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Toyota Highlander Lease Questions

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Comments

  • Greetings laristondo. Toyota is not currently providing any cash incentives on leases of the 2006 Highlander in your area, but it does have a special lease money factor. Toyota Financial Services' New York region buy rate lease money factor for a lease of a 2006 Highlander is currently an attractive .00030 for non-hybrid models for consumers who qualify for its "Tier 1+" credit tier. This is equivalent to an interest rate of only 0.72%. There's no need to travel because this is about as good as this truck's money factor is going to get, besides I believe that you have to be an actual resident of a particular region to qualify for its incentives anyhow.

    Car_man
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  • Hello dslucki. The money factor that you were quoted is right in line with Toyota Financial Services' current buy rate for the 2006 Highlander Hybrid in its Los Angeles region. This is a good thing because it means that the only aspect of your deal you have to focus on is the selling price. It is difficult for me to comment on the selling price that you were quoted without knowing this car's full MSRP or dealer invoice price. The MSRP will show you how much of a discount of a discount you are getting and better yet, the dealer invoice price will show me how much over invoice you are paying. If you provide me with either one of these numbers I would be happy to give you my opinion on this truck's price. You also may want to stop by the following discussion to see how much other community members have paid for similar vehicles lately: "Toyota Highlander: Prices Paid & Buying Experience".

    Car_man
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    Prices Paid Forum
  • Hi russotom. Toyota Financial Services' current buy rate lease money factor for a lease of a 2006 Highlander non-hybrid in its New York region is .00030 for consumers who qualify for tier "Tier 1+" credit tier. Its money factor increases to .00040 for consumers who only qualify for its "Tier 1" tier. For the '06 Highlander Hybrid, the money factor increases to .00075 for Tier 1+ and .00085 for Tier 1.

    Car_man
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  • Hi 5432. I believe that Minnesota is in Toyota's Chicago region. I have not seen this truck's lease program for that specific area, but I can tell you that in every other area that I have seen its lease program for, Toyota Financial Services' current buy rate lease money factor for the 2006 Highlander Hybrid is .00075 for consumers who qualify for its "Tier 1+" credit tier. This is probably this model's money factor in your area as well.

    Car_man
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    Prices Paid Forum
  • Hi Arun. The allowance that you get for the Honda Civic that you trade in will vary depending upon a number of factors including the exact trim level that you have, its condition, and its mileage. 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".

    There's nothing wrong with trading in your current car when leasing a new one, however you would be better off having the dealer that you are working with cut you a check for your trade than using the proceeds from it as a capitalized cost reduction for your lease. I always advise community members against making large down payments on leased vehicles because if your leased car or truck is totaled in an accident or stolen and never recovered, your down payment essentially disappears.

    As far as the capitalized cost off the Highlander that you are considering leasing goes, you should be able to get an idea of how much you will have to pay for it by visiting the following discussion: "Toyota Highlander: Prices Paid & Buying Experience".

    Car_man
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    Prices Paid Forum
  • Hi Linda and Paul. If I was in your situation, I personally would look into how much it would cost to lease a brand new Highlander Hybrid in your area right now before committing to assume someone else's lease. Even with the $1,000 capitalized cost reduction that was made on this truck, you may find that you are able to get a similar brand new truck for the same payment, or even less. I suspect that there is a very good chance that this is the case. Not only have the prices for hybrid models softened a little bit since they were initially introduced, but if I recall correctly the lease program for the Highlander Hybrid is significantly better right now than it was this time last year. If I am reading the information that you posted correctly, it appears as though whoever originally leased this truck paid over full MSRP for it. You should be able to get a much better selling price and money factor for this truck now. Take a look around and see how much you could lease a similar brand new truck for. There's lots of competition in New Jersey. You may find that you can get a brans new one for less than this used one. If not, you can always proceed and assume this lease.

    Car_man
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  • Hi laristondo. I am sorry to say that once you have signed a lease of a vehicle and have physically taken delivery of it you cannot renegotiate your deal. You're basically stuck. If you feel as though you should have gotten a better deal, chalk your current lease up as a learning experience and do more research before your next lease.

    Car_man
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    Prices Paid Forum
  • Thanks, Car-Man,

    Just for me to be clear on your answer..there are no financing deals (money factor, cash incentives, etc) on Hybrids?
  • Car Man,

    Thanks for the information and the links.
    I tried the Market value and i got - $11,130/
    Since i still have loan on my car around $13,000/- I will have negative equity after Trade-in Value and I was wondering if i can pay the diff as a down payment?
    The dealer is telling me that for every $1,000 i put in the interest rate goes down by .25% is that possible?
    and they r having a sale with $389/month of for 36 months.
    I am getting this from Sunrise Toyota in Long Island,NY.
    Please let me know if someone has any experience with this dealer?

    Do you think its worth going for it?

    Thanks
    Arun
  • Contemplating a purchase of new 2006 Highlander Hybrid Limited with Nav in the north central area. Have negotiated price down to 41.6k, tax and title included-out the door, and can't seem to get it any lower.

