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Toyota Sienna Lease Questions

Hi everyone. Please use the following discussion to post any questions that you have about leasing a Toyota Sienna. Thanks.

Car_man
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  • I am thinking about leasing this vehicle with a base price of

    29225.00 + Accessories (package 6) and Spoiler and auto mirror for 5925

    Total MSRP 35715

    Residual Value after 36 month lease is $18493

    Anybody please help me. What kind of payment should this be?

    Confused
  • irgirg Posts: 197
    My advice is to go to toyotafinancial.com and enter in your ZIP, and then the model you want (XLE). Play around with the numbers a little bit, and then it will tell approximately what it will be. For a XLE in NY State where I am, assuming the van is about $30k, excellent credit, add in various fees, and this lease would be $476, vs $585 if you financed with $0 down for 60 months.

    I leased a base XLE, where the cost was about $26k, and my lease with NY taxes came to about $359. I leased it through Fitzmall.com in Maryland. It was worth it for me to go the distance, because they sold me the van at a better price than anyone locally, and the waived every fee, including the $1050 acquisition fee that anyone else in NY would have to pay. That adds about $30 a month to your lease.

    I used the toytota website to calculate my lease, and it was very close to what I ended up paying at Fitzmall. My local dealers were trying to tell me there was no way I could get a lease for what I got, and that Toyota's own numbers weren't accurate. That may be partially true, but they should be close.

    Also, don't forget your residual makes a difference, so negotiating the price of a van is just as important when leasing as it is when buying. The residual is the value of the van at the end of the lease. So in 3 years, what will this van be worth? The more it is worth, the better for you, because with a lease, you are paying on the poriton that depreciates. So if your $30k Sienna is worth $18,000 at the end of the lease, you are paying the $12k worth of "use" or depreciation. Divde the $12k by 36 monthly payments = $333 plus the interest, fees, and taxes.

    Now, if you are going to lease a 2005 model, a word of caution. They have already depreciated more, because the 2006 models are right around the corner. So now this $30k van will have a lower residual, say it is now worth $15k at the end of 36 months. So divide the remaining $15k by 36 payments, and now the payment climbs to $416 plus interest, fees, etc. BUT, if you wait and get a 2006 model, that $30k van may have a higher residual, say $20k, so divide the $10k in depreciation by 36 months = $277. A lot better, but these numbers are just to give you an idea, the residual matters, and it changes every month. If you call at the end of this month, a dealer will give you one price, and the next month you will get a different price, usually higher, but not always.

    Earlier in the model year, the residual will be higher, but as the year winds down, the residual will often rise. Exceptions to this are slow moving product, where promotions are shown, but Toyota doesn't have to do this very often.

    Also, with a lease, I wouldn't put any money down. That is the whole purpose in leasing. If you do put money down, and the van is ruined in an accident or stolen, you will usually be out that money.

    If you can afford the higher payments, traditional financing is almost always a better way to buy a car than leasing. At the time, I needed lower payments, but in the future I will always try and buy, not lease. My second car, whenever I can replace it, I will purchase and not lease. RIght now I paid off my second car, and it's nice not having 2 car payments. The bigger down payment I can muster, the less the future payments will be. Not always possible, but just thought you should know.

    Play around with the Toyotafinancial.com and see what you come up with. Don't forget to add taxes. If you lease, the taxes are based on the payments, let's say $300, X 8% (or whatever your tax rate is) = $24 making your payment $324.

    Hope this helps. And with the residual thing, you mention the residual you were quoted was $18,493, which seems low on a $35k van. I got that same residual, and my van was $26,xxx. But that was back in May. My advice, wait til the 2006 models are out to lease. I had a good experience with the Fitzmall people. You can go through their interenet staff (it is a traditional dealership too) and they will give you a quote over email about the van you want. I was the first customer in NY to lease a van from them in Maryland. It took a couple of days to figure out, but in the end, it worked in my favor a lot. Good Luck!
  • irgirg Posts: 197
    See my post in the prices paid section, or host, move my post to here.
  • Kirstie_HKirstie_H Posts: 10,870
    Done!

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  • Hello cdorsey. If you let me know what state you are in and how many miles per year you need to be able to drive your Sienna I should be able to give you an idea of what its current lease program is like. Once you have this info, you can use the formula that is outlined in the following article to calculate an approximate lease payment for your van: Calculate Your Own Lease Payment. The only problem is that Toyota Financial Services has a strange residualization policy for vehicles' options that does not allow consumers to residualize their full MSRPs. This will throw your payments off a little bit.

    Car_man
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  • Car Man

    Can you please give me the MF and residual for a Sienna XLE and a XLE Limited, 15K miles per year? I am in So. Cal. if that makes a difference.

