I was given the $1,000 over invoice from several dealers just by clicking in the "get e-price" button and that was in Silicon Valley. I used true car pricing to see what zip codes I had to travel to, to get the pricing closer to invoice. Drive 2 hours away to Stockton and they gave me a quote just above invoice. The car I wanted popped up on a dealer's lot closer to home and they then gave me invoice on a 2015 Toyota XLE AWD + tax title and license. This was after I told them I could drive past them and buy from another dealer and I was ready to buy. Of course if you lease you'll have to add the acquisition fee - what ever that is.
I live in western New York and went to dealer two days ago. 2015 XLE, black on black, MSRP was $39,140. The residual was 65% and MF was 0.0021. When I look at the previous comments the MF I was offered seems high to me. Does the residual value and money factor change from state to state within the same month? It was for 36mo, 12k/yr
I live in western New York and went to dealer two days ago. 2015 XLE, black on black, MSRP was $39,140. The residual was 65% and MF was 0.0021. When I look at the previous comments the MF I was offered seems high to me. Does the residual value and money factor change from state to state within the same month? It was for 36mo, 12k/yr
Toyota numbers are regional, and the dealer is allowed to mark up the MF for more profit.
I live in western New York and went to dealer two days ago. 2015 XLE, black on black, MSRP was $39,140. The residual was 65% and MF was 0.0021. When I look at the previous comments the MF I was offered seems high to me. Does the residual value and money factor change from state to state within the same month? It was for 36mo, 12k/yr
Toyota numbers are regional, and the dealer is allowed to mark up the MF for more profit.
Thanks for the reply. Is it the same for the RV, or it should be the same regardless of the region since the RV numbers are coming from ALG?
I live in western New York and went to dealer two days ago. 2015 XLE, black on black, MSRP was $39,140. The residual was 65% and MF was 0.0021. When I look at the previous comments the MF I was offered seems high to me. Does the residual value and money factor change from state to state within the same month? It was for 36mo, 12k/yr
Toyota numbers are regional, and the dealer is allowed to mark up the MF for more profit.
Thanks for the reply. Is it the same for the RV, or it should be the same regardless of the region since the RV numbers are coming from ALG?
I live in western New York and went to dealer two days ago. 2015 XLE, black on black, MSRP was $39,140. The residual was 65% and MF was 0.0021. When I look at the previous comments the MF I was offered seems high to me. Does the residual value and money factor change from state to state within the same month? It was for 36mo, 12k/yr
Toyota numbers are regional, and the dealer is allowed to mark up the MF for more profit.
Thanks for the reply. Is it the same for the RV, or it should be the same regardless of the region since the RV numbers are coming from ALG?
The residual should be the same nationwide.
what the moderator is quoting you is the bottom rate as set forth by the lending arm of the manufacturer; and like all pricing that comes out of the dealer - rates and prices are negotiable. I have found trying to negotiate at the dealership for your best rate/price is a waste of time. The only time I got a dealer to jump through hoops for me in person was when a competing dealer was calling me while I was sitting in his office. It was like having someone in a head lock or choke hold. I should of put him on speaker phone and had the two duke it out while I just sit back and watch them eat each other.
I am interested in leasing an XLE AWD (12k/36mo) in NJ and am a bit confused by what some of the dealers are considering "Residual Value". Apparently they all agree that it should be 67% and the MF is 0.0018. However they come back with a RV that is almost $2,000 from what I think it should be. I assume Destination Fee is considered part of the MSRP? I actually have a trade-in that is worth about$7500. What I would like to do is take that $7500 and put down 9 MSDs. Whatever is left I would like to put towards a down payment. Can you tell me if I am calculating the below correctly (assuming I get the car for True Value)? Thank you so much in advance.
Oh wait. He calculated this wrong. It is 64% of the "Retail Price". He was calculating the residual based on the "Total price"
So I guess that leaves my last question. Should I be looking at a better deal than $900 over invoice?