    Am I in the ballpark or should I continue looking?

    Appreciate your opinions.
  • Probably should have added:

    it is a 4wd; local tax is 7.5%; title about $75.
  • Which dealership in MA and who was the salesperson, please, CMW829? :surprise:
  • Car-Man,

    Toyota is offering from 8/1 to 8/31 two (2) incentives:

    Financing 2.9% for 36 month and Leasing monthly payment at $389 for 36 month term, w/ $2000 due at signing for a 2006 Hybrid AWD (model 6964) with option FE (aka Package 1).

    HOW DO THESE 2 INCENTIVE WORK? CAN I GET BOTH? :confuse:

    Humbly lost and awaiting clarity, linda
  • Hi laristondo. What I meant was that Toyota is not currently providing any CASH incentives on the 2006 Highlander Hybrid in your area. It is providing special financing and lease rates on this model in its New York region. Specifically there is 2.9% financing for up to 3 years, 3.9% for 4 years, and 4.9% for 5 years or a special lease money factor of .00075 on it in your area right now. The .00075 money factor is equivalent to an interest rate of around 1.8% on leases.

    Car_man
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    Prices Paid Forum
  • Hi Arun. You absolutely can pay the amount that you are upside down on your loan in the form of a down payment so that you start your new lease with a blank slate. The down payment that you make has no impact upon the money factor for the vehicle that you want to lease. I'd be happy to share my thoughts on this lease with you, however in order for me to do so I need you to provide me with its full MSRP and selling price.

    Car_man
    Host
    Prices Paid Forum
  • Hi wednesdayweek. This particular discussion is really for community members who are considering leasing a Toyota Highlander. You should be able to get an idea of what sort of selling price to expect by visiting the following discussion: "Toyota Highlander: Prices Paid & Buying Experience".

    Car_man
    Host
    Prices Paid Forum
  • Car-Man,

    Thank you for the info.

    Ok, I understand now that Toyota is offering from 8/1 to 8/31 two (2) incentives: Financing 2.9% for 36 month and Leasing monthly payment at $389 for 36 month term, w/ $2000 due at signing for a 2006 Hybrid AWD (model 6964) with option FE (aka Package 1).

    My main lease purpose is to keep my monthly payment as low as possible for 3 years and then buy the car.

    What can expect the montly payment to cost on leasing being offered for a qualifying vehicle for a MSRP of $36,805, Invoice of $33,445, $2000 due at signing.

    Can I get both incentives together?

    Any hints on negoiating the terms of the lease would be extremely helpful! :D

    Humbly lost and awaiting clarity, linda
  • 54325432 Posts: 4
    Car_man

    I'm being offered the following deal in Minneapolis:

    Highlander Hybrid AWD Limited
    MSRP: 40,094
    Selling Price: $36,939
    Money Down: 4,000 for a trade in
    Residual: 22,395
    Money Factor: 0.00075
    36 Month Lease, 12K miles
    Payment of $405.22 (I believe that tax is 7%)

    I come up with lower numbers when using lease calculators. What are your thoughts on this?

    Thanks!
  • 54325432 Posts: 4
    I've spoken with the dealer more and have decided not to trade in my vehicle, so can you give me your thoughts on this lease:

    Highlander Hybrid AWD Limited
    MSRP: 40,094
    Selling Price: 36,939
    Residual: 22,395
    Money Factor: .00075
    36 Month Lease, 12K miles
    License and Fees: 467.75
    Doc fee: 50
    Taxes: 1,726.49
    Money Due at Signing: $0
    Payment: $520.54

    Also, does anyone know who gets the tax incentive when you lease a hybrid? Is that something that we can claim?
  • joep0000joep0000 Posts: 11
    I think that you only get the income tax credit if you PURCHASE the vehicle. You do not get the tax credit if you lease the vehicle.

    I got the info from the following link:
    http://www.hybridcars.com/tax-deductions-credits.html

    It is under the heading 'basic rules' (third bullet):
    "If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit."

    There is also something about this on the IRS web-site (www.irs.gov). It says something similar, but the language is not clear.
  • joep0000joep0000 Posts: 11
    The following is from the IRS web-site:

    http://www.irs.gov/newsroom/article/0,,id=157557,00.html

    Even though a manufacturer has certified a vehicle, a taxpayer must meet the following requirements to qualify for the credit:

    1. The vehicle must be placed in service after 12-31-05 and purchased on or before 12/31/10.

    2. The original use of the vehicle must begin with the taxpayer claiming the credit.

    a. The credit may only be claimed by the original owner of a new, qualifying, hybrid vehicle and does not apply to a used hybrid vehicle.

    3. The vehicle must be acquired for use or lease by the taxpayer claiming the credit.

    a. The credit is only available to the original purchaser of a qualifying hybrid vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.

    b. For qualifying vehicles used by a tax-exempt entity, the person who sold the qualifying vehicle to the person or entity using the vehicle is eligible to claim the credit, but only if the seller clearly discloses in a document to the tax-exempt entity the amount of credit.
  • mjrx2mjrx2 Posts: 1
    A dealer in Peekskill, New York offered me a lease deal on a Highlander Hybrid Limited AWD. $435/mos., $0 down, 36 months, 36,000 miles. Sounds like a good deal. Am I right?
  • rhs63rhs63 Posts: 5
    I've been lurking in this forum for a while and got some invaluable information about the Highlander and buying strategies.

