
  
  $40,097 OTD
  
  $37,289
  
  $1490.23 NJ sales tax (off $21, 289......offering $16,000 on Rav4 lease trade-in)
  
  $349 doc fee
  
  $400 license plates
  
  $569 last 2 payments of our Rav4 lease ( total 'payoff' is $16,569)
  
  
  
  How's this for a deal?
  
  
  
  
  

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