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 of 1 people found this helpful.
112,475

I hate leasing...

1 of 1 people found this 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 of 1 people found this helpful.
112,475

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

22,925

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.

22,925

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

Avalon

Looking for a Used Avalon in your area?

CarGurus has 17,838 nationwide Avalon listings starting at $1,600.

ZIP:

Toyota Avalon Experts

  • #1
    Tom Demyan
    Reputation
    1,860
  • #2
    lilfrosty357
    Reputation
    940
  • #3
    dandyoun
    Reputation
    690
View All

Related Models For Sale

Used Toyota Camry
1,001 Great Deals out of 101,180 listings starting at $300
Used Honda Accord
1,192 Great Deals out of 74,709 listings starting at $561
Used Lexus ES 350
350 Great Deals out of 11,360 listings starting at $4,786
Used Toyota Highlander
565 Great Deals out of 37,557 listings starting at $2,450
Used Toyota Corolla
966 Great Deals out of 65,141 listings starting at $850
Used Nissan Maxima
340 Great Deals out of 23,678 listings starting at $1,200
Used Toyota RAV4
827 Great Deals out of 56,076 listings starting at $1,600
Used Chevrolet Impala
567 Great Deals out of 36,776 listings starting at $990
Used Lexus GS 350
160 Great Deals out of 3,612 listings starting at $5,500
Used Nissan Altima
1,212 Great Deals out of 89,068 listings starting at $1,500
Used Toyota 4Runner
359 Great Deals out of 27,326 listings starting at $1,750
Used Lexus LS 460
82 Great Deals out of 2,263 listings starting at $7,695
Used Honda Civic
777 Great Deals out of 67,925 listings starting at $999
Used Toyota Venza
114 Great Deals out of 2,716 listings starting at $7,735
Used Hyundai Sonata
850 Great Deals out of 58,948 listings starting at $1,500

Used Cars For Sale

2018 Toyota Avalon For Sale
10,374 listings starting at $29,065
2017 Toyota Avalon For Sale
12 Great Deals out of 854 listings starting at $20,898
2016 Toyota Avalon For Sale
20 Great Deals out of 745 listings starting at $14,991
2015 Toyota Avalon For Sale
30 Great Deals out of 847 listings starting at $13,995
2014 Toyota Avalon For Sale
63 Great Deals out of 1,301 listings starting at $11,899

Content submitted by Users is not endorsed by CarGurus, does not express the opinions of CarGurus, and should not be considered reviewed, screened, or approved by CarGurus. Please refer to CarGurus Terms of Use.