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2017 Toyota Tundra Lease Questions

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Comments

  • stef3stef3 Member Posts: 25
    You are fast answering ... thanks.

    Sorry, I just realized that I am turning s~~t around for no reason.

    You are right ....
  • ocautoseekerocautoseeker Member Posts: 425
    Below is the formula to calculate your lease payments:

    (Cap Cost – Residual Value) / Term = Depreciation
    (Cap Cost + Residual Value) X Money Factor = Interest
    Depreciation + Interest = Base Monthly Payment
  • pcantorepcantore Member Posts: 148
    Thanks guys,

    So basically, I can take KBB (or Edmunds) invoice price and just add $391 (TDA). Right?

    The formula to calculate the lease payments I had a small error. I arrived at $337.00 total monthly payment which is great!

    Thanks again for your help,

    PC
  • ocautoseekerocautoseeker Member Posts: 425
    Correct. The TDA will vary from region-to-region, and from model-to-model, so to be safe, just take the total invoice from edmunds or kbb, and assume that a dealer's invoice will be ~ $400-$500 more.
  • pcantorepcantore Member Posts: 148
    Ocautoseeker,
    So, if my offer to the dealership should be: Invoice price minus $400-$500, then I should simply take the Edmunds or KBB price as stated on their website. This way, I should be getting the best deal, right?

    Thanks,
    PC
  • rjsuzukirjsuzuki Member Posts: 1
    Question: Lifts on Tundra Crew & WarrantyI ordered a 08 Tundra Crewmax 4x4 this week. I am going to put a lift on it when it comes in through the delearship (they send it out). I went to 3 different Toyota delearships and asked about the lifts. One said that I can get a lift no more than 6"'s (which is what I want), the other two said no more than 3" (which is okay). Does anyone know the answer? Are there any articles? If you have a lifted Tundra, do you like the lift.

    Thank you,

    Rich from Phoenix, AZ.
  • cb1000ridercb1000rider Member Posts: 2
    2007 Toyota Tundra Crewmax Limited Pickup, 5.7L

    Anyway - I've heard that for people (my wife) that like to turn over cars < 3 years, leases are an attractive option. There's a lease "assumption" that's available quasi-locally (private party) that I'm considering:

    2007 Tundra, 5.7, 4wd, crew cab. Est purchase price $41k
    $5000 down (I pay the guy currently leasing it)
    Lease started in 7/2007.
    12k/year mileage allowance (this is OK, as the wife could walk to work)
    Currently has 8500 miles.
    Lease cost: $339/mo for a total of 36 months (from 7/2007)
    I believe the residual is: 56%

    Deal / no deal? The payments are unusually low - he says he put $7500 down + some trade it, which is why he's asking for the $5k. General comments?
  • jackel142jackel142 Member Posts: 47
    Be careful putting 5k down on any lease. What happens if you total the truck the day after you take over the lease? - you lose the 5k!
  • bmwk75sbmwk75s Member Posts: 21
    I wouldn't do it. You would end up paying $14,492 to drive a vehicle for 28 months which works out to $517.57 a month. You can work a better deal from the dealer and get a 2008 without any miles on it. They are offering SR-5's for $289 with $1999 down at my local dealer.
  • rlaryrlary Member Posts: 18
    I will bet you $ to donuts that you can lease that 40k truck new with no money down for under 500 month. If you are inclined to put 5k down on it (which I wouldnt do) payment would be substantialy less.
    Remember, you need to work a deal just like buying it. I have seen those 40k trucks going for as much as 10k off, with rebates (currently 2750 I think)
    Lets say you can lease that 40k truck for say 33k. You pay any tax/fees.
    I bet it would be close to 450. New, no miles and cash left in your pocket.
    I'm just estimating of the top of my head but I have leased 5 toyota trucks over the last 20 years.
    Their is also a web sight I stumbled across once that had leases from all over the country you could assume. Pretty much any make model you could want.
    BMW, Lex, toy, american. I noticed some very sweet deals but didnt investigate any closer. Do a google or two and I bet you could find it.
    And in regards to money down. Fine when you buy it, when its paid you have equity, you can perhaps get the downpayment back in a sale or trade. When you lease their is RARELY any equity to trade.
    Good luck.
  • ocautoseekerocautoseeker Member Posts: 425
    Don't do it. Current TFS money factors on NEW Tundras equal less than 1% for Tier 1 + customers, and even for Tier 3, mf equates to roughly 4%. Cheap money all the way around!

