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Toyota Sequoia Lease Questions

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  • milkenmilken Posts: 10
    I was in looking to lease an Limited 4x4 etc. the MSRP was $52,400 and I was quoted a money factor of 0.001 but the residual was 46% which I thought was absolutely ridiculous. Is that accurate? I was always under the impression that the Sequoia had one of the best residual values.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi bigjoelr3. It's strange that the dealer you are working with quoted you such a low residual value for this truck. I believe that Toyota Financial Services' 36 month, 15,000 mile per year residual value for an '06 Sequoia Limited 4WD should be more like 59%. The money factor that you were quoted is right on the money, the residual value is way off. This is strange because individual dealers do not have the authority to alter banks' residual values. Did they tell you that the residual value was "47%" or are you calculating it? Toyota Financial Services has a strange residualization policy for leases. Most manufacturers' captive companies allow the full residualization of vehicles and all of their factory installed options. However, TFS places limits on which options can be residualized and places caps on their values. Toyota's strange policy on this matter often makes vehicles more expensive to lease than one would initially think. Perhaps this accounts for the difference.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi milken. Please see my previous post as to why this truck's residual values seem so low. Let me know if you have any other questions after checking it out. Thanks.

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  • kmreecekmreece Posts: 1
    I am leasing a Toyota Sequoia. The dealer tells me the payment will be the $389 per month as advertised. How are taxes normally paid for a leased vehicle? Up front on the $389 for 36 months, or in the monthly payment? Thanks
  • bigjoelr3bigjoelr3 Posts: 16
    Car Man, that is what I got from most dealers here in Los Angeles. It wasn't 47%, that is what is was calculated to be.

    The residual for the 51984 MSRP was 24261, they had a higher one that was something like $25k and change. At one point they were going to give me a residual of $28,071 (which is 54%)

    They all came back with the same $750 and change per month for the 36 month/15k lease, with a minimum drive off of about $1,200.

    I was bummed. Needless to say I went and leased a 2006 LR3SE for $610 per month with 15k miles.

    Please tell me where you get the 59% residual. I would have leased the Sequoia in a second for 36 months if they gave that to me. Would have been dirt cheap.
  • bigjoelr3bigjoelr3 Posts: 16
    Car_Man, the Sequoia where the residual calculates out to 47%, is the fully loaded package with NAV, JBL system, Luxury Package, Running Lights and Rear Spoiler. I guess they don't allow any residualization of any of the installed options. Guess I should have stuck to a stipper model.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi kmreece. Different states use different methods for calculating sales tax on leased vehicles. There are three main methods of doing so (I suppose that you could say that there are four if you count the states that don't charge sales tax at all). In the first, the state taxes the payment and down payment. Most states, including Florida, Georgia, Missouri, Connecticut, and California use this method. The second way is to tax the entire selling price of the vehicle. This is how sales tax is calculated on leases in states like Illinois, Texas, and Ohio. Lastly, some states only tax the depreciation portion of leases. This is tax is calculated on leased vehicles in New Jersey. If you tell me what state you are in, I can try to help you find out how sales tax is calculated in your area.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey bigjoelr3. The residual value that I provided you with is accurate. The problem is that Toyota Financial Services' calculates vehicles residual values differently than most other banks. Its published residuals are for base vehicles. It places limits on which options can be residualized and caps upon the values of the ones that it allows. As a result, its vehicles' residuals are not as attractive as they initially appear.

    Car_man
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  • kntknt Posts: 4
    I am looking at a 2006 SR5 Sequoia with side curtain airbags, keyless entry, fog lamps, sunroof, roof rack, heated mirrors, 6 CD player and a few other minor options.

    I've been quoted $39,250 (which includes $1500 cash back - the $3000 cash Toy is offering minus the negative equity on the vehicle I am turning in early), 48 mo/12k miles, $555/mo. + tax, money factor .00265 with residual $18,600.

    The money factor seems high, although the residual seems low. Is there any way to predict if the money factor will get better in next month's incentives?

    Should I be trying to negotiate more off the initial price?

