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Toyota 4Runner Lease Questions
CarMan@Edmunds
Member Posts: 38,514
in Toyota
Hi everyone. Please use the following discussion to post any questions that you have about leasing a Toyota 4Runner. Thanks.
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Car_man
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I am in Indiana. Could you please tell me the leasing program on the 06 4runner,
v6 and/or v8? Many thanks.
TRD
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I live in New Jersey,looking to lease a 2006 4Runner.Could you please let me know of any special lease programs on this vehicle,thanks for your help.
Please post the November MF and Residual % for 2006 4Runner Limited. 3yr/15k mile.
Thanks!
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I see from previous posts that the money factor and residuals for 4Runner are .0019 and 58%. What about lower miles leases. I can settle for 10,000 miles or 12,000 miles.
Is there a difference in rates for SR5 with package C (3rd seats) priced around 30K, and Limited with same options prices around $36K?
Thank you,
Dmitry
Should I be able to negotiate down the cap cost price, or is that pretty set on deals like this? Thank you.
Thanks!
I've been shopping around Austin and been having a difficult time getting any dealer to play ball. The dealers here are doing well selling SUVs...I guess.
Thanks
Bodhi
3 yr. lease, 15k mi./yr
(Central N.Y.)
MSRP ............. $32,701
Negotiated price:.. $29,201
Lease rate......... .00045 (Tier 1 + Encore, high FICO)
Residual........... $18,695 (57%)
Money down.......... $432.24 (1st pymt + DMV)
Monthly pymt........ $359.36 (Gap ins. included)
That sounds like a great deal. How much is the gap insurance by the way? Also, does anybody know what the residual is for the same deal with 12k mi./yr.? I was looking at the current offer Toyota has, and it seems to be 58%, but I just wanted to verify that. Thank you.
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Gap is not included in the $400 acquisition fee and costs $195 plus a $10 "processing fee." Gap, of course, is a MUST. I don't have the residual figures for 12k because I always go the extra miles (hey, I don't want to be afraid of exceeding the allotted milage when I drive my new car), but if the residual diference is only 1-percent I would counsel you to go with the extra miles, just in case.
I am being quoted the following:
15k miles a yr, 48 mos $599 down and $499 a month for a 4wd with navi LTD.
Or $599 down and $479 for a 2wd LTD with navi.
Are these decent deals. The residual is around 23400 I think.
You haven't provided the MSRP and cap cost, but your payment seems rather high to me, even for a 36 mo. lease (yours is 48). Remember, the '06 4Runners will go close to the invoice price (I got mine for less than $100 over Invoice) and that means you'll be adding only the dealer's wholesale cost of the navi). And assuming your credit is good, you'll be getting a .00055 (1.32%) lease rate (for a 36 mo. lease). I suggest you negoitate a cap cost of $100 over invoice (check Edmunds or better yet, demand that the dealer show you the actual invoice) and go 36 months -- your residual will be higher, too. Happy hunting...
Thanks for explaining about the gap insurance. I know some other make include this, but $205 doesn't sound too bad. It seems odd that the residual would be off by just one percentage point for 9,000 total miles, but like you said, why not get it and not having to worry about going over.
From deals seen what should I expect to pay?
MSRP 41,872
"invoice" 37,931
4wd V6 LTD with NAV, running lights, sunroof.
still $599 down 48 mos at 499. I think it should be lower.....
I wouldn't expect to have to pay much more over invoice, but you need to make sure you know the exact residual and cap cost in order to calculate the payments. Is there anything they are adding into the cap cost like a trade-in or any fees?
For example, if your cap cost is 38,500, the money factor .00055, the residual 23,400, the term 48 months, and the down payment (is this lowering your cap cost or is this your first payment or the acquisition fee?) is 599, your payment would be $336 + tax.
3yr/25k mile per year
Toyota 4Runner V6/Limited
JBL Synthesis & 6 Disc, DRL's, Tow Pkg, Moon Roof, Spoiler, floor mats.
MSRP = $39,651
Cap Cost = $34,850
MF = .00045
Residual = $18,843
Payment = $468/mo before tax.