    Look for a brand new one. Pay only 1st mo, tax and dmv's up front, and keep that $5k in your pocket. If you find a truck you like, let me know the window price and I'll run the numbers for you.
  • jackel142jackel142 Member Posts: 47
    MSRP of 42k.
    What should the lease payment be for 24-48 months? 12k per year total walk in cash of $1000.00
  • ocautoseekerocautoseeker Member Posts: 425
    Hard to say without the VIN as every Toyota carries a different residual value. It's not a straight 53%, 55% etc. like some manufacturers. MF's also vary quite a bit by region, but .00029 -.00059 is what we're seeing for Tier 1+ customers as an average across the nation for the month of March.

    TFS doesn't do 24 mo leases for 12k annual miles, only for 15k (I know... weird!), But, in my best educated guess, given I don't have the exact residual, mf, and cap cost for a specific truck... with drive offs only, assuming a cap cost reduction/discount of ~$4000, & 7% local sales tax, you'd probably be somewhere bewteen $475-$530/mo on a Tundy that carries a $42k list. Vehicle probably has a residual near 52% for 36 mo and 42% for 48 mo assuming 12k annual miles.

    Remember, with special subvented money factors, cash rebates do not apply. It's like choosing betwen the rebate and 0% financing on a purchase... you only get one or the other.

    Again, without an exact truck, I can't give you an absolute.
  • jackel142jackel142 Member Posts: 47
    Here is the vin - 5TBBV58158S495768.

    08 Double Cab 4X4 Limited

    It's located at Tri-County Toyota is Royersford PA. Local Sles tax is 6%

    MSRP is $42590.00

    What shouuld the lease payment be with tax & tags down, 12k per year?

    Thanks!
  • cb1000ridercb1000rider Member Posts: 2
    4x2 CrewMax, limited
    Found out the "assumption" wasn't a deal due to asking up front cost.
    Also found other websites online that allowed me to compare lease assumptions.

    Ballpark, I can get into a 33-34k truck + tax for a $399 lease - use that as the "gauge" for new truck leases.

    Older lease assumptions may be worse, the Tundra was selling much better in 07.

    Residual.. Well, I haven't figured out if I'd actually want to buy it. No cost for turning it over through Toyota Financial.

    Anyone know if Toyota Financial will have the ability to negotiate a buyout on a lease - seems like there are going to be a good number of 07 Trucks that sold for higher prices than the discounted 08s and the residuals are going to be bad.
  • sebring95sebring95 Member Posts: 3,241
    Anyone know if Toyota Financial will have the ability to negotiate a buyout on a lease - seems like there are going to be a good number of 07 Trucks that sold for higher prices than the discounted 08s and the residuals are going to be bad.

    Actually, the residuals on the new Tundra were pretty low right from the start. In fact, when the CM first hit, the residual was very close to the residual on my &#146;05 DC. So either they knew from the start they were going to discount them…or they were just being conservative. The current leases are better deals simply because of the decrease in selling price.

    I don&#146;t recommend leasing to anyone. I&#146;m a CPA and have done a ton of lease vs buy comparisons and it&#146;s generally not a good financial decision. Now, if you just want to pay more for some possible convenience (or inconvenience depending on the circumstance) that&#146;s another story.

    That being said, I have assumed several leases over the years. Usually bailing out people that HAD to get out of their lease for whatever reason and I was able to find value in that. But for every good lease assumption out there on swapalease or leasetrader, there&#146;s a ton of really bad ones. I did really well on my first two, but this last one (my &#146;05 Tundra) was just ok. The residual was higher than real-world wholesale value and Toyota would not negotiate at all. I also had to have a dealer handle the purchase because Toyota Financial will not sell the vehicle directly to you. Basically, the dealer bought the truck from Toyota and then sold it to me (with a small paperwork fee…..). So that was a pain as well, where prior leases I&#146;ve just sent the check and they sent me a title.

    I actually kept this truck because it wasn&#146;t a terrible deal to buy and I really like the truck. In the past I&#146;ve always bought out the lease and resold the truck and made a big chunk of my payments back. Prior to this I assumed an &#146;03 Silverado for 24 months and my net cost was around $1,800 after I bought/sold it. Not bad for a basically new vehicle. I had expected to have about $2,000 in the Tundra across 24 months, but the market went to pot so there wasn&#146;t as much resale profit potential. Don&#146;t play these games if you can&#146;t afford it!
  • ocautoseekerocautoseeker Member Posts: 425
    Sorry for the delay...

    36/12k lease assuming a cap cost of invoice ($38,801), you're looking at $526.56/mo (includes 6% tax). Price does not include the $550 lease acqusition fee which can either be paid upfront or capped into the lease. Vehicle carries a 51% residual value.