    Any help would be appreciated, Car_Man.
  • Put car and options into TMV calculator to determine what people are paying...that is the most you should pay. I've been able to whittle local dealers here in Philly to give me $500 under factory invoice PLUS the $2500 rebate. I would recommend looking online for financing..try leasecompare.com. The residual should be about 51% and I've seen money factor around .00241 with good credit. Work deal on Sequoia separately THEN discuss trade in...again use TMV to tell them what you will take for your car. Good luck.
  • apa1128apa1128 Posts: 11
    I am currently leasing an 06 Sequoia SR5 2WD that's fully loaded. However, the seats are killing my back, and I want something else. Why do these finance companies make it so difficult to get out of your situation? I'm extremely frustrated. :sick:
  • hooopshooops Posts: 64
    Car_man,

    Do you know what the residual and money factor are for oct on a 36 month / 15 k mi/yr lease? I'm intereseted in a sr5 4x4. Do you know if there are any current incentives and how the residual would be effected based on the option pkg selected? I see that Toyota configures the sr5 with 3 different pkgs priced at $575, $3285 and $6245.

    Thanks a lot
  • hooopshooops Posts: 64
    Car_man,

    Can you also provide the numbers on the vehicle for 24 months with 15 k mi /yr.

    Thanks
  • I'm looking at an 2wd SR5 with an MSRP of $38913 and a negotiated price of $35213. I'm trading in my current vehicle and getting $8750 all of which I'm applying to the Sequoia. Can someone please tell me what kind of payment I'm looking with a money factor of .00155 and a residual of $20571? I'm almost embarrassed to say the value I've come up with, but it's about $150 less than what the dealer is telling me. Thanks for any help.
  • Numbers NYS:

    MSRP 41,000
    Lease Price 36,200
    Residual 49%
    End of Lease Buyout 19200
    48 Month Lease
    12000 per year
    530 Per Month

    Carman How does this look?
  • sbuhlersbuhler Posts: 100
    Carman or anyone else can you help?

    How does this look for a 2007 Sequoia Lease
    I am located in New Orleans, LA

    MSRP: 37838
    Internet Price that dealer quoted (have not negotiated): 34292
    money factor: 0.00150
    Residual Value @ 12 K per year 36 mos: 21,234
    Residual Value @ 15 K Per year 36 mos: 20,571

    Can I do much better? Do you suspect that there will be better lease and/or financing incentives in the next few months (like the 2006 tundra) since there will be a new Sequoia for 2008?

    Thanks
  • Hi apa1128. I am sorry that the seats in your truck are bothering your back so much. Have you tried getting a back pillow to help ease the pain? This would be a much cheaper solution than trying to get out of your lease early. 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". 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.

    Sorry that I don't have any easy way for you to get out of your Sequoia now.

    Car_man
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  • Hey hooops. Here's the latest lease information for the truck that you're interested in. Toyota's lease program varies depending upon which one of its twelve regions you are in. In most of the country, outside of its Southeast region, Toyota Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2007 Sequoia SR5 4WD with 15,000 miles per year are .00179 and 58%, respectively for consumers who qualify for its Tier 1+ credit tier. Unfortunately this residual value percentage is for a base model without any options. TFS places restrictions upon which options can be residualized and caps on the ones that it allows. The way that it calculates the residual values for options makes it difficult to figure out vehicles' actual residuals. So much so, that TFS actually provides dealers with a list of the actual dollar values for vehicles that they have in inventory so that they don't have to calculate them themselves.

    Toyota is currently providing customer cash on the 2007 Sequoia in most regions, but this cash is not compatible with the aforementioned special lease program.

    Car_man
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  • Ahhh, I see that you want the 24 month numbers for this truck as well, hooops. Its money factor would be the same, but TFS' 24 month, 15,000 mile per year residual value for the 2007 Sequoia SR5 4WD is currently 64%.

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  • Hi evans23. A base 2007 Toyota Sequoia SR5 4WD has a spread of around $4,000 between its full MSRP and dealer invoice price. You were quoted a discount of $4,800 on this truck. This is an outstanding price if it is not taking any customer cash into account. The $1,500 customer cash that Toyota is currently providing on the '07 Sequoia in its New York region is not compatible with this truck's special lease program. Make sure that the dealer that you are working with uses Toyota's special lease money factor of .00179 (for customers who qualify for its Tier 1+ credit tier) to calculate your vehicle's monthly payment and you're in business.

