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Toyota 4Runner Lease Questions



  • jpp75jpp75 DenverPosts: 1,436
    I agree Rog, that is exactly what I did. Found two or three dealers in an area that is relatively close and asked them for quotes. Based on what others have posted on here I think there are good deals to be had, just none in my area.
  • cjericcjeric Posts: 23
    I was wondering what your experience is with dealer doc fees? Besides the DMV fees and the acquisition fee, is there any other fees that you would have to pay?
  • Can anyone tell me the current residuals on a Limited 4X4 with 12000 and 15000 per year and 24 and 36 months? I am assuming that the Current MF is .00055--is that correct also. Thanks.
  • jpp --

    Chances are, "Dealer A" is showing you not the Invoice price but rather "Dealer Cost" -- which includes Invoice plus a potpourri of other charges (electricity, gas, bank interest, commissions, prep, you name it...). DEMAND to see the Invoice itself, or else print it out from With good credit you should be able to negotiate a couple hundred bucks over Invoice (some dealers even sell AT or BELOW Invoice on this vehicle).

    "Dealer C" is hitting you with a $599 "doc. fee" which is pure, unadulterated "fluff" -- again, get the Invoice and offer nothing more than a couple hundered over for the entire package.

    Lastly, it's good to remember to always include Gap Ins., and put as little money down as possible at signing. That's because in the event you total the vehicle, Gap allows you to "walk away" from the entire balance of the lease -- but whatever you elected to pay up-front is lost.

    Happy hunting...
  • rog11rog11 Posts: 5

    Your point about Gap insurance is well taken.

    Is it likely that we can request that Gap insurance be included as part of the January lease special program, or is this the type of add on that we will absolutely have to pay extra for?

    Does $600 for Gap insurance on a 36 month lease sound reasonable?

    Thank you.
  • rog --

    TFS's price for gap ($195) is a one-time charge that carries through the life of the lease, so a $600 fee appears way out-of-line.

    You could purchase gap through your insurance provider, but I'm not sure you'd save any money, and in any case it's better to cut out the third party -- this way, if you totaled the vehicle you don't have to go through hoops to release yourself from the lease. If you purchase gap through TFS it will be clearly listed on the lease contract -- make sure it's there, along with the price you paid for it.

    Many lease companies include gap as part of their "acquisition fee," but TFS does not. Still, TFS has no "disposition fee," unlike Subaru Leasing and others, so the cost is still very reasonable.
  • rog11rog11 Posts: 5

    Thank you very much for the information, and your insights, which are greatly appreciated.

    I agree that it makes more sense to purchase Gap insurance through TFS, for the reasons you stated (provided that I don't overpay for it).

    So, I will first try to get the dealer to include Gap at no extra charge since $195 is not that high of a cost, given the price of the 4runner. If I am unable to negotiate that, then I will simply pay for it.

    Thanks again.
  • Does anyone know TFS's residuals on a Limited with 12000 and 15000 miles for 24 and 36 months. I believe the 15000 and 36 month is 57%, but would like to know for sure before I start to negotiate. Also, is the MF still .00055?
  • jpp75jpp75 DenverPosts: 1,436

    Thanks for the info. Dealer A wrote back and said his original number was a typo and it should have been 30,xxx instead of 33,xxx. Probably not the case, but that was his reasoning.

    So far my best lease deal on a 2006 SR5 V6 4X4, 36 mos., 15k miles, is around $437/mo. Not what I had hoped for, but this includes dealers from surrounding states which should have the .00055 money factor. I don't plan on putting any money down and will go with gap insurance for sure.

    Either way, these lease deals supposedly end next week, so this weekend I should be getting out of my current car and into a new 4Runner. It doesn't look like I'll see any $329/mo deals like some here, but I've tried.

    Thanks for all the advice. Any additional comments are always welcome.
  • jpp75jpp75 DenverPosts: 1,436
    I was about to give up on finding deals similar to what others had listed, when finally the last dealer to call me had a great offer:

    0 down
    39 month lease

    I don't have the rest of the numbers in front of me, but I was quite happy with the deal. They were at least $80 cheaper than anyone else. It took some research and some work, but in the end it was worth it.

