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Toyota Venza Lease Questions

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Comments

  • Okay I admit I exaggerated the 99% of the time statement. I agree with Stoopy though about the ridiculousness of Toyota's base lease rate of .00280.
  • Md_outback,
    I have a lease offer for Venza 6cyl FWD, with adjusted cap cost of $29,740.00; money factor of .00275.
    Cap cost is dealers invoice, plus destination charge, minus holdback.
    Lease is for 36 month, 25k miles per year for $648.83/month.

    This still seems high to me even with the extra yearly milage. So far she has not given me a residual figure but I figure this lease should be around $540/ month. Am I way off the mark?
    Thanks for your thoughts and ideas.
  • stoopystoopy Posts: 105
    "This still seems high to me even with the extra yearly milage."

    Do you think $650 a month on a 3 year lease is a TAD high??? You could PURCHASE this car at $30K, 60 months for $579 per month. $497 for 72 months.

    So, yes $650 is very ridiculous even with the extra mileage. Why would you not just buy it anyway if you are going to put so many miles on it?
  • Sorry I didn't reply sooner, I'm out of US and Internet is not readily available. I agree with another comment that you'd be better off buying instead of leasing. The money factor is nothing special and the residual for 25K miles will be very poor. Leasing is usually not the way to go if you drive a lot of miles per year - best if you can stay at 12K miles per year or less. The numbers they have quoted you do not seem out of line, but you really need the residual to perform a true lease calculation to confirm this.
  • sam_ksam_k Posts: 113
    When I've looked at leasing Toyotas in the past including the current Camry, from what I read, the residual value of many (if not most) Toyotas is based on the base price, not the bottom line sticker price including factory installed options. What that means is that you're paying for 100% of the cost of the factory options in the lease which makes the lease payment really high. I know that Lexus does not calculate leases like that. The residual value for a Lexus is based on the bottom line of the sticker price, not the base price.

    The reason I'm asking is because if you want to lease the 3.5V6 AWD with the premium package #2, navigation package and sun roof, that's $8K in options and if you have to pay for 100% of the options in your lease payment, it will be very high, probably higher than a comparably equipped Lexus RX350.

    Does anyone know how Toyota Financial Services calculates the residual value? Maybe Car_man or what of the other hosts can help me out. Thanks in advance.
  • kyfdxkyfdx Posts: 27,889
    Toyota does calculate it's residuals differently.... Not all options are residualized at the same rate as the base car.. I don't think it's quite to the extent that you describe, but well-optioned Toyotas do tend to have lower effective residuals on a percentage-basis than the base models.

    It's fairly convoluted.... enough so, that each vehicle has dollar amount residual, so that the dealer doesn't have to calculate it.

    So... a higher MSRP unit will have a higher residual than the lower MSRP unit, but as you've noted, not on a straight percentage.

    Bottom line? Highly optioned Toyotas usually don't make for very cost-effective leases.

    Hope that helps..
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • md_outbackmd_outback Posts: 185
    sam_k,
    Toyota’s residual calculations are not all that different from many manufacturers that have several “trim” levels. Good examples are an Audi A4 that has a lower residual on the loaded “Prestige” level compared with the basic “Premium” level. Also the Nissan Murano has a top-of-the-line LE model with a residual 5% lower than the mid-range SL model. And since the Venza doesn’t have trim levels like the Camry (i.e. base, LE, SE & XLE), the residual calculation must look at the option packages installed on a particular car. These variable residuals are based on the economic realities of the used car market. When buying a 3 or 4 year old vehicle, consumers are not likely to pay a huge premium for a navigation system or a high-end stereo system. Thus the cost of those expensive options depreciates more quickly than the rest of the vehicle.
  • sam_ksam_k Posts: 113
    md_outback, you make valid points. I understand that after a leased car is returned and is put on the used car market, consumers won't pay a lot more money for a used car with expensive options such as a navigation system but it seems that Toyota Financial Services doesn't simply reduce the residual by a few percentage points based on the options or trim lines, in my past experience they want you to pay for 100% of the cost of the options in the lease. That's ridiculous, especially if you're giving the car back at the end of the lease. They're basically treating the factory installed options as other companies treat dealer installed accessories.