In my deal above on a Limited Platinum AWD 2015 the dealer indicated an RV of 60% for a 12k/3yr deal. When the deal was done, the calculated Residual Value was 63.35% from the Agreed Upon Price NOT MSRP for a 12k/3yr term. When I calculated the RV based on MSRP which every lease calculator will tell you to do (FYI MSRP SHOULD NOT INCLUDE DEALER OPTIONS) I came out with 59.87% or about 60% which is what I thought it would be.
I am impressed to see you guys getting 62% residual value and above, but maybe it is because of the platinum portion dropping in price so much?
According to my dealer I was $200 under invoice in Dallas TX. The dealer indicated they are all about volume and getting their 3% form Toyota is reasonable to them as they are all about moving inventory. Each dealership has their strategy some make money by volume at lower margin, others make more money per deal by charging more but perhaps sell less units. In the end either strategy works for the dealer so long as people are buying/leasing.
Personally if I am not at $500 or less than their "invoice" then there is no deal. The costco deal is based on how popular the car is compared to other models with Toyota. They can charge a premium because the demand is fairly high for highlanders. What is nice about Costco is there is no negotiation on price from the manufacturer just on the dealer options. I was not impressed with Toyota Costco deals in searching for my vehicle this time. Whereas with my wife's Honda, the Costco deal was $200 over invoice on what is the best minivan on the market today.
To each his own, but I would definitely look to lower that agreed upon price below $900 over invoice, seems high compared to other deals out there.
Your trade-in should reduce your tax burden... So instead of using gross cap cost to calculate taxes I think you should be able to use your Net Cap Cost to determine taxes.
Sales Tax 7% (36425.50-27416.00)*0.07 = $630.67 which is $200.00 reduction.
You show a doc fee and a registration fee at $299 per, is that accurate? Seems redundant? Regardless even without duplication I am still getting a higher monthly rate prior to MSD reduction.
I would also think the the additional registration and tire tax rolled into the loan would be subject to interest thus increasing your monthly rate as well, albeit slightly.
Your determined MSD may be off by $50.00 per unit to $400.00. With your taxes rolled in I calculate a monthly rate of 365.18. The MSD unit cost is based to the nearest $50 dollars, rounded up, before the reduction in MF. This would take your MSDs cost to $3,600. Thus reducing your down payment from your trade-in which jumbles the whole equation. However with the adjusted tax calculation above it balances the calculation a little bit.
My dealer had a 0.0017 MF to start not a 0.0018 as you have indicated, so perhaps they can bring it down? I think MSDs are a great tool to house money with a return based on the reduction of the total loan worthy of the $3,600 investment you are speaking to. In fact I am calculating around a savings of $1,671.12 for the life of the lease with that $3,600 investment and you will of course get that $3,600 back minus the disposition fee when you return the car.
According to my spreadsheet I have a monthly payment of $383.83 prior to reduction of MF including taxes and other fees. Then with the MSD reduction in MF I get a monthly rate of $337.41. Keep in mind I have reduced your Trade-In allowance from $4,350 to $3,900 based on my MSD comments above. Total cost of the loan not including your trade in or MSDs is at $13,071.32.
So it seems to me that we are in the same ballpark and most likely we are dealing with a rounding error keeping in mind your MSDs may be $400 per and then a lesser reduction in Net Cap Cost due to a lower amount of your trade-in going into the down payment...
Not sure if that is helpful, but I do think you are VERY close. I was not satisfied until I knew the total cost of my loan was within a $1.00 and when my deal was done with, my math compared to TFS, was off by only $0.44 and the monthly rate calculation was off by $0.01, so I felt everything was in unison, and that made me happy with my deal.
Enjoy your Highlander, the car drives great, looks great and feels good to handle; but the Entune Dash is still not up to snuff with where real technology is today.
You show a doc fee and a registration fee at $299 per, is that accurate? Seems redundant? Regardless even without duplication I am still getting a higher monthly rate prior to MSD reduction.
I would also think the the additional registration and tire tax rolled into the loan would be subject to interest thus increasing your monthly rate as well, albeit slightly.
Your determined MSD may be off by $50.00 per unit to $400.00. With your taxes rolled in I calculate a monthly rate of 365.18. The MSD unit cost is based to the nearest $50 dollars, rounded up, before the reduction in MF. This would take your MSDs cost to $3,600. Thus reducing your down payment from your trade-in which jumbles the whole equation. However with the adjusted tax calculation above it balances the calculation a little bit.
