Question

Looking for some thoughts on this. I need to purchase a truck for my next vehicle. I would like to purchase a manual transmission crew cab truck, which leaves me with a Toyota Tacoma or a Jeep Gladiator. At any rate, I would like to purchase the car but $500 dollars a month for a payment is insane. Does anyone know if it makes sense to lease a vehicle at a low cost, and match the amount you pay over the course of a few years to make a down payment for purchase thereafter? What happened to trucks being cheap workhorses, right?!?  

Answer 1

My boss has a newer Jeep and doesnt like their quality, seemed to wobble at high speed and was a pain dealing with Jeep to get it fixed. Most of the regulatory agencies i deal with are buying Toyota. Seems to be the lowest cost long term as far as maintenance. My company chooses Ford but thats just preference, id prefer Toyota.  

Comments

@haar844 I actually really love the Ford Ranger, but it doesn’t come with a manual transmission, and I refuse to drop a potential $3, 000 on one if it should happen. A new clutch might run $800 and the goal is to long-term own the vehicle I choose to purchase. I really like the Gladiator because I have had a convertible for years and love the feeling of the wind and sun. It is also available in a manual transmission. I agree Toyota has a better track record overall.  

Answer 2

@cowboy67795 sticker shock. This is why people are leasing even when long-term it is a bad idea. They lack liquidity and cash flow. Also why Lyft and Uber are viable solutions as alternatives to owning or leasing. Back to your idea. A. Consider used? B. Consider new lease and then purchase your used vehicle down the road? -- you offered this option C. Consider borrow money with a margin loan against your stock portfolio? -- of course the loan balance will be chipped away by dividends and what you pay back to yourself versus a bank.  

Comments

@azarria94051 unfortunately for my daily drive Uber and Lyft would be too expensive, plus I have a house so I need something to transport materials for remodeling since I do a great deal of it on my own. Option A I’m trying to consider but the Gladiators are new for 2020 and the Tacoma’s are almost the same price new or used, maybe a difference of 3-5 thousand dollars, which isn’t peanuts but still the value they hold makes you question should you just go get the newer one for warranty purposes? Option B is what my initial post was asking about if anyone had heard of a lease to own option. I’ve only ever bought used cars that were cheaper. Whatever car I decide on I want to keep regardless, so even if it was a lease and then I tried purchasing it I didn’t know if anyone had heard of a program like that. Option C. well I don’t have any of those things, but I’m working towards it.  

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@cowboy67795 go with option A but look at way older than that. Consider used Tacos with around mid 100k miles on them. That will still be reliable for many many more years.  

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@schaerbeek35410 I need it to be a 4 door, planning for kids. Even with that parameter most of those trucks are still 20k. Again trucks are absurdly priced for “work” vehicles.  

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@azarria94051 I appreciate the reading material!  

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@cowboy67795 I don't think Tacoma's are absurdly priced. They are at least two times the size of a small sedan so there is a lot more material cost. We bought a 4 year old tacoma for 17k to replace our 16 year old tacoma that we sold for 2k. Hard to complain about that.  

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@twin95472 how many miles though?  

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@cowboy67795 It had 32, 000. I compared every vehicle we looked at by dividing the cost by how many "good" years it would likely have left. (we live in the NE so cars tend to rust out) The 3-4 year old trucks tended to be the best deal when looking at it that way. Also, I personally don't think getting a two year loan to finance part of the purchase price is a big deal. (rates are so low! ) I paid a whopping $300 in interest. well worth it for the flexibility.  

Answer 3

The manual requirement really limits you. Just some basic thoughts : Don't borrow unless it is a really great rate. Buy used, then trade up once you save more. Why buy a new truck for work? I love my tacoma, highly recommend. Lastly, automatics are good these days, I would not let that get in the way of a good deal.  

Comments

@iconostasis23 it was over when you started making it personal, don’t get triggered bro.  

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Ok, I’ll bite just the one more time because I genuinely never intended for any of this to be anything more a spirited discussion over the math of the transaction. At what point did this become personal? I mean, there was the part where you implied I’m a danger to my wife and kid, but before that?  

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@iconostasis23 it’s funny you judge things based on what YOU think I need. You don’t know anything about me, or what my actual needs are. Instead of offering perspective of what’s out there or attempting to be a genuinely good human being, you decided to criticize what you deem a person “needs” the sheer level of arrogance is astounding. Finally I do stand behind my statements because you took it there, I’m just better at being a jerk than you it seem.  

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Fair enough. My only intention was to challenge some of your foundational assumptions about this transaction that would give you more options to solve this problem and put you in a better long term position to build wealth. If that came across as a personal attack it certainly wasn’t my intention and I extend a sincere apology, was never my aim.  