    Many years ago I went with an ex to lease a Toyota 4Runner and the Toyota dealer gave me the money factor and residual percentage so I plugged them (along with the MSRP and cap cost) in my lease calculator on my Palm handheld. I calculated a monthly payment that was $150 or $200 lower than theirs. After the sales rep went back and forth into the finance office several times to get clarification I finally got fed up and followed him in there and the finance representative explained to me that the residual value was based on the BASE price on the window sticker not the bottom line price including options which meant their calculation included financing the thousands of dollars worth of options in the lease. Some of you might be asking how can the payment be so drastically different. If you get $6k or more worth of options and finance them over 36 or 39 months, it can easily add $150 or more to your monthly payment.

    I'm actually curious to get the lease details on this car and the Camry SE V6 so I might stop by a Toyota dealer and ask someone to explain to me their lease calculation.
  • md_outbackmd_outback Posts: 185
    sam_k,
    I agree that if that is the way Toyota is calculating their leases it will ultimately raise the monthly payment and may lose some business. It really makes no sense for them to do this for "factory-installed" options; Lexus doesn't do it and they use the same financing company. Honda does this for the "dealer-installed" options, but that makes a little more sense since the dealer doesn't install $7000 worth of stuff. On the other hand, it will reduce your buy-out at the end of the lease, so you could turn a small profit if you sell the car yourself or trade it in a few years. Maybe this is a new tactic that Toyota is trying so they get more cash up front and not have consumers complain that their vehicle didn't hold its value by the end of a lease. But that is pretty misleading, imo.
  • sam_ksam_k Posts: 113
    md_outback,

    I think Toyota does this to push people into buying instead of leasing. A lot of car companies don't like to lease anymore because it seems that the cars always end up being worth less than the residual value. Like you said, it you're buying the car at the end, then you either can pay for the options through the lease or just pay for them later but I always return my cars at the end of the lease so it's not worth it to me.

    Most car companies make you pay for 100% of dealer installed options/accessories in the lease and that make sense since they won't recoup any of that money back when they resell the car after you return it but Toyota should residualize the factory installed options. According to Car_man, Nissan residualizes factory installed options and most dealer installed options which makes it a lot better to lease a Nissan than a Toyota. I was considering leasing a Toyota Camry or Venza but it looks like they're off my list.
  • md_outbackmd_outback Posts: 185
    Hey CarMan,
    I know there haven't been any major incentives thus far for Toyota's Venza. Can you tell me the latest money factors and residuals for the following:

    2009 Toyota Venza V6-AWD, with Prem. Pkg #2, Navigation System, Panoramic Roof and Mats. Total MSRP is about $38,400. Looking to lease for 36 months @ 12k miles per year. Do they have a standard 39 month lease package?

    Thanks for your help.

    MD
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey MD. The Venza isn't a bad vehicle...it just seems sort of expensive to me for what it is. Plus, while Toyota has some of the most aggressive lease money factors that I have ever seen it offer on many other models right now once again it has not lease support on the Venza this month.

    According to the latest information that I have seen, if you were to lease a 2009 Toyota Venza V6 AWD through Toyota Financial Services right now for 39 months with 12,000 miles per year, its buy rate lease money factor and residual value would be .00285 and 60%, respectively for consumers who qualify for its top aka "Tier 1+" credit tier.

    Keep in mind though that TFS places restrictions upon the options that can be residualized. As a result, it is difficult for consumers to calculate the actual dollar residual values that are needed to arrive at a monthly lease payment on their own.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • md_outbackmd_outback Posts: 185
    Hey CarMan,
    Thanks for the info. The Toyota finance guy was giving me a really crazy high money factor of .00395 and a low 51% residual for 36 mos/36k miles. The good news is that I got more than $4600 off MSRP so I bought it. As far as being a bit expensive, I guess it's all relative. But for $34K fully loaded, it's a much better deal than a Lexus RX, Audi Q5, Volvo XC60, Infiniti FX35 and Nissan Murano LE. It's quicker than all except the FX, has more cargo room than all but the RX. Lower priced competition I also considered are Subaru Outback and Forester, Toyota RAV4, Mazda CX7 and Ford Edge. All good vehicles, but I came away thinking they were all "cheaper" feeling and less refined than the Venza. Bottom line was that the Venza was the best overall package for my needs.

    MD
  • gmsmithgmsmith Posts: 5
    Anyone know what the June lease numbers are looking like for the Venza? Specifically I am looking for MF and Residual for the AWD 6cyl version for both 12 and 15k miles.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello gmsmith. Toyota is not currently providing any lease support on the Venza. As a result, if you were to lease one through Toyota Financial Services right now, you would have to use its standard lease program. TFS' current buy rate standard lease money factor is .00265 for consumers who qualify for its top aka "Tier 1+" credit tier. TFS' 36 month residual value for an '09 Venza AWD is 61%. Its residual value for a lease with only 12,000 miles per year is 2% higher.

