2015 Toyota Highlander Lease Questions

stavmar · February 2015

I just left the dealership and paid a deposit because the car with the specifications I wanted just arrived and I wanted to hold it while we negotiate and show that I am interested.

This is what the sales person said and I will be in the finance office tomorrow, i cannot wait

Toyota Highlander Limited Platinum - FWD
MSRP: $46,354.00
Selling Price: $43,100
MF 0.0017
RV 59% or $27,348.00
36Mo/12k
Taxes (6.25% state (Texas) + Inventory Tax 0.2199%) = $2,693.75 + $94.78 = $2,788.53
Dealer Fees (Title License Documentation) = $279.50
Acquisition Cost = $650.00
Financed through Toyota Financial Services
2 year Toyota Care included, although is that even a big deal.

I calculate a Monthly payment of $587.51 (salesmen gave me a sheet that said $588.00, so I am close)

I will Pay for Taxes + Acquisition Fees + Dealer Fees + 1st Month Lease = $3718.03 + $587.51 = $4,305.54

They are telling me that MSDs are $350 per deposit at Toyota and they will allow up to 9 of them to lower the MF from 0.0017 to 0.00098 which would reduce my monthly payment to $536.05 but will require me to make an additional, refundable deposit of $3,150 in addition to the Day 1 fees above.

Discount from MSRP is about 7% which is OK, but it is a high demand vehicle.

Thoughts on my calculations, does the deal sound OK?

orangeman99 · February 2015

Looking for an 2015 XLE AWD. The base model with all weather mats ($100). Are there residuals and MF for 48 and 60 month leases? 12K/year. I'm in NY.

The dealer gave me a quote of $537 for 36/12 lease with 0 down. MSRP was about 38,900. The selling price seems to be 37,000 to get $537. That's less than 5% off sticker. But if I take it for 60 months, they could do around $460. 60 is a bit much, but I might be interested in 48.

I have a 2012 Highlander SE lease ending late March (paying $408/mo). It only has 26,500 miles in 35 months, clean in and out, so it should have a little equity.

Any suggestions?

Thanks.

Michaell · February 2015

ccorcoran said:
Could i get the MF and residual for 36/12 and 36/15 for a XLE 4WD, in Chicago area

Thanks

.00170 (standard MF from Toyota) and 65% for 36/15.

Add 2% for 12K.

Michaell · February 2015

orangeman99 said:
Looking for an 2015 XLE AWD. The base model with all weather mats ($100). Are there residuals and MF for 48 and 60 month leases? 12K/year. I'm in NY.

The dealer gave me a quote of $537 for 36/12 lease with 0 down. MSRP was about 38,900. The selling price seems to be 37,000 to get $537. That's less than 5% off sticker. But if I take it for 60 months, they could do around $460. 60 is a bit much, but I might be interested in 48.

I have a 2012 Highlander SE lease ending late March (paying $408/mo). It only has 26,500 miles in 35 months, clean in and out, so it should have a little equity.

Any suggestions?

Thanks.

48/12 residual on the XLE AWD is 58% and the 60/12 residual is 48%.

$480 x 60 is $27,600, or over 70% of the MSRP for a 60 month lease - that seems a lot.

Regarding your existing lease, I would suggest having the dealer cut you a check for any equity you may have, rather than using it as down payment on the next lease.

saratogasteve · February 2015

anyone have any luck using toyota's website to build a vehicle and search inventory to find the car they want? Every time I do this search, the website leads me to believe there are two cars in my geographic region the way I want it but when I click on the 'dealer' info icon it just points me to my local dealer who doesn't have anything near what I want. I use different zip codes both Nor Cal and So Cal and it just keeps leading me to a dead end. I do not want to pay a dealer to transfer the car to his lot - it will just add $$ to the cost or erode my ability to negotiate.

orangeman99 · February 2015

Thanks for the info, and the tip.

Michaell · February 2015

saratogasteve said:
anyone have any luck using toyota's website to build a vehicle and search inventory to find the car they want? Every time I do this search, the website leads me to believe there are two cars in my geographic region the way I want it but when I click on the 'dealer' info icon it just points me to my local dealer who doesn't have anything near what I want. I use different zip codes both Nor Cal and So Cal and it just keeps leading me to a dead end. I do not want to pay a dealer to transfer the car to his lot - it will just add $$ to the cost or erode my ability to negotiate.

The website doesn't tell you which dealers have the cars you want?

orangeman99 · February 2015

That Toyota build your own search tool sucks. I built my car and then it gave me a list of 3 dealers that supposedly had that car in stock. None of them did. I don't know if it's juts not up to date, or just a tool to get people to contact a dealer to be asked "when can you come in?" When we have a deal I place. I don't go in to "talk about it". We can talk about it on the phone.

Does anybody know how long it takes for a car to come in when a dealer orders one for you?

Hard to find XLE in maroon/black in NYC. I can't get a decent deal unless I take the cars in inventory, which is always black/black. LOL

Michaell · February 2015

orangeman99 said:
That Toyota build your own search tool sucks. I built my car and then it gave me a list of 3 dealers that supposedly had that car in stock. None of them did. I don't know if it's juts not up to date, or just a tool to get people to contact a dealer to be asked "when can you come in?" When we have a deal I place. I don't go in to "talk about it". We can talk about it on the phone.

Does anybody know how long it takes for a car to come in when a dealer orders one for you?

