Toyota Camry Lease Questions

sammythebull1 · January 2007

Can someone comment on the figures and strategy for making a decision to buy the car or send it back. The lease agreement has the purchase option value at $11,620.00 with $150.00 fee plus tax. Gross Capitalized Cost $21,300. Paid $1271 on delivery plus 15,000 miles. Total payments $14,847.00 Depreciation and Rent charge $12,500.67 The car is at 31250 miles and garaged.

nbenton · January 2007

I just bought a new TCH. I was planning to lease, and got a quote from the dealer. When I factored in the leasing fees (insurance, fees, and "additional cap costs") as well as my interest costs compared to the implicit interest costs in the "money factor" and considered the fact that I could get the $1,300 tax credit if I bought the car but not if I leased, the decision was not difficult to make.

Toyota also depreciated some of the options 100% over the period of the lease.

The only advantage to leasing, as I could figure it, was the possibility to turning in the car if something made it worth a lot less than the lease-end value at the end of 3 years. (This would have to be something that ruined the market reputation or utility of the car, which I think is highly unlikely.)

But I figured that if that was the only reason, it was like paying $5,000 for that option. My lease-end value was $17,132 after 3 years, and I figured if I sold it after 3 years for more than $12,000 I would come out ahead.

Not a hard decision...

CarMan@Edmunds · January 2007

Hi sammythebull1. In order to determine whether you should purchase your vehicle at the end of your lease, you need to compare its purchase price to its value on the open market at this time. Even though it states your car or truck's purchase option price on your lease contract, you should place a call to the bank that you are leasing it through just to make sure that you have the correct figure. When you do so, it never hurts to try to haggle with them. Some banks will negotiate the lease-end purchase prices of vehicles. If your initial contact at your bank is not willing to lower your vehicle's purchase price, you may have better luck if you work your way up the ladder to a manager. There is a good chance that they will not lower your vehicle's price, more often than not they will not, but you don't have anything to lose by asking.

As I said earlier, once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". Many knowledgeable community members frequent that discussion and they are often kind enough to give others their opinion on vehicles' current values.

Car_man
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gregschneider1 · February 2007

I cant find a decent lease deal anywhere in MA. Where did you get yours. $5k down and $300 month is not even close to what I am being quoted. Any help would be appreciated.

gregschneider1 · February 2007

For the sake of clarification, I was referring to the fact that I cant find a decent lease for the Toyota Camry Hybrid. I am being quoted numbers in the mid $500s for 36 months and 15,000 per year for a loaded hybrid (nav, leather, roof, msrp of about $31k). Does anyone know of any incentives coming up on the hybrid camry or have a reccomendation for how to lease it at a reasonable price?

stlpike07 · February 2007

I am making this post to get some feedback and opinions about my lease payment. Some of my friends think I am paying too much, compared to one's '07 accord and others' different brand new GM cars.

I leased an I-4 5sp. AT '07 Camry. The lease is 3 year/45,000 miles, and I also purchased the extended "platinum" coverage plan through Toyota. My Camry came with the moonroof package, the upgraded JBL stereo, body side molding, and car and trunk mats.

The car was a demo and had 2,000 miles on it when I got it. I think the MSRP (which doesn't really matter) was a little under $24,000.

The price came to $21,484 before taxes (came to a little over $22,000). Invoice was listed at $21,184.

With no money down my payment is a little under $400 (and before the extended coverage package was around $380). I also qualified for the best credit rating.....

Is this a good lease price or am I paying too much?

(They also threw in the first oil change and tire rotation)

kiawah · February 2007

That extended warranty platinum plan is costing you dearly. You're paying 20x36=$720, for 8 months of warranty coverage from months 37-45. Is that the 7 year warranty (actually 4 additional years) that you won't be using?

I'd give you a free oil change as well.

stlpike07 · February 2007

It is the 3 year/50,000 mile coverage. To me, it looked like it went above and beyond the normal coverage. Provides you with rental, travel reimbursement, and other coverages that the factory warranty doesn't cover. If I get a flat Toyota will change it. They will tow me (unlimited miles) to a Toyota Dealer for repairs, and so forth. Also, my deductible for that stuff is $0.

