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Toyota Tundra Lease Questions

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  • I am getting ready to lease a 2007 Toyota Tundra Double Cab with a MSRP $35,816 (with additional options) the sale price is $33,288. in Rhode Island

    The dealer is giving me $7500. for my 2000 Tundra trade-in
    bringing the financed amount to $25,788.

    The payment the dealer is quoting me (Tier 1+ financing)
    a monthly lease payment of $375. for 36 months and 15k miles. What is the rate for Tier 1+ financing?

    What is the new "special financing" incentive for leasing the Tundra prior to Sept 4th?

    How do you figure the residual percentage?
  • sebring95sebring95 Posts: 3,231
    I dunno, but you're getting ripped off on that deal. You shouldn't be asking these questions here, they should be telling you what they used to come up with those numbers. Residual should be somewhere in the $19,000 range. Never put anything down on a lease, that's my recommendation. Sell your truck outright or have them cut you a check for the $7500 and put that in your pocket.

    As for the purchase price, that seems quite high too. Invoice on a $35,000 Tundra should be around $32,000 plus there is a $3,000 rebate in your area. So a good deal would be $29,000. Sounds like they're giving you the rebate plus $500 off sticker. Big deal. It's a buyers market on trucks, don't get taken.
  • Son went to toyota dealer yesterday he said he could get him into a tundra lease between 300 - 400 per month. With no down payment and not to worry about mileage. I think that there is a catch somewhere. has any one else heard of this.
    Thanks Hoogy
  • sebring95sebring95 Posts: 3,231
    Sure it's possible. Now, how good of a deal he really gets depends on the model/term/etc. He needs to see straight numbers, not just chit-chat. What's the purchase price, residual, money factor, etc. If he's just shopping payment it's pretty easy to get screwed over.
  • Hey multiplechoice. Here's the information that you're looking for. Toyota Financial Services' current buy rate lease money factor and residual value for a 24 month lease of a 2007 Toyota Tundra CrewMax Limited 2WD with 15,000 miles per year in the Los Angeles region are .00067 and 55%, respectively for consumers who qualify for its Tier 1+ credit tier. The money factor for an otherwise identical 36 month lease would be the same, but the residual value would drop to 49%. TFS' residual values for non-Limited models are much better. Also, keep in mind that TFS only publishes residuals for base vehicles without any options. Unlike most banks, it places restrictions upon which options can be residualized, making it difficult to calculate the actual dollar residual values for vehicles.

    Car_man
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    Prices Paid: Buying & Leasing Experiences Forum
  • Hey jericho88. Toyota's lease program for this model in its Boston region is different than its Los Angeles region program. In your area, Toyota Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2007 Tundra CrewMax Limited 4WD with 15,000 miles per year are .00017 and 51%, respectively for consumers who qualify for its Tier 1+ credit tier. The residual value for a lease with only 12,000 miles per year would be 2% higher. As I mentioned in my previous post, keep in mind that these residual value percentages are for base vehicles. Unlike most other banks, TFS places restrictions upon which options can be residualized. This makes it difficult to determine the actual dollar residuals for vehicles.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hey jericho88. The monthly rental fee is probably just the dealer that you spoke with breaking out the interest portion of your monthly payment. All leases through Toyota Financial Services have interest charges, regardless of what dealer you get your truck from.

    The reason for the conflicting information that you are receiving about the residual values for the trucks that you have looked at is the confusing way that Toyota Financial Services calculates vehicles' residual values.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hi sbarney7. I see that you are considering trading in your current Tundra when you lease a new one. There's nothing wrong with doing this, but it would be in your best interest to have the dealer that you are working with cut you a check for the $7,500 in equity that you have in your trade rather than using the proceeds as a capitalized cost reduction for your lease. I always advise consumers against making cap cost reduction s when leasing. The main reason I do so is that if your leased vehicle is totaled in an accident or stolen and never recovered, part or all of any down payment that you made may just disappear.