Hard to find XLE in maroon/black in NYC. I can't get a decent deal unless I take the cars in inventory, which is always black/black. LOL

If it's a custom order to be built at the factory, 8-12 weeks perhaps?

gruvin17 · February 2015

stavmar said:

gruvin17 said:
Here is what a dealer is proposing for my lease of a highlander limited platinum in Los Angeles. Separate of def not putting down 3 grand upfront am I crazy or are the numbers a little off. The only way I can get to 560 is to put the money factor pretty high in my little calculator.
Seams like a bad deal to me, thoughts?
I am having difficulty getting exactly the numbers for the monthly payment of $560.03? But I am close using my spreadsheet.

Including your tax in the loan I calculate a payment of $560.26.

This is based on the loan being calculated from the MSRP $43,540, Agreed Upon Price $41,185, CAP cost Reduction (Down Payment of $3,000), 12k/36Month, RV of 59% ($25,821.00), MF 0.0015, Doc Fee ($80), Acquisition Fee ($650), $3,396.21 in CA Taxes.

I do see a "RATE" line on your screenie that indicates 1.8 which would actually translate to a 0.00075 MF which is the lowest I have ever seen, so that must mean something else? Perhaps a purchase APR versus a lease rate? Based on the numbers however I seem to be calculating a MF of 0.0015 which is better than I have seen in DFW for MF values.

When I calculate depreciation ($17,719.00) and multiply it by MF x 36 months I get a rental fee of 956.83 which does seem low to me, so perhaps your MF is higher, but a factor of 0.0001 but that seems fairly insignificant?

So how did the $560.03 get calculated?

The price you agreed to with your dealer is a little more than 5% below MSRP. That is good, but I think they could knock of 2 more percent on the agreed upon price unless demand is still high. I would try and shoot for 6-7% discount from MSRP to help lower the cost, but my math shows $560.26 with $3,000 down.

Im having the biggest question on Taxes. In California, you only pay taxes on your payment, thus doesnt the tax seem high. Im not quite sure how they get to close to 3400 in taxes, when i should only be paying on the difference between the sales price and residual, correct?

What am i missing here?

Michaell · February 2015

gruvin17 said:

stavmar said:

gruvin17 said:
Here is what a dealer is proposing for my lease of a highlander limited platinum in Los Angeles. Separate of def not putting down 3 grand upfront am I crazy or are the numbers a little off. The only way I can get to 560 is to put the money factor pretty high in my little calculator.
Seams like a bad deal to me, thoughts?
I am having difficulty getting exactly the numbers for the monthly payment of $560.03? But I am close using my spreadsheet.

Including your tax in the loan I calculate a payment of $560.26.

This is based on the loan being calculated from the MSRP $43,540, Agreed Upon Price $41,185, CAP cost Reduction (Down Payment of $3,000), 12k/36Month, RV of 59% ($25,821.00), MF 0.0015, Doc Fee ($80), Acquisition Fee ($650), $3,396.21 in CA Taxes.

I do see a "RATE" line on your screenie that indicates 1.8 which would actually translate to a 0.00075 MF which is the lowest I have ever seen, so that must mean something else? Perhaps a purchase APR versus a lease rate? Based on the numbers however I seem to be calculating a MF of 0.0015 which is better than I have seen in DFW for MF values.

When I calculate depreciation ($17,719.00) and multiply it by MF x 36 months I get a rental fee of 956.83 which does seem low to me, so perhaps your MF is higher, but a factor of 0.0001 but that seems fairly insignificant?

So how did the $560.03 get calculated?

The price you agreed to with your dealer is a little more than 5% below MSRP. That is good, but I think they could knock of 2 more percent on the agreed upon price unless demand is still high. I would try and shoot for 6-7% discount from MSRP to help lower the cost, but my math shows $560.26 with $3,000 down.

Im having the biggest question on Taxes. In California, you only pay taxes on your payment, thus doesnt the tax seem high. Im not quite sure how they get to close to 3400 in taxes, when i should only be paying on the difference between the sales price and residual, correct?

What am i missing here?

You aren't missing anything ... CA does only tax the monthly payment. Not sure why there is a line item for the $3400 in taxes.

kyfdx · February 2015

gruvin17 said:

stavmar said:

gruvin17 said:
Here is what a dealer is proposing for my lease of a highlander limited platinum in Los Angeles. Separate of def not putting down 3 grand upfront am I crazy or are the numbers a little off. The only way I can get to 560 is to put the money factor pretty high in my little calculator.
Seams like a bad deal to me, thoughts?
I am having difficulty getting exactly the numbers for the monthly payment of $560.03? But I am close using my spreadsheet.

Including your tax in the loan I calculate a payment of $560.26.

This is based on the loan being calculated from the MSRP $43,540, Agreed Upon Price $41,185, CAP cost Reduction (Down Payment of $3,000), 12k/36Month, RV of 59% ($25,821.00), MF 0.0015, Doc Fee ($80), Acquisition Fee ($650), $3,396.21 in CA Taxes.

I do see a "RATE" line on your screenie that indicates 1.8 which would actually translate to a 0.00075 MF which is the lowest I have ever seen, so that must mean something else? Perhaps a purchase APR versus a lease rate? Based on the numbers however I seem to be calculating a MF of 0.0015 which is better than I have seen in DFW for MF values.

When I calculate depreciation ($17,719.00) and multiply it by MF x 36 months I get a rental fee of 956.83 which does seem low to me, so perhaps your MF is higher, but a factor of 0.0001 but that seems fairly insignificant?

So how did the $560.03 get calculated?