I guess I need to look more in depth over the factory warranty and the platinum coverage warranty. Do you think it would make more sense to purchase the extended warranty before I approach 36,000 miles, becasue I am sure I will reach the 45,000 mile mark.

Do you think the lease payment is fair?

kiawah · February 2007

Here's the way I look at this, down and dirty.

Payments of $400 per month, if you assume the interest rate is 6%, is the equivalent of borrowing $13,148.....except at the end of the lease you don't own anything. You can use loan calculators to figure any combination of amount borrowed, payment, and interest for a particular length of loan. 720 of that 13,148 went to buy the warranty, remaining 12,428 went to compensate the dealer for the use of the car.

I just did a quick search on www.fitzmall.com for new vehicle with the features you mention, found a similar which but it also had alum wheels (which I think if I remember correctly is about a 500 option)and it was MSRP for 24K, with sale price of 21.7K. So your paperwork prices are a little high but sanity check, except critically you bought a used car, as opposed to new. I've never bought such a 'new' 'used' car, but seems to me you should knock a couple thousand off (else why don't you just buy new?)....so maybe 19.0 - 19.5K would be the value of the car. Others could probably weigh in as to what further discounting one would expect for 2K miles of a current year production car.

So if I take the 19.5K car value, and subtrack the lease payments you would make of 12.4K, that leaves a difference of about 7K. One would consider that the residual on the lease (what the dealer is thinking that car would be worth at the end of the lease), which is way low for a 3 year old Camry. Now taxes come in to play here as well, but no idea where you are from or what your tax rate is. Result might be that the residual is about 8K....still low. Depending on your locale, I would think this would be in the range of 12-15K.

So if you haven't bought yet, I'd cool my heels and look around for a much better deal. Certainly, you should crawl thru the details of this deal with more specifics.....and understand each financial piece of this deal. Exactly what is the car worth, discounted because it's used. Exactly what is the residual that they have planned for in the lease calculation, what is it worth after 3 years. Validate that from what you can find on 3 year old Camry's and/or internet/Edmunds pricing. What exactly is the interest rate they are charging you for the lease? What exactly is that warranty providing to you, given that there is already a warranty on the car. Since the car is used, that means the warranty already started and you only have 2 years left on the factory warranty? Further reason to discount the car from a new vehicle price. What is wrong with this car, that someone got rid of it after a year and only 2K miles? In regards to extended warranties, it's a balance between the reliability of the car (and you may never need it), your risk tolerance, and how capable you are on paying for some work if by some chance something did break. I'm betting if you really do want this car, that if you really crawl thru the numbers you'll find some details that you want to resolve and you'll get a better price from the dealer.

If you think of this another way, if you borrowed money as a loan to BUY this car as opposed to LEASE (and your 400 payments were the same), then if you put an additional 8K down to buy the car....you would OWN the vehicle at the end of 3 years. Right now, you'll own nothing at the end of three years.

If you already bought this, then you may just have to suck it up and you have what you have. Chaulk it up to a learning experience, there's many worse learning experiences in life so this isn't soo bad.

kiawah · February 2007

I think of a lease as a couple of transactions wrapped up together.
1.) It is agreeing on the value price of the new vehicle. Not MSRP, but the discounted price as if you were agreeing on a cash purchase.
2.) It is agreeing on the end value price of the vehicle after 3 years, or the residual. Some leases allow you to purchase the vehicle after 3 years at this price. So if they undervalue the residual value, you can buy the car and turn around and sell it if you wish.
3.) The difference of those two is the depreciation and wear and tear on the car that you are going to put on it. That and the interest are what you pay for. Do a loan calculator with the applicable interest rate and months, to come up with a monthly payment....to get close to estimating the lease rate.
4.) The one time fees (taxes, registrations) either have to get paid up front or included as more monthly payment.
5.) Platinum warranty, at whatever value it has to you if you want it, needs to get paid up front or included as more monthly payment.

