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Toyota Highlander Lease Questions

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  • Hi orangeman99. Toyota Financial Services' January buy rate lease money factor and residual value for a 36-month lease of a 2012 Highlander 4WD with 15,000 miles per year in its New York region are .00065 and 60%, respectively for consumers who qualify for its top aka Tier 1+ credit tier.

    The problem with these numbers is that unlike most banks, TFS places restrictions upon which options can be residualized. This makes its published residual values look artificially high and it makes it difficult for consumers to work up payments on their own.

    Car_man
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  • Thanks for the info Car man.

    I think that's why the residuals they are giving me sre different. Maybe the rates they are quoting are correct.

    BTW- what are the numbers for a 12,000 miles/yr lease?

    Thanks again.
  • kyfdxkyfdx Posts: 27,620
    12K residuals are almost always 2% higher than 15K

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • Hi,

    I would like the same information for the Seattle, WA area. I am interested in the residual value for the 2012 Highlander 4WD V6 SE. On $39471, my dealer quoted me a residual of $20,055 with $3,000 down payment. At 51%, that's low compared to what others say they are getting?
  • orangeman99orangeman99 Posts: 35
    edited January 2012
    51% seems way low. The difference between 51% and lets says 60% residual on your car is about 3500. Divide that by 36 and that's about a $100/month higher lease payment.

    I'm sure Car Man will give you accurate numbers soon.
  • orangeman99orangeman99 Posts: 35
    edited January 2012
    Car Man,
    In light of what you said earlier about some options not being residualized, how do you know if the residual the dealer is giving you is correct?

    The Highlander that I'm looking at has an MSRP of about $39,300, and they are telling me that the residual is 22,800. That's about 58%. I'm looking for a 36mo/12k lease, so it should be around 62%. That difference wil mean an extra $40/month.

    How do I know if they are correct?

    THANKS
  • You're very welcome orangeman99. As kyfdx already mentioned, the money factor is the same for a lease with only 12,000 miles per year, but the residual value gets a 2% bump.

    Car_man
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  • Hi momoffour177. In most of the regions that I have seen Toyota's special lease money factor for the 2012 Highlander in, it was .00065 for consumers who qualify for its top aka "Tier 1+" credit tier.

    As orange mentioned, the residual value for a 36-month, 15,000 mile per year lease of a 2012 Highlander 4WD is 60%...however TFS calculates residual values are different than most other banks. The percentages that it publishes are for base vehicles. It places restrictions upon what options can be residualized. As a result, its functional residual values are actually lower than its published percentages appear. I wouldn't be surprised if the residual value restrictions for options on a truck like the Highlander knocked several points off of the vehicle's effective residual value...perhaps even as much as you are experiencing. Dealers really don't have the ability to alter vehicles' residuals, so what you were quoted is probably correct. The process of calculating vehicles' residual values for leases through TFS is so complicated that it provides dealers with a list of the actual dollar residual values for every unit that they have in stock rather than relying upon them to calculate them on their own.

    Car_man
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  • That's an excellent question, orange.

    Unlike with money factors which can sometimes be marked-up to add additional hidden, back-end profit to leases dealers don't usually have the ability to alter vehicles' residuals, nor any incentive to do so. So what you are quoted for a residual value on this truck is probably correct.

    The process of calculating vehicles' residual values for leases through TFS is so complicated that it actually provides dealers with a list of the dollar residual values for every unit that they have in stock rather than relying upon them to calculate them on their own.

    Car_man
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    Prices Paid: Buying & Leasing Experiences Forum
  • Good info. Thanks Car man, I really appreciate the time you take to help us.
  • Hi car_man,
    Could you please advise on this lease deal? I want to negotiate further if possible. Thanks for your help.

    Toyota HL SE v6 with leather and bluetooth, 36 month 15k , 0 down,

    MSRP $36,823
    Base Cap Cost $34,400
    Acquisition fee $525 (estimated, not sure if I have to pay this)
    Lease Terms and Taxes
    Residual Value $21,979 (59.68xx%)
    Money Factor 0.00065
    APR 1.6%
    Term of Lease 36
    Sales Tax 7.4%

    Monthly Lease Payment $396.60
    Sales Tax on Lease Payment $29.25
    Total Monthly Lease Payment $425.85
  • Car Man,
    Can you post the residual and MF (tier 1+) for Highlander SE V6 4X4 for 36/12k.

    Thanks.
  • Hi
    I have a sheet published by Toyota for SE 4X4 v6 with leather and technology package and the value is 21979 for 36m/12k
  • dima1dima1 Posts: 17
    I am in NYC, and always leased from NY dealers. If I lease the Highlander from NJ dealer, can the dealer build in NY taxes and register it in NY State? Please share your experiences.
    Thank you.
  • ilanailana Posts: 13
    I am from NY and always bought from NJ. They can register the car for you in NY but you will need to come and get the plates. I was never able to transfer my plates always got new plates. But this is due to the old car being leased/financed otherwise they might be able to transfer. The fees are a little higher for the registrations thru NJ dealer then NY dealer. The for sure will take NY taxes as it goes by where the car is registered
  • You're very welcome orangeman99.

    Car_man
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  • Hey suberman1. The money factor that you were quoted looks good. The selling price looks reasonable as well. If you like the Highlander, I personally don't see any reason not to pull the trigger on this deal.

    Car_man
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    Prices Paid: Buying & Leasing Experiences Forum
  • Hey orangeman99. Toyota Financial Services' February buy rate lease money factor and residual value for a 36-month lease of a 2012 Highlander SE V6 4WD with 12,000 miles per year in its New York region are .00065 and 62%, respectively for consumers who qualify for its top aka Tier 1+ credit tier.

    Keep in mind though that TFS places restrictions upon what options can be residualized, so its effective residual value for this truck will likely be lower than its percentages make it appear.

    Car_man
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    Prices Paid: Buying & Leasing Experiences Forum
  • orangeman99orangeman99 Posts: 35
    edited March 2012
    Hi all,
    I got a quote from a local dealer in NYC. I'm looking at an SE V6 4x4.

    The base MSRP is 36,260 and the Residual is 21,979 (61%).

    After adding some dealer installed options, the MSRP is $39,236, the residual is still 21,979 (56%).

    Is this possible that the residual stays the same? So basically, I'm buying all these options but can only use them for 3 years. WTF?

    Thanks for any insight.

    BTW-The money factor (Tier 1+) for March for 36mo/12k went down to .00040
  • Hi all,
    Have any of you ever calculated your own lease price and matched the dealer's?

    They must add some crazy fees to the selling price to get their numbers.

    I spoke to a dealer today and got a lease payment quote. He gave me the selling price, residual, and MF he used. When I plugged it into the formula, I got $469/mo, but he got $518. He basically said it doesn't matter what the formula is, they go with the "Toyota computers". Their computers must be smoking some good stuff. But funny how each dealrship comes out with different numbers for the exact same car using the same exact "Toyota computers".

    Can somebody check my numbers:
    Sale price 36,644
    Residual 21,979
    Money factor 0.00040
    NYC sales tax 8.875% (rolled into the lease)

    THANKS IN ADVANCE
This discussion has been closed.