    I got a 4wd V6 SR5, silver with moonroof and side airbags. Love the truck and love the deal. Thanks to everyone here for your help along the way.
  • kd232kd232 Posts: 5
    Finally got the deal I've been looking for...surprisingly I got the deal through Cars Direct. I was skeptical when I checked out their website, but they turned out to be knowledgable, responsive and easy to get in contact with. Within two days, they got me a deal almost $2000 better than any dealer would give me locally, plus without the hassle.

    2006 4Runner Sport V8 4x4
    MSRP 35700
    cap cost $31200
    15K miles/year
    residual $20860
    Gap insurance included
    1st months payment down

    When I arrived to pick up the car, the dealer had all the paperwork ready and it took less than an hour and I was out the door.

    I would recommend Cars Direct highly. It's about time that someone has come along to give competition to crooked, dishonest auto dealerships.
  • Does anyone know TFS's residuals on a Limited with 15000 miles for 24 and 36 months. I believe the 15000 and 36 month is 57%, but would like to know for sure before I start to negotiate. Also, is the MF still .00055? With a price $300 to $500 over invoice what other fees should I expect to pay. The dealer has mentioned a $299 dealer handling fee. That should be included in the markup over invoice right? I assume that is all profit. Also, I want to negotiate the price before I mention leasing, but when they give me quotes, they are throwing in the $1000 Rebate. Since this is not effective with a lease, my quotes are actually $1,300 to $1,500 over invoice. How do I get that price down by $1000 without the Rebate. Should I just be upfront at this point and say that I'll be leasing and I need the price dropped another $1000?

    Thanks to anyone who can help me out.
  • The Limited I mention above is a 4X4 V8--in case the factors vary.
  • Here is a deal I was offered yesterday:
    Gross cap ----------------------29123 (500 above invoice)
    + 6.25% sales tax ------1820
    + Acq and other fees----575
    + Gap ins ------------------419
    Adjusted Cap -------------------31939
    Residual -------------------------17131
    Money Factor -------------------.00055

    36 months/15K per year
    Payment of 438/month
    Nothing down except first months payment.

    Today the salesperson called back and said that he had forgotten a $500 rebate that was available, so that would lower it a bit more.

    I'm new to leasing and would appreciate your input.

  • jsbarjsbar Posts: 9
    I believe the residual is right at 57 percent and is figured on the MSRP. 57 percent of $30054 is $17131, so the invoice has to be lower than the $29123 (-500) that you posted unless your residual figure is wrong. Please correct me if I'm wrong but I'd thought I'd chime in....

  • I'm looking at the printout he gave me and it shows MSRP as 31415 so that would put the % as 54.5ish if I calculated right. I'll definitely ask the sales guy about that. Thanks for the input.
  • jsbarjsbar Posts: 9
    I didn't think the residual was negotiable. Someone please correct me if I'm off-base...
  • kyfdxkyfdx Posts: 179,897
    Residuals aren't negotiable...

    But, Toyota does some strange things with residuals... On some models, and depending on region, they don't let you residualize all or some of the options... So, their residual numbers often come in lower than what you calculate... Which, of course, makes the lease payment higher..

    Host-Prices Paid Forums

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • Ok, I've been quoted and initial quote of:

    MSRP $40751
    Cap $37098 (about a grand over invoice)
    Resid $21843 (21843/40751=53.6%)
    MF .00065

    This doesn't seem to vibe with what I've been reading on this forum. I live in Colorado and maybe that has something to do with the Residual % or maybe I was thinking 57% when it only pertains to SR5 or Sports. I haven't discussed other fees and I would think I could get that price down closer to invoice.

