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Toyota Highlander Lease Questions
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Car_man
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Sixty months is way too long to lease any vehicle for. Not only will your truck's basic warranty have expires by the end of your lease, forcing you to pay to fix any non-powertrain problems that your vehicle has out of your own pocket or possibly have to pay an excess wear and tear penalty, but a lot can happen over the course of five years. Your commute for work could change causing you to go way over your mileage limit or waste miles that you have paid for, gas prices could skyrocket causing you to want a more fuel efficient vehicle, you could just plain become board with your vehicle, etc. I always advise consumers to stick to 36 to 39 month leases, 48 months at the longest.
Car_man
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Regards, dessland13
Thanks anyone..
Anyone from Iowa who got a good deal? One dealer asked for $5000 down (included tax,title, etc) with $590/M. It was Limited, DVD, Nav, Moon Roof, i.e. fully loaded. I backed off as it appeared too high to me.
As there is no lease offers on 08 from Toyota, what is the best way to calculate the right price?
Thanx.
Thanks
Car_man
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Car_man
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The best way to get a good deal on the Highlander that you are interested in is to negotiate as low a selling price as possible and then have the dealer that gives you that price calculate your monthly payment using its buy rate lease money factor. Try stopping by the .eea7277 discussion to see how much other community members have paid for similar trucks, price-wise.
After you arrive at a selling price that you are comfortable with, have the dealer calculate your monthly payment using Toyota Financial Services' buy rate lease money factor. Its lease program varies by region, but I do not believe that Toyota is currently providing any lease support on the '08 Highlander in your neck of the woods. If this is the case and you were to lease one through TFS, you would have to use its standard lease program. Its buy rate standard lease money factor is probably around .00285 or so for consumers who qualify for its top credit tier.
Car_man
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Car_man
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Car_man
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Alek
The MSRP comes to $34,233. The invoice is around $30,405 (according to Edmunds).
Credit is good, so I expect a money factor around .0023 or so.
What seems so variable is the residual value. LeaseGuide.com gives an estimate of 60% for 36 months, 12k miles. Several posts I have seen here show it in the low 40%s.
Can any one explain such a disparity in residual values? It accounts for about a $160 difference in monthly price from my calculations.
Thanks!
Located in Massachusetts.
Thanks.
I got a selling price and payment quote from a dealer that was attractive even though they were rolling in my remaining lease payments. Of course, unless some special incentive is going on now, I'd rather wait and not roll in the remaining payments...
Thanks!
Selling Points: Limited edition loaded with NICE interior - GPS Navigation system - Heated leather seats - nice dash - moon roof -comfortable drive Hybrid engine - big hatch fits/carries oversized load, etc. third row rumble seat car Car currently under Toyota lease - will sell outright or transfer lease at payment of $550 per month (includes maintenance contract) and runs through May 2009 w/ buyout at $23,581 - we will pay $2,000 to buyer on lease transfer option - lease would transfer through Toyota directly - all warrantees transfer, etc. Warranty: Comes with 3yr, 36K mile warranty on all; 5yr, 60K mile for motor & transmission; 8yr & 100K mile for hybrid parts - buyer has option to upgrade warranty through dealer This car was one of 2 exact same leased for business - our partner must relocate off mainland US & couldn't take car - we LOVE this model and keeping the other
Condition: This is a limited edition so loaded with NICE interior - GPS Navigation system - Heated leather seats - nice dash - moon roof -comfortable drive Hybrid engine - big hatch fits/carries oversized load, etc. third row rumble seat car
I wouldn't do the lease on those terms. Essentially, it is an 18 month lease. 75% residual value. $2,000 up front payment. Assuming, taxes are all rolled in or zero, the interest rate in that lease is 10%.
Not sure what your credit is, but Toyota has been using roughly a 6.22% interest rate for leases for top tier credit on new vehicles. If you want to treat this like a new car lease and use that rate, the amount you should pay up front would be about $550 in order for the monthly lease payments of $550 per month to make sense. Of course, interest rates for used cars are typically higher than new cars, so you should factor that in.
http://auto-loan.interest.com/content/calculators/lease.asp
Looking to lease a Highlander Sport in NJ.