    Thanks!
  • Hi arrosen. Here's the information that you are looking for. If you were to lease a 2005 Toyota Sienna XLE through Toyota Financial Services in its Los Angeles region right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00080 and 58%, respectively. the money factor for an otherwise identical lease of a 2005 Sienna XLE Limited would be the same, but the residual value would be only 53%.

    Car_man
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  • Hi Car Man.
    Do you happen to know what are the MF and residual for 2006 XLE LTD FWD in NY area? Can I get a lease for let's say 5k miles a year? ( I drive no more then 3k in the city) Or the lowest is just 12K miles? If yes, how it affects residual?
    Thank you for your time.
    Julia
  • Hi Julia. I have seen the lease program for the model that you are interested in and would be happy to help you out. Unfortunately, I do not believe that Toyota is currently providing any sort of lease support on the 2006 Sienna in its New York region right now. As a result, if you were to lease one through Toyota Financial Services at this time you would have to use its standard lease program. the last time that I saw TFS' buy rate standard lease money factor it was .00255 for consumers who qualify for its top credit tier and pay a security deposit. While some banks lease vehicles with 10,000 miles per year, I believe that TFS' lowest mileage allowance is 12,000 miles per. You may want to check with your dealer just to make certain that is the case though. If you were to lease a 2006 Toyota Sienna XLE LTD FWD through TFS for 3 years with 12,000 miles per, its residual value should be 57%.

    Car_man
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  • nycnynycny Posts: 11
    I'm looking to get an 06 AWD XLE Limited with package 2 (leather, DVD, and Navigation) in NJ. I'm amazed at some of the postings saying they got this for $36k+. The best price quote I got was $38,754 or roughly $500 above invoice. The dealer also gave me a quote for leasing this car for $525/month for 36 months/15k miles. Money factor was .00094 (2.3% interest). However, he asked for $3500 inception fees (out of pocket costs) which includes 1 month payment ($525), tax ($1400) and bank fees ($800). That leaves $775 down. Is the lease a good deal?
  • Hello nycny. $500 over invoice is a very reasonable price for a leased 2006 Toyota Sienna. The only way that I can see a consumer getting this truck for less than that is if they went with a 2005 model. If they did so, they could take advantage of the $1,000 customer cash that Toyota is providing on it in your area and might be able to get one for below invoice.

    The lease money factor that you were quoted is pretty close to Toyota Financial Services' current buy rate money factor for this van, .00091. Given the reasonable selling price and the use of the correct money factor, I'd say that this is a pretty good deal for this model right now, though the lease payment is still fairly high.

    Car_man
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  • nycnynycny Posts: 11
    Yes, for that high monthly payment, I rather be driving a luxury car. Oh well, what parents have to do for their kids, huh? :) I'm picking it up tomorrow. Thanks Car_man.
  • Hello Car_man. I see that Toyota is advertising a special lease for Sienna LE. I've seen some people say that all other models have a special MF too. Can you please let us know what is the MF and residual for 2006 Sienna Limited FWD in NY city? Thank you for your time.
  • hpoohhhpoohh Posts: 35
    Dear Car_Man,

    Can you help me get the base money factor and residual % for the 2006 Sienna LE 8passanger w/ Package #2 for 12k/yr 36month. I am in S. California

    I think that toyota is currently running a promotion on this van but i cannot get much detail from their site. your help is much appreciated, thank you.
  • Hello Car man: Can you help me figure out what a great deal would be on an 06 XLE w/ Package #6? We live in Connecticut and would take a 12k/36 month lease. I went to Toyota.com to get an estimate but the figure I got - $566/month - was far higher than I was expecting. Help!
  • 06 XLE w/ Package #6

    12k/Year

    48 month term

    $0 Down / $0 Out of Pocket

    Thanks in advance
  • Hi Car_Man -

    Can you tell me if you think this lease makes sense? The purchase price for the vehicle would be 28,653. We are trading in a 2000 Subaru Outback for $7500. However, we have chosen to roll the $1700 we still owe on the Subaru into the lease. For 36 mos and 12k the monthly payment is $229.

    Thanks!
  • I should add that the money factor is .00190 and the residual is 17784. Thanks! :)
  • Hey Car_Man

    I'm looking for help with a 15,000/yr 36 month lease on a 2006 Sienna LE 8 passenger with Option pkg #3. Purchase price $24,000 MSRP $27,800. Assuming no down money.

    Thanks in advance.
  • I'm looking for any info on Q1 or early Q2 lease specials on 05 or 06 Sienna's XLE in Tennessee. Anyone have any help
  • Hi tnautel. My initial impression is that $229 a month is a pretty darn good lease payment for a $29,000 vehicle that you are rolling negative equity into. I'd be happy to give you my a more detailed opinion of this deal. I just need two additional pieces of information in order to do so, 1) this van's full MSRP (with the destination charge added in) and 2) what state you are in. The latter is important because Toyota's lease program often varies depending upon which one of its twelve regions one is in. Let me know and I'll tell you what I think.

