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Toyota Tundra Lease Questions

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  • Don't do it. Current TFS money factors on NEW Tundras equal less than 1% for Tier 1 + customers, and even for Tier 3, mf equates to roughly 4%. Cheap money all the way around!

    Look for a brand new one. Pay only 1st mo, tax and dmv's up front, and keep that $5k in your pocket. If you find a truck you like, let me know the window price and I'll run the numbers for you.
  • jackel142jackel142 Posts: 47
    MSRP of 42k.
    What should the lease payment be for 24-48 months? 12k per year total walk in cash of $1000.00
  • Hard to say without the VIN as every Toyota carries a different residual value. It's not a straight 53%, 55% etc. like some manufacturers. MF's also vary quite a bit by region, but .00029 -.00059 is what we're seeing for Tier 1+ customers as an average across the nation for the month of March.

    TFS doesn't do 24 mo leases for 12k annual miles, only for 15k (I know... weird!), But, in my best educated guess, given I don't have the exact residual, mf, and cap cost for a specific truck... with drive offs only, assuming a cap cost reduction/discount of ~$4000, & 7% local sales tax, you'd probably be somewhere bewteen $475-$530/mo on a Tundy that carries a $42k list. Vehicle probably has a residual near 52% for 36 mo and 42% for 48 mo assuming 12k annual miles.

    Remember, with special subvented money factors, cash rebates do not apply. It's like choosing betwen the rebate and 0% financing on a purchase... you only get one or the other.

    Again, without an exact truck, I can't give you an absolute.
  • jackel142jackel142 Posts: 47
    Here is the vin - 5TBBV58158S495768.

    08 Double Cab 4X4 Limited

    It's located at Tri-County Toyota is Royersford PA. Local Sles tax is 6%

    MSRP is $42590.00

    What shouuld the lease payment be with tax & tags down, 12k per year?

    Thanks!
  • 4x2 CrewMax, limited
    Found out the "assumption" wasn't a deal due to asking up front cost.
    Also found other websites online that allowed me to compare lease assumptions.

    Ballpark, I can get into a 33-34k truck + tax for a $399 lease - use that as the "gauge" for new truck leases.

    Older lease assumptions may be worse, the Tundra was selling much better in 07.

    Residual.. Well, I haven't figured out if I'd actually want to buy it. No cost for turning it over through Toyota Financial.

    Anyone know if Toyota Financial will have the ability to negotiate a buyout on a lease - seems like there are going to be a good number of 07 Trucks that sold for higher prices than the discounted 08s and the residuals are going to be bad.
  • sebring95sebring95 Posts: 3,225
    Anyone know if Toyota Financial will have the ability to negotiate a buyout on a lease - seems like there are going to be a good number of 07 Trucks that sold for higher prices than the discounted 08s and the residuals are going to be bad.

    Actually, the residuals on the new Tundra were pretty low right from the start. In fact, when the CM first hit, the residual was very close to the residual on my ’05 DC. So either they knew from the start they were going to discount them…or they were just being conservative. The current leases are better deals simply because of the decrease in selling price.

    I don’t recommend leasing to anyone. I’m a CPA and have done a ton of lease vs buy comparisons and it’s generally not a good financial decision. Now, if you just want to pay more for some possible convenience (or inconvenience depending on the circumstance) that’s another story.

    That being said, I have assumed several leases over the years. Usually bailing out people that HAD to get out of their lease for whatever reason and I was able to find value in that. But for every good lease assumption out there on swapalease or leasetrader, there’s a ton of really bad ones. I did really well on my first two, but this last one (my ’05 Tundra) was just ok. The residual was higher than real-world wholesale value and Toyota would not negotiate at all. I also had to have a dealer handle the purchase because Toyota Financial will not sell the vehicle directly to you. Basically, the dealer bought the truck from Toyota and then sold it to me (with a small paperwork fee…..). So that was a pain as well, where prior leases I’ve just sent the check and they sent me a title.

    I actually kept this truck because it wasn’t a terrible deal to buy and I really like the truck. In the past I’ve always bought out the lease and resold the truck and made a big chunk of my payments back. Prior to this I assumed an ’03 Silverado for 24 months and my net cost was around $1,800 after I bought/sold it. Not bad for a basically new vehicle. I had expected to have about $2,000 in the Tundra across 24 months, but the market went to pot so there wasn’t as much resale profit potential. Don’t play these games if you can’t afford it!
  • Sorry for the delay...

    36/12k lease assuming a cap cost of invoice ($38,801), you're looking at $526.56/mo (includes 6% tax). Price does not include the $550 lease acqusition fee which can either be paid upfront or capped into the lease. Vehicle carries a 51% residual value.

    48/12k (42% residual) - $482.07 (includes 6% tax)

    Numbers assume a money factor of .00029 for TFS Tier 1 + customers, but it may vary slightly in your region.
  • mntbikermntbiker Posts: 5
    I am in Florida and am being quoted 45% residual on a 2008 CrewMax Limited, 2wd for a 36m/12k lease. The money factor is .0184.
    Although the trucks are discounted heavily, the low residual and high money market make for high lease payments. Is this the same throughout Florida?
  • mntbikermntbiker Posts: 5
    Do you happen to have these figures on the 2008 Toyota Tundra?
  • mntbikermntbiker Posts: 5
    is there anyone working this thread?
  • ocautoseekerocautoseeker Posts: 425
    You live in Florida, and Southeast Toyota (SET) has different rates than Toyota Financial Services (TFS) which is the main captive finance company.

    SET Finance "incents" their deals a bit different and unfortunately, I do not have those numbers. Sorry.
  • jdemissiejdemissie Posts: 2
    IGreetings to All:
    Yesterday, I was at a Northern California Toyota dealership to lease a 2008 Tundra 4x4 Crew Cab. My credit score is 740+.