The price you agreed to with your dealer is a little more than 5% below MSRP. That is good, but I think they could knock of 2 more percent on the agreed upon price unless demand is still high. I would try and shoot for 6-7% discount from MSRP to help lower the cost, but my math shows $560.26 with $3,000 down.

Im having the biggest question on Taxes. In California, you only pay taxes on your payment, thus doesnt the tax seem high. Im not quite sure how they get to close to 3400 in taxes, when i should only be paying on the difference between the sales price and residual, correct?

What am i missing here?

Agreed.. the only upfront taxes should be on CAP reductions or other non-governmental fees paid upfront..

orangeman99 · February 2015

I met with a dealer yesterday in Long Island, NY that offered me an XLE (no options, just all-weather mats and incl GAP insurance) for $450/mo, with first month and DMV down. All other costs are rolled into the lease.

I was ready to accept it, but the car that I wanted is being produced in early March, and they claim it would be at the dealership in late March. My current lease runs out 3/24, and they weren't giving me an answer that I liked regarding what would happen if the car didn't arrive by 3/24. With my situation, I can't be without a car for even a day, so I passed.

saratogasteve · February 2015

Michaell said:

saratogasteve said:
anyone have any luck using toyota's website to build a vehicle and search inventory to find the car they want? Every time I do this search, the website leads me to believe there are two cars in my geographic region the way I want it but when I click on the 'dealer' info icon it just points me to my local dealer who doesn't have anything near what I want. I use different zip codes both Nor Cal and So Cal and it just keeps leading me to a dead end. I do not want to pay a dealer to transfer the car to his lot - it will just add $$ to the cost or erode my ability to negotiate.
The website doesn't tell you which dealers have the cars you want?

no - it doesn't. it simply defaults you to the nearest Toyota dealer with regards to the zip code you type in. Nissan has the 'build your car' option and it can fan out and search as far as you want to find the exact match.
I'm being told by my local Toyota dealer to order from the factory and wait 12 weeks. I'm guessing the local dealer could tell me where the car exists, but has no incentive to lead me to another dealer.

I did write to the Toyota website customer service to point this out to them but have not heard back.

orangeman99 · February 2015

What is the residual and MF for 2015 XLE for 36/12 in NYC? The dealer is telling me differently than I'm seeing here.

Thanks.

Michaell · February 2015

orangeman99 said:
What is the residual and MF for 2015 XLE for 36/12 in NYC? The dealer is telling me differently than I'm seeing here.

Thanks.

AWD? 67% for 36/12 - though this is the "base" residual. Individual options and packages affect the residual, though we don't exactly know how.

Standard MF from Toyota of around .00160.

stavmar · February 2015

As an FYI, the Finance guy I am dealing with indicated that DEALER options do not "residualize" with the MSRP pricing. In fact my MSRP entered into their software was not including Dealer options, this actually shrinks depreciation, so is in our favor, but i thought it was strange to hear that feedback.

My starting MF on a Highlander LImited Platinum AWD is 0.0017. I am doing MSDs with Toyota but of course this crashed their software because they must not deal with MSDs often, usually just a single deposit. BUt they will lower the MF by 0.00008 per MSD up to 9 MSDs, so i will end up with a final MF of 0.00098. The residual amount I calcualted was 60% but their computer indicated 62% for the same calculation, so I am not too sure which is right.

2015 Limited Platinum AWD
Car mats, tinting, wheel locks, door guards, etc. ($744) - Dealer Options...
Terms 12k/36 month
MSRP with Dealer Options $ 46,354.00
MSRP $ 45,610.00
Price $ 43,100.00
RV $ 27,305.00
RV% 60%
MF 0.0017

I have a calculated a Monthly Payment of $558.44 with no adjustment to cap cost or MSDs. I will pay the entire TTL outside of the loan on Day 1. I did trade in my vehicle at $2,400 but I will apply that to the drive-out costs to reduce the check I need to pay up front. Does that make sense to folks?

I will go for 9 MSDs to reduce the money factor (0.00098) which should take my monthly payment to $507.75.
Then when I return the car I will have the MSDs back in my pocket for my next purchase.

I also just read that Toyota of America will not be actively supportive of Apple Carplay in 2016, so if they are not doing CarPlay by 2018, I am switching to a car company that will. I have driven the highlander for 3 days now, we still have no contract in place because of their computer software issues, so they let me borrow it, and do like some of the Entune and voice recognition stuff on this dash system, but Carplay is too intuitive to pass up.

Car companies need to get out of the mobile tech business and just focus on car design and car quality and let the mobile experts handle the information technology piece and interface.

Open to any comments...

cliffpz · February 2015

"orangeman99"
What dealer in Long Island offered you $450/month?

Michaell · February 2015

stavmar said:
I also just read that Toyota of America will not be actively supportive of Apple Carplay in 2016, so if they are not doing CarPlay by 2018, I am switching to a car company that will. I have driven the highlander for 3 days now, we still have no contract in place because of their computer software issues, so they let me borrow it, and do like some of the Entune and voice recognition stuff on this dash system, but Carplay is too intuitive to pass up.

Car companies need to get out of the mobile tech business and just focus on car design and car quality and let the mobile experts handle the information technology piece and interface.

Open to any comments...

I don't see it happening the way you describe ... Apple won't (or can't) make a deal with every manufacturer to include CarPlay. If Apple were to sign with Toyota, does that mean that Honda (or Nissan or Mazda or HyunKia) will go with an Android or Windows Phone equivalent?

