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Toyota RAV4 Lease Questions

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  • bunkscbunksc Posts: 10
    RAV 4 LTD 2WD EVP #1 and BC $25,254 OTD (incl taxes).

    Now I'm trying to get the amt of the lease payment on a 48 mo lease 15K mi. The Dealer is telling me that there is a RAV4 leas special on 36 mo lease (he didn't mention the miles) with a $2,300 residual enhancement in lieu of the $1,500 dealer cash back. He is telling me the pymt. on 36 mo lease is $45 less than on a 48 mo lease.
    I guess he must have "forgot" to include the lease payment amounts - he wants to know how I want him to configure the lease. Does this make sense? I' told him I need the lease payments and the determining factors (MF, Cap Cost, REsidual, etc) before I can decide.
  • dturrdturr Posts: 70
    I am told in that from Geogia to Miami that the money factor is .0113 does anyone know if this is correct?

    Does $249 plus tax 0 down sign and drive first payment made on a base Rav 4 with value pack seem right.
    Thanks
  • bunkscbunksc Posts: 10
    Hi,
    Here's what I just got from a dealer in SC. I've read posts on here where people paid less than $300 with NAVI so I'm not so sure this is such a great deal even with the lease special. The 36 mo lease special is in lieu of the $1,500 dealer cash back and instead has a $2,300 residual enhancement.

    RAV4 LTD 2.5L 2WD
    EVP #1 (no nav) and BC
    MSRP: $27,714 (after the $2,000 EVP Discount INCLUDES $795 Dest. Fee)
    Base Cap Cost: $27,649 ($26,415 sales price + $300 tax + $39 registration+$895 Acquisition Fee)
    Sales Tax: $300
    MF: 36 mo .00161 / 48 mo .00239
    Residual Value: 36 mo 61.740% after residual enhancement (54% before)
    48 mo 46.00%
    Disposition Fee: $350 which SETF reserves the right to waive if you re-lease.
    Cash Due at Signing: 1st payment

    36 mo 15K mi $333/mo 48 mo 15K mi $390/mo

    I haven't told them yet that I have one more payment left on my Highlander lease that ends 8-1 and I'm about 300 over on my mileage. Would be nice if they would pick these costs up - and lower my lease payment.
    Interesting as I look at these numbers, the guy gave me an OTD price of $25,254 before I told him I wanted to Lease. I don't see that figure anywhere. Comments?
    Thank you.
  • dturrdturr Posts: 70
    Just completed a lease at Cramer Toyota of Venice Fl. I was not able to get the deal I wanted further south of this dealer so drove up Saturday after a few emails with their Internert Manager. Settled on a sign and drive first month paid zero down and $249 per month plus tax with 15k miles per year. Will be a car for my wife and her expences should cover the lease.
    Sold them my 2007 Sorara, after a cheeky offer they gave me exactly what I wanted matching two other offers. Still waiting for the check from them but it was a Saturday. Cannot fault the service and it was worth an hours drive. Guess they were happy and we are.
  • dpb67dpb67 Posts: 6
    edited June 2010
    Does anyone know the residual factors offered by Toyota Leasing for the Sport 4x2 for June in NJ? The latest ones I see listed here are for the Base4x4.
    Thanks
  • Just got a 2010 Rav4 Limited 4cylinder with Option Package 2 (Nav, Bluetooth, XM, leather, etc) for $384/mo (Gap insurance included), first month's payment due at signing with no down payment, 15k/yr for 36 months.

    Is this a good deal?
  • luvautoluvauto Posts: 17
    Good deal at $284 perhaps OK but on the higher side for a 4-cyl. with all the extras and taxes included, are you sure there's no typo? Did the dealer forget the Residual Incentive by Toyota?
  • I have $384/mo for 36 months. Where do you get $284? The residual value was around $16,700.
  • bunkscbunksc Posts: 10
    Ltd 2.5L 2WD
    EVP #1 (no nav) and BC
    36 mo 15K mi
    $299/mo
    up front costs: 1st pymt and ttl

    MSRP: $27,714
    Sales Price: He didn't tell me, said its $140 below invoice. Edmonds shows invoice at $25,578
    Acquistion Fee: $795
    Residual: 61.74%
    MF: .00161
    $500 customer loyalty discount

    When I do the math, I come up with a lower pymt. I must be adding something wrong, but I just can't figure it out. Can someone please calculate the lease pymt for me so I can see if the dealer's quote of $299 is right?
    Thank you!
  • delta737hdelta737h Posts: 603
    edited July 2010
    bunksc,

    There is too much information missing to confirm the payment. Selling price is critical. Residual factors are nice whole number like 61%; and so, 61.74% makes no sense. Toyota is notorious for not residualizing certain items like floor mats and destination charge. Dealer installed options are either partially residualized or not residualized at all. And so, the adjusted MSRP, upon which the residual is based, may be quite different than the MSRP of $27,714.

    I assume that the $795 acquisition is capped in the lease. If so, what other items are financed? Is the $500 loyalty being used to reduced the sell price or is it used to offset some of the upfront costs? Can you itemize the dollar amounts paid upfront?

