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Toyota Highlander Lease Questions



  • Hi ljd1019. Unfortunately, I have not seen Toyota's current lease program for the '08 Highlander for your area recently. I will dig around and see what I can find out.

    On the purchase side, in its Central Atlantic region Toyota is currently offering $2,000 customer cash on the 2008 Highlander and $3,000 on the 2008 Highlander Hybrid, but no special financing alternative.

    Prices Paid: Buying & Leasing Experiences Forum
  • Hi AXM23. The answer to your question is, It depends. Toyota's customer cash incentives are not compatible with its special lease program. However, it has stopped profiting lease support on the 2008 Highlander in a number of regions already. If you are in one of these areas and you want to lease this truck, you would have to use Toyota Financial Services' standard lease program. The customer cash is compatible with TFS' standard program.

    This truck's lease program varies depending upon which one off Toyota's twelve regions one is in. If you tell me what state you live in I will be happy to share what I know about Toyota's lease program there with you.

    Prices Paid: Buying & Leasing Experiences Forum
  • Ah ha, I should have scrolled ahead. I see, AXM23, that you are in Toyota's New York region. Toyota is not providing lease support on the 2008 or 2009 Highlander in that area right now. As I mentioned, that means that if you want to lease one through Toyota Financial Services, you will have to use its standard lease program. TFS' current buy rate standard lease money factor is .00295 for consumers who qualify for its Tier 1+ credit tier.

    TFS' current published residual value percentage for a 36 month lease of an '08 Highlander Limited 2WD with 12,000 miles per year is 45%. In reality though, it is actually worse than that because TFS places restrictions upon which options can be residualized.

    I was actually in the market for a new SUV myself last month. I was planning on giving the Highlander serious consideration. Toyota's lease program has traditionally been very attractive on it. Alas, its current program is not nearly attractive enough and I took my business elsewhere.

    Prices Paid: Buying & Leasing Experiences Forum
  • AXM23AXM23 Posts: 64
    Lol. Thanks for the chuckle Car Man. Yes, unfortunatley I am in a region where there is no lease programs on the Highlander. Their lease program is atrocious. I am also considering going elsewhere. The Pilot is in high contention.

    The problem is - I started researching rates at the end of December when every company had excellent programs. I was too new to jump on the first few deals I saw so I waited. After Jan. 5th, I kicked myself in the rear for not pulling the trigger on several deals.

    Any historical data you can share from previous years that would indicate better programs in March?
  • I'm trying to get out of my lease on a 2006 Highlander Hybrid Limited AWD because I need to lower my monthly car payment. My payoff is about 3k more than the TMV, and I have around 14 months left on the lease.

    I tried the method listed in this article ->, under section #2."How do I buy my car at the end of the lease?" It suggested calling my leasing company and negotiating a payoff price different from the listed payoff because it's to the leasing company's benefit for me to buy it so they don't get killed at auction if I turn it in. That didn't work, they said payoff is non-negotiable.

    My monthly payment is pretty high (because I was stupid, and upside down in my trade-in) so I'm not sure whether listing on LeaseTrader or Swapalease will do any good.

    Is my best option just trying to get the best trade-in price possible?
  • wvgasguywvgasguy Posts: 1,405
    Just a thought but if you're already $3K more than TMV how would you expect to obtain another vehicle with significantly lower payments. You'll have to eat at least $3K.
    It appears the car may be worth a lot less than TMV at the end of the lease and if so you may be better off eating the payment for a year than taking the $3K loss.

    If I absolutely needed to lower monthly cost and if the car is OK I would rather buy the car and finance it for a longer period of time rather than lose $3K up front. I assume if you have $3K in your pocket that the extra $$$'s mo for 14 months shouldn't make that much difference.
  • wvgasguywvgasguy Posts: 1,405
    My monthly payment is pretty high (because I was stupid, and upside down in my trade-in)

    Just a word of fatherly advise. Don't make the same mistake twice, which is where you're heading on this.
  • AXM23AXM23 Posts: 64

    Can you advise what the MF and Resid is on the Limited for 36 months, 12k and 15k per year? Did these rates get better than previous months. I can't imagine lease rates getting any worse than they have been for the Highlander.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    No problem, AXM23. Unfortunately, I believe that looking at the historical patterns of lease programs probably won't help much in the current environment. Companies are pulling the plug on lease support left and right because they are getting killed by the residual values that they overestimated years ago. Major recessions are like Chuck Norris to the value of used vehicles. They have fallen off of a cliff lately and many banks have taken a bath.

    Toyota's March lease program for the Highlander is definitely more attractive than its February program was, but it would be very difficult to predict where it will head from here.

    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey AXM23. I did it again. According to the latest information that I have seen (this may vary some by region), Toyota Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2009 Toyota Highlander Limited 4WD with 15,000 miles per year are .00099 and 47%, respectively for consumers who qualify for its top aka "Super Preferred" credit tier.

    Keep in mind though that the residual value percentages that TFS publishes are for base MSRPs. It places restrictions upon what options can be residualized. Doing so makes vehicles' effective residuals lower than its published numbers, not to mention difficult to calculate.

