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Toyota Tundra Lease Questions

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  • My leasing source states that the buy rate money factor is .00029 through TFS and requires Tier 1+ status = 720 FICO or higher. I confirmed this with my Toyota contact, so I'm not sure where they are coming up with .00059.

    Again, my numbers only break it down in tiers and don't specify if the rates apply to all models.

    I will say this... even if they for some reason don't honor .00029, .00059 is still an awesome rate, as it's well below market.

    Push for that .00029, though.

    Tier 1+: .00029 - base rate
    Tier 1: .00039 - base rate
    Tier 2: .00074 - base rate
    Tier 3: .00134 - base rate
  • stef 3,

    Here's the bottom of the invoice for your truck....

    Total Accessories ...........................: $ 2107.00 $ 1468.50 $ 2107.00
    Destination Charge ..........................: $ 685.00 $ 685.00
    TDA .........................................: $ 391.00
    Gasoline ....................................: $ 10.00
    Dealer Holdback .............................: $ 714.00
    Whsl. Financial Reserve .....................: $ 357.00
    --------- ---------
    Total .......................................: $ 34871.50 $ 38502.00

    Residual Value ...: 36 mo
    ------- ------- ------- -------
    STD (12k): 18,812
    LOW (15k): 15,805
  • stef3stef3 Posts: 25
    ocautoseeker

    WOW ... this is what I call help. Thank you !!!

    Please correct me if i am wrong ....
    Offering the dealer $35000, his profit is $1199.5 on a vehicle sitting on the lot.
    Do you think this is something a dealer will accept?

    How do you see a good scenario to lease this vehicle 36months / 15000miles?
    How much down (drive off - including what) and what do you esimate as monthly payment including tax (7.75%).

    Regarding the money factor I asked 2 dealers today and all gave me the 0.00059 (ends 3/3/08) for credit score 744 - TransUnion.

    The residuals you state, are correct but I do not understand why the dealer told me $18,812 on 15K miles .... Do we have different residuals for Limited editions or he did a mistake. Is it possible to negotiate the residual?

    I am using some formulas to calculate the payment but I would like to check with you because you are very well informed about fine detais, fees, and othes BS included in lease terms.
    I know I am a pain in the butt but, if we started and got this deep I would really appreciate your feedback to the end.
    Maybe our discussion will give other people more accurate ideeas about lease calculations and what it takes to get a fair deal.

    Thank you again ...
  • stef 3,

    You're NOT a pain in the but... this is the whole idea of the forum - to help people get great deals and gain knowledge before entering the dealership.

    I'm exhausted right now, but I'll run the numbers for you tomorrow (Friday), and then send you a reply.

    Hang tight...
  • stef 3,

    Sorry , was tired and made a mistake on the residuals when I posted.

    Here are the correct ones for your truck.

    STD ( 15k) 18,812
    LOW (12k) 19,526

    As for your truck, I'd really aim for them to cap the cost at about $400 below invoice. So, assumimg a cap cost of $34,471 ($400 below invoice), you're looking at monthly payments of $467.23 + $36.21 (7.75% tax) = $503.44/mo

    Drive offs would include: 1st mo payment of $503.44 + License Fee of ~ $250-$300 + Registration of ~ $15-$25, Ca Tire Fee of $8.75, Doc Fee $45-$55, Lease Acquisition Fee of $550. You're looking at ~$1400 in total drive off fees.

    If you cap the $550 acquisition fee into your lease payments, you'd be at $482.83 + $37.42 (7.75% tax) = $520.25/mo. Your drive offs would be ~ $900.

    Numbers are based on a 36 month/15k-mi/yr lease term.

    Good Luck... hope this helps.
  • stef3stef3 Posts: 25
    Thanks ocautoseeker
    For all DIY people, I hope this discussion was helpful.

    1) in order to get the right information, provide the specifics of the vehicle and lease terms.
    2) do not negotiate from MSRP down. Use the invoice to set the price you are to pay (CAP Cost)
    3) know your credit before calculating rates
    4) ask multiple dealers about the money factor and residual for your terms.

    Things I have learned with the help of ocautoseeker:

    1) Using KBB or Edmunds, figure the invoice of the base vehicle.
    2) From the KBB invoice subtract Dealer Holdback (2%) and Wholesale Financial Reserve (1%) - (from KBB invoice substract the Destination charge as well)
    3) To this number add the Toyota Dealer Advertising fee, Gasoline( price of 3 gallons) and Destination charge.
    4) To this result, from KBB, add the invoice of the options you want on your vehicle.

    Using this approach you will have a number close to the dealer invoice.

    If you offer the invoice as a negotiated price, the dealer has a profit
    of DHB+WFR ~$1000-$1200 on a car sitting on the lot.
    This, I think, is acceptable from the dealer side but depends on the demand.
    If you want to pay more(???), just add the amount to the calculated invoice and
    present the new offer.
    Dealers will accept with no much push a $500 over the invoice, generating for them $1500-$1700 profit.