MSRP 36500
cap cost 33800
less $3800 trade in
residual 20864/15K mi/year
money factor .00055
$375/mo
I think I can do better, but am having a really hard time finding any Texas dealership to offer a price closer to invoice. Maybe cap cost includes holdback, advertising fees, etc??
Any thoughts...
Which dealership are you using? I'm about to be in the market for a new 4Runner in Charlotte as well.
Toyota is offering a $1,500 direct-to-customer rebate on the 4Runners if you purchase the vehicle outright, but if you lease the "incentive" is built into the low money factor (.00055), which is a great rate, indeed. Still, dealers in the Northeast are routinely giving $3,500 off MSRP deals on 4Runners leases, which makes the Cap cost close to actual Invoice price. Your quoted price appears to be about $800 over, which in my opinion is just plain TOO HIGH.
I'd suggest you look for the largest Toyota dealership in your vicinity and print out some of the good lease deals listed on this forum and show them. If your credit score is high, chances are they'll deal...
One thing's certain: When it comes to purchasing or leasing a vehicle, you WILL GET FLEECED if you don't have the facts, figures and the smarts to sort through the [non-permissible content removed] they're trained to put you through in their never-ending quest to boost their bottom line.
In this business, the unsuspecting public subsidizes all the good deals guys like us have come to expect. Once you put them on notice that you truly know your stuff, the facade comes down and they treat you like an equal. And when you make your next deal three years or so later, they level with you from the start, and treat you with the respect you should have gotten the first-time-around.
Did I do OK?
On your lease deal you posted, does that include your sales tax? If so what is your tax rate in your state? Ours in 10% here where I live and I am just trying to double check I got a good deal.
The only thing that bothers me on my lease, is I noticed my residual value is $21,428. I am not sure how they came up with that value since I thought all residual values were set by Toyota. I did a 3 year 15K lease on a v6 Sport. From my research the residual value should be $20,023. Only reason I am questioning it, is we might consider purchasing the vehicle when the lease is up.
Is this something I should bring up to the dealer or with Toyota Financial?
Based on the MSRP you stated (I assume it included delivery, as is usual), your 3-yr. 15k mi./yr lease residual is over 61.28%, which seems way-too-high but hey, don't look a gift horse in the mouth, as they say. Your higher residual means you're payments are lower, since your monthly lease payment represents depreciation plus interest (lease rate), as well as taxes if you haven't paid 'em up front (BTW -- to answer your question, sales tax where I live is 8%).
As far as your concern about a high residual, were you to purchase the vehicle at the end of the lease period, here's my take: If your intention was to buy it, you should have done so NOW -- so as to take the extra $1,500 factory-to-consumer rebate -- rather than AFTER the lease period. The overwhelming majority of folks who lease will return the vehicle and get into a new lease: Why make the same payments for a three-year old car when you can drive off in a brand new one, right?
Judging from your monthly payments and the figures you provided, it looks like you got a good deal. I suggest you enjoy the next three years, return the vehicle when the time's up, and get yourself into another good deal.
Just my humble opinion...
I appreciate it. I didn't even think about the customer cash on the vehicle. You are right, we might as well enjoy the vehicle and in three years get one again. What other numbers would need to verify I did not get taken for?
I will list what I think you might need:
Cap Cost: 32,244
Gross Cap Reduction 1401.45
Adjusted Cap Cost 31572.55
Residual Vale 21636.56
Depreciation 9935.99
Total Cash at signing 2000.00
35 monthly payments of 329.93 (which include, tax and gap insurance.)
You got a VERY good deal. Your cap cost was slightly higher than you could have gotten where I live (Central NY), but only by about $270 -- and we don't get the overly-generous residual you somehow managed to get (you are using Toyota Financia Services, yes?) on your 3-yr.,15k mi./yr. lease.
The bottom line is, you're getting an awfully big bang for your buck, here: A 5-yr. (60 mo.) car loan for what you paid for this vehicle plus tax would have come to over $591 -- and that's without penny of interest!
'Ya did good, my friend...
