I got myself into a lease situation and need some advice.
Here’s the story: I changed jobs in April 2023 and needed a car because my last job provided a company vehicle. I sold my 2001 F350, which was mostly sitting in my driveway, and found a 2023 SR5 Crewmax TRD Sport that was on its way to my local dealer. I put down a small deposit and signed up for a 15k miles per year, 3-year lease.
At the time, interest rates were really high (9–10%), so I thought leasing made more sense than buying.
Now, a year and a half into the lease, I’ve already hit 45k miles. My warranty will run out before the lease ends, and I’ve been reading online about these trucks having engine issues. It’s making me anxious. Should I get an extended warranty and buy the truck at the end of the lease? I don’t know what my best option is.
Have you checked if your truck is on the recall list? I think Toyota might replace the engine even if your warranty has expired. I’d give them a call and ask.
If your truck is on the recall list, the warranty doesn’t matter. If it’s not on the list, then you might need to worry about the warranty. Definitely check into it.
You could buy it at the end and sell it privately, or just turn it in and lease something else. If you’re going to turn it in, the miles won’t matter as much. I’m leasing a Tundra right now too, and I’m also a bit concerned about the engine issues. Not sure if I’ll keep it long term.
I don’t think the recall and warranty are the same thing. From what I understand, a recall usually lasts up to 100k miles regardless of warranty. But your mileage overage might be a bigger issue. I’ve tried to return leases before thinking they’d forgive the overages if I stayed with the brand. They don’t do that anymore.
Recalls don’t have anything to do with warranties. A recall applies to any vehicle, no matter how old. This recall seems pretty serious—it’s for engine failures, some of which happened while people were driving. Toyota is covering it for life, even if it happens years later. They’ve identified a manufacturing defect where small metal shavings got into the engine block, but only on the gas models, not hybrids.
If your truck is part of the recall, they’ll fix it no matter what. Download the Toyota app and check if your VIN is affected. If it’s not on the list, you’re probably fine, but there’s no guarantee. I wouldn’t buy an extended warranty unless you plan to keep the truck. Good luck with it!
You could buy out your lease and then trade it in. A lot of the time, dealerships will make it a cashless transaction. It’ll still cost you, but probably less than paying for all the extra miles.
I was over mileage on my last car and ended up selling it to Carvana. I actually made money on it. Not sure if it’ll work in your case, but it’s worth exploring.
At the rate you’re going, you’ll be around 90k miles by the time your lease is up. Did you not calculate how many miles you drive before leasing? That’s one of the first things to figure out. You’re looking at being about 45k miles over the limit, which is going to cost around $11,250 in overage fees (at 25 cents per mile). Trading it in won’t help much because you’ll still be upside down on the value due to the mileage and depreciation.
Your options are:
Pay the mileage fees when you turn it in.
Take the financial hit and trade it in while upside down.
Buy the lease out at the end.
Also, you’re out of luck on getting a Toyota extended warranty since you’re already over the mileage limit. Honestly, the situation isn’t great, but those are your options.
I don’t understand why people lease Toyotas. They hold their value too well, so leasing doesn’t make much sense. Leasing works better for cars with high depreciation. For Toyotas, buying usually works out better.