    Any help would be great. Thanks
  • Location: central Jersey.
    Vehicle: 2006 4runner Limited V8 with Nav
    MSRP 44k
    Trade in: 2003 accord, V6EXL with Nav (9 payments left in a lease, so trading it in relieves me of any end of lease costs from Honda due to dings, tires, etc.)
    Upside down approx 3k

    2000 total down
    3 year 15k per year lease
    550 a month plus tax

    Salesmen said he would be making 1k commision. I told him 2k total down 500 a month and he let me walk. I am at least 3k upside down on my trade in, so I think it might not be a bad deal. Maybe with 2500 down I can get it for 550 including tax. Not sure. What do you folks think?>
  • My first post was JANUARY 24--no comments, answers, stabs in the dark yet.
    I thought this forum would be helpful, but alas, no response. Any help on my numerous posts would help.
    I was ready to do the deal on a Limited V6 when I got hit with a shocker--the residual for 15000 and 36 months is %53.6 not the %57 that some of the others have been talking about. Two dealerships had the same answer. What a letdown that was. Would anyone like to enlighten me on this whole thing? One was quoting $500 over invoice and no dealer fees, but a .00065 MF. I was good with the whole thing until I got blindsided by the residual %. If anyone can elaborate, I'd appreciate it.
  • Goscfighton --

    My earlier posts on 4Runners dealt with the January lease numbers, which for 15k/yr. 36 mos. was approx. 57% residual and .00055 MF. I don't have the February numbers, but good citizens using this bulletin board usually come through with the vital statistics, so have patience: Keep an eye out and wait for the numbers.

    In the meanwhile, you should know something about Toyota (TFS) residuals: Unlike their competitors, TFS computes its residual percentage on base price only, i.e., without optional equipment. As a result, the residual number quoted in the dealer monthly circular doesn't mean a hell of a lot. What we've done on this board is to figure a "mean average" from the actual percentages taken from a number of lease deals quoted here, by dividing the actual residual dollar value by the MSRP (which includes delivery and all options) -- which in January has been averaging about 57-percent.

    Your residual of 53.6-percent seems in the ballpark, but perhaps the sheer amount of the options in your deal is diluting the residual percentage. My suggestion is to look at other option packages and do the math yourself until you discover something whose numbers are more appealing.

    I'd also suggest looking at the SR5 models (one of the options is the larger 17" alloy wheels, if that's what you're really after) and see if the bottom line is more in-line with other numbers quoted on this board.

    Regarding the MF, TFS sets the price and there is no negotiation, but if you owned a Toyota before you'll qualify for "Encore" -- which lowers the .00065 to .00055 (assuming you have Tier 1 credit). The sales don't know this, and I had to explain this even to my dealer's finance manager, who said "Toyota will know what to..." Sure enough, when it came time to sign my lease agreement the MF was adjusted downwards to the Encore number.

    For cap cost I'd offer no more than $100 over invoice, since 4Runners are not especially in-demand (higher gas prices). I'm sure you can negotiate your vehicle for this price, especially if you play one dealership off the other. Also, pay NO "dealer fees," other than a nominal servicing fee for getting the DMV work done ($60 bucks, tops).

    Good luck...
  • That helps clear up a lot of the grey area. The SR5 may be the right answer. I'll check around on those. I did a lot of reading of this forum before even contacting a dealer and when I finally did the %53.6 put me out of reach--it was a little disheartening. I am able to wait a month or two to get $1000 to put down to lower the monthly payments (I know, bad Idea, but I'll gamble that much. Anyway, one dealer tried to tell me I better hurry because Toyota stops building certain trims of the 4Runner as spring aproaches. Is she full of #@&! ???
    Thanks again for the reply.


  • Ok, Assuming I can get the Invoice+ $100.

    TFS says the MSRP for Gap is $330 and I haven't seen too much info on the Acquisition fee.
    I'm trying to get all of the info before I get back in touch with the dealers--they want me to go into the dealership to finish the negotiating.

    I'm trying to get a V8 4X4 Limited
    MSRP of 41,895
    Invoice of 37,210 + $100

    What FEES am I looking at paying on top of the 1st month Pymt??

    I figured:
    Acquistion fee of approx. $575
    Security deposit????
    Gap Insurance???
    Document fees???

    Are they all negotiable or only some?