    So, yesterday I signed a lease for a Highlander at Westchester Toyota, New York, and just want to verify if this is a decent deal:

    V6, AWD, 3rd row, Leather package, Appearance package, Preferred package, Moonroof, Safety package, Fog lights, JBL stereo and a few other things. MSRP was around $35,000.
    Leasing rate is $399 / month, with $0 down for 36 months, 12,000 miles/year.

    I looked again at Toyota web site and saw there is $1,250 cash back available. I'm a bit unclear if I'm entitled to, it wasn't mentioned when I spoke to the sales guy (Note: My vehicle is on order as they didn't have the color combination I wanted, so the final paperwork signing with the finance guy is still to come).

    I would appreciate your feedback.
  • Car_man

    I'm being offered the following deal in SE Pennsylvania:

    Highlander Hybrid 2WD
    MSRP: 37,000
    Selling Price: $32,956
    Money Down: $800
    Residual: ?
    Money Factor: 0.0008
    36 Month Lease, 12K miles
    Payment of $475

    What are your thoughts on this?

    Thanks!
  • brentpbrentp Posts: 7
    I just went through all this myself too, . . .

    The current lease deal being offered on the Highlander is a subsidized lease by Toyota Financial Services. It is basically a 0.0% lease similar to a 0% loan. If you were to take the loan, . . . you would not get the rebate, . . . so it is the same for the lease (provided the loan/lease deals goes through TFS). If you read the offer, . . . I believe it says ". . . rebate, . . . or 0% loan, . . . or lease".

    As for the lease, . . . you should see a 'money factor' that is very low (I got 0.00001 in MA) in the disclosure. This would indicate that it is the special TFS lease for the HL (basically 0.024% on the lease money in my case). If you have a much higher money factor, . . . then you should dig much deeper. If they used a 3rd party lease provider, . . . then the rebate would apply just like if you bought the car and used a 3rd party financial institution for the loan (like a credit union).
  • brentpbrentp Posts: 7
    I didn't realize this site had a separate lease section so I posted my recent lease details in the 'prices paid' section. Anyway, here is a link for those that are researching details.

    Lease Details
  • djkcpadjkcpa Posts: 4
    Car_Man

    If you lease through TFS a HL from a dealer, does this count as a "sale" of the vehicle and do the dealers get the holdback and any other incentives as if it was a "purchase".

    I ask because if this is the case, then the base cap cost of the vehicle should be what the dealership is willing to "sell" the vehicle for. Thus, if a dealer lists a sales price for the HL (not including rebate) on the internet, this should be the cap cost.

    Am I correct or is there something else going on in the background?

    Thanks for your help :)
  • Brentp, I printed out your email and went to my local MA Toyota Dealer who will remain nameless at this time. They said they could give the same the deal you had. Also they said they had a similar deal on the 4 runner. (Would be interested except for the much worse gas mileage.) The options I wanted would have equaled a MSRP of $30,000 with the destination charge. Prepaid excess mileage is 10 cents which I think is very reasonable.

    However, when I told them what options I wanted such as leather they said I could only get it on the Limited which are running about $37,000. Then I test drove one that listed for $32,000 (with a sunroom and the third seat which I don't want) and I thought the pick-up was weak and there was significant noise from under the vehicle, sounded like the transmission was struggling or the engine was rough. This was a 6 cylinder with 187 miles on it. Can't imagine driving a four cylinder.

    It was pouring out and they said that was the reason for the noise so I may go back on a sunny day and drive another one. Any comments anyone? I will post this on some of the other Forums here also. :confuse:
  • ejdagoejdago Posts: 1
    Does anybody know for sure if this special lease money factor (interest rate) applies to all highlanders or does it only apply to the ones specified (hybrid or 4cl 4x4)? I'm looking for a limited, but before I got to the dealership for a lease, I want to make sure I have all my facts straight.

    Thanks in advance!
  • brentpbrentp Posts: 7
    On Toyota.com you can type in your zip under 'Local Specials'. For New England, they list the Hybrids and non-Hybrids as separate deals, but both list special lease option. However, they list different finance terms (loan) for those 2 deals. Given that - hybrids and non-hybrids will likely have different money factors for a lease. For the non-hybrid deal (where the 0.00001 MF is in New England), they list it is valid for the 4-cyl, 6-cyl, FWD & AWD models, . . . basically all non-hybrid models.

    I would call a dealer and ask what the lease Money Factor is for what you are interested. They should tell you, . . . in my area, it was the same at all the dealers (subsidized lease program direct from Toyota Finanical Services). Price (base capitalized cost), however, was very different and you will still need to negotiate that.

    Good luck!
This discussion has been closed.