    As a lease scenario I would take ocautoseeker advise:

    Drive off = 1st month payment, License Fee, Registration, Tire Fee, Doc Fee, Lease Acquisition Fee
    Use a car lease calculator to figure your monthly payment, subtracting from the financed amount the 1st. month payment.
    Add to your monthly payment the tax, and you will be close to what you should pay.
    If you feel comfortable with this payment, try to knock off another $5 just for fun and take the car.

    Please feel free to correct or add to this anything you might think will help a more accurate calculation.

    Thanks again ocautoseeker
  • I'm in the process of tryinig to sell my car, so I missed out on the lease deals for Feb. Does anyone know what the money factors are going to be for March? Will Toyota carry over the old rates?
  • pcantorepcantore South FloridaPosts: 39
    Stef3,

    According to ocautoseeker's rule here's a lease scenario I ran for a 39 X 12.000 miles 2008 2WD Toyota Tundra CrewMax SR5 V8 4.7L 5 1/2 ft 5-Speed Automatic (8260) I'm interested on:

    KBB Invoice: 26,854.00
    dealer holdback (2%) 537.08
    Wholesale Financial Reserve (1%) 268.54
    destination charge 685.00
    25,363.38
    Dealer advertising fee (3%) 805.62
    Gasoline (3 gallons) 10.95
    destination charge 685.00
    Invoice price: 26,864.95
    Deck Rail System SR5 : 108.00
    Fog Lamps : 88.00
    Daytime Running Lights : 32.00
    Radio, JBL w/6-Disc CD Changer in Dash : 780.00
    Running Boards : 276.00
    Wheels, Aluminum Alloy : 816.00
    Total invoice price: 28,964.95

    AGREED UPON VALUE (SELL PRICE) 28,560.00
    Lease Acquisition Fee : 550.00
    Processing Fee : 45.00
    License Fee : 250.00
    Registration Fee : 15.00
    Doc Fee : 45.00
    1st Month's Payment : 312.60
    Gross Capcost : 29,777.60
    Cap Reduction : 0.00
    Residual Factor : 56%
    Money Factor : 0.00029
    Lease Term : 39 months
    Base Monthly Payment (w/o Tax) : 294.93
    Broward Sales Tax Rate : 6.00%
    Taxable Payment : 294.46
    Monthly Sales Tax : 17.67
    Monthly Payment (w/ Tax) : 312.60

    Are these numbers right?

    Thanks for your help

    PC
  • stef3stef3 Posts: 25
    I do not know exactly what kind of incentives apply to the CrewMax 4.7 but I will try to do some numbers. If the deal you present at the end is an actual offer from your dealer I don,t know what to say because I came up with different things here ...

    Starting from KBB invoice of $27,539, dealer cost of this car with the options($2100) you want should be around $28000
    The advertising fee (TDA) is $391 so the invoice will be around $30000 (includes Destination, Dealer Hold back, Wholesale Reseve, TDA and Gasoline)
    From this about $800-$900 is the Dealer Hold back and Wholesale Reseve.

    If you offer the dealer 30,000 (invoice) his profit will be around $800-$900 (Dealer Hold back and Wholesale Reseve)

    As far as the accuracy of this calculation I am not 100% sure but I hope ocautoseeker will help us out.

    I did a basic estimate of the lease with $905 in fees as total of drive off for 39 months, and based on your stated 56% residual (I am not sure about this) and 0.00059 money factor (the 0.00029 I do not think is right) your monthly payment shoud be around $380-$390 including tax.

    One more time .... I am trying to figure out this calculation approach and any feedback would be apreciated.

    ocautoseeker ... please help us if you are not too tired :))))
  • Hold on people... let's not make things too complicated here.

    First, the KBB and Edmund's invoices already include the Destination, Holdback and Financial Reserve. Whether it includes the $10 fuel charge is really insignificant as ten bucks isn't going to break anyone. The only discrepency you should see from an internet invoice and a dealer invoice is the advertising fee (TDA). This fee will vary from manufacturer, but Toyota's is ~ 1.25% of the BASE invoice. Some will question as to whether this fee is legit, but most manufacturers factor the cost of advertsisng into their products and dealers typically don't like to haggle on this fee.

    For Toyota: the holdback is 2% of the BASE MSRP and the Financial Reserve is 1% of the BASE MSRP. The destination is set and non negotiable, so don't even bother.

    Below is a partial factory invoice from stef 3's ideal truck. I highlighted the important parts to better illustrate how the fees are itemized. The bottom line is this: when negotiating, knowing how much the dealer has in holdback and financial reserve is a great tool if you're looking to get really, really, really aggressive, and hit them at the right time of the month.

