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Toyota Camry Lease Questions
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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...
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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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)
I'd give you a free oil change as well.
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?
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.
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.
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.
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%
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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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
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
Samir
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.
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)
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.
Car_man
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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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Thanks
Tom Q.
Car_man
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Thanks. Tom
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.
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
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
Car_man
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Car_man
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Car_man
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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?
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.
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.
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.
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.
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.