    Prices Paid: Buying & Leasing Experiences Forum
  • Hi,
    I'm new here, first post. My 2006 Rav4 Sport lease is ending in 3 months. The dealer I leased at has already called me to come in and look at new cars. Am I going to get a better deal for being a repeat customer?

    I'm in NYC. I'm looking at Highlander 4x4 (either base or Sport). I trying to get a ballpark figure of a lease payment for a 36/10 or 36/12, with no money down. I'm looking at ones with MSRP around $30-32k. I have excellent credit.

    What are the MF and residual? Can those be negotiated or are they given by the dealer? Is the Highlander really popular in this area? Are dealers willing to negotiate much? I can't find this info. :confuse:

    Thanks for your help.
  • sjmom23sjmom23 Posts: 1
    Good Deal???
    2009 Base Highlander (v6 fwd)
    cold weather package
    blu logic
    extra value package
    daytime running lights
    dealer installed dvd player

    36 month lease with $1500 down $452 month (including tax).
    residual value $13,874. Negotiated price $27,956
    Appreciate any thoughts you might have! Thanks!
  • iamknottiamknott Posts: 82
    Just to throw more fuel on the fire..........

    A week ago, I asked a dealer in Central Ohio for lease quotes on both the Highlander and the RAV4, 3 yrs, zero down, 12k miles. The payments were about what everybody here has experienced. What shocked me were the residuals:
    Highlander, MSRP $37,600., residual $17,515.
    RAV4, MSRP $30,255., residual $17,815.
    I guess that tells you something about the leasing company's expectations for larger SUVs.
  • It's not just on trucks and SUV's, it's on cars as well. Toyota has for the most part been responsible and better yet, "realistic" when setting their residual values. They did their homework and didn't get greedy by oversubsidizing their leases like (for example) Nissan in the early 90's, which nearly bankrupted them 'cause they were getting killed on all their returns. My good friend up in the bay area at SFO Toyota and I had this discussion, and if you've ever wondered why you can sometimes lease a BMW less than a Toyota, here's a prime example.

    The one nice thing about a realistic residual is that if per chance you fall in love with your car and want to buy it out at lease-end, chances are that on a Toyota, the residual will be pretty close to what the market's fetching.

    Like Car_Man has said numerous times, Toyota sets a residual for each individual vehicle and not just one percentage straight across the line. People often think that by adding equipment like NAV and rear dvd systems etc. will increase the resid, when in fact, it usually lowers it.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi orangeman99. Toyota is not currently running any loyalty programs, so there really isn't any advantage to being a returning lessee.

    Toyota Financial Services' new New York region buy rate lease money factor for the 2009 Highlander is a very attractive .00028 for consumers who qualify for its top aka "Tier 1+" credit tier. This is the lowest money factor that the dealer is allowed to charge you.

    Highlanders are popular vehicles, but dealer grosses on them are low...particularly in the retail environment that we find ourselves in today. If I was in the market for an '09 Highlander right now, I personally would shoot for a selling price of slightly over dealer invoice. You should be able to get pricing feedback from other consumers who are in the market for similar vehicles by visiting the "Toyota Highlander Prices Paid and Buying Experience" discussion.

    Prices Paid: Buying & Leasing Experiences Forum
  • iamknottiamknott Posts: 82
    I guess that explains my experience when I leased my 07 Avalon. I wanted the top-of-the-line Limited model, but it's residual was lower than the next-lowest model (XLS), which made the payment significantly higher. However, the lessor was a local credit union, not Toyota Finance. Maybe they went to the same leasing school.
  • Residuals will always vary from bank-to-bank, but most often, you'll find the best terms through the captive bank, and in terms of Toyota, that would be TFS. Case-n-point: Banks are in the business of buying and selling vehicles, so it behooves Wells Fargo, Chase et al to set a realistic residual, otherwise they're gonna' get killed upon return if the market value is way off. This was happening for years until banks finally realized that despite the interest they were making on your lease, they were giving it all back when trying to unload the vehicle to a buyer.

