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Toyota Camry Lease Questions

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  • lmacmillmacmil Posts: 1,756
    It's generally not a good idea to put money down on a lease. It has the benefit of reducing the payment but if the car should be wrecked (and totalled) before the end of the lease, you essentially lose whatever you put down.

    Btw, the residual is always based on the MSRP, not what you actually pay for the car. Whatever price you negotiate below MSRP reduces your monthly payment.
  • Hi davidlni. You never mentioned the selling price of the car that you are interested in leasing. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the car that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to give you my opinion on this deal if you let me know this car's selling price is.

    One thing that I noticed about this lease is the large down payment that you are considering making. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your Camry would be exactly the same, regardless of whether you had put $2,500 down, or had made absolutely no down payment at all. You can still trade in your Escort is you want to, just have the dealer cut you a check for it rather than using the proceeds from it as a down payment on your lease.

    Car_man
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  • jamujamu Posts: 2
    I have leased a 2006 camry for 36 months with trade in value of $3000 down. it has been only 2 months and i am willing to buy the car because of too many restrictions with leasing. what should i do to terminate and change to buying options. please advice me the right thing to do with this situation. i thank you in advance for all your help.
  • Hi, jamu

    It is usually very expensive to exit or buyout a lease before the term is up... If it is your intention to eventually own the car, why not just take the lease to the end of the term, and then purchase it?.. Assuming your lease terms were decent, it shouldn't cost any more to do it that way, than to buy it out now... and, may actually be cheaper..

    If you purchase the car at the end of the lease, you won't be liable for any mileage or wear and tear charges.

    regards,
    kyfdx
    Host-Prices Paid Forums

    Moderator - Prices Paid, Lease Questions, SUVs

  • jamujamu Posts: 2
    can i turn in the car and say i dont want this car. what are the advantage and disadvantage of getting rid of your lease completely. it has been less than 3 months of my purchase date. can i go to the dealer and tell them i dont want this car. would i be penalized for terminating the lease.
  • No.. you can't turn it in before the lease is up... The penalties would be very heavy..

    In your first post, it sounds like you want to keep the car.. What is the problem you have with the lease?

    regards,
    kyfdx

    Moderator - Prices Paid, Lease Questions, SUVs

  • jb_turnerjb_turner Posts: 702
    If jamu turns his car in before the end of the lease and not make the required payments will that be considered as a repossion? If jamu purchases the lease now he will have to pay considerably more than purchasing it new.
  • jaxs1jaxs1 Posts: 2,697
    Does Toyota or other manufacturers have any lease programs for covering more than 15K miles per year at a lower cost than paying the 15 or 20 cent per mile mileage penalty for going over mileage or is it always better to purchase rather than lease if you are very likely to need to drive the vehicle over 15K miles per year?
    I may be looking for a minimum of 20K miles per year and maybe 25K miles per year on a 2 or 3 year lease.
  • can someone please tell me if getting a loan to buy a car is useful or not. its either that or i hav to wait another three months to buy it
  • Hi jaxs1. The highest mileage allowance that Toyota Financial Services publishes residual values for is 15,000 miles per year. If you need to drive more than this, you will have to purchase additional miles on a per-mile basis. It is less expensive to do so at lease signing than it is to wait until lease-end and have to pay an excess mileage penalty. So the cost of each additional mile will probably be less than the $0.15 to $0.20 that you mentioned, but you will still have to pay on a per-mile basis.

    Car_man
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    Smart Shopper / Prices Paid Forums
  • Hi gotroot. I'm not sure that I understand your question. Are you asking if there are any advantages to getting a loan on a new vehicle? One advantage of getting a loan on a car is it helps to build up your credit. If you do not have much of a credit history, your interest rate on your new car will be high. However, the loan will help boost your credit rating for when you need it, like when you want to buy a house and apply for a mortgage.

    If you are able to get a very low interest rate on your new car, like the the special 3.9% rate that Toyota is offering on the 2006 Camry right now, another advantage would be the money that you can make by collecting interest on the cash that you would have laid out if you had paid for your car upfront. Let's say that you invest your money in a CD and get 4.5% on it or put it in the stock market and anticipate getting a return of 8% on it. You end up saving the difference between these rates and the 3.9% by financing. You need to compare this savings to the customer cash that you are giving up by opting to go with the special finance rate to see if you come out ahead by financing.

    Car_man
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  • jaxs1jaxs1 Posts: 2,697
    Yes, I understand that there is some extra charge for the extra miles, but don't they publish per mile rates for miles purchased beyond 15K miles?
    Also, are the extra miles purchased in Toyota's lease program refundable? I know some manufacturers refund extra miles purchased if not used, but don't know the details concerning Toyota leases.
  • andy2812andy2812 Posts: 65
    Car_man

    Can I please have the MF and Residual for a 2007 Camry LE, 4 cyl.

    Thanks
    Andy
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi Andy. I haven't seen Toyota Financial Services' new residual values for the 2007 Camry yet. I have not seen any mention of it having any lease support available on it either. IF TFS truly is not providing lease support on the '07 Camry and you were to lease one through TFS, you would have to use its standard money factor of .00265. Even if Toyota doesn't have support on this car now, it definitely will in the near future. Toyota is going to sell a billion new Camrys and it won't be able to do so without an attractive lease program. If I was considering this car right now, I personally would wait a month or two to see what happens with its lease program.

    Car_man
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  • I am coming off a 3 year Camry LE lease. I had put $1000 down in 2003 and have been paying $331.00 per month.
    My question is - I am going to lease a 2007 LE and I am really not sure if the deal I got in 2003 was that good and therefore, would any take a guess as to what the lease payment of a 2007 LE auto would be in the New York City area with $1000 down.
  • mariabmariab Posts: 2
    I am hoping to lease a 2007 XLE with Navigation, Stability Control, Smart Key and Heated seats. What deal can I expect in Florida?
    Thanks for your help.
  • djpdx1djpdx1 Posts: 30
    Speaking of the 2007 Camry, if you want a hybrid, don't lease it! The Feds are granting a $2600 tax credit (rebate next year when you file) on the hybrid Toyota Camry at least through September 30th, 2006, then it drops to 50%. ($3100 on the Prius) Many states offer additional tax credits-my state is $1500, for a total of $4100. But only if you purchase--leases are excluded. It makes absolutely no sense to lease a hybrid at least for this year.
  • jack210jack210 Posts: 4
    can someone tell about the felt lining that in under the rear wheel wells of the new 2007 camry xle.ask dealers, but they don't seem to know.is it sound proofing.
  • citymomcitymom Posts: 8
    Anyone in the Atlanta, GA area with lease pricing or recommendations for where to go for a 2007 XLE fully loaded with EVERYTHING!!!!!!!!!!!!!!!!! would like to pay less than $400....
  • djpdx1djpdx1 Posts: 30
    Go to consumerreports.com and read their advice on leasing vs purchasing. Remember that you should go in with invoice price, available on many sites such as edwards.com, and then go in and offer about $300 to $500 above--start low. If they won't deal, advise that you are going to another dealer, then do so if they won't deal. Once you have secured a price, only then discuss what they will give you for your trade. Don't pollute the bargaining of the vehicle price w/ trade-in. After you agree on a price, THEN discuss lease or fiance. Lease prices are subject to negotiation as much as a new car.

    Also remeber that many credit unios will lease or offer a purchase payment deal comparable to a lease. You have many options--explore them. Consumer reports is non-profit and commercial free.
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