    Car_man
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  • Greetings vbellino. Your lease payment on this van will vary depending upon which one of Toyota's twelve regions you are in. I'd be happy to give you an idea of what its money factor and residual value should currently be like and even work up a sample lease payment for you if you tell me what state you are in.

    Car_man
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  • Hello girosc. Tennessee is in Toyota's Cincinnati region. According to the latest information that I have seen, if you were to lease a 2006 Toyota Sienna XLE Limited through Toyota Financial Services in your area right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00190 and 54%, respectively. These numbers will be different if you want a different length lease or mileage allowance.

    Car_man
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  • I'm in Pennsylvania. Thanks for the help Car_man.
  • Car_Man thanks for the info on rate lease money factor and residual, but can you please explain the mechanics of lease factor and residual, i.e. a real life example and and those numbers play a part? i'm new to leasing. Thanks in advance for the "dummies" explanation.
  • dad23dad23 Posts: 430
    Hi car_Man,

    Could you give me an idea of payments for this vehicle on a 36 month, 36K mile lease, please? MSRP is $30988, and was given price at invoice of $27868 plus $750 rebate in Colorado.

    Thanks :D
  • jerhotjerhot Posts: 27
    Hi Car_Man -

    Can you tell me if you think this lease makes sense? The purchase price for the vehicle would be 28,653. We are trading in a 2000 Subaru Outback for $7500. However, we have chosen to roll the $1700 we still owe on the Subaru into the lease. For 36 mos and 12k the monthly payment is $229.

    Thanks!


    Tnautel, the reason your lease payment is so low, even though you are rolling the $1700 negative equity into the lease, is that you are also putting $7500 down (your Subaru trade-in).

    I don't think you are clearly stating the current case with your Subaru. Let me try to interpret.

    You can't possibly be saying you owe $9200 but are only getting $7500 for your trade, so you have $1700 in negative equity. Your payment would not be $229/month if that were the case.

    I am not sure, but it sounds like you are getting $7500 for the car, but you still owe $1700. As I see it, you are on the plus side with a net down payment of $7500 - $1700 = $5800. That really isn't negative equity, unless I am misunderstanding what you are saying.

    Since you sound new to leasing, I would strongly caution you against putting this money down on the new van. It is very unwise to put any money down on a lease. If the van were to be totaled or stolen in the next couple of months to a year for any reason, you will never see that money again. It will all go towards the depreciation of the van. You should instead get gap insurance, which would pay for this "gap" between what you have paid and what you would owe at that point. Remember, cars depreciate a lot in the beginning. Putting the money down yourself would be, in essence, like self-insuring the gap.

    Another reason this is unwise is that the money you put down is taxed. Also, when you put money down, you are basically lowering your monthly payments. If all you see in this deal is a low monthly payment, you should think again. The $5800 you are putting down is basically lowering your monthly payment by about $161/month ($5800/36 months = $161).

    If you instead asked the dealer for a check of your positive equity, you would get the $5800 to do with as you please, and your monthly payment would go up to about $390/month. You could just put the $5800 in the bank and use some of it every month to make your higher payment. Hopefully you would be earning interest off of the money, making the money work for you instead of the dealer or the government or anybody else that is in on this deal when you put $5800 down on a lease.
  • jerhotjerhot Posts: 27
    Car_Man thanks for the info on rate lease money factor and residual, but can you please explain the mechanics of lease factor and residual, i.e. a real life example and and those numbers play a part? i'm new to leasing. Thanks in advance for the "dummies" explanation.

    Girosc, the lease factor is just lease speak for the interest rate. It is also called the money factor. To convert to an interest rate, multiply the lease factor by 24. For example, if the lease factor is 0.0020, multiply by 24 and get 0.048. Then convert this decimal to a percentage, or 4.8%.

    The residual is how much the vehicle should be worth at the end of the lease. This is important because you are paying for the depreciation of the vehicle during the lease. If the car's MSRP is $30,000 and the residual is $18,000, you are paying for the difference, or the depreciation, which is $12,000.

    As you can see, it now becomes very important to negotiate the price of the vehicle, often called the cap cost. If the MSRP is $30,000, but you negotiate to buy the car for $28,000, you pay less in depreciation costs. The residual does not change, as it is set by the finace company. It is non-negotiable. In this example, you would only pay $10,000 in depreciation.

    I suggest you do a lot more homework on leases before you get into one. There are several tutorials and articles about leasing, including great explanations for all of the terms involved with leasing, available here at Edmunds.com.

    Good Luck!
  • You're welcome, girosc. 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
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  • dad23dad23 Posts: 430
    Hey Car_man,

    Could you tell me what the residuals and MFs are for an XLE FWD 7 passenger on both 36 and 39 month, 12K miles leases?

    Thanks
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