My dealer had a 0.0017 MF to start not a 0.0018 as you have indicated, so perhaps they can bring it down? I think MSDs are a great tool to house money with a return based on the reduction of the total loan worthy of the $3,600 investment you are speaking to. In fact I am calculating around a savings of $1,671.12 for the life of the lease with that $3,600 investment and you will of course get that $3,600 back minus the disposition fee when you return the car.
According to my spreadsheet I have a monthly payment of $383.83 prior to reduction of MF including taxes and other fees. Then with the MSD reduction in MF I get a monthly rate of $337.41. Keep in mind I have reduced your Trade-In allowance from $4,350 to $3,900 based on my MSD comments above. Total cost of the loan not including your trade in or MSDs is at $13,071.32.
So it seems to me that we are in the same ballpark and most likely we are dealing with a rounding error keeping in mind your MSDs may be $400 per and then a lesser reduction in Net Cap Cost due to a lower amount of your trade-in going into the down payment...
Not sure if that is helpful, but I do think you are VERY close. I was not satisfied until I knew the total cost of my loan was within a $1.00 and when my deal was done with, my math compared to TFS, was off by only $0.44 and the monthly rate calculation was off by $0.01, so I felt everything was in unison, and that made me happy with my deal.
Enjoy your Highlander, the car drives great, looks great and feels good to handle; but the Entune Dash is still not up to snuff with where real technology is today.
Cheers
Thanks so much for the detailed reply - very helpful. The doc fee and reg fee are two different things. Great suggestion on the taxes on my trade in. The only thing that probably would need some tweaking is the taxes on the reg fee and tire tax since I would assume those would not be double taxed.. Thanks again.
Toyota residuals are squishy. The published percentage is only applicable to the base price of that model, and after that, it's hard to decipher. Each dealer has a dollar based residual on the invoice, that is correct for that model and lease term/mileage.
Negotiating a lease on a Toyota is not a very straightforward process, sorry to say.
Oh wait. He calculated this wrong. It is 64% of the "Retail Price". He was calculating the residual based on the "Total price"
So I guess that leaves my last question. Should I be looking at a better deal than $900 over invoice?
In my deal above on a Limited Platinum AWD 2015 the dealer indicated an RV of 60% for a 12k/3yr deal. When the deal was done, the calculated Residual Value was 63.35% from the Agreed Upon Price NOT MSRP for a 12k/3yr term. When I calculated the RV based on MSRP which every lease calculator will tell you to do (FYI MSRP SHOULD NOT INCLUDE DEALER OPTIONS) I came out with 59.87% or about 60% which is what I thought it would be.
I am impressed to see you guys getting 62% residual value and above, but maybe it is because of the platinum portion dropping in price so much?
According to my dealer I was $200 under invoice in Dallas TX. The dealer indicated they are all about volume and getting their 3% form Toyota is reasonable to them as they are all about moving inventory. Each dealership has their strategy some make money by volume at lower margin, others make more money per deal by charging more but perhaps sell less units. In the end either strategy works for the dealer so long as people are buying/leasing.
Personally if I am not at $500 or less than their "invoice" then there is no deal. The costco deal is based on how popular the car is compared to other models with Toyota. They can charge a premium because the demand is fairly high for highlanders. What is nice about Costco is there is no negotiation on price from the manufacturer just on the dealer options. I was not impressed with Toyota Costco deals in searching for my vehicle this time. Whereas with my wife's Honda, the Costco deal was $200 over invoice on what is the best minivan on the market today.
To each his own, but I would definitely look to lower that agreed upon price below $900 over invoice, seems high compared to other deals out there.
Thank you! I will definitely continue to haggle with them or go to another dealer!
I did state that I took a deal at $200 over invoice, and that is what I continue to look for. At invoice, you are doing well. I think I meant to say that $500 over invoice or below is the minimum depending on what demand is.
What is the percent off of MSRP you are getting, including any dealer options as well?