    I really need to know so that I know how much $$ I need for my trade in. They always ask what I owe and I want to know exactly how much I need to pay it off and then put some $$ down to lower the monthly. (I know, bad idea--but some is a must).
    If anyone knows about those fees I'd love to know.
  • robg4robg4 Posts: 32
    Got my 06 SR5 4-runner for 25,500 before trade in. And, mine already had 5 options on it that would have cost an extra 2,000 or so.
  • This offer just in (minneapolis St Paul area)

    v6 4x4 Limited
    39615 MSRP
    Selling price 35414,
    residual 21k and some change
    monthly payment $455.00
    .00055 MF. (She said it was less for Encore)

    371.00 for a similar options Sport (minus the standard limited add ons)
  • CAR_MAN-

    You helped me a great deal last year by providing me the information I needed to end up having the dealers shop themselves on a BMW X3 3.0 lease for me. I am confident that I got a great deal. Thanks for your help!

    Unfortunately (or fortunately, depending on how you look at things), I am looking for a new car to lease again. I live in the west Tennessee area and am looking at a Toyota 4Runner V8 Limited. I have seen on the local dealer websites that they are offering promotional money factors of anywhere from .00055 to .0011 depending on credit on a 36 month lease. I am interested in leasing a car for 36 months with 12k miles a year. Can you give me the L.E.V. or depreciation percentage for that lease. Also, if you could comment on how realistic that money factor is and if it is a "bait & switch" rate just to get people in the door or if they could actually be legit...

    Thanks for your help. I don't think people realize the service you provide for free in this forum... helping people get the best deal possible for this type of transaction can be the difference between a good deal and a financially disasterous one. Noble work indeed.

    Okay. I don't want to lay it on too thick... if you could get back to me with the above info, I'd really appreciate it.
  • The .00055 Money Factor is indeed legit. No bait. Verified that today at the dealer. Would have drove off with one this afternoon, (v6 4x4 Limited) however they need to get the vehicle from Des Moines, IA to St Paul, Mn that matches my color choices. Only 3 in 12 states that had my choice, all in Des Moines. I am suprised there is no additional transportation fee on that. The price she quoted to me was the same as the one they had in stock.(actually a few dollars less)

    IF your credit is 730 or up, you should get the best rate. It came with a 15k per year allowance, but she said it would be a little less per month if I wanted to drop down to 12k (the lowest she claimed, given by Toyota)

    Here is something I found interesting. She showed me a invoice including options. One "option" was the National Advertising Fee ($500), also something called Whsl. Financial Reserve (366.00) and the Dealer Holdback ($732) She printed this out from her screen. Anyway, the WFR? and the Dealer holdback plus her stated invoice price with invoice options matched dead on with the invoice price from Edmunds. She added additional profit off $200 to top off the Cap cost. So Invoice plus ad fee, plus 200.

    I hear the Ad fee is negotiable, but since the cap cost I was quoted is about 700 less than Edmunds TMV, Im reluctant to fight it out. Maybe I should, but I am a wimp. Not a tough negotiator. She also claimed that the AD fee for purchasers in Des Moines was over 600. Hmmm. They are making a minimum of 1389 on the deal from what I can tell, with the $200 plus reserve plus holdback.

    Also was quoted GAP insurance at 385. I did not question it, because I will contact my own insurance before I take delivery, and don't have to decide until then. Something tells me my own insurer is gonna come in lower. Will Report.

    So If anyone has any idea what this wholesale financial reserve is, I would love to know. I know what dealer holdback is, and I suppose the dealer has to make SOME money, but I hate seeing a price on something and not knowing.
  • Gap insurance from Toyota as quoted to me, $385. My insurance company $90. Both over the life of the lease.
  • Thanks for the reply, crashoften. Interesting about the gap insurance. I have leased three cars and they all had the gap ins priced into the lease a part of the financing- not a separate line item. I guess Toyota credit offers generous money factors on a stripped down lease product and then adds necessary items as a la carte features, like gap insurance. Good to know that the private insurers will offer it to you at a reduced cost.

