I want to know the full story on a car lease

Asked by Sep 09, 2015 at 01:50 PM about the 2010 Toyota Avalon XLS

Question type: General

I have owned a Toyota Avalon for 3 years. It has 102,000 miles now and I
looked at what I paid and what its worth now and it has cost about 440.00 per
month to use this car. Maybe I should just lease one.

6 Answers

The Avalon is the highest end Toyota there is. Next step is Lexus. To drive an Avalon is going to cost you. Simple as that. I wish I could afford one. $440 a month is reasonable.. but leasing is not a good idea in my opinion. I leased a Ford truck once, and all is well and good until the lease is up... then you have to give it back and all the money you have put out is very nearly like rental. Money and car both gone.

1 out of 1 people think this is helpful.
99,925

I hate leasing...

1 out of 1 people think this is helpful.

Yep, joemom, I agree. I financed my car to buy but paid it off in 18 months. I saved maybe $5000 in interest, as painful as it was on me financially to pay it off early.

1 out of 1 people think this is helpful.
99,925

I hear you, I have never lease a car (Rent) and I never will..

17,955

When you lease a car you're paying down the depreciation of the car in the first three years. Most people lease cars because they want to get a car that they might not otherwise afford. This does not work for everyone. You have to be very careful and understand how it might benefit you. In many cases , you wind up paying top dollar. The only benefit to leasing is if you intend to keep the car and refinance it later. You could look at it this way, you're buying down 3/5 of the car and the lease will establish a set price for you to purchase the car at the end of say three years. The advantage is that you've had the car for the first three years and you know how it's been treated. If you have a business and can write off the expenses as a legitimate business expense, it further reduces the total cost of the car. Finally, ask them what the cost factor is, this is the percentage of the money they're loaning you to finance the car. They will tell you this is a low number, usually around .00824 or something like that. However, to get the real annual percentage on the money you're paying, you have to multiply this cost factor by 2400. That will tell you the real interest rate. Look, cars depreciate, that's what they do. If you purchase a car, it's going to depreciate just as fast as the leased car. If just depends upon how you manage money and if driving a new car is important to you. Finally, if you drive a lot and put on many miles, a lease is generally not a good idea. Why? You might not really like the car and want to turn it in at the end and then you'll have way over the miles allowed. Usually they allow 12,000 per year. You can negotiate for a larger mileage allowance, but, your payments will go up. It's all arithmetic, no magic here on lease or buy. Choose a car that has a good resale value, it helps. Finally, if you can, find a credit union to finance your car, they offer the best rates and simple interest payback. You don't want to get a loan that has all of the interest paid first before your principle. Purchase or lease a car that you can afford, remember, these are all depreciating assets. Once your car is paid for keep it for 10 years or more, it will be a better investment that way. Good luck.

17,955

When you lease and just decide to return the car, it's exactly like a rental. Also, be careful not to exceed the mileage allowance. Usually there's only two things you can do, pay the excess fees or sometimes they'll offer you to turn in the car with no penalty in exchange for signing a new lease.

Your Answer

Add photo

Related Questions

Avalon

Looking for a Used Avalon in your area?

CarGurus has 13,619 nationwide Avalon listings starting at $1,450.

ZIP:

Search Toyota Avalon Questions

Toyota Avalon Experts

#1 Tom Demyan
Tom Demyan
Reputation 1,670
#2 lilfrosty357
lilfrosty357
Reputation 820
#3 dandyoun
dandyoun
Reputation 650
View All

Related Models For Sale

Used Toyota Camry
824 Great Deals out of 88,885 listings starting at $599
Used Honda Accord
723 Great Deals out of 86,679 listings starting at $1,250
Used Lexus ES 350
213 Great Deals out of 15,666 listings starting at $3,599
Used Nissan Maxima
278 Great Deals out of 26,254 listings starting at $1,990
Used Toyota Highlander
329 Great Deals out of 25,232 listings starting at $2,900
Used Toyota Corolla
663 Great Deals out of 71,216 listings starting at $600
Used Toyota RAV4
587 Great Deals out of 68,721 listings starting at $2,350
Used Lexus GS 350
117 Great Deals out of 4,329 listings starting at $5,898
Used Nissan Altima
838 Great Deals out of 78,595 listings starting at $1,677
Used Toyota 4Runner
254 Great Deals out of 20,314 listings starting at $1,995
Used Chevrolet Impala
522 Great Deals out of 29,005 listings starting at $1,100
Used Lexus LS 460
79 Great Deals out of 2,616 listings starting at $8,462
Used Honda Civic
482 Great Deals out of 87,376 listings starting at $1,499
Used Acura TL
233 Great Deals out of 6,937 listings starting at $900
Used Lexus RX 350
423 Great Deals out of 20,571 listings starting at $5,118

Used Cars For Sale

2017 Toyota Avalon For Sale
6,272 listings starting at $28,986
2016 Toyota Avalon For Sale
13 Great Deals out of 1,443 listings starting at $18,900
2015 Toyota Avalon For Sale
24 Great Deals out of 882 listings starting at $13,495
2014 Toyota Avalon For Sale
29 Great Deals out of 931 listings starting at $13,995
2013 Toyota Avalon For Sale
42 Great Deals out of 968 listings starting at $12,900