Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!





Toyota Sequoia Lease Questions

245678

Comments

  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi dad23. I've heard that Toyota does not provide dealers with lists of residual value percentages for vehicles any longer as well. If one looks hard enough, they can find the list though. Most dealers just don't bother to keep it because they have their own computer program that tells them the actual dollar residual value for units that they have in stock. These dollar values are much more accurate than the percentages because of the strange way that Toyota Financial Services calculates residual values. It places limits on which options can be residualized and places caps on the amount of money that can be residualized for them.

    Toyota's lease program varies depending upon which one of its twelve regions one is in. If I remember correctly, you mentioned in another post that you are in Toyota's Denver region. If you were to lease a 2006 Sequoia SR5 4WD through TFS in that region right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00100 and 63%, respectively, assuming that you qualify for its Tier 1+ credit tier.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi txgirl17. The problem with leasing this truck for four years is that it only comes with a 3 year / 36,000 mile basic warranty (though its powertrain coverage is 5 years / 60,000 miles). This means that if you lease for longer than 36 months, you will have to pay out of your own pocket to fix anything that breaks on your truck (other than a powertrain component). Furthermore, a lot cam happen during the course of four years and leases are very expensive to get out of early. For instance, you could move or get a new job causing you to have a longer commute and go way over your mileage allowance. Or gas prices could soar over $3.00 a gallon again and you would have to pay an arm and a leg to fuel your Sequoia. Or you might just get plain sick of driving the same vehicle for so long and want something new. I personally tell consumers not to lease for more than 36 to 39 months, unless the difference in payment for a longer lease is huge.

    I usually find that consumers are able to negotiate better leases on their own by dealing directly with dealers than by going through brokers. Shop around with a few dealers and get lowest selling price that you can on the Sequoia that you want and then have them calculate its lease payment using its buy rate lease money factor.

    Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • caritas1caritas1 Posts: 2
    Car_man, you seem to have lots of insight with regard to leasing issues and terms but I've found a couple of disconnects as I've tried to execute a lease on a new 2006 Sequoia - SR5 or Limited - in recent days. Please clarify a couple of things from this last post.

    Specifically, I've not been able to get any Dallas-area dealer to confirm that they will offer the terms of the widely advertised Toyota "Special Lease" to me as the potential lessor of a new Sequioia. Secondly, I was told by a dealer just today, that the $1800 cash back only applies to purchases and not to leases. You indicate that there is 2K Lease Cash available. Do both the Lease cash and the special money factor+residual subsidy apply?

    BTW, I've been pretty disappointed, as a consumer in Texas, that this region is dominated by Gulf States Toyota and its policies, both with regard to options/configurations and selection. :mad:

    I am hoping to execute a lease by this weekend at the latest, so I appreciate your quick reply.
  • djones07djones07 Posts: 3
    i am new to leasing and just got a 2006 sequoia sr5 4 x 4 for 359.63 a month. for 3 year 36,000 mile lease. the mspr was 41118 and the residual was 22,921.05 i negotiated a price of 36,700 and put 5000 down which includes the sales tax of 8 percent, my money factor was .001 and there was a 400 acquistion fee. i now toyota has a lease special of 359 for 3 yr 36000 mile, 2999 down and excludes tax, title , reg and acquistion fee. and security deposit is waived. not sure how my deal compares
    dealer also said i wasn't eligible for $1800 rebate
  • caritas1caritas1 Posts: 2
    Djones, in what city is that dealership located?
  • cartime1cartime1 Posts: 2
    I am still trying to negotiate a lease and have decided to look for a Sequoia rather than a Highlander to enjoy a little more room. Can you help me with suggested lease payment for SR5 4dr 4WD (4.7L 8cyl 5a) with following options: PT, AH, GY, KE would like the bluestell mica. MSRP is $41,430, invoice $36,571. The current money factor in MA seems to be .00075. Can you help me walk into the residual value and resulting 36 mos. lease payment with $1000 down? Much appreciated!
  • Hi, I'm in Northern California (Bay area) and I'm looking into leasing a SR5 with the following options.

    Alloy Wheel Package #2 ( AG)
    Convenience Package (CQ)
    Driver & Front Passenger Side Airbags (GY)
    Integrated Fog Lamps/Driving Lamps( LF)
    JBL AM/FM/Cassette/CD w/10 Speakers (DJ)
    Keyless Entry( KE)
    Roof Rack( DR)

    Looks like its runs about $35170.00 from a web site a dealer quoted me $35440.00

    What should the Money Factor and Residual be. Also does any one know if Toyota is going be be offering incentives Leasing or others during the Memorial Holiday.

    I Also heard that it is possible to get a better deal in Southern California if so does that effect how and if a lease occurs. Thanks for any input.
  • bigjoelr3bigjoelr3 Posts: 16
    I went into a Los Angeles area Toyota dealer today thinking I was going to lease a 4x4 Limited with NAV, DVD , Luxury package and other typical options. MSRP was 51984, with a selling price of 46500 (they were going to go down to 45900) the residual was a jaw dropping 47% on a 36 month/15k lease, money factor was .00100 and a $400 acquisition fee.

    Monthly payment was 757 with 8.25% tax. They would not budge on the amount.

    I was thinking I was going to get a lease payment around $628/mo and thought residual was supposed to be 54% which still is not all that great.

    Any thoughts on how to find a lower payment? If I purchase, pay tax and license, my payment for 60 months with 3.9% incentive financing is only $845, why lease.

    They tried to quote $1015 for a 24 month lease tried to say I couldn't use the 2000 off incentive and I said that lease rate for 24 months has no incentive, it should apply.
  • bigjoelr3bigjoelr3 Posts: 16
    Went to another LA dealer after getting the $757 lease quote. This one makes no sense.

    I got them to a price of 46599 on a 51984 MSRP 4x4 limited, they said they were going to give me the $2000 incentive and the .00100 lease factor incentive, which are not supposed to be able to combine. So purchase price is 44599. Residual was 54% (28071) instead of the 47% quoted at the other dealer.
    Somehow with a 36month/15k miles they came to 686/mo. I used leaseguide's lease calculator and found it should be $584.

    They could not tell me why the difference.

    Car_Man a little help here. What is the current residual money factor etc for 24 and 36 month leases for a 4x4 Limited Sequoia. Also, do you know the residuals for the 4x4 SR5?
  • 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.

    Car_man
    Host
    Prices Paid Forums
  • 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.

    Car_man
    Host
    Prices Paid Forums
  • 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.

    Car_man
    Host
    Prices Paid Forum
  • 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
    Host
    Prices Paid Forum
  • 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.
Sign In or Register to comment.