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Toyota Venza Lease Questions
For current leasing information, go to 2015 Toyota Venza Lease Questions
Ask your Venza lease questions here!
Ask your Venza lease questions here!
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I don't think you can go wrong with a good deal on an '09 RX. The RX is missing some features found in the Venza (and the 2010 RX) such as the Smart Key, but it does have things not found on any Toyota including a longer warranty, generally nicer interior materials (real wood, for example), and a premium dealership experience.
MD
Venz: 6 speed, gen6 nav.
Does Toyota allow you to lower lease rate by putting down refundable security deposits? BMW does, and it seems Lexus does (from the above $3,800 mentioned).
Vehicles' money factors and selling prices are much more important numbers than the residual value anyhow. Dealers make their money on them. They are powerless to alter the resids.
Car_man
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MD
Obviously Toyota is not too worried about competition when a fully-loaded 09 VW Tiguan is currently leasing only for around $400 per month Sign Then Drive!
Since Toyota has only built about 6500 Venzas, about 5 per dealer, and the fact that Georgetown is taking an extended holiday break, it would seem that incentives on the Venza may be little ways off. Also, since they launched it in December instead of January 2009, there will be a model year change later in 2009 ( before the current inventory is even close to one year old in actuality.
Thank you for this and other message boards on Edmunds.
BTW, I did go and look at the VW Tiguan and was very disappointed in everything about it!
I've heard and read great things about the CX-9. I hope your car to turns out to be a great one.
CanStacker
I am looking at a Venza (The Acura dealer has offered me a 36 month lease on 2009 TL, base model, for $90 less a month than on the Venza described below.)
I am trying to evaluate the lease offer and wonder if it would pay to purchase a lease evaluation package. I have seen them on-line for $20 to $70. Are they worth the cost and effort?
The Venza lease I am being quoted is with an adjusted cap cost of $32K, money factor of .00285, and 36 months lease payment of $649 for 6 cyl Venza with JBL SYNTHESIS SURROUND SOUND SYSTEM (EJ) and PREMIUM PKG #2 (LX)
What is a good way to evaluate this offer other than just looking at the ajusted cap cost and the money factor? Or is that all I really need to consider?
Thanks.
Car_man
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I'll gather the info. there must be other charges not disclosed.
The quotes I have been getting do seem very high for this vehicle.
When has Toyota ever had a lease rate in the 2.9% range??? 99% of the time they are at an un-leasable 7%. I would estimate an MSRP $32,000 Venza will probably lease at around $579 with zero down for 36 months.
Ridiculous considering you could buy one for $40 less per month.
According to this forum here are the Toyota money factors in APR form:
2009 Prius 7.08%
2009 Rav4 6.6%
2009 Corolla 3.92%
2009 Camry 3.24%
2009 Avalon 7.08%
2008 FJ Cruiser 6% (info from 09/07
2009 Highlander 7.08%
2008 Matrix 6.84% (from 04/07)
2008 Sequioa 2.016% (from 08/08) Low money factor because residual was 46%
2009 Sienna 1.8% (45% residual)
2009 Venza 7.08%
My first point is 7 of the 11 are over 6%. The low money factors are low just to compensate for low residual so they can move cars. Historically, even the low ones were 5-7% before their residual values tanked. My second point is Toyota's standard money factor for Tier 1+ credit is 7.08%!! What is their Tier 2??? Don't want to even think about it. Yes, they do occasionally lower them here and there to move cars and to try to match the competition's lease rates but to have a standard lease rate of over 7% is laughable to me. In my opinion, I don't think it is financially beneficial to lease any car if the lease rate is over 4% (0.00167). Might as well buy it.
My point was that Toyota lease factors have often been competitive when taken into context of the overall market. When a new model first comes out, the lease rate will be high. When they have a huge supply of a vehicle, the rate will come down. When it's late in a model year, the rate comes down. When they are trying to move more Camrys so they can say they outsold Honda Accords, the rates are better - for Camrys anyway. Toyota is a smart company and they recognize that in today's financial environment, leasing is a risky business, especially with a brand new vehicle. Who can predict what anything will be worth 3 years from now? So their response is to stay on the safe side and offer higher lease rates and/or lower residiuals for a while. However, if they find that Venzas are moving too slowly because no one has the cash for a $35K car, they will massage the lease numbers cautiously to drive up demand. Toyota, like nearly every car manufacturer is struggling right now and they face difficult decisions: Do they take measures to increase demand by lowering profit (i.e. reduced lease rates), hoping it results in enough increased sales to justify, or do they keep a reasonable unit profit at the risk of overall lower sales, meaning plant shut downs and layoffs. Toyota still has a strong balance sheet with around $100 billion in net assets and will continue leasing. Other firms like GM (with more than negative $60 billion in net assets) can no longer afford the uncertainty of leasing.
I have a lease offer for Venza 6cyl FWD, with adjusted cap cost of $29,740.00; money factor of .00275.
Cap cost is dealers invoice, plus destination charge, minus holdback.
Lease is for 36 month, 25k miles per year for $648.83/month.
This still seems high to me even with the extra yearly milage. So far she has not given me a residual figure but I figure this lease should be around $540/ month. Am I way off the mark?
Thanks for your thoughts and ideas.
Do you think $650 a month on a 3 year lease is a TAD high??? You could PURCHASE this car at $30K, 60 months for $579 per month. $497 for 72 months.
So, yes $650 is very ridiculous even with the extra mileage. Why would you not just buy it anyway if you are going to put so many miles on it?
The reason I'm asking is because if you want to lease the 3.5V6 AWD with the premium package #2, navigation package and sun roof, that's $8K in options and if you have to pay for 100% of the options in your lease payment, it will be very high, probably higher than a comparably equipped Lexus RX350.