Can you tell the money factor and residual for a 36- 39 month with 15k
thank you
I am in the process of leasing, from Gulf States Toyota, a 2008 Highlander LTD 2WD. Options are JBL with bluetooth, running boards and side moldings. Nothing else. This is an H-Plan deal with the following stats:
Gross Cap Cost: 35,500
Adj Capt Cost: 37,900
Money Factor: .00200
Annual Mileage: 18,000
Length of Lease: 36 mos
L.E.V.: 49.5%
As "Howie" says, Deal or No Deal??
Thanks!
On the surface, the money factor (comes out to a rate of 4.8%, which is what Toyota Financial is offering on loans to tier 1 credit) and residual values look pretty good. But, $35,500 seems a tad rich for a Ltd 2x4 with a couple options (although, I may be wrong here. What is invoice price on this vehicle?).
Anyhow, here is a calculator you may want to play around with:
http://www.leaseguide.com/calc.htm
Lease a new 2008 Highlander for $299 a month for 36 months with $2,999 due at signing, which includes first month’s payment, $2,150 down payment, $0 security deposit and $550 acquisition fee. Does not include taxes, license, title fees, insurance and dealer charges. Closed-end lease. 08 Highlander sport and base gas models are eligible. Example based on model #6948 with FE CQ EH RL TO only. Gas limited models and all hybrid models are excluded. Manufacturer’s Suggested Retail Price including freight $28,750. Monthly payments of $299 total $10,764. Capitalized cost of $26,077 based on down payment and dealer participation, which may vary by dealer. Payment may vary depending on final transaction price. Lease-end purchase option is $18,500. Customer responsible for maintenance, excess wear and tear and $0.15 per mile over 12,000 miles per year . To qualified Tier 1+ customers through Toyota Financial Services. Cannot be combined with any other offers. Subject to availability. See participating dealer for details. Offer ends 1/2/2008. Offer good in Illinois, Indiana, Minnesota, and Wisconsin.
Any comments on this lease? Seems to me like the downpayment and lease end purchase price are rather high. (I might want to purchase at lease end). What aspects of the lease should I attempt to negotiate with a dealer? I'm interested in a 2wd Sport with no options, and 12k miles/yr is adequate.
2008 Highlander LTD 2WD Sandy Beach Metallic
Options: PWR Rear Door, JBL w/Bluetooth, Rear A/C, Running Boards, Floor Mats
36 month lease@18K/year
MF: .00219
Gross Cap Cost: 35,500
Adj Cap Cost: 37,850
L.E.V: 49.5%
Amount at Signing: 870.00
Current Tier 1 Customer
I appreciate your earlier reply. Feedback appreciated!!
Assuming you mean a fully loaded LTD with NAV and DVD (otherwise, it is not "fully loaded"), you are looking at a vehicle with an Invoice around $37,800 ($43,507 MSRP). Add on $500 for the Toyota Advertising fee and another $500 for the dealer (many people have been able to get dealers down to this level) you are looking at a purchase price of $38,800. Add in $400 or so in fees (financing, docs, registration) and you are at $39,200. Now factor in FL sales tax (6%, not sure,but I think sales tax applies to the fees too), and you are at $41,552.
Now, assuming $2000 downpayment (I would not recommend putting money down for a lease), a .00275 money factor (this has been what Toyota Financial Services (TFS) has been using for may tier 1 credit leases, comes out to a 6.6%), and 49% residual value (this may even be a little aggressive. TFS does not provide very good residual values for autos with lots of options), you get a lease payment of $638.22 (taxes included).
Your wife is right (she must be a Red Sox fan), no dealer will do it at $450. You would have to get the negotiated purchase price down to $33,000 in order to get that payment. Needless to say, dealers are not selling these for $4,800 below invoice.
Anyhow, you should play around with this caculator to get a better sense of what goes into a lease price:
http://www.leaseguide.com/calc.htm
I opted to buy our HL LTD because the purchase rates (4.9%/4 yrs) was more attractive than the lease program.
