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Toyota 4Runner Lease Questions

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  • Thanks for the reply, crashoften. Interesting about the gap insurance. I have leased three cars and they all had the gap ins priced into the lease a part of the financing- not a separate line item. I guess Toyota credit offers generous money factors on a stripped down lease product and then adds necessary items as a la carte features, like gap insurance. Good to know that the private insurers will offer it to you at a reduced cost.

    One question I still have, and if CAR_MAN is reading along, perhaps he could respond as well: How are residual values calculated on toyota leases? If what I am hearing is correct, they give a percentage of the base price, and not the fully optioned vehicle, which only makes sense if you are trying to gouge your lease customers. Gee, who would ever acuse a car company of gouging customers? I must be a pessimist. Anyway, could anyone quote me the actual residual factor/percentage on a '06 Limited 4WD for 36 months/12k miles a year? Thanks.
  • I don't know for sure how they calculate, but this is what happened during my visit:

    I was looking for a certain vehicle with certain options. She did the calculations on a vehicle with MORE options than I wanted, thinking the higher residual would keep the price the same. Turned out the residual was exactly the same for both vehicles despite one being more pricey. That said, my residual on a 3 year term was 21,843. Residual on a 12k term was stated as 22575. (v6 Limited)

    Here are some numbers from my possible deal that you can do math on.

    Vehicle optioned retail: 39651 Dealer invoice 35856
    Vehicle base model Retail 36625 Dealer invoice 31607

    As I said before, the Dealer invoice base does not include the Wholesale reserve 366, and holdback 732, which punches the invoice to match Edmunds at 32,705. Using the residual divided by Optioned Retail is 55%. Divided by base retail is 59%. In short, I still am not sure what numbers they use.

    Dont' know if this will help or confuse.
  • Hi goscfighton. $500 over dealer invoice with a money factor that is right in line with Toyota Financial Services' buy rate factor for this model, .00065 with the waiver of its security deposit, is a good deal. There's nothing that one can do about the strange way that Toyota Financial Services calculates vehicles' residual values. Individual dealers do not have the authority to change TFS' residuals. If you like this truck, I personally don't see any reason not to pull the trigger on this deal. If you can't get over how TFS calculates vehicles' residual values, you can always lease a similar SUV that has a good lease program like a Honda Pilot.

    Car_man
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  • Greetings Colleen. The selling prices of leased vehicles are always negotiable. It is difficult for me to say whether you will be able to get a better selling price than the one that you were mentioned without knowing this truck's MSRP. This number will enable me to see how much of a discount you are being given. For additional feedback on how much you should pay for this truck right now, make sure to stop by the following discussion: "Toyota 4Runner: Prices Paid & Buying Experience".

    Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    Car_man
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  • Hi goscfighton. The last time that I saw it, Toyota financial Services' base lease acquisition fee was $400 in most states. This number may be different in its Southeastern region because leases in that area don't go through TFS, but instead are forced to go through SE Toyota Finance. Your truck's security deposit will be equivalent to its monthly payment rounded up to the nearest $25 increment, unless it is waived.

    Car_man
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  • Welcome back burgermac. Thanks for the kind words. I'm glad that you enjoyed your BMW. The money factor that you posted, .00055, is correct for a lease of this truck through Toyota Financial Services for consumers who qualify for Toyota's Tier 1+ credit tier. I believe that you need a credit score of 730+ to qualify for the lowest month factor. If you don't have this high a score, the regular Tier 1 factor is still not bad at .00065. Its current residual value for a 36 month, 12,000 mile per year lease of an '06 4Runner V8 Limited 4WD is 60%. Keep in mind though that Toyota Financial Services uses a strange method to calculate its vehicles' residual values. It does not allow the full residualization of all options. As a result, this 60% residual is not as attractive as it would be for most other banks that allow the full residualization of any factory installed options.

    Car_man
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  • steveveystevevey Posts: 7
    Hi,

    I was talking to a toyota salesman today about the 4runner and she said that the lease deals on the 4runners are "Sick" but it only applies to the SR5 model.

    Does anyone know if there is a big difference with the money factor and resdiual.. etc on the Limited vs regular SR5.

    I really want a limited but if the deals are that much better I'll get an SR5 and have Toyota install leather/heated seats sorta like the limited.

    Thanks
  • Here's the deal I ended up getting.