    48/12k (42% residual) - $482.07 (includes 6% tax)

    Numbers assume a money factor of .00029 for TFS Tier 1 + customers, but it may vary slightly in your region.
  • mntbikermntbiker Member Posts: 5
    I am in Florida and am being quoted 45% residual on a 2008 CrewMax Limited, 2wd for a 36m/12k lease. The money factor is .0184.
    Although the trucks are discounted heavily, the low residual and high money market make for high lease payments. Is this the same throughout Florida?
  • mntbikermntbiker Member Posts: 5
    Do you happen to have these figures on the 2008 Toyota Tundra?
  • mntbikermntbiker Member Posts: 5
    is there anyone working this thread?
  • ocautoseekerocautoseeker Member Posts: 425
    You live in Florida, and Southeast Toyota (SET) has different rates than Toyota Financial Services (TFS) which is the main captive finance company.

    SET Finance "incents" their deals a bit different and unfortunately, I do not have those numbers. Sorry.
  • jdemissiejdemissie Member Posts: 2
    IGreetings to All:
    Yesterday, I was at a Northern California Toyota dealership to lease a 2008 Tundra 4x4 Crew Cab. My credit score is 740+.

    Here are the numbers the folks gave me based on 60 months lease:
    - MSRP: $33,460
    - Invoice: $30,810
    - Cap: $29,400
    - Residual: $12,135 (60mo)
    - Money Factor: 0.00056 (60 mo)
    - Down $2,000
    - Monthly payment with tax: $415

    In addition, with my $2k down, Toyota offered an incentive of $4,500 cash toward my down payment. The color and truck specification matches what I&#146;m looking for as it has the bench seat as opposed to the captain chair. My offer was $320 - $340/mo on a 48 mo lease.As I was walking away the guy shouted $360/mo or 60 months. I kept walking. Based on the numbers given, what the adequate negotiable payment?
  • awedioawedio Member Posts: 57
    don't take this personally, but, you'd be foolish to do a 5 year lease!
    Take the 5500 rebate (expires 7/7/08) & buy the truck
    Down here (in So. Cal), 100 over invoice is the max I would pay on that truck.

    With a 740+ score, you can get financing under 5%.

    Assuming you put no money down
    Since inv on your truck is 30810, total price (with tax & lic) is approx $34k
    34,000 - 5,500 = $28,500 @ 4.9% x 60 months = 536/mo

    if you lease, I would put no money down
    you don't mention if this is a 4.7 or 5.7 engine?
    what mileage is this lease for?

    using info from Toyota previous program for a 4x4 Crewmax, 5.7L
    24 mo lease, 15k miles, residual was 62%, MF = .00026
    36 mo lease, 15k miles, residual was 56%, MF = .00026
    there is a 1500 rebate for lease

    at 100 over, less 1500, your cap is approx 29410 (I don't know what Toyota is charging for the aquisition fee)

    your payment b4 tax, should be approx
    374 (24 mo. lease
    308 (36 mo. lease
    If there is an acq. fee, your pmts would increase 12 to 15/mo (if the acq fee is $500 to 600)

    let me know if u need more help
  • jdemissiejdemissie Member Posts: 2
    Regards Awedio. I took the advice and visited the dealership once more….

    Here is the new offer I was given on a 36 mo lease with a $1,500 cash incentive:
    MSRP: $33,400
    Invoice: $30,810
    Cap: ???
    Residual: $17,764
    12k miles/yr.
    Dealer requires $4,000 down
    Monthly Payment including tax: $323.50

    I&#146;m still negotiating on a 2008 Tundra 4x4 Crew Cab - 5.7 engine, however, since this deal still requires a $4K, I felt reluctant to move forward. They say the offer ends tomorrow &#150; July 7th. What would you do if you were in my shoes?
  • awedioawedio Member Posts: 57
    jdemissie,
    Are you dealing with the retail salesman? Ask for the fleet manager?
    That $4k down is a bunch of BS!

    Leasing 101 = never put any money down on a lease.
    Your "down" should be minimum drive off = 1st mo. pmt + dmv + security deposit (sometimes the sec deposit is waived)

    your cap should be no more than 30810 + 100 over, less the 1500 cash (if I'm not mistaken, the 1500 cash is used as a cap reduction & is taxed)
    cap = 29560 (assuming a tax rate of 10%)

    MF = .00016

    using the residual you provided, your base mo. pmt + interest, should be
    327 + 7.60 = 334.60 + your sales tax

    if you need more help, send me your contact info & I'll help you negotiate the deal
  • sparklandsparkland Member Posts: 120
    "I strongly suspect that consumer auto leases (at least those sponsored by the auto manufacturers) will be history by the end of the year.