Understand each piece of this.

stlpike07 · February 2007

Thank you very much for such a detailed response.

I did already "purchase" the car, or should I say I leased it. Like you said, it is a "new-used" car and the "purchase" price was $300 over invoice. I did kind of get screwed, if you will, due to that depreciation, but I really liked the car. I drove a few Hondas and GM cars a few days prior and liked this the most.

The main reasons I got the car was for convenience and because of the car's options. I was in a car accident a few months prior and was dealing with a bunch of BS from the other insurance company as well as a few months of physical therapy. I was without a car but was still able to use other people's cars.

No other dealers in the area had the moonroof package and JBL stereo combo. They all had the alloy wheels and moonroof or the alloy wheels and JBL stereo........AND, I wanted the moonroof and stereo. I did act a little fast and may have made too quick of a decision, but I am pretty sure I will be happy over the next three years. The salesman was a family friend and did a good job "selling" me. This is my first new car so I did get caught up in the whole swing of things.

It was definitely a learning experience to say the least.

rliu818 · February 2007

This is for a '07 Toyota Camry LE w/ sunroof package.

Price $19,390
Residual $12,795
MF .00275
12K annual, 3 year lease.

Option 1:
$558.75 drive off
$312.29 per month

Option 2:
$1,000.00 drive off
$298.39 per month

Option 3:
$2,200 drive off
$260.61 per month

NOTE: price quoted include all taxes and fees. I am in CA, with a tax of 8.25%

stlpike07 · February 2007

That price seems pretty low to me, so good work. What was invoice? Some people are paying more than that for a Camry with no options.

CarMan@Edmunds · February 2007

Hi rliu818. Toyota is not currently providing any lease money factor support on the 2007 Camry. As a result, if you were to lease one through Toyota Financial Services right now, you will have to use its standard lease program. Its current buy rate standard lease money factor is right in line with the .00275 that you were quoted. That's as good as it gets on the '07 Camry right now.

I suspect that the $19,390 price that you mentioned is this car's selling price. If so, what is its MSRP. If you let me know I will be happy to give you my opinion of it. Also, make sure to stop by the following discussion to see how much other community members have paid for similar cars lately: "Toyota Camry: Prices Paid & Buying Experience".

Car_man
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kenkoko · March 2007

My current lease is up in 10 days, i saw this add in the news paper this week

07 Camry LE v4 automatic
MSRP $21,594
Residual $ 12,673
$1,999 due at signing
$239 + tax ( 8.25% for me in California) for 36 months
thanks for the help

saarks · March 2007

Just picked up a 2007 Camry LE v6 base in El Monte, CA

car was MSRP 23,540 + 620 transport

Leased
36 month, 12,000k yr
$0 down, only $600 in TTL
$325/month including tax... best price we got from all the dealers

samir1010 · March 2007

I am completely new to leasing and am looking at a few cars trying to decide which one to lease. I just saw a TV commerical for a lease on a 2007 Camry LE for $999 down and $269 a month. I'm in Texas. Has anyone heard of this deal or does anyone know if it's a decent deal? I called 2 Toyota dealerships up and they had never heard of it and said that for $999 down all they can do is $299 a month. Any advice or info would be helpful. Thanks
Samir

dreasdad · March 2007

The add says 269 a month for 36 months 12,000 miles a year
with 999.00 down plus tax title and license . Its a national add so the ttl would always be diffrent state to state. Is on a bsaic Camry LE auto with no options at all.
Any options would add to the payment or down.

ansari · March 2007

Hi,
I leased toyota camry LE yesterday march 17,2007 for 300.39 per month
I paid upfront $ 1000.72 (Includes Capitalized cost reduction = $ 500 ;+ First monthly payment 300.39 + Title fee $ 65 + Registeration fees $ 78 + Doc fee to dealer 57.33 ),

Total lease term payment = 10814
Residual paymnet =$ 12794.75
Gross Capitalized Cost of vehicle is 21237.00 ( value of vehicle is $ 19375.00 + $ 1312 taxes + $ 550 Acquisition fee).