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@iconostasis23 fair enough my apologies for my quips.  

Answer 4

Nissan frontier is a third option. Small format truck like the Tacoma or Jeep but more affordable. They ditched the manual for 2020 but you may be able to find a new 2019 or a slightly used one.  

Comments

@lunde4652 I’ve looked into the Frontier and heard/read mixed reviews. They are certainly cheaper, but I’ve heard the quality is lacking. Nissan’s trucks kill me because they haven’t updated them in 10 years. Still, manual, and cheap are hard to fight against.  

Answer 5

You definitely might be able to negotiate a really good price on the gladiator. My buddy that works at a jeep dealership said they are having a really tough time selling them.  

Comments

@nimesh read an article last night about how they aren’t selling well, which blows my mind.  

Answer 6

I think you may want to go do more research on a manual transmission. Repairs on newer ones are just as expensive as regular transmissions these days. They also don’t give you warning signs of going out like the older manual transmissions these days. I’m not gonna knock anyone on the brand they want to choose but having worked in automotive for years I’d never buy a first year model of anything. There are too many bugs to be worked out in them. There are a lot of good used trucks on the market if you look in the right places. Good luck with your decision making.  

Answer 7

Car loans and leases are silly. Save or use 0% interest short term unsecured debt you pay off fast to buy something used. 3-10k truck does the same thing as a 30-45k truck and you aren't paying 20% of your income to own. Use the 500 a month you save to invest in your business or paying other debt. Just my 2 cents. And the Tacoma's are awesome and theres a reason they cost more and hold resale

Answer 8

Having worked in the auto business, specifically on the finance side with loans and try to be as financially frugal and smart as possible. My first generic questions to you is how often do you get a new vehicle and why? Do you plan on keeping this vehicle for 7-10 years? Why are you looking new vs. used? My next few questions would be has a dealer given you a quote on what the lease breakdown would look like? Money down, payment, etc.? Also, every lease comes with a purchase option which is basically the cost you can choose to buy the vehicle for when that’s done. You could choose to buy the vehicle at that point (or finance it with another company) or turn it in. On a side note I completely understand the manual transmission desire. It is not completely necessary but is so much more enjoyable.  

Comments

@toll4537 so my goal is to keep this car until the wheels fall off. I don’t like the idea of trading vehicles often, and if I get something I enjoy and can play with but is also functional I don’t typically see a next year car model and go I need the “new” one. I’m even a bit of a Luddite. I frequently look at vehicles and ask, why is this feature even on here? (Not to be preachy but a backup camera and 4G wireless built into a car is the dumbest thing I’ve seen. Most phone plans offer unlimited data and reasonable rates AND just reach your arm around the passenger seat and back the car up. lazy people. ) I’m also not really looking for new, but I want a truck with low miles but will be good to go for 10+ years. Ideally if I could find a reasonably priced 2016 or 2017 Tacoma 4-door I would be happy. It has the functionality I need but is customizable enough I could update it with things I wanted. I’ve also looked at the newer Ford Rangers, and for the price I might could deal with an automatic transmission. As for offers, I’m only in the research process but I’m looking to buy within the next year.  

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@cowboy67795 I used to think the exact same thing about back up cameras. Until I got one. Parallel parking I can get within an inch of another car when getting into tight spaces. I can line up on a trailer first time every time when I don’t have a spotter. And you can back out of blind parking spots knowing you’re in the clear. They are worth every penny.  

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@endanger656 a backup camera can serve a purpose, especially for hauling and things like that, but it’s the standardization that I feel keeps driving the cost of cars/trucks up. Seriously though 4G hotspot. why, just why?  

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Yeah I’m with you on the 4G

Answer 9

Why are you limiting yourself to these options? Tacomas have crap fuel mileage. Get a used F-150 eco boost. It gets great fuel mileage and you can find used trucks for 15-20k. Leasing is a rip off.  

Comments

@lunde4652 it’s not a necessity, but it is something that I value much higher than a back up camera, a 4G wireless hotspot, auto-dimming rear view mirrors, or the other “standard” nonsense that comes on modern vehicles. If I really wanted to go cheap, I could go with a Frontier, but I’ve not heard good reviews.  

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Ha once you get an auto dimming mirror and back up camera you might not feel that way.  

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@endanger656 I’ve lived without them my whole life and several times nearly had the rear of the car taken off watching the backup camera. That all is besides the fact those items add like a grand to a car for some reason.  

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I hear you. But these are tools that make for a safer driving experience. 1k for added safety for my family is well worth.  

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@endanger656 that could be the difference, just my opinion it’s one more thing to break. I still think the back up camera is dangerous, haha.