    Chrysler has already announced that they will exit the lease business on August 1st. Cerberus Capital not only owns Chrysler and Chrysler Financial but controlling interest in GMAC as well. So I suspect GM will follow shortly.

    Ford took a $2.1 billion charge for the quarter due to falling lease residual values.

    Honda just released their first quarter financial report and noted that they expect falling lease residual values in the USA to cut their operating profit by $231 million. Just look at the residual calculations on 2006 Ridgeline's as an example of how wildly they miscalculated.

    I believe the manufacturer sponsored consumer lease will soon be history. Only time will tell."

    This information was quoted from "Joe" on the ROC forum.

    Interesting reading to be sure. :shades:
  • 6a14ugx46a14ugx4 Member Posts: 2
    Car_Man,

    I am about to make a purchase and I'm trying to decide whether I should lease or buy. The conventional wisdom is telling me that if I plan on keeping it I should buy it outright, but the dealership in Houston, TX is offering me an extra $2K incentive for leasing. Should I take the bait??

    * I managed to negotiate the truck to $22,800 (including 3500 worth of installed options) - This deal is after the $5K manufacturer's incentive currently being offered.

    The deal being offered based on my questions to the dealership:

    36 months lease / 12K miles / 325 down (1st payment), but I can't seem to get him to tell me what Money Factor used to arrive at the number and he claimed that the residual value will be 17K at the end of the lease. I don't seem to be able to understand how he came up with that 325.33 monthly payment.

    Thanks in advance.

    RG
  • 6a14ugx46a14ugx4 Member Posts: 2
    I have a lease deal proposed to me with a Money Factor of 0.00340 on a 36 months lease with a residual value of 17,500 on a Tundra 2008 with the selling price after 7K of rebates/incentives. Is that a good deal?

    I'm trying to make a decision on whether to purchase vs leasing

    RG
  • awedioawedio Member Posts: 57
    RG,

    in CA the buy rate on a lease is 0.00016
  • ocautoseekerocautoseeker Member Posts: 425
    that's an atrocious mf!! they have to be quoting you numbers from an outside lender. tfs' rates are very low right now in most regions,making it a great time to lease a tundra, if you don't mind the extra fuel expense, though.

    in many regions, if you qualify for tfs' tier 1 + credit, your rate will hover around 1%.
  • kyfdxkyfdx Moderator Posts: 235,188
    Either that.. or he left out a zero..

    Edmunds Price Checker
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  • endlessmotoendlessmoto Member Posts: 3
    I am looking to do my first lease and I am still a little unsure how to know if I am negotiating a good deal;

    I am between a '08 Tundra and '08 Tacoma;

    I am located in Milwaukee, WI 53227, Tax rate 5.6%, and fall into a Tier 1 credit rating

    The 2008 Tundra I am looking at is as follows;
    CrewMax 4x4, SR5 w/ Off-Road Package
    MSRP: $39,700 w/ delivery

    Can anyone tell me what money factor and residual will be on this truck; I'm looking at doing a 3 year/36K mile lease and hoping to walk away with just 1st month, taxes, and registration.

    Let me know what you think the best possible deal I can walk with this truck is. The dealer said they have a $1000 rebate through August and an additional $1500 if I can register it under my business name.

    I was told this month is the best month of the year to lease a Tundra. Thanks for your help!
  • obyoneobyone Member Posts: 7,841
    With resale value down in the pits, I'd think Toyota being conservative would make it difficult at best to lease. Other manufacturers have walked away from it completely.
  • ocautoseekerocautoseeker Member Posts: 425
    If you're gonna' lease, definitely do it now! Toyota Financial Service's money factors are insanely low right now!! When you find the exact vehicle you want, ask the dealer what the residual value is - they will more than likely be truthful with that figure as it's set by the lender. TFS residualizes each vehicle differentley based on options, but depending upon annual mileage allowances, anywhere between 51-54% on a 36 month lease.

    Rates also vary by region, but should be between .00015 - .00075. Unlike the residual value which is already set, the dealer can and probably will want to "mark up" the money factor. Since you have a ballpark of where the rates are, request those numbers from your dealer by asking them what the residual and "buy rate" money factor are? Or, ask them what that tier 1+ base rate is? If you're 720+, you're tier 1+ with TFS.

    As for a selling price/cap cost, $500 over - $500 below invoice + any additional incentives in your region. Or, a dealer discount of ~$3500-$4500 + additional incentives.
  • alicia33alicia33 Member Posts: 3
    PLEASE HELP!!!

    I am interested in leasing a new Tundra and I am tired of getting the run around. I have been to a few different dealerships and I am confused.

    I have a 734 credit score and I keep getting told to get the vehicle I have to put money down and still have a payment of atleast 450 - 500 a month. I know that there has to be better deals. They keep telling me I have to pay the MSRP for the lease.