That is very true. Fortunately I went to another bigger dealership in the city, and they offered me a selling price of 29,825 on a 4Runner with a MSRP of 33,512, and an invoice of 30,325. The residual wasn't as great as ASM's, but at 19,593, it was still a better percentage than the other dealership.
By the way, do you think it's best to get the gap insurance through the dealer or through your insurance agent? Seems like it would be cheaper through my regular insurance company, but I was wondering what you thought. Also, do you know if Toyota allows you to move the vehicle to another state? I'm waiting to hear back from the dealership on this issue...
So you got a cap cost of $500 UNDER invoice? That's impressive, assuming it's a new '06 vehicle lease (where the $1,500 rebate doesn't apply) and you're going through Toyota Financial Services (where, unlike the dreaded bank leases, they won't nickle-and-dime you when you return the vehicle -- with even greater-than-anticipated wear & tear).
The residual percentage you quoted seems right on target, cj (57 -58% on a 3 yr. 15k mi./yr. lease), and is much better than the competition (Subaru Ourbacks, for example, have a 51% residual for the same lease package).
As to GAP, I've always went with Toyota because if I ever totaled the vehicle I wouldn't want to deal with an intermediary (i.e., my insurance company) when settling with Toyota. BTW -- Lots of people don't realize that it's best to put down AS LITTLE MONEY AS POSSIBLE on a lease, since all you'll get if the vehicle is totaled is a "walk-away" from the remainder of the debt -- whatever you've already coughed up as a d/p is "lost." That's why I go "no money down" (except of course 1st payment and DMV fees).
Typically, the rule on moving to a different state is that you have to get "permission" from the lease company to do so (just like you're supposed to get "permission' to take even a day trip to Canada or Mexico. In reality, few people bother to comply with this bit of obscure "fine print," and I'd bet my last dollar that TFS doesn't care where the heck you go as long as you continue making your payments and return the vehicle by the due date.
I have founded the comments on this thread to be very helpful in understanding the leasing process. Thank you for your insights.
I'm in NJ, and in the NY area, Toyota Financial Services (TFS) is running a January special on the 4Runner Model 8664 (base MSRP $29,910) with Group B Options (MSRP $2,000) (Options FE AW DR NE RL SR TO CD). Apparently, they are having trouble moving the 4runner--given current gas prices.
The basic terms from TFS are as follows:
1. $259.00 per month for 36 months.
2. $2999.00 due at signing.
3. Excludes tax, title, registration and acquisition fee. Security deposit waived by TFS.
4. Money factor 0.000550 (1.32%).
I have approached two dealers, regarding this TFS Lease Special. Dealer "A" offered the following:
1. Dealer Cost: $29,587.
2. Vehicle Markup $500.
3. Total Cap Cost (Selling Price): $30,087.
4. The Residual Value was 61%, for an adjusted residual of $19,293.30.
5. Mileage was 12,000 (there was a mileage adjustment of $598.20 to the residual value).
6. Each mile above 12,000 was to be charged between .22 and .25 depending upon negotiations).
7. No Gap Insurance.
Dealer "B" had substantially the same type of deal:
1. Total Cap Cost (Selling Price): $30,500
2. The Residual Value was purportedly 51%, for an adjusted residual of $19,294.
3. Mileage was 12,000.
4. Each mile above 12,000 was to be charged between .20 and .25 depending upon negotiations.
5. No Gap Insurance. (Gap insurance would be an extra $600 for 36 months).
Do these appear to be "good deals"?
Second, is it likely that I can successfully demand that the mileage allowance be increased to 15,000 per year, and with any extra miles (beyond 15,000 per year) at .15 cents per mile, at these prices? I am wondering how difficult is it for the dealer to accept this in this type of transaction. Are their hands really "tied" by TFS? Also, what does the mileage adjustment of $598.20 to the residual value mean (i.e., does this mean that they normally do 15,000)?
Third, how likely is it that I can successfully demand gap insurance be included, at these prices?
I understand that someone obtained gap insurance on this thread for $195 plus $10. Is $600 for gap insurance for 36 months reasonable?