So, I'm AT invoice now. . . Stavmar, you said that you would be a no go with that deal. Not sure how much harder I can push.
sounds like you've done well. Provide the dealer with your zip code and be sure to ask them to calculate the OTD price for you including all fees along with a description of the vehicle. It's nice to have that in your hand when it's time to visit the dealer.
I am new to leasing and am hoping for some insight. I'm in MA and this the deal I have for a 24 month, 12k mile/year lease on a 2015 Highlander XLE AWD black w/black leather interior + Captain's Chairs in 2nd row.
MSRP: $38,810 includes destination charge Adjusted capitalized cost: $34,301.60 Lease end purchase option: $28, 652
I am new to leasing and am hoping for some insight. I'm in MA and this the deal I have for a 24 month, 12k mile/year lease on a 2015 Highlander XLE AWD black w/black leather interior + Captain's Chairs in 2nd row.
MSRP: $38,810 includes destination charge Adjusted capitalized cost: $34,301.60 Lease end purchase option: $28, 652
Total Due $ 3,670.99 $349 monthly payment (excluding tax)
Does the sound like a good deal?
We don't recommend putting money down on a lease. If the car is stolen or totaled, you are out that money.
That $2000 works out to $83/mo on the payment - better to keep the money and have a higher payment for the lease.
However .. with the numbers you've provided me, and using the base MF of .00160, I get a pre-tax payment of $333.44/mo for 24 months with $0 down payment. The dealer could be marking up the MF on you.
Ok, so I got my XLE today, 39/12 lease. Picked it up this afternoon. This is a LOOONG write up, I apologize in advance.
My 2012 Highlander SE lease was due this coming Tuesday, so just in the nick of time. Current is 36/12 lease, and I had 27,400 miles on it and great condition in and out, so I had good equity in it. Residual was only 21,979. This same exact car with similar mileage is listed at 27K in pre-owned Toyota showrooms). On the 2015, I got the exact color and options that I wanted. I was looking for a Ooh La La Rouge Mica (Maroon) with black interior, and VERY few dealers had them. If they did, it was the almond interior or options that I had no interest in. I just wanted the rubber floor mats (no carpet), and this one has wheel locks (wheel will be a little more secure). I think dealers knew it was rare, so they wanted a premium for this color.
Anyway, I contacted about 8-10 dealers in the NYC/Long Island area. I never put money down when leasing, so I only look to pay first month and DMV upfront. I got quotes all over the place, from $470 to $594 (LOL). I always asked for residual, money factor, so I could try to match their math, but it NEVER matched up. When I called them out on it, they said that I didn't know how to calculate a lease. Next!
I always give my current dealer (Star Toyota in Bayside, NY) the first and last shot. I'm loyal like that. LOL. I spoke first to them in December when I started thinking about getting a new one. His quote was about $480. I was paying $408 for my 2012 Highlander, so I wasn't crazy about the 2015 lease price. Then starting in late January, I got more serious about it and started contacting others. I hate that most keep asking you to come in, like it makes any difference, and some don't even want to negotiate by email or phone. Next! I can't ever get pressured into anything that I don't want so I did physically visit with a few hoping it would help lower the price. It didn't. So by early March, I had my best quote which was $470/mo with about $700 out of pocket (first month and DMV), and the equity in my old car (they didn't tell me how much they would credit me). About 10 days ago, I contacted my current dealer to give him one last shot to beat it. He said that he had the exact car I was looking for coming in from the factory mid-March. And he came back with $449/mo with NOTHING ($0, nothing, nada) out of pocket, and I give up the the equity in my current leased car that they would buy out. But it would be a 39/12 lease, 3 extra months. No brainer. SOLD. The car finally arrived yesterday, a few days late.
Summary... I got an XLE for 449/mo for 39 months (38 payments left), with literally nothing out of pocket. The lease contract shows a trade-in credit of $2021 for my 2012 Highlander lease end, so if you add the residual of 21979, that's $24,000 that they paid. I'm sure they will make at least $1500-2000 more on it still. So that $2021 credit covers money due at signing: first month, tire fee, and sales tax.