    The basic formula for lease payment is

    P = F x (C + R) + (C - R) / N

    P = payment
    F = money factor
    C = adjusted cap cost
    R = residual value
    N = term

    Here are a few more formulas...

    G = S + A
    C = G - D

    G = gross cap
    S = sell price
    A = amounts capitalized (e.g., acq. fee, doc fee, taxes, etc)
    D = cap reduction (e.g., cash down, net trade-in credit)

    Questions? Let me know and I'll be happy to help.

    John
  • bunkscbunksc Posts: 10
    Hi John,

    First, I want to thank you for replying. The 36 mo lease special has a $2300 residual enhancement in lieu of the rebate (I'm in SC). I don't know if that has anything to do with the residual value being 61.74%.
    From his e-mail
    36mo: 61.740% after residual enhancement, 54.00% before

    He didn't say how he was applying the $500 loyalty discount. I can only assume it will be applied to reduce the cost of the vehicle.

    Up front costs: $638 ($300 tax, $39 tag transfer, 1st mo pymt $299)

    I'm trying to get the pymt. down a little more, this is his response on Friday:

    The last figures that I sent you are based on selling the car $140 below invoice (which means $400-$500 below invoice at other dealerships because of dealer fees) and not making any profit on the money factor.

    (This dealership has no dealer fees).

    $25,548 Edmonds invoice price
    - $140 = $25,408 + $895 acquistion fee -$500 loyalty? = $25,803 Adj. Cap Cost

    He never gave me the base cap cost, I used the Edmond's #'s to try and calculate the $299 pymt but I couldn't get to that number. I'm sure it's user error.

    I left him a message to call me yesterday morning and later in the afternoon I e-mailed him asking for specific information. He never got back to me which I interpret as I'm a pain in his rear and I can take or leave the $299 pymts. because he's moved on to the next buyer. I'm going to see him in the morning and will ask to see his lease worksheet. Since he doesn't want to deal with me anymore, he may not even show me his worksheet. I will bring your formulas with me so I can calculate the payments based on his numbers. He will love me even more tomorrow.
    Thank you again!!
  • delta737hdelta737h Posts: 603
    edited July 2010
    bunksc,

    The bottom line is what is the residual value used to compute the payment? Are you suggesting that
    54% x 27,714 = 14,965.56 is the residual before the $2,300 enhancement? Does the $27,714 include the $2,300 enhancement? I assume that the $2,300 enhancement is added to the MSRP to form the "adjusted MSRP" and not added to the residual value based on 54%.

    A huge factor in leasing that's often overlooked is sales tax which is why I needed to know the state in which you reside. There are four (4) methods used to compute sales tax...

    (1) Tax the lease payment as they are received. This is the easiest and by far the
    most commonly used method in such states as FL, PA, and CA
    (2) Tax the selling price (III, TX, WA)
    (3) Tax the sum of the taxable payments (NJ, NY, OH)
    (4) Tax the depreciation (CO)

    Depending upon how the lease is structured, the sales tax calculation can be quite complex. To compound the problem, states have different regs regarding the taxability of fees and rebates. Some tax acquisition fees and rebates; others don't. Those that tax depreciation often define depreciation differently with respect to one another. Some define it as the difference between the adjusted cap and the residual while others define it as the difference between the sell price and residual. Some use the mathematically correct formulas to compute taxes in those instances where taxes are capped in the lease; others don't such as NY. However, NY, at least, recognizes their mistake but chooses to ignore it in the interests of simplicity. Their formula, however, results in taxes being understated which is why I'm not too excited. Besides, I live in Ohio. Some states levy tax on tax (Yup, it's NY) when taxes are capped. This, of course, is illegal in most states. I have no clue why this has gone unchallenged. Perhaps no one realizes it except the NY Dept of Revenue's Sales Tax Division (lol).

    The SC Sales Tax and Use Tax Manual (2009 ed.)

    http://www.sctax.org/Publications/Sc+Sales+Tax+Manual09.htm

    suggests that tax is levied on the sell price ((2) above).

    If the dealer gives you their lease worksheet, you can email it to me at

    diffeq@zoominternet.net if you like.

    Allow me share with you the biggest mistake people make when leasing and that is failure to educate themselves about leasing. An educated consumer will never allow a dealer to "run the numbers" or "control the deal". For whatever it's worth, this is what I do...

    1st. I do research regarding residual factors, money factor (I always use the buy rate), learn applicable incentives, and establish a competitive selling price.

    2nd. I create a one-page lease proposal with all pertinent data including a description of the vehicle, MSRP, sell price, amounts capitalized (e.g., taxes, acq. fee, etc), gross cap, cap reductions (e.g., trade, cash down, etc), adjusted cap, money factor, residual factor, residual value, term, taxable payment, lease payment, amounts due up front (itemized), contract provisions (gap insurance, excess mileage charge, applicable disposition/purchase option fees).