I think there may be cooperation, but I don't see the auto companies outsourcing their infotainment systems. They will develop them to work with the broadest spectrum of equipment.

stavmar · February 2015

Michaell said
I don't see it happening the way you describe ... Apple won't (or can't) make a deal with every manufacturer to include CarPlay. If Apple were to sign with Toyota, does that mean that Honda (or Nissan or Mazda or HyunKia) will go with an Android or Windows Phone equivalent? I think there may be cooperation, but I don't see the auto companies outsourcing their infotainment systems. They will develop them to work with the broadest spectrum of equipment.

So Apple includes in their website all their "partners"

http://www.apple.com/ios/carplay/?cid=wwa-us-kwg-features-com

Toyota is there as is honda and all the American brands and euro brands.

Why would Ferrari and Lamborghini include this, because the user wants it.

And the Hyundai brand has already included CarPlay and Androids equivalent on the same dash unit in 2015 and it looks amazing.

http://www.slashgear.com/hyundai-hands-the-keys-to-carplay-and-android-auto-18360046/

So much versatility for upgrades and other features. I am more interested in bringing my phone to the screen for useful tools, especially Siri, than I am integration with the car. Like I said, the manufactures of automobiles just don't know how to do mobile tech, just look at the piss poor GPS, but they are greedy like everyone else is and want to make money on the hardware and "experience" installed, problem is automakers suck at tech experience for users, where Apple and Android have mastered it.

For my next purchase, if there is no CarPlay then I will not purchase from that manufacture. At least Hyundai has stepped up and I bet it translates to more sales in the next two years if Honda and Toyota do not keep up. Honda is already suffering from quality issues, per the WSJ today but Toyota has held strong with great cars, but the tech needs to mesh perfectly with my phone, not hap hazardly which it does now.

I just want to say, "Hey Siri, take me to my destination and Google Maps opens up and shows me three options and I say option 1, and we are off. This should happen at rest or in motion.

Always a good discussion and sorry for the tangent.

back to lease question, I should be getting a draft contract for my highlander lease today, so I will post. I can't get to the dealer because DFW is on ice/snow lockdown, U.S. Texans can't drive anywhere when there is precipitation and especially when there is ice. We are just so bad with it. The funny thing is, the dealer let me hold on to the car for the weekend and that weekend has extended and I have not signed the lease because the finance computers could not handle me taking the taxes from the lease out of the loan, so they sent me off with my car in tow.

Michaell · February 2015

stavmar said:

Michaell said

I don't see it happening the way you describe ... Apple won't (or can't) make a deal with every manufacturer to include CarPlay. If Apple were to sign with Toyota, does that mean that Honda (or Nissan or Mazda or HyunKia) will go with an Android or Windows Phone equivalent?

I think there may be cooperation, but I don't see the auto companies outsourcing their infotainment systems. They will develop them to work with the broadest spectrum of equipment.

So Apple includes in their website all their "partners"

http://www.apple.com/ios/carplay/?cid=wwa-us-kwg-features-com

Toyota is there as is honda and all the American brands and euro brands.

Why would Ferrari and Lamborghini include this, because the user wants it.

And the Hyundai brand has already included CarPlay and Androids equivalent on the same dash unit in 2015 and it looks amazing.

http://www.slashgear.com/hyundai-hands-the-keys-to-carplay-and-android-auto-18360046/

So much versatility for upgrades and other features. I am more interested in bringing my phone to the screen for useful tools, especially Siri, than I am integration with the car. Like I said, the manufactures of automobiles just don't know how to do mobile tech, just look at the piss poor GPS, but they are greedy like everyone else is and want to make money on the hardware and "experience" installed, problem is automakers suck at tech experience for users, where Apple and Android have mastered it.

For my next purchase, if there is no CarPlay then I will not purchase from that manufacture. At least Hyundai has stepped up and I bet it translates to more sales in the next two years if Honda and Toyota do not keep up. Honda is already suffering from quality issues, per the WSJ today but Toyota has held strong with great cars, but the tech needs to mesh perfectly with my phone, not hap hazardly which it does now.

I just want to say, "Hey Siri, take me to my destination and Google Maps opens up and shows me three options and I say option 1, and we are off. This should happen at rest or in motion.

Always a good discussion and sorry for the tangent.

back to lease question, I should be getting a draft contract for my highlander lease today, so I will post. I can't get to the dealer because DFW is on ice/snow lockdown, U.S. Texans can't drive anywhere when there is precipitation and especially when there is ice. We are just so bad with it. The funny thing is, the dealer let me hold on to the car for the weekend and that weekend has extended and I have not signed the lease because the finance computers could not handle me taking the taxes from the lease out of the loan, so they sent me off with my car in tow.

Interesting perspective on the CarPlay situation.

Good luck with your lease. I remember traveling to Dallas years ago for business where we had an ice storm. Took 45 minutes to get 3 or 4 miles from the customer site to the hotel. I'll take snow any day.

saratogasteve · February 2015

Please share with us your lease numbers for the XLE that you're holding onto. Did you say it was AWD?

orangeman99 · February 2015

cliffpz said:
"orangeman99"
What dealer in Long Island offered you $450/month?

Competition Toyota (exit 66 off LIE). I dealt with Tom (last name starts with "S" I think)

orangeman99 · February 2015

Michaell said:

orangeman99 said:
What is the residual and MF for 2015 XLE for 36/12 in NYC? The dealer is telling me differently than I'm seeing here.