If anybody is interested: MSRP is 39,115 Sale price says 38,219 (I know it's relatively high, but I only look at the final monthly payment, these numbers aren't important) Adj Cap Cost $39,359.29 (includes acquisition ($995- credit union, not TFS) and DMV rolled in) Residual 24,592.05 (63% of MSRP) for 39 monrths Depreciation 14,767.24 Rent charge 2743.76 Total 17,511 ($449 per month x 39)
I learned a long time ago not to look at these numbers too closely but instead look at what I pay monthly and what the total is. This is my 4th straight Toyota lease, and the numbers never make sense, but I always get a good monthly rate.
My advice: Be patient. Leave yourself a window to shop, especially if you have a current lease ending. Don't be in a hurry. Don't seem desperate, and be willing to walk away over $5/month. If they say that you can budge on the $5, so can they. Contact as many dealers as you possibly can. Also, keep a list so you know who you spoke with, when, and what their best quote was because they will try to up it if you're not careful. I kept confusing their offers and who (person's name) I spoke with. Remember, they need you more than you need them.
If you are looking for a Highlander in NYC area, contact Anthony Cruz at Star Toyota in Bayside, Queens. Tell him Eric sent you and he'll hook you up. And if you lease/buy, we can split the referral bonus. LOL
And to add... the pick up process took only 30 minutes, and most of that time was me moving my crap from the old car to the new one. It's always bitter-sweet to say goodbye to an old friend who's been reliable and safely taken my family and I all over the country.
Dealer called me at 4pm. I went in at 5:00, was on the road by 5:30. He had me sign a few things (lease contract, odometer statement for my old car, odomoeter for the new car, privacy policy, DMV, and something else) and I was off.
And to add... the pick up process took only 30 minutes, and most of that time was me moving my crap from the old car to the new one. It's always bitter-sweet to say goodbye to an old friend who's been reliable and safely taken my family and I all over the country.
Dealer called me at 4pm. I went in at 5:00, was on the road by 5:30. He had me sign a few things (lease contract, odometer statement for my old car, odomoeter for the new car, privacy policy, DMV, and something else) and I was off.
that's an impressive sign and go time spent at the dealer. My recent purchase of a Highlander took over 2 hours with all pricing agreed to up front. I even cut short the the after market sales pitch telling the guy - save your breath I never ever ever ever buy that stuff - really - never ever ever ever - I had to say never ever a few more times till it sunk in. I was there an hour past closing - ugh.
Hey Guys, Hoping for some negotiations tips! Looking at a 2015 LE Plus 36/12 and hoping for zero down. In talks with a dealer in Las Vegas and this is what he has given me so far:
MSRP: 34978
Dealer Price: 33086
Tax: 2720.43 Title: 28.45 Doc Fees: 499.50 Residual: 21574 MF: .0018 (which is okay for us I think, as our credit score is about 680 - thoughts?)
The monthly lease payments I have been quoted are: $0 down 506 $1000 down 475 $2000 down 444
I don't know the invoice price but when I told him I was shooting for $32k, he said that was below invoice.
I really need the monthly payments to be as close to $400/month as possible and would like to avoid committing to a down payment.
So my questions are 1) does that residual seem low? And 2) what should I go back with to negotiate the best deal? I don't have a calc spreadsheet and am struggling to get the dollars to make sense given some of the great deals I've read about on this thread!
Hey Guys, Hoping for some negotiations tips! Looking at a 2015 LE Plus 36/12 and hoping for zero down. In talks with a dealer in Las Vegas and this is what he has given me so far:
MSRP: 34978
Dealer Price: 33086
Tax: 2720.43 Title: 28.45 Doc Fees: 499.50 Residual: 21574 MF: .0018 (which is okay for us I think, as our credit score is about 680 - thoughts?)
The monthly lease payments I have been quoted are: $0 down 506 $1000 down 475 $2000 down 444
I don't know the invoice price but when I told him I was shooting for $32k, he said that was below invoice.
I really need the monthly payments to be as close to $400/month as possible and would like to avoid committing to a down payment.
So my questions are 1) does that residual seem low? And 2) what should I go back with to negotiate the best deal? I don't have a calc spreadsheet and am struggling to get the dollars to make sense given some of the great deals I've read about on this thread!
Any advice so appreciated! Thanks in advance!