If some body has better than this lease let me know. Keep in mind it is according to Illinois , will county rules and regulations)

stlpike07 · March 2007

Like someone else posted in another discussion thread,

What model, what options, what is the term of the lease (how many miles and how many months)?

Listing those things more accuratley describes your lease.

For example, I leased an '07 Camry in December of last year. The MSRP was a little under $24,000 and I got the car for $21,484 (not including fees and title)

Lease Term: 36 month, 45,000 miles

My options: JBL stereo package, Moonroof package, Body-side molding, and floor and trunk mats.

I also got the Toyota "Platinum" Extended Warranty Plan (36 months, 50,000 miles)

With the addition of the extended warranty plan my monthly payment went up to $398.88. I also got therr first two "services" thrown in for free too.

ansari · March 2007

36 months lease term ; 12K /year

CarMan@Edmunds · March 2007

Hi kenkoko. You need to find out what selling price this lease is based upon. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Without knowing what this car's selling price is, it is difficult to tell if there is still any room for negotiation. If you let me know what this car's selling price is I would be happy to give you my opinion of this deal.

Car_man
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CarMan@Edmunds · March 2007

Welcome samir1010. 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.

When leasing, it is important to negotiate as low a selling price as possible on the vehicle that you want. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Shop around for the lowest possible price on the Camry that you want, you should be able to get one for close to dealer invoice, and then have the dealer that you are working with calculate your lease payment using its buy rate lease money factor.

Car_man
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blueyfish · March 2007

I have a lease on a Infiniti that is due to mature in the next month. Considering a loaded up XLE V6. Anyone got an idea what the costs would be. After reading some of the posts, it seems that the cheaper model is not that much less than the infiniti. Thanks for any info...

cfbon · April 2007

Car Man, could you please tell me, as nearly as possible, what the current April 2007 residual percentage and lease money factors would be for a 36 month, 15K mi 2007 Toyota Camry Hybrid with only the following options: Navigation, heated mirrors, car mats? Thank you.

tomq · April 2007

Any leasers care to give their views on leasing the TCH? After my downpayment will have a leasing balance of approximately $20 thous to 21 thou. Figure the lease to be 36 months with 36 thousand miles or 12 thousand miles per year. In a debate with myself on buying or leasing right now. Comments pro and con will be very helpful.

Thanks
Tom Q.

CarMan@Edmunds · April 2007

Hi cfbon. Toyota Financial Services' lease program varies by region. If you tell me what state you are in I can give you a more accurate idea of what this car's lease program is like right now. If you are in an area where Toyota is not currently providing any lease support on the Camry Hybrid its current buy rate lease money factor and residual value for a 36 month lease with 15,000 miles per year would be around .00285 and 57% for consumers who qualify for its Tier 1+ credit tier. Unfortunately, unlike most other banks that lease vehicles Toyota Financial Services places restrictions upon which options can be residualized, making it difficult to estimate what a lease payment should be through it.

Car_man
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cfbon · April 2007

Thank you very much, Car_man. There were no incentives here for Toyota financing. I ended up buying an Acura TSX for far less money, due to Honda Financial Services lease incentives and the car's high residual. I was interested in the hybrid for environmental reasons, but had my budget to consider. I also strongly dislike Toyota's method of residualizing -- it basically prevents a customer from knowing what kind of deal they are getting. I don't call that good, fair business.

tomq · April 2007

Decided not to lease. Main reason was, had previously leased last 2 toyotas. Someone told me he had leased but reached a point where you just want to get back to making payments to own again. So I bought the TCH and it should be in this week. No more leasing but will still be in a new car, (if happy with TCH, be a repeat buyer) every 3 to 4 years. Been doing it this way for last 5 cars (including leased vehicles) Don't want to be concerned with repairs which start somewhere around the 3 or 4th year after purchase.