Thanks.
AWD? 67% for 36/12 - though this is the "base" residual. Individual options and packages affect the residual, though we don't exactly know how.

Standard MF from Toyota of around .00160.

Thanks.

Yes, AWD. I thought it was 67, but a dealer in Queens, NY quoted me 62% (he had it in his binder that he showed me because I called him out on it).

Michaell · February 2015

orangeman99 said:

Michaell said:

orangeman99 said:
What is the residual and MF for 2015 XLE for 36/12 in NYC? The dealer is telling me differently than I'm seeing here.

Thanks.
AWD? 67% for 36/12 - though this is the "base" residual. Individual options and packages affect the residual, though we don't exactly know how.

Standard MF from Toyota of around .00160.
Thanks.

Yes, AWD. I thought it was 67, but a dealer in Queens, NY quoted me 62% (he had it in his binder that he showed me because I called him out on it).

The residual calculations from Toyota are so screwy that dealers frequently have to look up the residual for an individual unit.

That said, 62% is still a pretty good residual for 36 months.

longhorn1969 · February 2015

I was just quoted $ 30,621 on a Highlander LE Plus in Austin Tx. Would like to know what monthly payment to expect for 36 months/ 15K miles a year.

Michaell · February 2015

longhorn1969 said:
I was just quoted $ 30,621 on a Highlander LE Plus in Austin Tx. Would like to know what monthly payment to expect for 36 months/ 15K miles a year.

The $30,621 is the offer price? What is the MSRP?

FWD or AWD?

longhorn1969 · February 2015

Michaell said:

longhorn1969 said:
I was just quoted $ 30,621 on a Highlander LE Plus in Austin Tx. Would like to know what monthly payment to expect for 36 months/ 15K miles a year.
The $30,621 is the offer price? What is the MSRP?

FWD or AWD?

MSRP $34,715. A $4K discount. Do not know the residual for LE Plus FWD.

Michaell · February 2015

longhorn1969 said:

Michaell said:

longhorn1969 said:
I was just quoted $ 30,621 on a Highlander LE Plus in Austin Tx. Would like to know what monthly payment to expect for 36 months/ 15K miles a year.
The $30,621 is the offer price? What is the MSRP?

FWD or AWD?
MSRP $34,715. A $4K discount. Do not know the residual for LE Plus FWD.

I believe the 36/15 residual is 65% - though that could be adjusted based on what options the specific vehicle has.

Using that residual and the .00170 base MF with your MSRP and selling price, I get a pre-tax payment of $314.20/mo for 36 months.

orangeman99 · February 2015

Michaell said:

orangeman99 said:

Michaell said:

orangeman99 said:
What is the residual and MF for 2015 XLE for 36/12 in NYC? The dealer is telling me differently than I'm seeing here.

Thanks.
AWD? 67% for 36/12 - though this is the "base" residual. Individual options and packages affect the residual, though we don't exactly know how.

Standard MF from Toyota of around .00160.
Thanks.

Yes, AWD. I thought it was 67, but a dealer in Queens, NY quoted me 62% (he had it in his binder that he showed me because I called him out on it).
The residual calculations from Toyota are so screwy that dealers frequently have to look up the residual for an individual unit.

That said, 62% is still a pretty good residual for 36 months.

There are no options, I'm looking for the XLE with nothing else, it comes pretty well loaded.

Thanks

longhorn1969 · February 2015

Michaell said:

longhorn1969 said:

Michaell said:

longhorn1969 said:
I was just quoted $ 30,621 on a Highlander LE Plus in Austin Tx. Would like to know what monthly payment to expect for 36 months/ 15K miles a year.
The $30,621 is the offer price? What is the MSRP?

FWD or AWD?
MSRP $34,715. A $4K discount. Do not know the residual for LE Plus FWD.
I believe the 36/15 residual is 65% - though that could be adjusted based on what options the specific vehicle has.

Using that residual and the .00170 base MF with your MSRP and selling price, I get a pre-tax payment of $314.20/mo for 36 months.

Pretty reasonable considering Toyota has no leasing marketing support for the Highlander. Thank you very much.

stavmar · February 2015

So I have posted my deal via their screen shots which breaks down the cost on a 2015 Highlander Limited Platinum AWD in DFW at a 36 month/12 k lease. See above...

2015 Limited Platinum AWD
Car mats, tinting, wheel locks, door guards, etc. ($744) - Dealer Options...
Terms 12k/36 month
MSRP with Dealer Options $ 46,354.00
MSRP $ 45,610.00
Price $ 43,099.35 (5.5% discount - could have been better)
RV $ 27,304.80
RV% 59.87%
MF 0.00098 (Paid $4,950 in MSDs - 9 x $550 each to lower MF by 0.0008 per MSD, starting MF was 0.0017)
Monthly Payment with reduced MF is calculated at $507.74
This was only $0.01 off of my monthly estimate, yeah for math skills and Excel.

Drive out costs totaled $8930.99 including:

$4,950.00 MSD (Multiple Security Deposits are refundable at turn in)
$2,543.75 Tax (6.25% but was reduced (by ~ $150.00) due to $2,400 trade in - a 2001 Chevy Tahoe LT)
$279.50 Dealer Fees
$650.00 Inception Fee
$507.74 First Month Payment

I applied my trade-in ($2,400) to the drive out costs (not a cap reduction) and paid my taxes outside of the loan which will save about about $510 in reduced interest/rental cost. Many people roll this amount into the loan, but in Texas since we have to pay taxes on the entire value of the car, this ends up costing you interest of the life of your lease.