    Car_man
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  • Hello sbuhler. The money factor that you were quoted looks great to me. The selling price that you were quoted looks pretty good, too. Still, it wouldn't hurt to stop by the following discussion to see how much other community members have paid for similar trucks lately: "Toyota Sequoia: Prices Paid & Buying Experience". Overall I would say that this is a good deal. It is difficult to say whether Toyota's lease program for this model will improve over the next several months. If I had to make an educated guess, I would say that it will stay about the same. Toyota will probably just have to lower its special money factor a little to compensate for the natural drop in residual values that vehicles experience at the model year progresses.

    Car_man
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  • Massachusetts here -
    option #1 is 06 sr5 4x4with alloy wheel pack#1, curtain airbag, JBL premium, and preferred package with heated seats. using price of $39k
    48 month lease - $1,000 down, $631/month - buyout of $18,388
    or
    60 month lease - $1,000 down, $582/month - buyout of $15,484

    option #2 is an 07 Sequoia limited - using price of $41,132
    48 month lease - $1,350 down, $625/month - buyout of $21,204
    60 month lease - $1,275 down, $590/month - buyout of $17,551

    Since my business is paying for a large percentage of the lease I am seeking a small buyout so I can buy at end of term.

    THANKS!
  • Would appreciated current lease terms quoted on 2006 Sequoia with Leatehr/3rd row or same for Limited edition. Please include money factor and residual %/value if you have them. Thanks!
  • My wife was in the market for a '07 Sequoia Limited. Found one a Limited 2WD that stickered for $46K. The saleman brings back two quotes...a 48 month lease for $740 and a 60 for $690 (15K miles/YR), figures aren't exact, but their definitely ballpark. We had a trade-in that had about $3500 in equity, but when we asked what they were allowing on the trade and what was the selling price he became evasive and during the conversation he was always able to not give us both which was a HUGE RED FLAG! He also never mentioned the rebate. I like to had a heart attack!! Who in their right mind would LEASE for 4 years let alone 5 years at those prices!? I was thinking around $500...so much for thinking! The SUV's are really nice but I can't see the logic in paying that much a month if it's not a Lexus, BMW, Mercedes, etc. My 40K BMW Z4 30 month lease is only $360. Yeah, I guess it's a subsidized lease, but are Sequoias really selling like hotcakes? I truly underestimated the whole process of leasing a Sequoia!

    Needless to say we exited stage left and found a loaded,except nav and adjustable suspension,'05 Limited 2WD with only 12350 miles for $29990. It was right up the street for the Toyota dealership.

    Man I left there feeling POOR like I was looking for a handout!!
  • Hi massguy2. Is $39,000 this truck's MSRP or its selling price. I really need to know both numbers to give you my opinion on this deal. Let me know what the other one is and I will be happy to tell you what I think.

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  • Greetings dfarnsworth. Toyota's lease program varies by region. If you tell me what state you are in I will be able to give you a more accurate idea of what this truck's current lease program is like. Toyota Financial Services' most common buy rate lease money factor for the 2007 Sequoia is .00179 for consumers who qualify for its Tier 1+ credit tier. Again though this factor varies by region. I don't believe that TFS is offering leases on 2006 Sequoias any longer. If this is indeed the case and you really want to lease one, you will have to do so through an independent bank. I suspect that you will be better off leasing a 2007 model than a 2006 model at this point.

    Car_man
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  • Hi omegagen. Those certainly are shocking :surprise: lease payments. There's no way that I would pay that much money for a Sequoia! I personally would never work with a dealer that was not being completely straightforward with me regarding my vehicle's selling price and how much they were giving me for my trade. Toyota has tons of dealers. You were right to find a different one to work with.

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  • We are moving to Marin County, CA from Denver, CO. We are looking to lease a 2007 Sequoia. A few questions:
    1) what is the difference in price based on region?
    2) we have a high FICO (775), what is a reasonable price we should expect to pay for the lease?
    3) what is the lowest price you have heard someone has paid for a lease payment per month?
    4) would we be better served pursuing a lease for a higher end/luxury brand such as a Lexus or BMW?

    Thanks for your help.
  • Would you be interested in possibly taking over a lease on a used Sequoia, maybe a 2006 or 2005 with low payments? I know there are several options in California and even in Nevada which isn't far from where you are moving. You should check out Swapalease.com.
  • CarMan

    I am considering leasing a 2007 SR5 Sequoia in the Houston metro area. I am familiar with the fact that TFS calculates there residual values differently (based on installed equipment) but I am looking for a ball park figure for the residual value and the actual current money factor (Tier 1 credit) for a 36 month/15K lease. Thank You!
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