    Keep in mind that TFS places restrictions upon what options can be residualized. This makes it difficult for consumers to calculate what the actual dollar residual values are for specific units on their own. Calculating vehicles' residual values is so complicated that TFS provides dealers with a list of the dollar residual values for the specific vehicles that they have in stock rather than relying upon them to calculate them on their own.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Carman,

    August numbers for both I-4 & V-6 AWD please. I'm trying to compare payments to decide which engine to go with.

    Also, do you know when the 2010 models are coming out? I would think in the next month or so...

    thanks
    Eric
  • I tried to make a deal for a base Venza for 24000 in NY, dealer said " NO WAY!! and until October when the 2010 Venza will be in the dealerships don't bother coming back"...I saw the lease special that Toyota has for Venza for 269/MO I don't know if I should go for it...should I buy or should I lease?
  • I went to a couple of Toyota dealers asking for lease quotes on Venza V6 AWD with Comfort Package (includes Smart Key system, JBL premium audio, leather seating, backup camera and tow prep package). MSRP on this car is 34,840. I am willing to put $3,500 total out of pocket. The quotes I got were in the low to mid 400s for 36m lease and 12k miles per year.
    Can someone please tell me whether the quotes I got are reasonable? Thank you.
  • My calculation is 448 a month based on residual of 60% and money factor of .00265. Purchase price would be 32K. this is with no money down, not including sales tax. you'd still have to pay start costs. hope helpful
  • Thank you- very helpful.
  • Reasonable? You could get a Ford Edge Limited AWD MSRP $38,000 for $315 a month with that kind of cash down. Toyota once again has terrible lease rates. Ford has 0.25% on the Edge. Divide that by 2400 to figure the money factor. Probably figures out to about $5 to $10 a month on rent charge vs Toyota's $90 to $100 plus.

    But I know, some people are anti-American no matter what the cost benefit is.
  • I didn't realize that Ford offers leases. For some reason I thought their cars are not being leased. Or maybe I confused them with GM. Thanks.
  • drl_2drl_2 Posts: 4
    Anti-American, huh? The Edge is manufactured in Canada. The VENZA is manufactured in Kentucky.
  • If you have an iPhone or iPod Touch you can get an app for $2.99 (yep 3 dolars) that will do all of this math for you and more. It does reverse leases that will figure money factors, etc.

    I used it recently to do the car loan math on a new Toyota Yaris and it was accurate to the penny with the dealer.

    Even if you don't have the iphone, you can buy an iPod touch at an Apple Store or online for $199. I think most of us would save that on the next car deal we do.
  • Yes. I purchased this app for my touch and it is accurate. But, the toyota web site gives you the same numbers.
  • What does where the car is manufactured have to do with anything? Are you saying that it is okay for a Japanese car maker to manufacture their cars somewhere else but it isn't okay for an American car company to manufacture their cars in Canada? Brainwashed much?

    By the way, I had originally meant some people are just plain against buying American cars. I didn't mean anti-American cars as in "against America." Anyway, staying on YOUR point, every time someone buys an American car, regardless of where it is manufactured, they are giving their money to an American company. I wouldn't expect someone brainwashed AGAINST buying an American brand to be able to figure out the all the many benefits of that so I won't get into it but needless to say it's a good thing.
  • My dealer here in California just told me Toyota just announced a money factor of .0020 for a Venza lease. This with the high Residual makes this deal quite compelling. This offer expires 11/30/09. May be time to trade the CRV!
  • Just wondering what the CURRENT Money Factor & Residuals were for the Venza in V6 & 4cyl FWD models for 36mo/12,000 miles a year.
    Anyone out there working on a LEASE deal?
    Any numbers to share?
    Need HELP!
    Thanks in advance.
  • Hi lasvegasrph. Toyota's lease program varies by region. You never mentioned what state you are in, so it is difficult for me to give you an idea of what this vehicle's current program is like. Let me know what state you are in and I'll see if I can find out what Toyota's lease program is for this model in your area for you.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Oooops. Sorry. Las Vegas, Nevada.
    Mainly focusing on the FWD (2wd) models. 4cyl & 6cyl. 10k/12k miles a year.
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