At the end of lease there is a $350.00 disposition fee which then totals my cost of the lease at $22,101.89. Had I left the MF at 0.0017 with MSDs the total cost of the loan would have been $1,824.89 dollars more for a total of $23,926.78. So the MSDs saved me about 7.6% off the total cost of the loan and I get the MSDs back. Find me a CD that pays 7.6%, what a great investment in my eyes.

Keep in mind that as long as my car is good shape I will receive my MSDs back ($4,950) with the disposition fee taken out of course.

Below you will see the actual contract for those of you who want to work with Toyota on your lease.

I was able to drive the car without contract for 5 days and managed to put 250 miles on it, and since the dealership Finance office had a problems taking MSDs and the taxes out of the loan, they are both atypical, they started my mileage at 250 for the 36 month lease. The dealership even filled my tank to full due to all the trouble. They treated me well, they gave me no pressure and I truly enjoyed the experience. Plus I think I taught them something and I definitely learned as well

Thank you to Michaell for all your input and help. I have been reading your posts for a very long time and learned so much about a lot of stuff giving me the confidence to walk into a dealership knowing more than they did which is exactly the way I like it.

I am not sure I will ever do a a lease again, but it is not because of the math but rather the fact that you are just throwing money away with nothing to show for it. But when I wanted the Carplay and could not get it in a reasonably priced or useful vehicle for me today, I decided to lease so that in three years I will see more CarPlay car options. I am already not liking ENTUNE in the highlander and wish Siri was my guide while in the car.

Good luck leasing folks, and enjoy the ride!

Michaell · February 2015

@stavmar - thanks for the incredible detail in your last post .. I'm sure folks who are considering a lease of a Highlander will find this information beyond valuable.

Looks like you got the best deal you could ... and, I would say that a 5.5% discount on a vehicle as popular as the Highlander is actually pretty good.

Enjoy the ride for the next 3 years, get your MSD monies back and hopefully you'll find the right car with the infotainment system you want.

metahi · February 2015

Hi - we are looking to lease a 2015 Highlander Limited 12k miles per year for 36 months - what is the MF and residual for the Boston area?

Michaell · February 2015

metahi said:
Hi - we are looking to lease a 2015 Highlander Limited 12k miles per year for 36 months - what is the MF and residual for the Boston area?

AWD?

.00170 and 64%

metahi · February 2015

yes, AWD

metahi · February 2015

also - what's the difference for the XLE for 12k miles per year for 36 months - for MF and residual for the Boston area?

Michaell · February 2015

metahi said:
also - what's the difference for the XLE for 12k miles per year for 36 months - for MF and residual for the Boston area?

Add 3% to the residual for the XLE trim versus Limited.

orangeman99 · February 2015

I'm still looking for an XLE AWD (no extra options), so I did the TrueCar thing and got a TrueCar price of 36,264. But that's the buy price, so you still have to contact the dealer to get a lease price.

I'm looking for a 36/12 lease with no money down (first month, DMV, and GAP insurance).
Here are the specs:

MSRP $38,985.00
SELL PRICE $36,264.00
RESIDUAL 67%
RESIDUAL $26,119.95
DEPRECIATION $10,144.05 =(36264-26119.95)
ACQUISITION $650.00
SALES TAX $944.48 =(10144.05+650 @ 8.875%)
MF 0.0017
TERM 36

BASE $326.07 =(36264-26119.95+650+944.48)/36
FINANCE $106.05 =(36264+26119.95)*.0017
MONTHLY $432.12

According to my math, the monthly payment should be about $432, plus any "fees" (documentation, etc), so at most $450. Am I missing anything?

Manfredi Toyota of Staten Island, NY, who sent me the TrueCar price quoted me an "estimated" monthly payment $559. BTW-- this is for 36 month / 10K miles per year, even though I asked for 36/12. According to this person that that I spoke to (sounded like a receptionist), she says Toyota is changing their leases from 12K to 10K. So they ridiculous price they gave me is for 10 miles/year. But she wouldn't give me the residual or money factor they used. She said she didn't know how to figure a lease price. I told her, "Lucky for me, I do". And I hung up. Has anybody heard of this change in lease terms?

Is this TrueCar thing a big scam? Has anybody actually gotten the price that they promised?
Are they smoking crack or is my math off?

This is why people hate dealing with these crooks. They are ALL (okay, not all, only about 98% of them) a bunch of liars and scam artists. I price big deals at work weekly (I work in financial services) so I don't get flustered but other people succum to these cheats.

Michaell · February 2015

orangeman99 said:
I'm still looking for an XLE AWD (no extra options), so I did the TrueCar thing and got a TrueCar price of 36,264. But that's the buy price, so you still have to contact the dealer to get a lease price.

I'm looking for a 36/12 lease with no money down (first month, DMV, and GAP insurance).
Here are the specs:

MSRP $38,985.00
SELL PRICE $36,264.00
RESIDUAL 67%
RESIDUAL $26,119.95
DEPRECIATION $10,144.05 =(36264-26119.95)
ACQUISITION $650.00
SALES TAX $944.48 =(10144.05+650 @ 8.875%)
MF 0.0017
TERM 36

BASE $326.07 =(36264-26119.95+650+944.48)/36
FINANCE $106.05 =(36264+26119.95)*.0017
MONTHLY $432.12

According to my math, the monthly payment should be about $432, plus any "fees" (documentation, etc), so at most $450. Am I missing anything?