Finally, what are I my chances of getting one of the dealers in the NY area to accept the terms of this lease, plus 15,000 miles (.15 extra), and gap insurance, plus an Echomaster installed (purportedly worth $400 or so from the dealer)?
Any comments or suggestions would be greatly appreciated.
Here are a few thoughts: first, I would suggest putting the minimum down on a lease. The minimum down would include 1st month payment, acquisition fee (if any), tax, title, and license. The first dealer quote you listed is asking for $2,999 due at signing which includes some fluff.
I wouldn't worry about negotiating residual values because those are set by TFS.
As far as the mileage, I'm not certain if your market on the east coast is the same as the midwest, where I just leased a 4Runner Limited, but in my case, TFS allowed me to "buy" additional miles up front at the rate of $.10 per mile. If I were to pay for these miles in the form of a penalty at lease end, they would cost me $.20 per mile. The mileage penalty is also set by TFS so I don't believe you have the ability to negotiate down to $.15 for excess miles. Your best bet is to insist on the 15k miles and force the dealer to take the cost of them out of his margin.
I got the 4Runner with a cap cost about $500 below invoice, a money factor of .00045, and 25k miles per year. Due at signing was $1,001 with a monthly payment of $468 before tax.
I will inquire about GAP to see what they offer. You mentioned you got it for $195 + a $10 processing fee, so that doesn't seem unreasonable. As far as money down, I even have the option of rolling in the first payment and DMV fees into the cap cost so there would be zero due at signing, but that doesn't matter so much. Like you said though, you don't want to make a cap cost reduction.
Thanks for the advice regarding the "permissions." That make a lot of sense, just didn't want to end up in some major trouble :-)
Dealer A:
The MSRP is 33,978.77 on this vehicle
Selling Price - $33,727.10 - represents dealer invoice
Money Factor - .002440
Residual - $19367.90
Cap Cost - $31,151.89
Payment - $464.00
36 months 15k miles per year.
I do not understand how dealer invoice is only $250 below MSRP. I have asked for clarification but that is not right to me.
Dealer B:
For a 36 month lease, 15K miles a year,
1st payment down you would be at 489 a month.
Cap Cost is 31665.00,
money factor is 2.34,
and residual is 18809.00.
$489 a month is by far the highest I've seen so far.
Dealer C:
Residual = $18581.87
Money Factor/Rate 1.93
MSRP is $32599.77 Cost of vehicle is $30,400.04 plus the 2000 rebate
Tax is 1116.38
Tag fee is $118
Dealer doc fee is $599
(all the above is included in the monthly rate of $429)
This vehicle does not have the side airbags, which will push the payment up some.
I understand that the Southeast Region is not subject to the low money factor, but these rates seem really high to me. I am going to price some dealers in TN and VA, both are driving distance and if they can come in much lower I don't mind driving a couple of hours to save.
Even in the example Matt posted above, the Limited 4WD with navigation and a couple of other options was priced better than what I have received so far.
>The mileage penalty is also set by TFS so I don't believe >you have the ability to negotiate down to $.15 for excess >miles.
You may very well be right about this. Both dealers stated that the minimum for the mileage penalty is .20, but I wasn't sure that they were telling the truth on that point.
I previously telephoned TFS and spoke to one of the account people in general terms, and he said that the penalty for their leases is usually .15.
However, one of the dealers said that for cars with MSRPs over 30K, the penalty has to be .20 to .25 per mile; and only cars under 20K were .15.
So, maybe the TFS guy I spoke to was only referring to cars under 20K.
I wonder if anyone reading this has gotten a penalty of .15 on a 2006 4runner? If so, what was the cap cost for the 4 runner?
One suggestion that I have is before making the trip, you may wish to log on to http://buyatoyota.com , and then enter a zip code from the area where you are considering traveling in search of a good deal. Then, simply click on "2006 4Runner: Lease" to see whether Toyota Financial Services is sponsoring any deals in that area.
By the way, I really would appreciate knowing whether anyone has received an offer with a mileage penalty under .20 for each extra mile.