    Limited 4X4 V8
    MSRP 42,140
    Price 37899
    With 2,500 CASH
    36 month 15K
    .00055MF

    $458 per month includes the tax of 5.9%
    I'm really confused about how much cash was cap reduction and how much was fees, but they gave me $1000 more than anyone else on my trade and I am happy with the monthly price. This seemed pretty reasonable to me after MUCH shopping around.
    Mountain States Toyota in Denver--but go in with everything you want in mind--there were plenty of people getting their heads spun around in the showroom.

    Thanks to CarMan and all who gave input.
  • dad23dad23 Posts: 430
    Could I get the current MF & residual for an SR5 4WD, 36 months and 12k miles?

    Thanks in advance :)
  • atom1atom1 Posts: 4
    I got a quote on a 4Runner SR5 on a 36 month 12k mile lease from a dealer in El Paso, Texas. The employees at the dealer seem very straight-forward, but the payment they gave me sounds high. I don't remember the numbers exactly, but this is pretty close:

    MSRP $32493
    Sales price $29993
    Money factor 0.00055
    Residual $18196
    Down payment $2000
    Sales tax 6.25%
    Payment $390/month

    When I put the same numbers into the Edmunds lease calculator, I get $345/month. What is the reason for the difference?
  • slurisluri Posts: 37
    that is way too high. are you sure it is a v8 for that price?
    i have seen v6 with msrp around 33K with no money down, lease for about 330 or so. that is way too much for the monthly payment especially with your money down on top of it. and the deal for 330 per month is for 15K.
    looks and smells a little fishy.
    sluri
  • atom1atom1 Posts: 4
    Yes, it is a V8 SR5 with only around $1000 in options. You have to remember that in Texas, I have to pay 6.25% sales tax on the entire purchase price. That adds about $50/month to a 36-month lease. If I go back, I'll get details on all the lease fees. That is the only other thing that would cause the higher payments.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi stevevey. All 4Runners have the same money factors, regardless of their trim level, but the SR5 models have higher residual values than Limited models do. They're less expensive, price-wise, too. There is a good chance that you would not be allowed to residualize the heated seats if you had a dealer install them in an SR5 model. If that is the case, you would have to pay for their entire cost over the length of your lease. So I really don't think that is an option.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    You're welcome, goscfighton. Thanks for taking the time to stop back and let us all know how everything turned out. Enjoy your new truck!

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi dad23. Toyota's lease program often varies depending upon which one if its twelve regions one leases in. In most areas right now, Toyota Financial Services buy rate lease money factor for the 2006 4Runner is .00055 for consumers who qualify for its Tier 1+ credit tier. Again, this does vary by region. If you tell me what state you are in, I can be more specific for you. TFS' current 36 month, 12,000 mile per year residual value for a 36 month, 12,000 mile per year lease of an '06 4Runner SR5 4WD is 63%.

    Car_man
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  • dad23dad23 Posts: 430
    Thanks Car_man, I'm in Colorado :)
  • tiger93tiger93 Posts: 57
    crashoften: you mentioned your insurance company provided you with gap insurance for $90. Who is your insurance company? My own company doesn't offer gap. Thx -
  • Went to a dealer today, If I make the deal tomorrow they will backdate it so I get march incentives. Dealer is quoting me .00055 MF which looks correct. MSRP on V6 sport is $35,781 and they are showing me a residual of $19,185. Comes out to about 53% I thought the residual was around 58%. 36 month, 15k miles/year. Maybe carman can confirm the residual. Any help is appreciated.
  • Hi Car_man,
    I have a basic question about calculating lease prices. I have read your article about calculating a "bottom-line lease" and understand how this is done. What I'm wondering is - if I add options to the car, can I still use your formula so long as I 'upgrade' the numbers to include the more expensive msrp of the vehicle configured the way I want it?

    I'll give you an example:
    You've stated a 2006 Toyota 4Runner SR5 4WD, 36 months @ 12K, is .00055 and 63%. Using those numbers...If I add some options to this car and get the msrp to $34,410 - the TMV is $31,606. So we'll use those numbers. The residual I calculate is $21,678. So the base payment is $276, plus money factor ($29) plus tax (MA-$15) and I get $320. Is it fair to do this with the added options??? Or do the numbers you post only hold true for no added options?
  • Anyone know the 36 mo, 12k/year residuals on the Sport and Limited 4x4? Is there a difference between the two?

    thnx
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