Manfredi Toyota of Staten Island, NY, who sent me the TrueCar price quoted me an "estimated" monthly payment $559. BTW-- this is for 36 month / 10K miles per year, even though I asked for 36/12. According to this person that that I spoke to (sounded like a receptionist), she says Toyota is changing their leases from 12K to 10K. So they ridiculous price they gave me is for 10 miles/year. But she wouldn't give me the residual or money factor they used. She said she didn't know how to figure a lease price. I told her, "Lucky for me, I do". And I hung up. Has anybody heard of this change in lease terms?

Is this TrueCar thing a big scam? Has anybody actually gotten the price that they promised?
Are they smoking crack or is my math off?

This is why people hate dealing with these crooks. They are ALL (okay, not all, only about 98% of them) a bunch of liars and scam artists. I price big deals at work weekly (I work in financial services) so I don't get flustered but other people succum to these cheats.

Your math looks right. However, it's important to note that every car in stock has a different residual; Toyota doesn't residualize their options the same way other manufacturers do. So, your 67% may be different than what the dealer is using. Granted, not $100 different. They could also be marking up the MF on you and/or adding extra fees into the selling price.

Can't comment on the TrueCar pricing model.

stavmar · February 2015

I'm still looking for an XLE AWD (no extra options), so I did the TrueCar thing and got a TrueCar price of 36,264. But that's the buy price, so you still have to contact the dealer to get a lease price.

I'm looking for a 36/12 lease with no money down (first month, DMV, and GAP insurance).
Here are the specs:

MSRP $38,985.00
SELL PRICE $36,264.00
RESIDUAL 67%
RESIDUAL $26,119.95
DEPRECIATION $10,144.05 =(36264-26119.95)
ACQUISITION $650.00
SALES TAX $944.48  =(10144.05+650 @ 8.875%)
MF 0.0017
TERM 36

BASE $326.07  =(36264-26119.95+650+944.48)/36
FINANCE $106.05  =(36264+26119.95)*.0017
MONTHLY $432.12

According to my math, the monthly payment should be about $432, plus any "fees" (documentation, etc), so at most $450. Am I missing anything?

Your math is good, in Texas we do not tax the acquisition cost so that could be a minor tweak?
To hear the dealer denying the RV to be given to you is horse****. That information will be given to you in the Finance office and you can walk out of there to. Remember the deal is always in your hands and the finance guys know more than any sales guy. I went in with my spreadsheet and adjusted pennies until I saw the same thing they did. The MF you show is what mine was until I bought it down with security deposits. I just finalized my deal last Thursday and I realize regions have differences, but RV and real MF typically do not, unless the dealer is financing with a different bank then their own or they are looking for more margin.
As for true car, leasing does not typically apply but I never understood why? The value of the car is the value of the car. The dealer only gets minimal info and then the options come in, both dealer and manufacturer. At one dealership they had one that matched my specs but it had several options that I was not looking for.
Only focus on the price with the sales guys and use your metric to show the monthly rate as you have above. Get all the dealer fees ahead of time. Know the exact value you are expecting to see when you walk in.

I am so impressed with that residual; on the limited platinum it was only 60%, quite the difference. And Toyota Financial Services touts all lengths of leases, 12k, 10k, 15k, with 24, 36, and 48 month durations. The 10k change again is in their favor and should not be a restriction if you are looking for 12k mileage. I already don't tlike these guys.
If the dealer does not want to spend the time doing the work to help you understand the deal and be fairly transparent, then sadly it is time to move on and use these guys as bait for your next victim.
It is their deal to win and yours to walk away, At ANY time...

saratogasteve · March 2015

orangeman99 said:
I'm still looking for an XLE AWD (no extra options), so I did the TrueCar thing and got a TrueCar price of 36,264. But that's the buy price, so you still have to contact the dealer to get a lease price.

I'm looking for a 36/12 lease with no money down (first month, DMV, and GAP insurance).
Here are the specs:

MSRP $38,985.00
SELL PRICE $36,264.00
RESIDUAL 67%
RESIDUAL $26,119.95
DEPRECIATION $10,144.05 =(36264-26119.95)
ACQUISITION $650.00
SALES TAX $944.48 =(10144.05+650 @ 8.875%)
MF 0.0017
TERM 36

BASE $326.07 =(36264-26119.95+650+944.48)/36
FINANCE $106.05 =(36264+26119.95)*.0017
MONTHLY $432.12

According to my math, the monthly payment should be about $432, plus any "fees" (documentation, etc), so at most $450. Am I missing anything?

Manfredi Toyota of Staten Island, NY, who sent me the TrueCar price quoted me an "estimated" monthly payment $559. BTW-- this is for 36 month / 10K miles per year, even though I asked for 36/12. According to this person that that I spoke to (sounded like a receptionist), she says Toyota is changing their leases from 12K to 10K. So they ridiculous price they gave me is for 10 miles/year. But she wouldn't give me the residual or money factor they used. She said she didn't know how to figure a lease price. I told her, "Lucky for me, I do". And I hung up. Has anybody heard of this change in lease terms?

Is this TrueCar thing a big scam? Has anybody actually gotten the price that they promised?
Are they smoking crack or is my math off?

This is why people hate dealing with these crooks. They are ALL (okay, not all, only about 98% of them) a bunch of liars and scam artists. I price big deals at work weekly (I work in financial services) so I don't get flustered but other people succum to these cheats.