One dealership quoted 50% and that seems low.
Thanks,
Ken
All of those factors (plus an actual need for this size car for 5+ years) made me opt to purchase the vehicle instead.
TFS Tier1+ MF = .00285 (nothing special on Limited's right now)
Thanks. I'll get you the VIN #. FYI, yesterday I was given a MF of .00219 or 5.26% APR with Tier I credit through TFS.
Thanks
2wd or 4wd?
I did well on my current highlander lease during a presidents weekend "blow-out" sale. Maybe I should hold off and wait until next month for a deal?
The closest one I could find was a 2wd Limited which listed (MSRP) @ $39,590. Residual value is, $18,608 (47%).
The 4wd Limited I viewed had an MSRP of $40,310 and carried a residual of $19,974 (49.5%).
1. I paid my down payment Saturday and signed off on the worksheet. The car will be delivered tomorrow. Am I correct in assuming the worksheet signature only indicates my authorization to check my credit and is NOT an agreement to purchase?
The reason I ask that question is I was trying to work the numbers to match all of the pieces I was told, and I can't do it. See item #2.
Here are the numbers, as was told to me by the salesman:
2008 HL Sport
+ Option package H
+ XM
+ Special paint color.
+ All-Weather Mats
MSRP: 38,002
Cap Cost: 35,028
Residual: 18,272
Due up front: 795
Money Factor: .158 (I think there are 0's missing)
Monthly Pmt: 625
2. I can't get those numbers above to come out to a $625 payment through the LeaseGuide. I get a payment of $588 or so.
I can't get the options and accessories to add up to the MSRP above via the Toyota Build-Your-Toyota site. (BTW, I'm purchasing in TN)
3. The worksheet I signed only shows the payment of $625, which is the payment amount I said was the MOST I'd pay. Am I stuck with that?
4. Do those numbers make sense to anyone else?
5. Is this an overall good deal?
Any quick response is appreciated.
They probably capped the acquisition fee in your lease (~$595). Did you include sales tax in your payments? You should not be making a down payment/cap cost reduction on a lease; you should only pay the first month's payment, DMV Fee's, and hopefully only a small DOC fee upfront (each state is different on what they charge). Here in socal, they are capped at $55, but some states charge hundreds of dollars for this fee. If it's over $100, negotiate it, and/or have them reduce the cap cost to put it more in context with your deal.
The money factor is probably .00158, which equates to ~ 3.8%.
Just ask them to itemize the deal. This vehicle should be capped at ~$250-$500 over invoice.
Print up a copy of the lease sheet you put together on leaseguide and show it to them. If you don't want to pay the aqcuistion fee as part of your drive offs, make sure you cap the cost (~$595) into the lease using the "costs added to the lease" feature (if using leaseguide).
Looks like they capped the cost ~ $1000 over invoice. I believe you could shave another $500 -$750 off that and save yourself $15-$20/mo. It's worth a shot! Good luck!
I previously posted that I couldn't get my numbers to tie, but realized last night I was leaving out the GAP ins and Acq Fee. Add in those two and viola! The numbers worked.
I paid about $2,500 over cost, but I'm fairly happy with my results. I blame myself for not bargaining more. I let my desire for a new vehicle NOW and my comparison to a Land Rover LR2 cloud my bargaining skills!
Here's my deal, for comparison purposes for those who are curious.
08 HL Sport 2WD
Blizzard Pearl w/ Tan interior
Options:
Cold Weather Package
Carpet/Cargo Mat
Front Duel Zone CLimate Control
Leather Seats / heat (3 rows)
Power Tilt/Slide Moonroof
Tow Prep Package
Navigation
(Above are all included in Option Package H)
XM Radio
All Weather Mats
and of course "Special Color"
MSRP: 37,005
"Selling Price": 35,028
Cap Cost (with GAP and Acq fee): 36,227
Money Factor: .00158
Payment: 625 / month
This was purchased in the Cincinnati Region (Tennessee to be exact.)