    What is the break down on how this works. Do I really have to pay MSRP or how do I talk them down? What is the cap and invoice price mean? Also, I have been looking on other posts and see stuff like 00016 and 00075...what does that mean? I am in Tennessee with great credit and would like this truck for 350 or less.

    Please help....TUNDRA V8 4X4 5.7

    Alicia
  • ocautoseekerocautoseeker Member Posts: 425
    Hi Alicia,

    At 734, you qualify for Toyota Financial Services' top tier credit rating, otherwise known as Tier 1 Plus.

    Invoice is an approximate amount that the dealer paid the manufacturer for a particular vehicle.

    The Cap or Cap Cost is just another word for Selling Price, but when leasing the term is known as the Captitalized Cost.

    The numbers .00016, .00029 and .00066 are known as the money factor. In simplest terms, it is the interest/fee you pay to the bank/leasing company. To convert the money factor into an interest rate (apr %), simply multiply it by 2400 (i.e. - .00016 x 2400 = 0.384% - yes, less than 1%!)

    Trying to sell you that vehicle/cap the cost at MSRP is an absolute joke! I realize that 4x4's and CrewMaxx's are in higher demand, but there is no reason that truck should not be had for any more than $500 over invoice.

    Again, I am not in your region and the leasing sources I utilize are in Southern California and the Midwest, however, my previous post listed a range of money factors that you should find across the country. Also, TFS sets a residual value for each vehicle independently and depending on which options it's equipped with could raise, or lower the value. With that said, don't expect anything higher than about 55% or lower than about 49% (depending on mileage allowance) on a 36 month lease.

    With most lending sources, you'll obviously have the highest residuals based on the shortest terms and lowest mileage allowances (i.e. -24 mo/10k miles/yr).

    In summary...

    Find out the residual value and "buy rate" money factor from your local dealer (ask a few to confirm). Then, negotiate the price just as if you were purchasing the vehicle - this agreed upon value will be the cap cost. It's really simple, the difference between the price you negotiate and the set residual is what you pay for during a lease.The difference between these two numbers is known as the depreciation. Now, you would take the depreciation and divide it by the number of months you plan to lease (24,36, 39, 48, etc). This will be your base monthly payments. Btw... the best term on a Tundra right now is 36 months.

    But, we're not finished, then you have to calculate the interest on the loan. You take the residual and add it to the cap cost, then multiply it by the money factor. Add that amount to the base monthly payment, then add in your local tax rate and you have your out-the-door monthly payments.

    Sample:

    2008 Toyota Tundra CrewMaxx 4x4:

    Assume a 36 month/12k-mi/yr lease:

    MSRP: $39,000
    Dealer Invoice: $36,500
    Cap Cost: $37,000
    Residual: $20,760 (53% of MSRP)
    Money Factor: .00016

    $37,000 - $20,760 = $16,240 (Depreciation) / 36 = $451.11
    $37,000 + $20,760 = $57,760 x .00016 = $9.24 (Interest)

    $451.11 + $9.24 = $460.35 + tax (assume 7% = $32.22) = $492.57/mo.

    Now, in many regions, there is additional cash available on leases. In Socal, if you lease through TFS, you get the low money factor and an additional $1000 bonus cash. This money should be used to lower your cap cost in addition to what you already negotiated. Going back to our example, we stated a cap cost of $37,000. If bonus cash is available, the new cap cost would now be $36,000 and thus would lower your payments even further.

    Large rebates such as the $5500 available in SoCal are not comaptible with leases through TFS. They are for purchases only. You could take it if you leased through an outside bank, but you'll find that the the residuals and money factors will be much higher.

    Hope this helps?
  • alicia33alicia33 Member Posts: 3
    ocautoseeker,

    Thanks so much for the information. It reallys helps!!!

    Alright, I understoof all that you were saying but I got another questions. What about the admin, deliver charges, process and handling and dealer fees? Those fees can add up to a couple of thousand of dollars. Are thos fees that I should pay or is that just another way they make more money? Which fees could be waved or which fees do I have to pay regardless?

    Also, when I ask a dealer for their invoice price..should I ask before all the fees...(ie. like the fees noted above) or will the give the invoice of all fees included?

    Also, is the dealership required to give me the invoice price and residual value or a truck or is it private information meaning they have the right to give it or the right to keep it private?

    Thanks for all your help...you are so smart!!! :)

    Alicia
  • ocautoseekerocautoseeker Member Posts: 425
    Typically, when you lease, there are usually drive off fees, sometimes called inception fees. These usually include your first mo. payment + tax, your dmv fees, perhaps a documentation/processing fee (in socal, dealers are capped at $55, but some states try to charge as high as $600!), and a lease acquisition fee/bank fee.