    3rd. I Fax/email the proposal to the dealer and negotiate via phone/email from the comfort of my home/office with my laptop excel spreadsheet lease program fired up and ready to rumble! The only thing I'm likely to negotiate is the sell price and that only requires a few keystrokes on my laptop. And, bing-bang-boom you're done!

    The key (no pun intended) is that you must control the deal. Never allow a dealer to control the deal. Trying to figure out the dealer's numbers is often a pointless exercise and, frankly, a waste of time. These people often lie or simply don't know what they're talking about. Allowing the dealer to control will only end up costing you money most of the time.

    A one-page lease proposal speaks volumes about you... it sends the message that you know what you're talking about and you know and understand leasing. That quickly puts the dealer in their place, and so; they're not as inclined to play games. This suggests that the biggest advantage of a lease proposal is that it saves time, money, and aggravation.

    However, if you agree to allow the dealer to "run the numbers", ALWAYS ask them for their LEASE WORKSHEET. If they refuse to give you a copy, WALK AWAY!

    Keep me posted.

    John
  • bunkscbunksc Posts: 10
    John,

    Very good question, about the residual enhancement. I will definitely ask today if they use 54% as the RV before the residual enhancement. I bet that's what they do. I didn't even think of this ....
    SC charges 5% sales tax on purchase price with a max amount of $300. I will pay that up front since its not that much.
    Thank you so much for all of the useful information. I reallyappreciate your time!!
  • delta737hdelta737h Posts: 603
    bunksc,

    No problem. I'm happy that I'm able to help. So, SC caps the sales tax at only $300? Wow, that's awesome! Keep me posted.

    John

    PS: Just out of curiousity, my informed intuition suggests that you're from Bunker
    Hill, SC is that correct?
  • bunkscbunksc Posts: 10
    Yep, one of the nice things about SC - $300 max sales tax on new cars. can't beat that!!
    If the $2300 enhancement to the MSRP and use 54% as the RV, there's nothing I can do to change that. I'm going to run some numbers that way and see if I can get to his $299.
    Like I said, this guy is now ignoring me. He has given me his 'best offer" and told me to take it or leave it. He said we are $1,000 apart to get my payment where I want it to be. I'm a little hard headed cause I'm still going to try and get him down some. I'm willing to make a few concessions, which I told him in my last e-mail that he ignored. So we'll see what today brings. :-)
    Hahaha, nope, not from Bunker Hill. lol.
    Thanks again for sharing your knowledge!!
  • Hey guys,

    I'm looking to lease a 4x2 Rav4 in texas. The dealer has the color I want and the feature set I want.

    Model - 4430 5-DOOR 4X2 SUV Base: $22,530.00
    Exterior Color - 0202 BLACK Installed Options: $1,663.00
    Interior Color - FC10 DRK CHRCL/D GRY/ASH/LT GR Total: $24,193.00
    Residual: $14,487

    The deal is $2k down / $220/month. These numbers include all taxes and fees. It fits my budget and my gut says go. What do you guys think?
  • Err ignore that message. Running my own numbers. I can do better.
  • silly13silly13 Posts: 1
    Hello, This is my first new car lease and I need help!!!

    I recieved the following offer on a 2010 RAV 4 Sport, 4 cyl, 4x4...Is it any good? Can I do better?

    $1660 Down - Includes taxes, title, reg fees and 1st month. Does NOT include GAP but I want to negotiate this in (has anyone had luck with this?)

    $224/month 36/36

    I am an idiot and do not know the residual value, cap cost or money factor that they used. I've requested this and am waiting on these #s.

    Can anyone tell me without that info if this offer is any good and what other info I should be asking for #s?
    Thank you to anyone who can help. I am new to this and VERY lost :)
  • jmillsssjmillsss Posts: 2
    edited July 2010
    Hello everyone,

    I'm trying to figure out if the below lease deal on a Rav4 base 4WD model is any good. I appreciate any help you can provide.

    Cap Cost: 22,165
    Residual: 15,791
    Money Factor: 0.00060
    Months: 36

    1000 due at signing
    220/mo

    12k miles a year..
  • luvautoluvauto Posts: 17
    1. The Numbers: based on the data you've provided,
    (a) Cap Cost: 22,165 - Residual 15, 791 = Depreciation $6, 374
    (b) Add Rent Charge using MF .00060 (1.44%) = $819
    (c) Total of 36 monthly payments (a)+(b) = $7,193
    (d) Per month = 7,193/36 = $199 (addl. $21 for tax + what? Find out. )

    2. the best MF avail. is .00004 for Tier 1 Credit Score; reduces the Rent Charge(c) to $54.66, and monthly payments to $178.57 before taxes.
    3. Try for 0 due at signing. Even if you roll all of the $1,000(can negotiate this down too, if dealer has sufficient margin) to Cap Cost, your monthly payment using MF .00004 will be $206.39 + tax. On the higher end, using MF .00060 and rolling all of the $1,000 into Cap Cost, the monthly comes to $228 + tax (with 0 due at signing).

    4. Hope this helps. Please don't forget to Share your experience and data with the community here. Thanks.
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