    Toyota Financial Services' money factors for the 2007 Tundra vary by region. I believe that Rhode Island is in Toyota's Boston region. Its buy rate lease money factor for Tier 1+ customers in that area is currently .00017. TFS' current residual value for a 36 month lease of a 2007 Tundra Double Cab 4WD with 15,000 miles per year is 56%. Unfortunately, it is difficult to use this residual value percentage to calculate the actual dollar residual value for the truck that you are interested in because unlike most banks TFS places restrictions upon what options can be residualized.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hi Carman,

    What are the current residuals and money factors on 08 Tundra's in the Omaha, NE area (KC region?)? I'm looking at an 08 Dbl Cab Tundra Grade with an MSRP of $31433 for 3yr/36k miles. Also, if you lease through Toyota, do you still get the incentives (currently $1500 if you buy)? I'm getting ready to talk numbers with a dealership and want an idea if whatever number they shoot me is fair or not. Thanks!!!
  • Can anyone post recent information on loaded 2008 Tundra CrewMax Limited lease rates/deals?
  • golden411, I am in Ohio and spoke with a dealer today. Here's what he basically told me. For a 2008 Tundra CrewMax Limited, example was MSRP $44,500, Cap Cost of $41,777, residual at $22,576. Money factor .00029. I don't see than as a any kind of good deal and I don't know if it's timing (new year) or the region I am located. I know that in the south region (i.e. texas) deals and trucks are more plentiful. Actually, if you try to build and price a vehicle, you get different screens based on your zipcode. In Ohio, they don't even let you select the SR5 model because they don't ship them into the Ohio/Michigan/Kentucky/Tennesse region. Another kicker is that the rebates vary by region if you consider buying ($2500 in Ohio vs $3000 in Texas). I don't think dealers in Ohio have very much incentive right now because they are not looking at volume like other regions do.....
  • That deal looks like they capped the cost at about $750 over invoice with a money factor that equates to less than 1% APR! How is that a bad deal?

    With special lease factors, you DO NOT get the cash rebates.

    The only way you're described scenario would Not be a good deal, is if you're money factor was a typo. If the rate is .0029 (6.96%) instead of .00029 (0.696%) then you're right... nothing special.

    If the rate is truly .00029, I'd have them knock another few hundred bucks off, then sign the paperwork and drive home in your new truck!
  • vcopellvcopell Posts: 10
    Dear Car Man or other kind people:

    ------------------------------------Toyota TUNDRA QUESTION -------------------------
    Location: Texas
    Model Year 2008
    4.7L, Double Cab
    Bedliner
    Tint
    Running board
    Price quoted after Toyotal rebate: $25,411 (includes $3,000 factory rebate)
    MF: 0.00029 (approx 0.7% APR rate)

    I am looking to make sure that the MF and Residual are correct. I have not asked them for the residual yet but wanted to get actual or ballpark number for it.

    --------------------------------------------- F-150 Super Crew Questions --------------

    I am looking to buy F-150 SuperCrew. I am able to negotiate the following:

    Cap cost - Purchase: $25,400 (after $4100 rebate)
    (If they give me loan, it would be at 4.9% but I have to give up $1,500 in rebate)

    CAP Cost - Lease: $26,900 with rebate.
    Zip Code: 75006 (Dallas Texas)

    I want to talk Lease Option with them for 3 yr with 45,000 miles. My credit is Excellent.

    1: What are the MF and other costs that I should be worried about? They did say that the lease would be calculated at 4.75%. Is that equivalent to MF = 4.75% / 2400 = 0.001979? Does this not seem high?

    2: What is the residual for this car?

    3: What other things should I be careful about?

    Can you please guide me here?

    Also, if there are other pick-up trucks, I rather entertain instead of this, please suggest.

    Thanks, vick
    vcopell@yahoo.com
  • Need the MSRP for the residuals. Ask your dealer if those rebates are compatible with the special money factors/ lease rates, most-likely they are not. The dealer has no reason to lie about this as they are bound to pass along those savings if they apply.

    Go for the Tundra, more power and superior build quality over the Ford.

    Why you not opt for the 5.7L engine? I can almost guarantee that it'll have a better residual value. Plus, it's more efficient along with being much more powerful than the previous generation 4.7L.

    Invoice to $500 over invoice is a good deal on these trucks. If you decide to stick with the 4.7L, they should cap the cost at invoice.
  • ocautoseeker, that was no typo, yes, I agree with you that .00029 (under 1%) was fantastic. But at only a 54% residual for 3 years, that's nothing special. Maybe a 54 % residual after 5 years (which is more typical for Toyota), but not 3. I guarantee a 3 yr old Tundra will be much higher than that to buy outright in 3 years.