Does anyone know how Toyota Financial Services calculates the residual value? Maybe Car_man or what of the other hosts can help me out. Thanks in advance.
It's fairly convoluted.... enough so, that each vehicle has dollar amount residual, so that the dealer doesn't have to calculate it.
So... a higher MSRP unit will have a higher residual than the lower MSRP unit, but as you've noted, not on a straight percentage.
Bottom line? Highly optioned Toyotas usually don't make for very cost-effective leases.
Hope that helps..
kyfdx
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Toyota’s residual calculations are not all that different from many manufacturers that have several “trim” levels. Good examples are an Audi A4 that has a lower residual on the loaded “Prestige” level compared with the basic “Premium” level. Also the Nissan Murano has a top-of-the-line LE model with a residual 5% lower than the mid-range SL model. And since the Venza doesn’t have trim levels like the Camry (i.e. base, LE, SE & XLE), the residual calculation must look at the option packages installed on a particular car. These variable residuals are based on the economic realities of the used car market. When buying a 3 or 4 year old vehicle, consumers are not likely to pay a huge premium for a navigation system or a high-end stereo system. Thus the cost of those expensive options depreciates more quickly than the rest of the vehicle.
Many years ago I went with an ex to lease a Toyota 4Runner and the Toyota dealer gave me the money factor and residual percentage so I plugged them (along with the MSRP and cap cost) in my lease calculator on my Palm handheld. I calculated a monthly payment that was $150 or $200 lower than theirs. After the sales rep went back and forth into the finance office several times to get clarification I finally got fed up and followed him in there and the finance representative explained to me that the residual value was based on the BASE price on the window sticker not the bottom line price including options which meant their calculation included financing the thousands of dollars worth of options in the lease. Some of you might be asking how can the payment be so drastically different. If you get $6k or more worth of options and finance them over 36 or 39 months, it can easily add $150 or more to your monthly payment.
I'm actually curious to get the lease details on this car and the Camry SE V6 so I might stop by a Toyota dealer and ask someone to explain to me their lease calculation.
I agree that if that is the way Toyota is calculating their leases it will ultimately raise the monthly payment and may lose some business. It really makes no sense for them to do this for "factory-installed" options; Lexus doesn't do it and they use the same financing company. Honda does this for the "dealer-installed" options, but that makes a little more sense since the dealer doesn't install $7000 worth of stuff. On the other hand, it will reduce your buy-out at the end of the lease, so you could turn a small profit if you sell the car yourself or trade it in a few years. Maybe this is a new tactic that Toyota is trying so they get more cash up front and not have consumers complain that their vehicle didn't hold its value by the end of a lease. But that is pretty misleading, imo.
I think Toyota does this to push people into buying instead of leasing. A lot of car companies don't like to lease anymore because it seems that the cars always end up being worth less than the residual value. Like you said, it you're buying the car at the end, then you either can pay for the options through the lease or just pay for them later but I always return my cars at the end of the lease so it's not worth it to me.
Most car companies make you pay for 100% of dealer installed options/accessories in the lease and that make sense since they won't recoup any of that money back when they resell the car after you return it but Toyota should residualize the factory installed options. According to Car_man, Nissan residualizes factory installed options and most dealer installed options which makes it a lot better to lease a Nissan than a Toyota. I was considering leasing a Toyota Camry or Venza but it looks like they're off my list.
I know there haven't been any major incentives thus far for Toyota's Venza. Can you tell me the latest money factors and residuals for the following:
2009 Toyota Venza V6-AWD, with Prem. Pkg #2, Navigation System, Panoramic Roof and Mats. Total MSRP is about $38,400. Looking to lease for 36 months @ 12k miles per year. Do they have a standard 39 month lease package?
Thanks for your help.
MD
According to the latest information that I have seen, if you were to lease a 2009 Toyota Venza V6 AWD through Toyota Financial Services right now for 39 months with 12,000 miles per year, its buy rate lease money factor and residual value would be .00285 and 60%, respectively for consumers who qualify for its top aka "Tier 1+" credit tier.
Keep in mind though that TFS places restrictions upon the options that can be residualized. As a result, it is difficult for consumers to calculate the actual dollar residual values that are needed to arrive at a monthly lease payment on their own.
Car_man
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Thanks for the info. The Toyota finance guy was giving me a really crazy high money factor of .00395 and a low 51% residual for 36 mos/36k miles. The good news is that I got more than $4600 off MSRP so I bought it. As far as being a bit expensive, I guess it's all relative. But for $34K fully loaded, it's a much better deal than a Lexus RX, Audi Q5, Volvo XC60, Infiniti FX35 and Nissan Murano LE. It's quicker than all except the FX, has more cargo room than all but the RX. Lower priced competition I also considered are Subaru Outback and Forester, Toyota RAV4, Mazda CX7 and Ford Edge. All good vehicles, but I came away thinking they were all "cheaper" feeling and less refined than the Venza. Bottom line was that the Venza was the best overall package for my needs.
MD
Keep in mind that TFS places restrictions upon what options can be residualized. This makes it difficult for consumers to calculate what the actual dollar residual values are for specific units on their own. Calculating vehicles' residual values is so complicated that TFS provides dealers with a list of the dollar residual values for the specific vehicles that they have in stock rather than relying upon them to calculate them on their own.
Car_man
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August numbers for both I-4 & V-6 AWD please. I'm trying to compare payments to decide which engine to go with.
Also, do you know when the 2010 models are coming out? I would think in the next month or so...
thanks
Eric
Can someone please tell me whether the quotes I got are reasonable? Thank you.