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Toyota Highlander Lease Questions

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Comments

  • smith1smith1 Posts: 283
    Here are the details available on Toyota's website about the HL promo lease currently being offered in the Midwest:

    Lease a new 2008 Highlander for $299 a month for 36 months with $2,999 due at signing, which includes first month’s payment, $2,150 down payment, $0 security deposit and $550 acquisition fee. Does not include taxes, license, title fees, insurance and dealer charges. Closed-end lease. 08 Highlander sport and base gas models are eligible. Example based on model #6948 with FE CQ EH RL TO only. Gas limited models and all hybrid models are excluded. Manufacturer’s Suggested Retail Price including freight $28,750. Monthly payments of $299 total $10,764. Capitalized cost of $26,077 based on down payment and dealer participation, which may vary by dealer. Payment may vary depending on final transaction price. Lease-end purchase option is $18,500. Customer responsible for maintenance, excess wear and tear and $0.15 per mile over 12,000 miles per year . To qualified Tier 1+ customers through Toyota Financial Services. Cannot be combined with any other offers. Subject to availability. See participating dealer for details. Offer ends 1/2/2008. Offer good in Illinois, Indiana, Minnesota, and Wisconsin.

    Any comments on this lease? Seems to me like the downpayment and lease end purchase price are rather high. (I might want to purchase at lease end). What aspects of the lease should I attempt to negotiate with a dealer? I'm interested in a 2wd Sport with no options, and 12k miles/yr is adequate.
  • I went through the lease carefully with a former Toyota finance guy, signed and here are the details. Apologies for the "spotty" posting earlier:

    2008 Highlander LTD 2WD Sandy Beach Metallic
    Options: PWR Rear Door, JBL w/Bluetooth, Rear A/C, Running Boards, Floor Mats
    36 month lease@18K/year
    MF: .00219
    Gross Cap Cost: 35,500
    Adj Cap Cost: 37,850
    L.E.V: 49.5%
    Amount at Signing: 870.00
    Current Tier 1 Customer

    I appreciate your earlier reply. Feedback appreciated!!
  • Hi....I'm in Jacksonville, Florida.....looking to lease a Toyota Highlander that is fully loaded, leather, moon roof, premium sound, etc.....want to put down $2,000 and pay about $450 a month for the lease 36 months, 15,000 miles a year..my wife says no way will they do this at any dealer...any thoughts on this......rough ballpark figures are fine, I just want to know if what I will be requesting from the dealer is something I am close on...thanks!
  • apaoneapaone Posts: 18
    While I typically don't help Yankee fans with unrealistic expectations, I will offer my thoughts here. ;)

    Assuming you mean a fully loaded LTD with NAV and DVD (otherwise, it is not "fully loaded"), you are looking at a vehicle with an Invoice around $37,800 ($43,507 MSRP). Add on $500 for the Toyota Advertising fee and another $500 for the dealer (many people have been able to get dealers down to this level) you are looking at a purchase price of $38,800. Add in $400 or so in fees (financing, docs, registration) and you are at $39,200. Now factor in FL sales tax (6%, not sure,but I think sales tax applies to the fees too), and you are at $41,552.

    Now, assuming $2000 downpayment (I would not recommend putting money down for a lease), a .00275 money factor (this has been what Toyota Financial Services (TFS) has been using for may tier 1 credit leases, comes out to a 6.6%), and 49% residual value (this may even be a little aggressive. TFS does not provide very good residual values for autos with lots of options), you get a lease payment of $638.22 (taxes included).

    Your wife is right (she must be a Red Sox fan), no dealer will do it at $450. You would have to get the negotiated purchase price down to $33,000 in order to get that payment. Needless to say, dealers are not selling these for $4,800 below invoice.

    Anyhow, you should play around with this caculator to get a better sense of what goes into a lease price:

    http://www.leaseguide.com/calc.htm

    I opted to buy our HL LTD because the purchase rates (4.9%/4 yrs) was more attractive than the lease program.
  • Thank you apaone...she is a Red Sox fan..makes for a fun marriage :) .sounds like purchasing might be a better choice for us...thanks again!
  • kscapkscap Posts: 7
    Can anyone provide a residual percentage for 2008 Highlander Limited with following options: Navigation, Power rear door, Moonroof, heated front seats and rear spoiler. MSRP shown is $38, 582. Is 57% / 58% reasonable. Lease term is 36 months @ 12K mi per year.

    One dealership quoted 50% and that seems low.

    Thanks,
    Ken
  • apaoneapaone Posts: 18
    For a LTD with NAV, etc., Toyota Financial Services places the residual around 48-49%. That was my experience when looking at similarly equipped HLs. You are right, it is low, but they are the ones calling the shots. From what I have read, it seems the more options the car has, the lower the residual value (basically, TFS is assigning very little to no future value to these options). Also, the implied interest rate on the 3 yr lease was about 6.6% when I was looking. Pretty high for tier 1 credit.