Toyota residuals are weird.. but, the dealer can't alter them... that residual is over 61% of MSRP.
You can calculate the invoice price by using the tabs at the top of the page.... Edmunds will also give you their estimate of market value.
So my questions are 1) does that residual seem low? And 2) what should I go back with to negotiate the best deal? I don't have a calc spreadsheet and am struggling to get the dollars to make sense given some of the great deals I've read about on this thread
Residual is on point based on my recent purchase, I have seen residuals mentioned above that were much higher but I am not sure it is apples to apples comparisons. I had the same 12k/36month proposal as you but my MF was 0.0017 on the lease. They may be adding that extra 0.0001 due to your credit.
Currently you are a 5% discount from MSRP as you have stated above. While not amazing it is fairly reasonable to think that you are likely at invoice price or just above it. The demand for the highlander favors the dealer so they are less likely to budge on price. That should give you perhaps 3% of wiggle room to haggle down. Perhaps less depending on what the dealer strategy is. You should have more than one dealership in Las Vegas so hopefully you have time to play the game if you are looking for best price. Anything above a 7.5% in this leaser's opinion is amazing on such a high demand vehicle.
As a side comment you mentioned the following:
I really need the monthly payments to be as close to $400/month as possible and would like to avoid committing to a down payment.
When you consider what your parameters are, you should really think about the cost of the car itself and ask your self can I meet my goals. Based on the cost of this type of vehicle, you will not achieve your goal of $400/month because the numbers don't allow it. Be reasonable in your expectations and understand what limitations you have. You will always be a happier customer if you leave the transaction knowing you got the best deal within your expectations. Try to stay within your budget otherwise you will find yourself in a place that can be difficult to come out of.
Good luck and definitely try to get them to lower the price by 7.5% below MSRP. Then you should feel confident that you are indeed getting a great deal.
i don't get this goal of using a % below MSRP as your target in negotiating. Some manufactures are so silly with some of the MSRP's they come up with that I have to wonder if they are playing to the strategy of $$ off MSRP vs. what the car is really worth. Ford, GM and Chrysler are notorious at advertising cars $10,000 off MSRP with a half dozen incentives - these are often 15-20% off MSRP. You wouldn't be doing very well with some cars settling for just 10% of MSRP.
Can you please supply me with the money factor and residual for a 36 mo 12k and 15k lease on a 2015 Highlander Limited Platinum in NYC.
Thanks in advance!
American MSRPs are not the same as foreign cars. Invoice prices that dealers give you are just not believable and are most certainly not transparent or reliable. Most American companies have such discounts to make the consumer feel better about the purchase because they know their residuals are not 60%+ after a 3 yr lease, like foreign cars seem to achieve.
MSRP without dealer options is the best equalizer accross dealerships as they should be the same.
The dealer options are a place you can really achieve some significant discounts if the dealer wants to move the car.
In the end it is supply and demand, so timing and the demand of the vehicle will sway the deal in both directions, in favor of the buyer or in favor of the dealer. If you can get invoice and you believe it, then go for it by all means. When I see invoice sheets from dealers they are on ancient computer printouts that could be written by a typewriter, and frankly I just don't think they are legitimate, but when you look at manufacturer MSRP accross dealerships the values seem to be consistant and offer a starting value to work from. Getting 10% off MSRP on a Toyota/Honda is quite the achievement because their cars hold their value longer, with American cars, even Cadillac, I would expect 10% to be the minimum discount off MSRP because that is how American dealers roll.
Wondering if this is a good deal. Washington State 2015 Limited MSRP 42,985 Sales Price $40,482 36 month lease 12K miles MF .00185 Residual 26,592 Down (with first payment) $1000 Payment of $528.88
Wondering if this is a good deal. Washington State 2015 Limited MSRP 42,985 Sales Price $40,482 36 month lease 12K miles MF .00185 Residual 26,592 Down (with first payment) $1000 Payment of $528.88
So without the taxes rolled in I calculate a value of $538.04 per month with the data you are sharing. Keep in mind there are other fees as well that can be paid up front or in the lease. Your residual is 61.86 or 62% that is just amazing. I just leased my Limited Platinum in Texas in February with a 60% residual. That just shows you the bells and whistles don't retain their value over time.