    One question I still have, and if CAR_MAN is reading along, perhaps he could respond as well: How are residual values calculated on toyota leases? If what I am hearing is correct, they give a percentage of the base price, and not the fully optioned vehicle, which only makes sense if you are trying to gouge your lease customers. Gee, who would ever acuse a car company of gouging customers? I must be a pessimist. Anyway, could anyone quote me the actual residual factor/percentage on a '06 Limited 4WD for 36 months/12k miles a year? Thanks.
  • I don't know for sure how they calculate, but this is what happened during my visit:

    I was looking for a certain vehicle with certain options. She did the calculations on a vehicle with MORE options than I wanted, thinking the higher residual would keep the price the same. Turned out the residual was exactly the same for both vehicles despite one being more pricey. That said, my residual on a 3 year term was 21,843. Residual on a 12k term was stated as 22575. (v6 Limited)

    Here are some numbers from my possible deal that you can do math on.

    Vehicle optioned retail: 39651 Dealer invoice 35856
    Vehicle base model Retail 36625 Dealer invoice 31607

    As I said before, the Dealer invoice base does not include the Wholesale reserve 366, and holdback 732, which punches the invoice to match Edmunds at 32,705. Using the residual divided by Optioned Retail is 55%. Divided by base retail is 59%. In short, I still am not sure what numbers they use.

    Dont' know if this will help or confuse.
  • Hi goscfighton. $500 over dealer invoice with a money factor that is right in line with Toyota Financial Services' buy rate factor for this model, .00065 with the waiver of its security deposit, is a good deal. There's nothing that one can do about the strange way that Toyota Financial Services calculates vehicles' residual values. Individual dealers do not have the authority to change TFS' residuals. If you like this truck, I personally don't see any reason not to pull the trigger on this deal. If you can't get over how TFS calculates vehicles' residual values, you can always lease a similar SUV that has a good lease program like a Honda Pilot.

    Smart Shopper / Prices Paid Forums
  • Greetings Colleen. The selling prices of leased vehicles are always negotiable. It is difficult for me to say whether you will be able to get a better selling price than the one that you were mentioned without knowing this truck's MSRP. This number will enable me to see how much of a discount you are being given. For additional feedback on how much you should pay for this truck right now, make sure to stop by the following discussion: "Toyota 4Runner: Prices Paid & Buying Experience".

    Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    Smart Shopper / Prices Paid Forums
  • Hi goscfighton. The last time that I saw it, Toyota financial Services' base lease acquisition fee was $400 in most states. This number may be different in its Southeastern region because leases in that area don't go through TFS, but instead are forced to go through SE Toyota Finance. Your truck's security deposit will be equivalent to its monthly payment rounded up to the nearest $25 increment, unless it is waived.

    Smart Shopper / Prices Paid Forums
  • Welcome back burgermac. Thanks for the kind words. I'm glad that you enjoyed your BMW. The money factor that you posted, .00055, is correct for a lease of this truck through Toyota Financial Services for consumers who qualify for Toyota's Tier 1+ credit tier. I believe that you need a credit score of 730+ to qualify for the lowest month factor. If you don't have this high a score, the regular Tier 1 factor is still not bad at .00065. Its current residual value for a 36 month, 12,000 mile per year lease of an '06 4Runner V8 Limited 4WD is 60%. Keep in mind though that Toyota Financial Services uses a strange method to calculate its vehicles' residual values. It does not allow the full residualization of all options. As a result, this 60% residual is not as attractive as it would be for most other banks that allow the full residualization of any factory installed options.

    Smart Shopper / Prices Paid Forums
  • steveveystevevey Posts: 7

    I was talking to a toyota salesman today about the 4runner and she said that the lease deals on the 4runners are "Sick" but it only applies to the SR5 model.

    Does anyone know if there is a big difference with the money factor and resdiual.. etc on the Limited vs regular SR5.

    I really want a limited but if the deals are that much better I'll get an SR5 and have Toyota install leather/heated seats sorta like the limited.

  • Here's the deal I ended up getting.

    Limited 4X4 V8
    MSRP 42,140
    Price 37899
    With 2,500 CASH
    36 month 15K

    $458 per month includes the tax of 5.9%
    I'm really confused about how much cash was cap reduction and how much was fees, but they gave me $1000 more than anyone else on my trade and I am happy with the monthly price. This seemed pretty reasonable to me after MUCH shopping around.
    Mountain States Toyota in Denver--but go in with everything you want in mind--there were plenty of people getting their heads spun around in the showroom.