    Retail Dealer
    Vehicle Base Model ....................: $ 35710.00 (Base MSRP) $ 31246.00 (Base Invoice)

    --------- --------- ---------
    Total Accessories ...........................: $ 2107.00 $ 1468.50 $ 2107.00
    Destination Charge ..........................: $ 685.00 $ 685.00
    TDA .........................................: $ 391.00
    Gasoline ....................................: $ 10.00
    Dealer Holdback .............................: $ 714.00
    Whsl. Financial Reserve .....................: $ 357.00
    --------- ---------
    Total Invoice/MSRP .......................................: $ 34871.50 $ 38502.

    So, basically, the total invoice you would see here on Edmunds would most-likely read $34,480, which is only less the the $391 TDA fee. Make sense??
  • stef3stef3 Posts: 25
    You are fast answering ... thanks.

    Sorry, I just realized that I am turning s~~t around for no reason.

    You are right ....
  • Below is the formula to calculate your lease payments:

    (Cap Cost – Residual Value) / Term = Depreciation
    (Cap Cost + Residual Value) X Money Factor = Interest
    Depreciation + Interest = Base Monthly Payment
  • pcantorepcantore South FloridaPosts: 39
    Thanks guys,

    So basically, I can take KBB (or Edmunds) invoice price and just add $391 (TDA). Right?

    The formula to calculate the lease payments I had a small error. I arrived at $337.00 total monthly payment which is great!

    Thanks again for your help,

    PC
  • Correct. The TDA will vary from region-to-region, and from model-to-model, so to be safe, just take the total invoice from edmunds or kbb, and assume that a dealer's invoice will be ~ $400-$500 more.
  • pcantorepcantore South FloridaPosts: 39
    Ocautoseeker,
    So, if my offer to the dealership should be: Invoice price minus $400-$500, then I should simply take the Edmunds or KBB price as stated on their website. This way, I should be getting the best deal, right?

    Thanks,
    PC
  • rjsuzukirjsuzuki Posts: 1
    Question: Lifts on Tundra Crew & WarrantyI ordered a 08 Tundra Crewmax 4x4 this week. I am going to put a lift on it when it comes in through the delearship (they send it out). I went to 3 different Toyota delearships and asked about the lifts. One said that I can get a lift no more than 6"'s (which is what I want), the other two said no more than 3" (which is okay). Does anyone know the answer? Are there any articles? If you have a lifted Tundra, do you like the lift.

    Thank you,

    Rich from Phoenix, AZ.
  • 2007 Toyota Tundra Crewmax Limited Pickup, 5.7L

    Anyway - I've heard that for people (my wife) that like to turn over cars < 3 years, leases are an attractive option. There's a lease "assumption" that's available quasi-locally (private party) that I'm considering:

    2007 Tundra, 5.7, 4wd, crew cab. Est purchase price $41k
    $5000 down (I pay the guy currently leasing it)
    Lease started in 7/2007.
    12k/year mileage allowance (this is OK, as the wife could walk to work)
    Currently has 8500 miles.
    Lease cost: $339/mo for a total of 36 months (from 7/2007)
    I believe the residual is: 56%

    Deal / no deal? The payments are unusually low - he says he put $7500 down + some trade it, which is why he's asking for the $5k. General comments?
  • jackel142jackel142 Posts: 47
    Be careful putting 5k down on any lease. What happens if you total the truck the day after you take over the lease? - you lose the 5k!
  • bmwk75sbmwk75s Posts: 18
    I wouldn't do it. You would end up paying $14,492 to drive a vehicle for 28 months which works out to $517.57 a month. You can work a better deal from the dealer and get a 2008 without any miles on it. They are offering SR-5's for $289 with $1999 down at my local dealer.
  • rlaryrlary Posts: 18
    I will bet you $ to donuts that you can lease that 40k truck new with no money down for under 500 month. If you are inclined to put 5k down on it (which I wouldnt do) payment would be substantialy less.
    Remember, you need to work a deal just like buying it. I have seen those 40k trucks going for as much as 10k off, with rebates (currently 2750 I think)
    Lets say you can lease that 40k truck for say 33k. You pay any tax/fees.
    I bet it would be close to 450. New, no miles and cash left in your pocket.
    I'm just estimating of the top of my head but I have leased 5 toyota trucks over the last 20 years.
    Their is also a web sight I stumbled across once that had leases from all over the country you could assume. Pretty much any make model you could want.
    BMW, Lex, toy, american. I noticed some very sweet deals but didnt investigate any closer. Do a google or two and I bet you could find it.
    And in regards to money down. Fine when you buy it, when its paid you have equity, you can perhaps get the downpayment back in a sale or trade. When you lease their is RARELY any equity to trade.
    Good luck.
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