    BTW, when I asked to come down and see the truck to take it for a test spin, he told me that he didn't have one on the lot, only '07's......and would have to find one for me. I was thinking he might be trying to pull the old bait and switch.... so I also told him an '08 SR5 model would be OK as well (same deal)... that was last Thursday and I haven't heard from him since.....not sure if the Lease offers have expired or not...
  • vcopellvcopell Posts: 10
    Thanks for replies. I plan on getting with him tomorrow for more details. Here is what I got from another dealer:

    2006, 4.7L, Double Cab, Running board, no DRL, no bedliner
    Invoice: $26,872
    CAP: $26.972
    If Purchased: there is a factory rebate of $3000.

    If you use 0% finance for purchasing, the $3000 disappears.

    If you Lease it, the MF is 0.00029 and no $3000 compatibility. If you use regular MF (at 6%/2400), the $3000 rebate can be used.

    (I will be seeing him tomorrow to get the residuals and more information on the rebate etc). He said I could call Toyota Financials and they will tell me the same as well.

    I was still wondering if you or CAR_MAN can tell me national MF and residuals. This would help me discuss more.

    Appreciate your answers, sir !!
    ---------------------------------

    Agree that 5.7L is stronger and peppier but I do not feel like paying another couple of grand extra for that engine.

    Ford drove well as well. I am only thinking of keeping such a truck for next 3 or no more than 4 years.

    Ciao, v
    --
  • A 54% residual based on 45k total miles is very realistic over 3 years, especially for a full size pick-up. Toyota subvents their leases in the form of low money factors and stays away from over-inflating their residuals.

    It's smart for two reasons:

    1) If you like the truck and want to purchase at lease-end, the residual should be very close to wholesale, making it easy to purchase, knowing the pricing is in-line.

    2) If you turn it in, Toyota (or whatever lending institution you borrowed from) can recoup it's money or at least break even at auction with a realistic residual value. Otherwise, they'd take a major hit since they purchased the vehicle upfront and only got paid the depreciation (the amount you paid). At lease-end, they're on the hook for the remaining balance of that vehicle.
  • Not sure about Ford's programs.

    Tundra 36 mo money factors:

    Tier 1 + : .00029
    Tier 1: .00039
    Tier 2: .00074
    Tier 3: .00134

    * Rates could vary by region.

    Call the dealer and ask him for the residual value based on your annual mileage requirments. 2wd/4wd, SR5/Limited, 4.7L/5.7L... they'll all have different residuals.
  • Car man,

    I am looking for residual and money factors. Southeast USA (Florida) for a tundra 4x2, 5.7 L, 6 spd auto (model 8262 on the toyota website) crewmax SR5, 24,36 month, 12k mi per year.

    Thanks

    Sam
  • ocautoseeker...... you make some good points. Perhaps I need to re-think my approach. Leasing and then buying at end-of-lease is my most likely approach since buying a fully loaded Tundra SR5 or Limited is out side of my price range.

    Since I have not leased before I am hesitant because I am not sure if 3 yrs down the road the Tundra will be rock solid. Past experience with my current truck (dodge ram - low miles and lots of problems) and past SUV (ford explorer - also many problems) does not give me much confidence in reliability and value of some brands. Perhaps this truck is different, I just don't know.

    I would like to keep my vehicle a long time and I don't put on many miles (maybe 5-7 k per year). I value safety for my family (which this truck has) and am just not sure how reliable this truck will be (that's why I do not want 2007 1st model year). But if it is, paying a little more to lease then buy is OK if I can keep the truck for 10 years (unless I hit the lottery and can buy a new on every year) !

    I would rather have a higher residual to make it easier to walk away if I have problems than to be stuck with another lemon. It's all about risk... so far buying new vehicles hasn't worked out, thus my interest in a lease. I also had a Sienna in the past but that wasn't perfect either, since we had to use high-octane to avoid their dreaded engine sludge problems.

    But, all in all, maybe I just need to try it out, accept the lower residuals and see how it goes. Perhaps it's just wishful thinking, but I believe we will see better deals in the summer when gas prices sky-rocket. I really appreciate your insight and opinions.....
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