    The acquisition fee, which I believe is $550 on Tundras is a non-negotiable fee that is charged by the lender(TFS), not the dealer. It is usually capped into your lease payments, meaning... that $550 would be added on top of the price you negotiated.

    Going back to our example, if they agreed to sell you the truck at $37,000 and you wanted to cap the bank fee into the lease rather than pay it upfront as part of your inception fees, your adjusted cap cost would now be $37,550 and consequently, your monthly payments would rise (probably between $12-$15/mo).

    As for fees, every vehicle has a destination/freight charge and it's listed on the window sticker and on the invoice - everyone pays it. Now, if the dealer tries to tack on an additional delivery fee (they shouldn't), refuse it. I don't believe your region charges an admin fee - that's typically only in the southeast region (Fl, Ga).

    As for the invoice, Edmund's is fairly consistent with the dealers, however, you may find that the dealer's invoice is a few hundred higher. If so, it is probably their regional ad fee. It's a legit fee, but like anything else, in a buyers market you can always try to negotiate.

    When we refer to invoice, we mean the dealer's invoice and since items such as destination, holdback, ad fee, etc are already itemized on the invoice, invoice to you means the total factory invoice including all options. So, your truck could have a base invoice of $34,000, but after all options destination, holdback, ad fee are added in, the total invoice that the dealer paid may be $36,500, and therefore, if you offered $500 over invoice, your essentially offering to have them sell you the vehicle at $37,000. Make sense?

    A dealer doesn't have to share any information with you, but if he wants to be competitive, it behoove him to provide you with the info you're looking for. All dealers have different methods, some are very willing to provide info via phone or over the net, where others really won't give you anything 'til they have you on their lot.
  • grubbs2grubbs2 Member Posts: 2
    confusing to me!

    I am considering purchasing the following:

    2008 Tundra Crew Max 5.7 SR5. Including extras, it has an MSRP of $34,759.

    I was offered a dealer discount of $3500 and a rebate of $7000 if I were to purchase (I obtained a tax ID number to get the extra $2000 rebate to purchase it via a business name).

    If I were to lease, the dealer discount is $5,000 and a rebate of $9,000. The tax and docs fees were normal but the lease option added a $550 fee.

    I was told if I were to put a $10750 one pay lease payment, we were to have no payments for 3 years and a residual of $15,750, with no cost to relinguish the truck.

    Is this a good deal? Can there be any further negotiation? What should I be careful about?
  • ocautoseekerocautoseeker Member Posts: 425
    Something seems amiss with the leasing numbers you reported. A dealer discount of $5000 + $9000 in rebates? That can't be right, unless you're looking at a Dodge Ram.

    The dealer discount should be the same regardless of purchase or finance - $3500 off seems more realistic. The large rebate is not compatible with TFS leases. It varies by region, but in socal, on leases, you get $1000 bonus cash + super low money factors (based on tier). The $5k rebate is not compatible on TFS leases - not sure about the biz cash, sorry.

    Your one pay lease works out to less than $300/mo. Great deal!
  • alicia33alicia33 Member Posts: 3
    Alright, I have another question. What about this .... the dealer says he paid 30,000 as his invoice but there is 2,000 in options...not including admin fees, dealer fees, dmv, process and handling. So does that mean I pay the invoice and the options. I feel I am getting had on this...I thought they bought the truck from the manufactor as is...so...if they say there is 2,000 to 3,000 in options on it should that be in the invoice or MSRP...or is that added on in the end. The dealer said the MSRP was32,000 with 2500.00 of options....and than all the other fees...what do you think?
    Alicia
  • ocautoseekerocautoseeker Member Posts: 425
    Now you're confusing me. Hehe... just kidding, I understand what you're saying. It's really very simple so let's not make it too difficult.

    Okay, let me show you what the Toyota dealer sees on his computer screen...