Thanks. Tom

susieq6 · April 2007

The residual on my car and what my leasing agreement states it will cost me to buy the car at the end of the lease are two different figures. Unfortunately I didn't notice this when I signed the lease. What do the two different figures mean?

kiawah · April 2007

If the residual is high, then that yields lower lease payments....since the amount that the car depreciates and is 'used up' is minimal. If you don't use much up, then what you pay in lease payments can be lower. Cars that don't hold their value well, will have lower residuals...and therefore higher lease payments.

The buy price is exactly that, if you decide to keep the car at the end of the lease then you have to come up with the money to buy it.

If the values aren't the same, it only matters if you intend to buy the car. If you want to buy it, then you would hope that the buy price is less than the residual. If the buy price is higher, then you will be paying an extra premium for the vehicle. You paid thru your lease payments for the value of the car to drop to the residual amount. If you then have to pay more than that to buy the car, you will overpay by the difference of the two. However you need to remember, nobody is forcing you to buy.

stalnaker · May 2007

I leased my previous 3 vehicles until I bought the TCH in February. The main reasons I purchased were (1) that was the only way I could get the $1,300 tax credit and (2) Toyota doesn't give any incentives to lease this particular vehicle, so it didn't make good financial sense vs buying. I purchased the Toyota Platinum 7-year; 100,000-mile warranty for $990, so that will protect me past the 3rd year. You should consider the same.

tomq · May 2007

Am aware of warranty options as explained when filling financial papers. The average miles we drive will not go over the basic warranty by much if at all over a 3 to 4 year period. Last 5 cars have only kept between 2 and 4 years, trade them in and get a new one. Been lucky, no tires to replace, only had to replace one set of wiper blades in maybe 10 or 11 years?
Do know about the tax credit but it is down to 650 now and that is if my tax man says I am qualified. Had previous 2 leased ES series lexus's and as in my previous post want to own next car. Camry hyb has standard a lot of features on lexus. Test ride, handling, ride quality was better then old car. (my opinion) No contest in pickup of tch versus a v6 but am not a fast driver on pickup or on highway. Acceptable power for me.
We each make our choices by preference.

Thanks tjq

workinclassdog · May 2007

Car Man -

Here's my situation - we want to get a lease on a new '07 Camry... base model, options aren't that critical -- and we've seen the May promo for our area ...
$199.00 per month for 36 months
$1999.00 due at signing
Model 2514 Options CA AF

My question is, we have a really good relationship with our local dealer (we're in NJ) and I've personally sent him three sales in the last 6 mos... I'm looking to see if there's any room to negotiate on the current promo (lower/no down, or adding options for same price)... or if you think the promo's margin is low enough that there's not much room to negotiate.

Thanks for your advice....

wcd

CarMan@Edmunds · May 2007

You're very welcome, cfbon. Enjoy your new Acura TSX.

Car_man
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CarMan@Edmunds · May 2007

Hi workinclassdog. It's always nice to have a good relationship with a dealer when purchasing a new vehicle. Like most manufacturers' official advertised lease payments I suspect that there is a little meat left on the bone on the Camry lease that you saw advertised. Have the dealer that you are working with calculate a lease payment for you using a selling price that is as close to dealer invoice as possible and use Toyota Financial Services current buy rate lease money factor of .00133 (for a 36 month lease of an '07 Camry in the NY region) to calculate your monthly payment. This is a good time to lease a new Camry. Its lease program is much more attractive this month that it has been recently.

Car_man
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leight · May 2007

I'm in the SE- we're showing a lease offer for $239 for 48 mos, 12k. Will negotiate $239 for 15k miles- this is with nothing down. In FL- they have an additional dealer fee around $600. Is this the best that we can do or should we look at purchase price to look at the lease payment?

CarMan@Edmunds · May 2007

Hi leight. Like most manufacturers' official advertised leases I suspect that you will probably be able to do slightly better than this deal if you shop around and negotiate the lowest possible selling price on the Camry that you are interested in.

