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Toyota Highlander Lease Questions

Hi everyone. Please use the following discussion to post any questions that you have about leasing a Toyota Highlander. Thanks.

Car_man
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  • suvgalsuvgal Posts: 39
    I'm hoping you can suggest what my options are here. I posted a while ago about the lease I received - $365/mo, 12K/yr, 5yrs. The more I think about it, the more I regret that decision. We figured out my monthly lease for the 05 Highlander should have been (w/tax) - $340/mo, 12K, 3 yrs which means I will be paying about 10K over that for my error in judgment. (actually $900 extra the first three years and $8760 for the final two years). I realize that this is a no-win situation for me. I can afford to pay this but I am quite upset of how I let this happen. Is there a way to get out of the lease without losing a bundle so that I can get a decent lease or am I stuck with the lease for 5 years? :cry:
  • Hey suvgal. Five years is an awfully long time to lease a vehicle for. I am sorry to say that it is usually fairly expensive to get out of leases well before their scheduled end dates. In order to do so, you need to purchase the vehicle that you are currently leasing from the bank that you are leasing it through. It often turns out that it costs more to do so than your vehicle is worth on the open market. Furthermore, many banks expect consumers who end their leases early to still make all, or at least the depreciation portion of their remaining lease payments. As you can see, this can get very expensive.

    You can determine approximately how much it will cost you to get out of your current lease by comparing its purchase price to its value on the open market at this time. You should place a call to the bank that you are leasing your vehicle through to find out its exact price. Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". One of our most knowledgeable community members, Terry, frequents that discussion and he is often kind enough to give community members who give him an accurate description of their vehicles with his opinion on their value. Don't forget to check to see if you are still on the hook for your remaining lease payments. The difference between your leased vehicle's current value and how much it will cost you to buy it plus any remaining lease payments that you are obligated to pay will equal the cost of getting out of your lease right now. You may find that you are better off waiting until you are closer to the scheduled end of your lease to get another new vehicle.

    Car_man
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  • suvgalsuvgal Posts: 39
    Thanks Car_man. I did call the bank and since I've only made 6 payments it would cost me nearly twice my monthly payment to purchase the car (through payments). When I figured that out, they were charging me about 22% APR (and this with an 800+ credit score rating). I know my buyouts (32K privately, 30K dealer). I will follow your advice and post to the other forum. I might wait until 3 years in but I remember the advice you gave me previously about five years. I won't ever make that mistake or a down payment again. Thanks again for all your help.
  • You're very welcome suvgal. Let me know if you have any other questions.

    Car_man
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  • mevandemevande Posts: 190
    Money magazine and many others share leasing is always a bad deal unless you are a business owner and can write off the expenses. Just my 2 cents:) :)
  • We are looking at the HL and would like to know weather or not we should buy or lease. A dealer has told us we can buy an "06" 4cyl 2 wd for just under 24000 o.t.d. We normally keep cars for a long period of time and would like to have some of the features and benefits of a Limited edition. Do you know what Toyota is offering in terms of leasing now? We had not considered it until I came across this posting... Based on the financing I have in place we were ready to spend just under 400 per month over 72 months on this new purchase...

    Thanks for any feedback.

    Lou
  • Hi Car man,

    I'd like to get the (1) residual, (2) lease money factor, and (3) estimated monthly payment (with $0 down) for the 2006 Toyota Highlander Limited AWD, with an MSRP of $34,500 and a selling price of $33,000. I'd like the numbers both for a 36 month, 12,000 miles/year lease and for a 48 month, 12,000 miles/year lease.

    Thanks!

    Ben
  • As of 1/8/06, the figures for a 36 mo. lease in Central NY, 15k/yr, Tier 1 TFS credit:

    .0019 money factor (4.56%)
    55% to 58% residual *(actual)

    *Toyota's residual percentage does not conform to other manufacturers: Instead of a flat percentage for base plus options, Toyota calculates only the base price when figuring the residual. As a result, you're can't accurately compare the residual percentage to those of other manufacturere' percentages. The figures I used here are actual -- e.g., MSRP $31,829 = $17,557 residual (55.16%), and MSRP $29,492 = 17,107 residual (58%).