    18186 VEHICLE INQUIRY REPORT DATE: 08/20/08
    DCV920 TIME: 09:51
    Model Number: 8352A SERIAL # :8X053419 Check Code: 0

    Model Description: DCAB LTD 5.7L V8 Category ..........: G
    Year ............: 2008 Current Dealer ....: XXX-XXXXX
    Interior Color ..: LD13 LD13 Wholesale Dealer ..: XXXXX
    Exterior Color ..: 0040 WHITE Previous Dealer ...: XXXXX
    Body ............: DBL CAB 5.7L LTD Invoice Date ......: 02/08/08
    Number of Cyl ...: 8 Ship Date .........: 02/07/08
    Allocation Number: 012 Retail Date .......:
    Engine Number ...: 5206225 Date of First Use .:
    Vessel Number ...: 705 TRAC ..............: NO
    Vessel Name .....: TMMTX SANANTONIO Damage ............: NO DAMAGE
    PDI ...............: YES
    Fleet .............: NON-FLEET
    Port PDS Complete .: NO

    VIN .............: 5TFBV5814XXXXXXXX
    Ignition Key.....: N/A

    Factory Installed Accessories: FE AL
    Port Installed Accessories ..: C4 7J

    Retail Dealer
    Vehicle Base Model ....................: $ 38770.00 $ 33923.00
    Total Accessories .....................: $ 1048.00 $ 813.50

    MECHANICAL & PERFORMANCE
    GVWR = 7100 lbs. Payload = 1560 lbs.
    Tow Capacity = 10,300 lbs.
    381HP/401 Lb-Ft 5.7L DOHC 32V iForce V8
    w/Dual Independent VVT-I and ACIS
    6-Spd Auto w/Seq Shift and Tow/Haul Mode
    Engine Immobilizer, Cruise Control
    4WDemand 4x4 System w/Electronically
    Controlled 2 Speed Transfer Case
    Tow Equip: Hitch Receiver, Supp A/T
    Cooler, 4.30 Rear Diff w/10.5" Ring Gear
    150A Alternator, A/T Temp Gauge, 7 Pin
    Conn, Trailer Brake Controller Prewire
    Automatic Limited Slip Diff (Auto LSD)
    Front and Rear Sonar
    TripleTech Frame: Fully-boxed Fr Section
    Reinforced C Under Cab, Open C Under Bed
    Coil Over Shock Double A-Arm Front Susp
    Multi-Leaf Trapezoidal Rear Suspension
    18" Alloy Wheels w/P275/65R18 Tires
    EXTERIOR
    6.5'' Double-Walled Bed w/Tailgate Assist
    Color-keyed Fr/Chrome Rr Bumper
    Chrome Grille/Door Handles/Outer Mirror
    Sliding Rr Window w/Privacy Glass
    Fog Lamps
    INTERIOR
    Leather Trim Pwr Heated Front Buckets
    Automatic Dual Zone Climate Control
    JBL AM/FM 6-CD, 10 Spkrs, Aux Audio Jack
    w/Steering Wheel Audio Cntrls, Bluetooth
    Power Windows/Door Locks/Mirrors
    Remote Keyless Entry & Anti-Theft System
    SAFETY
    STAR Safety: Pwr Assist 4 Wheel Disc ABS
    w/Electronic Brakeforce Distrib (EBD),
    Brake Assist, Vehicle Stability Control
    with Active Traction Control (VSC+ATRAC)
    Dr & Fr Pass Advanced Airbags/Seat Side
    Airbags/3 pt Seatbelts w/Pretensioners
    & Force Limiters
    Roll-Sensing Curtain Airbags (RSCA)
    Tire Pressure Monitoring System
    Retail Dealer Total
    Vehicle Base Model ..........................:$ 38770.00 $ 33923.00 $ 38770.00
    50 State Emissions .........................
    20" Alloy Wheels w/P275/55R20 Tires ........ 920.00 736.00
    Carpet Floor Mats - 4 piece ................ 115.00 69.00
    Front License Plate Bracket ................ 13.00 8.50
    --------- --------- ---------
    Total Accessories ...........................: $ 1048.00 $ 813.50 $ 1048.00
    Destination Charge ..........................: $ 685.00 $ 685.00
    TDA .........................................: $ 400.00
    Gasoline ....................................: $ 10.00
    Dealer Holdback .............................: $ 775.00
    Whsl. Financial Reserve .....................: $ 387.00
    --------- ---------
    Total .......................................: Invoice: $36993.50 / MSRP: $40503.00
    Residual Value ...: 24 36 48 60
    ------- ------- ------- -------
    STD 22,599 20,273 16,583 13,482
    LOW 21,048 17,359 14,257

    Forget about all the itemized numbers, you just want to deal based off the total invoice (in bold), which already includes all options installed at the factory. Now, if the dealer installed additional options (rims, bedliners, exhaust, etc), that will alter the invoice. Stay away from aftermarket products on a lease, little if any can be residualized. Go for stock stock stock!!!