    All of those factors (plus an actual need for this size car for 5+ years) made me opt to purchase the vehicle instead.
  • Get me a VIN # and I can tell you the exact residual.

    TFS Tier1+ MF = .00285 (nothing special on Limited's right now)
  • kscapkscap Posts: 7
    Ocautoseeker.

    Thanks. I'll get you the VIN #. FYI, yesterday I was given a MF of .00219 or 5.26% APR with Tier I credit through TFS.

    Thanks
  • You are correct... there is cheaper money now avaialble on the limiteds. .00219 is the correct buy rate.

    2wd or 4wd?
  • kscapkscap Posts: 7
    2WD. Given its relatively weak residual value it looks like its going to be tough not to exceed $500 payment on 36 month lease, 12k mi /yr paying only inceptions ($0 down payment).

    I did well on my current highlander lease during a presidents weekend "blow-out" sale. Maybe I should hold off and wait until next month for a deal?
  • Toyota assigns a dollar value to each individual vehicle based on it's options. I viewed three invoices for you based on your lease requirements of 36mo/12k.

    The closest one I could find was a 2wd Limited which listed (MSRP) @ $39,590. Residual value is, $18,608 (47%).

    The 4wd Limited I viewed had an MSRP of $40,310 and carried a residual of $19,974 (49.5%).
  • Hello! I will be leasing my first Toyota tomorrow and have a couple of questions.

    1. I paid my down payment Saturday and signed off on the worksheet. The car will be delivered tomorrow. Am I correct in assuming the worksheet signature only indicates my authorization to check my credit and is NOT an agreement to purchase?

    The reason I ask that question is I was trying to work the numbers to match all of the pieces I was told, and I can't do it. See item #2.

    Here are the numbers, as was told to me by the salesman:

    2008 HL Sport
    + Option package H
    + XM
    + Special paint color.
    + All-Weather Mats

    MSRP: 38,002
    Cap Cost: 35,028
    Residual: 18,272
    Due up front: 795
    Money Factor: .158 (I think there are 0's missing)
    Monthly Pmt: 625

    2. I can't get those numbers above to come out to a $625 payment through the LeaseGuide. I get a payment of $588 or so.

    I can't get the options and accessories to add up to the MSRP above via the Toyota Build-Your-Toyota site. (BTW, I'm purchasing in TN)

    3. The worksheet I signed only shows the payment of $625, which is the payment amount I said was the MOST I'd pay. Am I stuck with that?

    4. Do those numbers make sense to anyone else?

    5. Is this an overall good deal?

    Any quick response is appreciated. =)
  • Nothing is final until you sign the actual lease contract in the finance dept. Since you told them you'd paid up to $625/mo, they just structured the deal to make that number happen.

    They probably capped the acquisition fee in your lease (~$595). Did you include sales tax in your payments? You should not be making a down payment/cap cost reduction on a lease; you should only pay the first month's payment, DMV Fee's, and hopefully only a small DOC fee upfront (each state is different on what they charge). Here in socal, they are capped at $55, but some states charge hundreds of dollars for this fee. If it's over $100, negotiate it, and/or have them reduce the cap cost to put it more in context with your deal.

    The money factor is probably .00158, which equates to ~ 3.8%.

    Just ask them to itemize the deal. This vehicle should be capped at ~$250-$500 over invoice.
  • The 795 I paid is supposed to be the first month's pmt as well as the doc fee. And yes, I included sales tax in my calculations. Hopefully when I sit with the finance manager they'll be able to make the numbers work out to what I figured them. :)
  • The numbers I ran based on the figures you provided came out to $588.14/mo, assuming a 36 month term. If they capped the acquisition fee in the lease (most-likely they did @ ~$595), your payments will be $606.83. Only ways they could have arrived at $625/mo is by raising your cap cost and/or inflating the money factor. Hopefully, there is no additional aftermarket equipment on the vehicle as only very small portions if any at all can be resdualized.

    Print up a copy of the lease sheet you put together on leaseguide and show it to them. If you don't want to pay the aqcuistion fee as part of your drive offs, make sure you cap the cost (~$595) into the lease using the "costs added to the lease" feature (if using leaseguide).

    Looks like they capped the cost ~ $1000 over invoice. I believe you could shave another $500 -$750 off that and save yourself $15-$20/mo. It's worth a shot! Good luck!
  • Thank you! I got $588 as well. I plan on going in armed with all of the numbers I was told as well as a detailed print out of all my numbers. Wish me luck!
  • I brought home my new 08 HL Sport last night! Woo-hoo!

    I previously posted that I couldn't get my numbers to tie, but realized last night I was leaving out the GAP ins and Acq Fee. Add in those two and viola! The numbers worked.

    I paid about $2,500 over cost, but I'm fairly happy with my results. I blame myself for not bargaining more. I let my desire for a new vehicle NOW and my comparison to a Land Rover LR2 cloud my bargaining skills! :blush:

    Here's my deal, for comparison purposes for those who are curious.