    Here are the numbers the folks gave me based on 60 months lease:
    - MSRP: $33,460
    - Invoice: $30,810
    - Cap: $29,400
    - Residual: $12,135 (60mo)
    - Money Factor: 0.00056 (60 mo)
    - Down $2,000
    - Monthly payment with tax: $415

    In addition, with my $2k down, Toyota offered an incentive of $4,500 cash toward my down payment. The color and truck specification matches what I’m looking for as it has the bench seat as opposed to the captain chair. My offer was $320 - $340/mo on a 48 mo lease.As I was walking away the guy shouted $360/mo or 60 months. I kept walking. Based on the numbers given, what the adequate negotiable payment?
  • awedioawedio Posts: 46
    don't take this personally, but, you'd be foolish to do a 5 year lease!
    Take the 5500 rebate (expires 7/7/08) & buy the truck
    Down here (in So. Cal), 100 over invoice is the max I would pay on that truck.

    With a 740+ score, you can get financing under 5%.

    Assuming you put no money down
    Since inv on your truck is 30810, total price (with tax & lic) is approx $34k
    34,000 - 5,500 = $28,500 @ 4.9% x 60 months = 536/mo

    if you lease, I would put no money down
    you don't mention if this is a 4.7 or 5.7 engine?
    what mileage is this lease for?

    using info from Toyota previous program for a 4x4 Crewmax, 5.7L
    24 mo lease, 15k miles, residual was 62%, MF = .00026
    36 mo lease, 15k miles, residual was 56%, MF = .00026
    there is a 1500 rebate for lease

    at 100 over, less 1500, your cap is approx 29410 (I don't know what Toyota is charging for the aquisition fee)

    your payment b4 tax, should be approx
    374 (24 mo. lease
    308 (36 mo. lease
    If there is an acq. fee, your pmts would increase 12 to 15/mo (if the acq fee is $500 to 600)

    let me know if u need more help
  • jdemissiejdemissie Posts: 2
    Regards Awedio. I took the advice and visited the dealership once more….

    Here is the new offer I was given on a 36 mo lease with a $1,500 cash incentive:
    MSRP: $33,400
    Invoice: $30,810
    Cap: ???
    Residual: $17,764
    12k miles/yr.
    Dealer requires $4,000 down
    Monthly Payment including tax: $323.50

    I’m still negotiating on a 2008 Tundra 4x4 Crew Cab - 5.7 engine, however, since this deal still requires a $4K, I felt reluctant to move forward. They say the offer ends tomorrow – July 7th. What would you do if you were in my shoes?
  • awedioawedio Posts: 46
    jdemissie,
    Are you dealing with the retail salesman? Ask for the fleet manager?
    That $4k down is a bunch of BS!

    Leasing 101 = never put any money down on a lease.
    Your "down" should be minimum drive off = 1st mo. pmt + dmv + security deposit (sometimes the sec deposit is waived)

    your cap should be no more than 30810 + 100 over, less the 1500 cash (if I'm not mistaken, the 1500 cash is used as a cap reduction & is taxed)
    cap = 29560 (assuming a tax rate of 10%)

    MF = .00016

    using the residual you provided, your base mo. pmt + interest, should be
    327 + 7.60 = 334.60 + your sales tax

    if you need more help, send me your contact info & I'll help you negotiate the deal
  • sparklandsparkland Posts: 110
    "I strongly suspect that consumer auto leases (at least those sponsored by the auto manufacturers) will be history by the end of the year.

    Chrysler has already announced that they will exit the lease business on August 1st. Cerberus Capital not only owns Chrysler and Chrysler Financial but controlling interest in GMAC as well. So I suspect GM will follow shortly.

    Ford took a $2.1 billion charge for the quarter due to falling lease residual values.

    Honda just released their first quarter financial report and noted that they expect falling lease residual values in the USA to cut their operating profit by $231 million. Just look at the residual calculations on 2006 Ridgeline's as an example of how wildly they miscalculated.

    I believe the manufacturer sponsored consumer lease will soon be history. Only time will tell."

    This information was quoted from "Joe" on the ROC forum.

    Interesting reading to be sure. :shades:
  • 6a14ugx46a14ugx4 Posts: 2
    Car_Man,

    I am about to make a purchase and I'm trying to decide whether I should lease or buy. The conventional wisdom is telling me that if I plan on keeping it I should buy it outright, but the dealership in Houston, TX is offering me an extra $2K incentive for leasing. Should I take the bait??

    * I managed to negotiate the truck to $22,800 (including 3500 worth of installed options) - This deal is after the $5K manufacturer's incentive currently being offered.

    The deal being offered based on my questions to the dealership:

    36 months lease / 12K miles / 325 down (1st payment), but I can't seem to get him to tell me what Money Factor used to arrive at the number and he claimed that the residual value will be 17K at the end of the lease. I don't seem to be able to understand how he came up with that 325.33 monthly payment.

    Thanks in advance.

    RG
  • 6a14ugx46a14ugx4 Posts: 2
    I have a lease deal proposed to me with a Money Factor of 0.00340 on a 36 months lease with a residual value of 17,500 on a Tundra 2008 with the selling price after 7K of rebates/incentives. Is that a good deal?

    I'm trying to make a decision on whether to purchase vs leasing

    RG
  • awedioawedio Posts: 46
    RG,

    in CA the buy rate on a lease is 0.00016
  • ocautoseekerocautoseeker Posts: 425
    that's an atrocious mf!! they have to be quoting you numbers from an outside lender. tfs' rates are very low right now in most regions,making it a great time to lease a tundra, if you don't mind the extra fuel expense, though.

    in many regions, if you qualify for tfs' tier 1 + credit, your rate will hover around 1%.
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