Car_man
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t_bennett · May 2007

Car_Man - what is the current money factor and residual from Toyota on a SE V6 Camary. 15,000 miles / 36 months. I was quoted the following

MSRP: 30,194
selling price: 26,800 (invoice)
12,000 miles
36 months
$0 down
~$348 month
$500 trade

I believe the money factor was around .00133 but not sure on the residual. Assuming the trade value is fair do I have any other room to move?

lindytalbot · May 2007

I used your formula to determine the price in NJ for a 36mo Camry Hybrid lease. While my research into residual values and money factor for the car tell me I should have a lease around $348/mo incl tax with no money down, one dealer is giving me a price of $471 with $500 down and the other of $454 with $750 down. Both have residuals almost $2600 less than the 63% industry figure. I don't know what the money factor is but it would have to be really high (.0051) to get to those final figures. My credit score is 755, so I shouldn't be getting a bad rate. Both dealers are using Toyota financial; one dealer told me the money factor is high because Toyota is pushing sales vs, leases. I have always heard that car companies make more on--and push--the leases. Neither dealer will budge on the price. What can/should I do here? Thanks.

bailey12 · May 2007

I am in the NW suburbs of Chicago. I got a quote on a Camry XLE with Vehicle stability control& floormats for $411 per month. It is for 15K miles/yr for 36 months.

MSRP: $26,169
Sell price: $23,184
Money Factor: .00143 One dealer said there is a lease promotion until June 4. Another dealer didn't mention it & used 0.002854.
Term: 36 months
Sales tax: 7.75%

$0 down. License fees & dealer doc fees thrown into the first payment (approximately $150).

The problem is that when I use the "Calculate Your Own Lease Payment" program in Edmunds, the residual would have to be about 43% for the numbers to work. That does not seem to be in the ballpark as the residuals noted in other posts are in the mid 50% range. If I use a 53% residual the payment would only be about $335 per month, which seems low.

Am I missing something? Any help would be appreciated.

tbernsohn · June 2007

Trying to decide what to buy. Today a Toyota dealership told us the monthly lease for a 2007 TCH (MSRP abt $31,000) would be $650/month with $2000 down, or $575/month with $5000 down.

We've got an excellent credit rating. It looks as if we could do a 4 year purchase loan for about $640, with the same $5000 down.

Do these numbers look right??? I tried to call the fellow who calculated the number at the dealership and of course he can't be located.

kiawah · June 2007

High, but it if you are willing to pay that much...and you'll own the car at the end....versus the dealership owning the car if you lease.

You shouldn't be starting from the MSRP price of the vehicle. Start at the invoice price of the vehicle, that'll knock a couple thousand off of both of your lease and purchase calculations. Go to www.fitzmall to do a comparison shopping to understand the internet pricing available for a comparable equiped vehicle.

wvgasguy · June 2007

but on TV this week they were advertising camry leases for $199/mo with $1999 down. That seems like a far cry from what a lot of you are being offered. I understand benefits for business folks with leases but with a high resale value I'd have to look hard at having ownership equity as a private individual before I'd pay $400+/mo or a lease

stlpike07 · June 2007

Please keep in mind that the $199 lease payment in probably for the CE model, for 10,000 miles a year, no options, and a balloon payment at the end. And, you may be required to put money down or a deposit.

When you lease a car you pay for the "potion you will use." When you purchase a car it is yours.....and you hope you do not become upside down on your loan.

wvgasguy · June 2007

Just passing info along. Personally I'll take my chances purchasing. My payment =$0/mo, large cash downpayment

stlpike07 · June 2007

Okay. You say $0/mo. Could you please elaborate.

I guess if you have $20,000 plus to spend on a car at one time you could write a check and then have no payment.

If you take out a loan you still have a payment......hear back from you soon.

kiawah · June 2007

that's his point, pays cash, no loan

wvgasguy · June 2007

Correct. No loan, no lease. $0/mo, I own it; Equity approximately $25,500.

stlpike07 · June 2007

Okay. Thats what I thought.....it must be nice to go write a check for $25,500.

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