    08 HL Sport 2WD
    Blizzard Pearl w/ Tan interior

    Options:
    Cold Weather Package
    Carpet/Cargo Mat
    Front Duel Zone CLimate Control
    Leather Seats / heat (3 rows)
    Power Tilt/Slide Moonroof
    Tow Prep Package
    Navigation
    (Above are all included in Option Package H)
    XM Radio
    All Weather Mats
    and of course "Special Color"

    MSRP: 37,005
    "Selling Price": 35,028
    Cap Cost (with GAP and Acq fee): 36,227
    Money Factor: .00158
    Payment: 625 / month

    This was purchased in the Cincinnati Region (Tennessee to be exact.)
  • did you lease with a lender other than TFS?
  • Nope. I looked on-line for other lenders to use, but didn't see any that I actually recognized. So it was TFS for me!
  • Thanks for this information - I just wanted to ask a question. When you turn in a car off a lease, do you have to have the same original ? I have a Highlander that has toyo tires but the local tire stores do not have these tires on their websites. I need new tires?
  • Thanks for this information - I just wanted to ask a question. When you turn in a car off a lease, do you have to have the same original ? I have a Highlander that has toyo tires but the local tire stores do not have these tires on their websites. I need new tires?
  • kscapkscap Posts: 7
    Over the last week here in Northern NJ, dealers have consistently quoted 2008 HL Limted residual percentages in the 49% range for 36 months @ 12k/mi lease with .00285 MF (6.26%).

    Last night I spoke to the leasing manager at different dealership who seemed motivated to do a deal. We discussed the current low residuals on the Limited and why its a deal breaker for leasing.

    He committed that since I currently have a 2005 HL Llimited that he could increase residual on 2008 Limited to 56% with .00255 MF (6.12%) with Tier 1 through TFS. How is he able to do this? Anyone know whether Toyota has changed residual values recently? I can't imagine Limited units are moving very fast with currenr deal terms.

    Thanks.
  • I didn't think they could change the residual at the dealership ... thought that was set by Toyota? :confuse: The inventory price sheet on the HL I just bought had the residual listed at the bottom of the sheet.

    Also, isn't that residual a little high? I was able to get .00158, which equals to about half that in APR-speak. If that guy is so interested to do a deal, I'd ask him to rethink the residual as well. :)
  • A day later and I re-read what I wrote. Hopefully you realized I was talking about the money factor and NOT the residual! :blush:
  • Looking at a Highlander Sport AWD and would like to know what the lease factor and residuals would be for this vehicle for a 36-48 month lease.

    Also, do you find that the dealers are willing to give a little bit more at the end of the month?

    Thanks in advance!
  • My lease on my 2005 HL is coming to an end in Feb and I'm thinking of buying it outright for the residual of $16,662 + sales tax and DMV fees. It is a base model, 2.4 cyl, AWD, with the standard package. I'm under the milage and have no excessive wear and tear that I can tell. I was told by a mechanic that all 4 tires are rather worn and would probably need replacing especially if turning it in after the lease. This seems odd to me. Does it seem strange to you as well?

    Does anyone have an idea if the $16662 amt is a good buy or not.

    Thanks.
  • jim39tjim39t Posts: 11
    I ask because here are the numbers straight off of Toyota Financial's website:

    Base Highlander, Gross Cap Cost $28,455.

    4 yr. lease, 12k mile/yr. $444 month.

    Due at signing: $1,455 (acquisition fee: $550, refundable security deposit $450, and 1st mo. payment).

    The reason I ask is it a bad time to lease, is that right next to those figures Toyota Financial quotes $554 for the same car, 60 month purchase.

    I don't want to buy it, I want to lease it, and a rate like $444 month for a totally base Highlander, on a 4-yr. lease, and stingers like a $550 acquisition fee, seem really like a lot of $$ to me. And to make matters worse, those are the figures Toyota Financial is quoting for "excellent" (above 720 FICO); I shudder to think what sub-excellent must cost.

    Is this because the Highlander's super-popular? Does a totally base Highlander have a really poor residual (Toyota Financial doesn't quote money factor, residual and the like).

    Jim
  • I got a quote from my local Elk Grove toyota dealer today. It seems OK but i am having trouble figuring out how good the deal is

    MSRP - $32268 - Residual $12638 - Rate .00158 - ACQ FEE 550 - 7.75% tax - $273 govt fees - $1960 tax - $45 doc fee - Down Payment $871.44 - Monthly Payment $598.44 - 30000 miles per year - 36 months - Price $29601

    According to the print out they gave me the $29601 is $500 over invoice but their invoince includes Destination Charge $685 - TDA $515 - Gasoine $10 - dealer HoldBack $5 99 - Wholesale Financial Reserve - $299

    Basically i am trying to figure out if the $29601 is a decent deal or if there is still more room to play
  • I am preparing to negotiate a lease on an 08 Highlander (Sport or Limited - not sure which) and wanted to see if anyone in NJ can share the quotes they recently received, or how much they are paying per month on this vehicle. Please help! :)
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