    Take this truck for example, the MSRP is $40,503, and the Invoice is $36,993. You would want to get as close to $36,993 as possible. So let's say they sell you the vehicle at Invoice, that's a dealer discount of $3510. So, in essense, they'd be selling you the vehicle/capping the cost at $36,993. Plus, if there is any factory lease cash/bonus cash available in your area, it will either be used to reduce your cap cost ($36,993) or be used as a down payment, or used to pay part or all of your inception fees. Remember, these are the monies you pay upfront which usually include: 1st mo payment + tax, dmv fees, doc fees, and possibly an acquisition fee. If the acquisition fee is not paid upfront, it will be "rolled" into your cap cost ($36,993 + $550 = $37,543). Understand??

    Hope this helps?
  • awedioawedio Member Posts: 57
    what is the difference between STD & LOW?

    are those residual figures based on 15k miles?

    Toyota's residuals seem to be a fixed no., they don't use a percentage like other manufacturers, is this correct?
  • ocautoseekerocautoseeker Member Posts: 425
    STD is 15k/yr and LOW is 12k/yr.

    You have to move the LOW numbers over one to the right so the columns line up. TFS doesn't offer a 24 month residual for LOW. I know, weird!

    Yes, Toyota assigns a residual value to each individual vehicle instead of a set percentage. Some options will raise or lower the residual.
  • mi7mi7 Member Posts: 31
    Hi guys!!

    Please provide your guidance and wisdom...I'm just so annoyed that some dealers are treating trucks/suvs like they are in high demand.

    my goal is to get either a crewmax (4x2) limited, or a doublecab (also 4x2) limited at a reasonable price (for crewmax $500/month, and for doublecab, $450/month), but so far, after talking to 5 dealers, no results (or maybe so, but you be the judge).

    seems like buying a truck is harder than buying a lexus! i purchased an ES last year and a GS this year and so far negotiating on a friggin tundra is so much more painful...

    let's start with crewmax.

    Car's MSRP is at $43k . with all the rebates and incentives, Toyota of Long Beach said they could sell the car at $34k. with $1.5k down and standard 36 month/12k miles per year lease, I would need to pay close to $580/month or something ridiculous! I guess due to the huge $5.5k rebate, I cant take advantage of the superlow lease rate... this doesnt seem right! so far I have not been able to get the crewmax down below $500/month w/o increasing down payment--what's the strategy to negotiate here?

    I also looked at the doublecab (4x2 limited) MSRP $39k. best offer so far is selling price of $35k, with $1100 down the payment would be $495/month (includng tax) from toyota of anaheim (they said they went below invoice also minus the dealer holdback). similarly, toyota of orange offered $479 plus tax, but $1500 down.

    help advice? thanks!
  • ocautoseekerocautoseeker Member Posts: 425
    Hi mi7,

    It's very simple, when leasing through the captive bank, in this case, TFS... the rebate ($5500) is NOT compatible with their lease programs. The money factor that is being offered equates to less than 1%, so look at it like as if it were a purchase... either take the cash (rebate) or choose the 0% financing, but you don't get both.

    Now, there is an additional $1000 bonus cash available that IS compatible with the lease, so make sure they either use this to reduce the cap cost, use it as a down payment, or pay some of your drive offs.

    My advice, since it's a Lmtd and a 2wd, your cap cost should be ~$1000 below invoice. So, figure about $4500 off MSRP to begin with, then make sure that the bonus cash ($1000) gets factored in somehwhere based on the aformentioned. So, on a lease, you should be "net - net" about $5500 off.

    Hope this helps.
  • mi7mi7 Member Posts: 31
    thanks, autoseeker. so my 4x2 doublecab limited should be abour $33.5k? wow thats gonna be tough ;)
  • ocautoseekerocautoseeker Member Posts: 425
    all that money available in the form of a cash rebate, is in a sense, used to "subsidize" the low money factor.

    you also need to remember, although the rate is low, the residuals are not strong and will continue to fall for '08 models, and you are trying to lease a $40k + vehicle, so keep that in mind. ask the dealer what the reisdual is and i'll calculate your payments. confirm the bank fee is $550, too?

    good luck!
  • mi7mi7 Member Posts: 31
    here's some more info:

    For the 2008 4X2 Tundra Double Cab Limited with Navigation and 20" Alloy Wheels, Your Sales Price is $34,576.00 (MSRP is $39,080.00).

    36 month special lease = $481.65 total per month. $1,000.00 Drive Off, $1,000.00 factory rebate. Rate is 0.00060. Residual is $18,141.00 with 12,000 miles per year.

    60 month purchase with 0 % interest. $593.73 per month. $1,000.00 Down, $1,000.00 factory rebate. Total Out the Door is $35,623.65.
  • mi7mi7 Member Posts: 31
    well i got the car yesterday from toyota of cerritos.

    tundra doublecab limited 4x2 off road package, msrp $38,600

    leased for $488/month for 36 months based on tier 1 plus credit--had to put down $700.

    what do you guys think?!
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