    Happy hunting,
    Philidor1
  • Hi Ben. Toyota's lease program often varies depending upon which one of its twelve regions one is in. Having said this, in most of the country right now Toyota Financial Services' buy rate lease money factor and residual value for a 36 month, 12,000 mile per year lease of a 2006 Toyota Highlander Limited AWD are .00190 and 60%, respectively. You definitely don't want to lease this car for 48 months because 36 is the longest term that its special money factors are available for.

    Car_man
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  • Hi Car_man.

    What can you tell me about the residual, money factor, etc. for a 2006 Highlander AWD w/ 3rd row (not limited)in Denver, Colorado? 36 month, 12,000 mile.

    Thanks so much.
  • Toyota is offering 36 month lease special on a Highlander Hybrid for $359/mo. with a $2999 down payment. I don't want to leave a down payment and would like 15,000/mi.year. What information will I need to know before I speak with the dealer this weekend.
  • golicgolic Posts: 714
    What can you guys tell me about this offer: I am in the Chicago market:

    2006 Highlander V6 4x4 LTD
    this vehicle comes with the power moonroof, side curtain airbags, leather heated seats, third row, 6 disc cd changer, and appearance package (they are all pretty much equipped the same).

    Your special internet price, including the available rebate, is $31,789. Toyota is building very few with navigation, but I believe it is roughly $1,800 more. I can double check if that is an option for you.

    Thanks for your insight
  • This seems like a very reasonable price, though I'm not sure what rebates may be in effect in your area (check edmunds.com new car pricing); you could get a couple more internet quotes from other dealerships to verify this is competitive.
  • golicgolic Posts: 714
    Has any one leased a car and used a third party vendor to write the lease?

    If so can you recommend or warn against a company?

    Thanks,

    Smile-
  • Carman (or whomever),

    Got some numbers for a 4x2, no 3rd row, 4 cyl Highlander
    MSRP = 27,270
    - 1500 discount = 25,770

    MF = .00200 (a little high for a 790 FICO?)
    residual = 15,188

    They're asking for 2K down and 419-429/month! :mad:
    This is going to be for 36 months.

    I axed about the $500 rebate and they said "just for you, we'll just take off $1500." I just hate it when they take you for a fool.

    Anyway, just needing to know your prof opinion, maybe I'm missing something here.

    Thanks.
  • The problem with third party leasing becomes apparent when you return the vehicle -- you'll get nickled and dimed for routine wear-and-tear.

    The major automobile finance arms such as Toyota Financial Services exists primarily to finance the purchase and leasing of their vehicles. Unlike banks and leasing companies, which look to turn a profit at every corner, TFS wants to keep you happy if at all possible, and have you return as a repeat customer.

    To me, it's a no-brainer: Lease with TFS, or be willing to empty your wallet when the lease term expires.
  • I have a 03 Highlander LTd 2WD. My lease is up in Apri and I am looking at a new Highlander Ltd, Honda Pilot EX-L or Subaru 2.5XT Forester. I don't need 4WD, as I live in So. Cal. Which is going to give me the best lease deal, and what should it be? My current lease is around $420 with the taxes included. I would like to get the same, or under if possible.
  • Hi sanchai2. If you were to lease a 2006 Toyota Highlander 4WD (Non-Limited) through Toyota Financial Services right now in its Denver region for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00135 and 61%, respectively assuming that you qualify for its Tier 1+ credit tier.

    Car_man
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  • Hi katrinka. You are being very smart in deciding not to make a down payment on this truck. It is always in consumers' best interest to put at little money down as possible when leasing. The two most important factors for you to focus on when you visit dealers are your truck's selling price and its money factor. I say that these are the most important numbers because these are the main two areas that your dealer can profit from on your deal. The selling prices of leased vehicles are negotiable, just as if you are paying cash for them. Make sure to negotiate as good a price as possible on your truck before having your dealer calculate your lease payment. As far as the money factor goes, in most of its regions, Toyota Financial Services' current buy rate lease money factor for leases of the 2006 Highlander Hybrid is .00190 for consumers who qualify for its tier 1+ credit tier. If your credit is in good shape, make sure that the dealer you are working with uses this factor to calculate your truck's lease payment.

    Car_man
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  • Hi golic. This specific discussion is for consumers who have questions about leasing Toyota Highlanders. You will probably get much better feedback on the price that you were quoted for the truck that you are interested in by visiting the following discussion: "Toyota Highlander: Prices Paid & Buying Experience".

    Car_man
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