I appreciate the information you've laid out - I'm looking for the exact same vehicle. I recently went round with a Nissan dealer on a Pathfinder deal and he was $100 above my math - I ran the numbers by the comment section here as well. The dealer suggested I just come on down and "we'll work out the details" LOL it would be a two hour drive for me. I was considering the Pathfinder because their MF is really low and the cars are well discounted. They have some reliability issues, but the lease option is a way to limit your exposure.

orangeman99 · March 2015

stavmar said:

Your math is good, in Texas we do not tax the acquisition cost so that could be a minor tweak?
To hear the dealer denying the RV to be given to you is horse****. That information will be given to you in the Finance office and you can walk out of there to. Remember the deal is always in your hands and the finance guys know more than any sales guy. I went in with my spreadsheet and adjusted pennies until I saw the same thing they did. The MF you show is what mine was until I bought it down with security deposits. I just finalized my deal last Thursday and I realize regions have differences, but RV and real MF typically do not, unless the dealer is financing with a different bank then their own or they are looking for more margin.
As for true car, leasing does not typically apply but I never understood why? The value of the car is the value of the car. The dealer only gets minimal info and then the options come in, both dealer and manufacturer. At one dealership they had one that matched my specs but it had several options that I was not looking for.
Only focus on the price with the sales guys and use your metric to show the monthly rate as you have above. Get all the dealer fees ahead of time. Know the exact value you are expecting to see when you walk in.

I am so impressed with that residual; on the limited platinum it was only 60%, quite the difference. And Toyota Financial Services touts all lengths of leases, 12k, 10k, 15k, with 24, 36, and 48 month durations. The 10k change again is in their favor and should not be a restriction if you are looking for 12k mileage. I already don't tlike these guys.
If the dealer does not want to spend the time doing the work to help you understand the deal and be fairly transparent, then sadly it is time to move on and use these guys as bait for your next victim.
It is their deal to win and yours to walk away, At ANY time...

Thanks for the comments.

orangeman99 · March 2015

saratogasteve said:
I appreciate the information you've laid out - I'm looking for the exact same vehicle. I recently went round with a Nissan dealer on a Pathfinder deal and he was $100 above my math - I ran the numbers by the comment section here as well. The dealer suggested I just come on down and "we'll work out the details" LOL it would be a two hour drive for me. I was considering the Pathfinder because their MF is really low and the cars are well discounted. They have some reliability issues, but the lease option is a way to limit your exposure.

They want you to "come in to talk about it and work out the details" because psychologically and historically people are more willing to say yes to a deal when they come in. Most people don't do well when pressured. And once you go to the dealership, you are already "invested" in the car, so you don't want to cut your losses, so to speak. Basically, dealers think (and studies show that it's true) hat if a person comes in, they are likely to buy. If it's not too inconvenient for me, I go in just to [non-permissible content removed] with their heads knowing full well that they won't ever come down to the price that I'm looking for. This coming weekend, I'm going to take my spreadsheet on my Ipad and visit no less than 4-5 dealers and let them show me how they figure out those ridiculous monthly payments.

People who can't walk away at any point should not negotiate a car by themselves, they usually get taken.

orangeman99 · March 2015

Are there any changes in the March Residual and MF for the XLE for 36/12 in NYC area? What about 36/10?

Thanks.

Michaell · March 2015

orangeman99 said:
Are there any changes in the March Residual and MF for the XLE for 36/12 in NYC area? What about 36/10?

Thanks.

The residual numbers from Toyota are good until the end of March. The new MF numbers are due out today and we should hopefully have them later this week.

orangeman99 · March 2015

Thanks

Michaell · March 2015

orangeman99 said:
Are there any changes in the March Residual and MF for the XLE for 36/12 in NYC area? What about 36/10?

Thanks.

New numbers are available, and I don't see any subsidized numbers for the Highlander. So, assume that there is no change from last month's MF of .00170.

orangeman99 · March 2015

I spoke to a dealer in NJ (Towne Toyota) and they quoted me 65% residual and .0018 MF. But even though they gave me the MSRP, Residual, and MF, when they calculated the monthly lease, it was 503 for them versus 450 in my spreadsheet. And they claim that they Toyota software is correct and I "MUST" be doing it wrong.
Bottom line, their juiced up software puts an extra $2000 in their pocket.

depreciation = (Sale price - Residual)/Lease term
finance = (Sale price + Residual) * Money Factor

Monthly = depreciation + finance + sales tax/fees

Have any of you ever matched up the numbers with a dealer in the way a lease price is supposed to be calculated?

Michaell · March 2015

orangeman99 said:
I spoke to a dealer in NJ (Towne Toyota) and they quoted me 65% residual and .0018 MF. But even though they gave me the MSRP, Residual, and MF, when they calculated the monthly lease, it was 503 for them versus 450 in my spreadsheet. And they claim that they Toyota software is correct and I "MUST" be doing it wrong.
Bottom line, their juiced up software puts an extra $2000 in their pocket.

depreciation = (Sale price - Residual)/Lease term
finance = (Sale price + Residual) * Money Factor

Monthly = depreciation + finance + sales tax/fees

Have any of you ever matched up the numbers with a dealer in the way a lease price is supposed to be calculated?

One important note ... while the math is right, the number you are using and the number the dealer is using for the "sale price" may be different. Ask them for the "net cap cost" - this is the sale price adjusted with any fees and taxes they are rolling in.

2015 Toyota Highlander Lease Questions

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