Should I get a 2nd LC in 3 months (1st one stolen)?

[Thew_Tang_Clan]

I bought a 2025 1958 in Feb. and it was stolen while on vacation in Canada during Easter. I put 12 down on it and might get about 5 back from insurance. I am absolutely heartbroken and trying to legitimize, to myself, getting another.


What/where am I wrong in this line of thinking?

2025 Toyota Land Cruiser - 1958 edition $65,000 Total (incl Tax)

Lease payment at $600/mo for 36 months = $21,600

$5,000 down payment

Buy out is $46,109.00 ( Includes sales tax and fees )

Assuming 4.9% over 5 years = Total payments $52,195

Total spend on lease payments, deposit, total buyout financing = $78,800

Total "Interest" above MSRP $13,800

Effective rate over 8 full years (13,800/8/65000) = 2.7%

The risk is that at nearly every point over 8 years, I will be underwater on the truck, so any theft, loss...will be a big hit.

I am trying to legitimize this in my head, but need someone to argue against why this is not as it seems.

 

[ct1958]

First of all, that really sucks. Travel a bit for a better price. This one is a 1958 for $54,950. Here in CT and MA they sell for 54,900 to 56,000.

Autotrader - page unavailable

 

[neema2k]

Most, if not all, stolen LC threads here seems to be out of Canada.

I thought Canada was so perfect and innocent and since you cannot speed over there at all or you'll 100% get caught by the police then police presence is so solid and all those rules they have are so perfect that nothing would ever get stolen there.

Yeah I went there.

 

[Area 51]

 

[Hiker42]

I really hate this for you. If the only way for you to get into another LC is through the approach you described, you should buy a less expensive car. Being upside down in a car for eight years is too risky.

 

[HarvLC]

First of all, your math is significantly flawed relative to computing your effective borrowing rate over the 8 years! Your loan balance does not remain at a constant 65k over that period. Your math is overstating the denominator and thus understating the effective rate. The implicit rate in your lease is about 4.87% (using your figures provided) which is similar to the rate you estimate for the buyout loan.

Otherwise:
If you intend to buy the car, don’t start w a lease arrangement unless the terms are unusually favorable (which doesn't seem the case for your offer).

Any loss of a vehicle is especially painful early in the vehicle’s life when the depreciation is higher.

Having to resort to the financing scheme that you’re contemplating - as well as an excessive fear of or inability to sustain a loss - is a sure sign that you’re buying a car that is too expensive for you right now. Stay in your comfort zone.

 

[Area 51]

OMFG i missed the finance your life away part, so sorry.
No, you cannot afford this vehicle at this time. Live well within your means.
Prosper and increase your wealth. Orrr, Live long and prosper. Don't descend into typical consumer debt.

 

[LC STUV]

I would recommend 0 or barely any money down, so that you don't lose any more money if anything should happen. Leases are great for a lower payment, but typically insurance just pays off the lease and you lose your money down.

 

[HarvLC]

???

Insurance will pay based on some estimated value of the vehicle. If the lease or loan balance exceeds that amount, you still need to make up the deficit.

 

[Thew_Tang_Clan]

???

Insurance will pay based on some estimated value of the vehicle. If the lease or loan balance exceeds that amount, you still need to make up the deficit.

I meant that I put down enough when I bought it that the market value of a 2025 @ 2000 miles w same accessories in my area is estimated to be +/- 5k more then I owe

 

[snipereagle8]

How did it get stolen? Can you share the details? I thought it is pretty hard to steal modern vehicles as they have security features like tilt alarm, etc.

 

[HarvLC]

I meant that I put down enough when I bought it that the market value of a 2025 @ 2000 miles w same accessories in my area is estimated to be +/- 5k more then I owe

Sorry. I was actually responding to LC STUV’s recommendation to put 0 down.

 

[EOD Guy]

Regardless of what you replace the LC with, there's always the chance that it to will get stolen/totaled and you'd be in the same boat. At the end of the day a majority of people will make payments on something for most of their life. You are the only one that can determine what you can afford monthly, so might as well drive what you like,,,,,,,,,.