    Extra bells and whistles are always nice, but when it comes time for a dealer to try and pick that vehicle up from an auction (where it usually goes after your lease), many times, those "amenities" don't add squat to the value of the car, and the dealers/wholesalers looking to buy know that. Most people that buy used want a clean car that has a solid engine and tranny, and has convenient features like a/c power windows and locks etc, but the rear seat entertainment systems, nav, and other "overpriced" features when new just don't hold up well in the resale market - thus the dip in residual. Especially when you can by a Garmin or Tom Tom for $150 and move it between vehicles, as opposed to the $2000 factory nav.
  • mdxlesseemdxlessee Posts: 10
    Car_man: I am looking to lease a Highlander Limited with bells and whistles. My final price quoted here was $35.8K but for the 12K 36 month lease, the money factor used was very high, 0.0295, and the residual was very low at 42%, resulting in a lease payment of $717 with just first month's payment down. From your March post, the money factor and residual appear to have been are .00099 and 47%, which are very good. What can I do to negotiate better lease terms? Thanks very much for your help.
  • Hi Car Man and others). Really appreciate the help you give on this forum. We're older folk in Northern Calif. We're looking at purchasing a Highlander Limited w/no navi or DVD. Negotiated good offer of $350 below invoice. The vehicle is perfect for us in terms of options, color, etc.--in that sense our dream vehicle! We have excellent credit and and could buy outright.
    BUT: we've never owned an SUV, and the ride in the rear seat(s) seems a lot harsher than we're used to in our 2000 Sienna XLE. Making me nervous about plunking down $$36000 (out the door price) when we're not sure how satisfied we'll be with it. SO: does a short lease make any sense? We would probably buy it off of lease (or during lease if that's possible?) if we like the vehicle as much as we hope. Perhaps it would make more financial sense to buy it and then sell in a year or so if for some reason we didn't want to keep it? Thanks for the help. We have to make a decision within 48 hours--it's hard to find a Limited like this without tons of expensive bells and whistles we don't need.
  • wvgasguywvgasguy Posts: 1,405
    So, how often do you ride in the second row? The highlander is one of the best for comfort that I've found in mid-size SUV's with plenty of leg room, foot room and reclining seat backs. Then again I never ride back there (but it was a priority)
  • Well, we bit the bullet. We found a "base Limited"--about the only one in Northern Calif--that had only EVP7 and a few minor other options on it. Since the things we needed like power seats and backup camera were standard, we didn't want high-priced add-ons like navi, DVD etc. Was able to get it for $350 under invoice. Most importantly, my wife loves it! And wvgasguy, you're right--how often will I be in the back seats!
  • wvgasguywvgasguy Posts: 1,405
    Don't get me wrong, comfort in the second row seating was a critical factor for my decision, but the HH met all my needs, which basically was would I at 6'1" and 260# be comfortable riding there. I was. I don't think you'll regret the purchase. The HH will probably ride a little rougher but I'm pretty sure it will ride a lot better overall than the minvan.
  • Hi, I'm looking to make my first car purchase without the help of my parents. As an early college graduation gift, I wanted to buy myself a car. I've always loved Highlanders, but am in no position to buy a new one. I just wanted to get some feedback on a potential HH that is for sale at a dealership here in town and see if you guys thought it was a good buy or not?
    - Is that too many miles?
    - What is the battery life and have any of you experienced problems?
    - I appreciate any feedback!!! Thanks again!

    They are asking 18,871.
    * Mileage: 73,894 Miles
    * Body Style: SUV
    * Exterior Color: Black
    * Interior Color: N/A
    * Engine: 3.3L V6
    * Transmission: CVT
    * Drivetrain: FWD
    * Doors: 5
    * Wheelbase: 107 Inches
  • mdhuttonmdhutton Posts: 195
    I'd question the huge mileage # in such a relatively short time. Was this owned by a private party or is it an ex-rental ?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi mdxlessee. A lease payment of $717 per month for a Toyota Highlander :surprise: . Holy Toledo that's bad. That's about three hundred bucks per month more than I would be willing to pay for this truck. Have you tried shopping around at other dealers? Clearly this dealer doesn't want your business.

    I would start by comparison shopping with other Toyota dealers for the Highlander that you are considering. If you are still getting quoted high payments, you may want to consider switching to a different model with a more attractive lease program.

    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    HI potential32. This particular discussion is for community members to discuss leasing the Toyota Highlander. You will probably have better luck getting an opinion upon the used Hihghlander that you are considering by posting this message over in one of the following discussions:

    "Toyota Highlander Prices Paid and Buying Experience"

    "Toyota Highlander"

    "Real-World Trade-In Values"

    Prices Paid: Buying & Leasing Experiences Forum
  • tp21tp21 Posts: 3
    Car Man,

    Do you have the MF and Residual on a 09 Limited 4WD? 12k/36mo. Any dealer incentives this month? Thanks.
  • houston_manhouston_man Posts: 34
    OK, I have a lease question for you all. Lets assume my wife decides she likes our 2008 Highlander Ltd, and wishes to keep it after the lease ends. I personally like the way it drives/rides, the gas mileage just isn't exactly off the top of the charts.

    The calculated residual is 49.8% at the end of a 36 month lease, with an allowable mileage of 18K/year. I will be below 54,000 miles (allowable) at the end of the lease.

    Gross cap was $34K, and the purchase option at the end comes out to be roughly $17K. ALL maintenance costs were free for the life of the lease, as I negotiated that as part of the deal.

    Assuming the reliability of a Toyota, and the fact that my previous Camry got 275,000 miles before I sold it, does it mathematically come out over a 10 year period to be about a wash, or is it smarter to privately list it at the end of the lease? Only reason I ask is that every other car I have purchased, this is the first one I have leased.

  • farrooq23farrooq23 Posts: 1
    Hi All-
    Just recently joined. I have a lease option for a 2009 Highlander - loaded with Nav and leather. With $2,000 down my payment would be about $560. Is that a reasonable price? They dealer tells me it would be cheaper to lease vs. buy at this point. Does that seem right??

    Any advice would be great.

  • starobinstarobin Posts: 6
    Hello , i am interesting to swab or sublease the highlander 2008 , any specification.

This discussion has been closed.