    Thanks to CarMan and all who gave input.
  • dad23dad23 ColoradoPosts: 575
    Could I get the current MF & residual for an SR5 4WD, 36 months and 12k miles?

    Thanks in advance :)
  • atom1atom1 Posts: 6
    I got a quote on a 4Runner SR5 on a 36 month 12k mile lease from a dealer in El Paso, Texas. The employees at the dealer seem very straight-forward, but the payment they gave me sounds high. I don't remember the numbers exactly, but this is pretty close:

    MSRP $32493
    Sales price $29993
    Money factor 0.00055
    Residual $18196
    Down payment $2000
    Sales tax 6.25%
    Payment $390/month

    When I put the same numbers into the Edmunds lease calculator, I get $345/month. What is the reason for the difference?
  • slurisluri Posts: 37
    that is way too high. are you sure it is a v8 for that price?
    i have seen v6 with msrp around 33K with no money down, lease for about 330 or so. that is way too much for the monthly payment especially with your money down on top of it. and the deal for 330 per month is for 15K.
    looks and smells a little fishy.
  • atom1atom1 Posts: 6
    Yes, it is a V8 SR5 with only around $1000 in options. You have to remember that in Texas, I have to pay 6.25% sales tax on the entire purchase price. That adds about $50/month to a 36-month lease. If I go back, I'll get details on all the lease fees. That is the only other thing that would cause the higher payments.
  • Hi stevevey. All 4Runners have the same money factors, regardless of their trim level, but the SR5 models have higher residual values than Limited models do. They're less expensive, price-wise, too. There is a good chance that you would not be allowed to residualize the heated seats if you had a dealer install them in an SR5 model. If that is the case, you would have to pay for their entire cost over the length of your lease. So I really don't think that is an option.

    Smart Shopper / Prices Paid Forums
  • You're welcome, goscfighton. Thanks for taking the time to stop back and let us all know how everything turned out. Enjoy your new truck!

    Smart Shopper / Prices Paid Forums
  • Hi dad23. Toyota's lease program often varies depending upon which one if its twelve regions one leases in. In most areas right now, Toyota Financial Services buy rate lease money factor for the 2006 4Runner is .00055 for consumers who qualify for its Tier 1+ credit tier. Again, this does vary by region. If you tell me what state you are in, I can be more specific for you. TFS' current 36 month, 12,000 mile per year residual value for a 36 month, 12,000 mile per year lease of an '06 4Runner SR5 4WD is 63%.

    Smart Shopper / Prices Paid Forums
  • dad23dad23 ColoradoPosts: 575
    Thanks Car_man, I'm in Colorado :)
  • tiger93tiger93 Posts: 57
    crashoften: you mentioned your insurance company provided you with gap insurance for $90. Who is your insurance company? My own company doesn't offer gap. Thx -
  • Went to a dealer today, If I make the deal tomorrow they will backdate it so I get march incentives. Dealer is quoting me .00055 MF which looks correct. MSRP on V6 sport is $35,781 and they are showing me a residual of $19,185. Comes out to about 53% I thought the residual was around 58%. 36 month, 15k miles/year. Maybe carman can confirm the residual. Any help is appreciated.
  • Hi Car_man,
    I have a basic question about calculating lease prices. I have read your article about calculating a "bottom-line lease" and understand how this is done. What I'm wondering is - if I add options to the car, can I still use your formula so long as I 'upgrade' the numbers to include the more expensive msrp of the vehicle configured the way I want it?

    I'll give you an example:
    You've stated a 2006 Toyota 4Runner SR5 4WD, 36 months @ 12K, is .00055 and 63%. Using those numbers...If I add some options to this car and get the msrp to $34,410 - the TMV is $31,606. So we'll use those numbers. The residual I calculate is $21,678. So the base payment is $276, plus money factor ($29) plus tax (MA-$15) and I get $320. Is it fair to do this with the added options??? Or do the numbers you post only hold true for no added options?
  • Anyone know the 36 mo, 12k/year residuals on the Sport and Limited 4x4? Is there a difference between the two?

This discussion has been closed.