As you may have read above putting any money down is never advised since it is just giving the dealer/manufacture the money that you would lose in a total loss situation (Like in an accident). However, if it lowers your payment and that makes you feel better, more power to you.
If I include the down payment the monthly rate goes down to $508.41, which is below your monthly payment above.
The difference in monthly payment totals out to $1,210.68 over 36 months, with your $1,000 down. So in essence over the life of your lease, your $1,000 down payment saves you $211. If you think of your down payment as an investment (which it is NOT) your $1,000 turned into a 21.1% savings which is not terrible as you would be hard pressed to make 21.1% in a bank over 3 years (about 7% per year not counting for inflation), but maybe not the stock market or 401K? Just some food for thought.
The final monthly calculation i have listed above assumes some additional fees but perhaps others I am not? These include TTL, Dealer Fees, and Acquisition Fees. Based on your numbers with the down payment they are most likely close to accurate if you don't include taxes in your loan. Taxes will of course be added per payment each month as it is in most states, but in other states the Tax is rolled into the loan, so each state is different. I think the calculated monthly payment is most likely accurate that you provided above.
As for if it is a good deal, with my mindset you are getting a 5.8% discount from MSRP which I believe is fairly good for a 2015 Highlander Limited, but with the highest end models (Limited, Limited Platinum), you should definitely try to lower that Sales price to 7.5% below MSRP or $39,976.05. Dealers are sometimes more flexible with the higher end cars because they don't move as much as the XLEs. Toyota dealerships are so enthralled with their residuals, because they can be, that they tend to not be so flexible in the lowering of their sales prices. SO you need to work out some other deals, Toyota care included for another year perhaps, or some other goodies like all weather mats, something the dealer provides to make the deal sweeter.
Good luck to you, I love driving my Highlander, except for the enTune system of course, and it was this site that made the leasing experience an awesome one for me.
Working on a deal leasing a Highland XLE 2015 48 month lease/12,000. Could you tell me what the lease factor should be with Tier 1+ credit? Thanks so much.
Working on a deal leasing a Highland XLE 2015 48 month lease/12,000. Could you tell me what the lease factor should be with Tier 1+ credit? Thanks so much.
We don't have the numbers for a 48 month term, but the money factor probably doesn't differ much from the 36 month number, which is around .00170 for most of the country
I'm seeing that BuyAToyota.com is offering a $20/month reduction in lease price for 24 months and a $10/month reduction for 36 months vs what they offered in March. Can you provide the April MF and residual for MA?
I'm seeing that BuyAToyota.com is offering a $20/month reduction in lease price for 24 months and a $10/month reduction for 36 months vs what they offered in March. Can you provide the April MF and residual for MA?
I am looking to lease a XLE, FWD no extras. I am in the Dallas area. My credit is terrible, but I have a cosigner with excellent credit (800+). I am really not good at negotiating, but going off the threads in this forum, I think I am getting quoted much too high a payment. 2 dealers have quoted me 615-700/month (~40k MSRP). with only first month and and doc fees. They keep waiving my credit over my head and say it justifies the payment. However, they refuse to share MF or residual. I know I should go to a different dealer, but I wanted to get some advise from everyone here. Thank you!
I am looking to lease a XLE, FWD no extras. I am in the Dallas area. My credit is terrible, but I have a cosigner with excellent credit (800+). I am really not good at negotiating, but going off the threads in this forum, I think I am getting quoted much too high a payment. 2 dealers have quoted me 615-700/month (~40k MSRP). with only first month and and doc fees. They keep waiving my credit over my head and say it justifies the payment. However, they refuse to share MF or residual. I know I should go to a different dealer, but I wanted to get some advise from everyone here. Thank you!
A couple of points to note:
Leasing in Texas is expensive; sales tax is assessed against the entire selling price of the car, which makes the payments higher than in other states.
Your credit may be affecting your payment; the base MF on the Highlander was .00170 last month. If the dealer is marking that up, the rent charge can be quite high.
Yes, reach out to a different dealer (or two, or three).
Comments
I am interested in a lease and have been given all kinds of wacky MF's by dealers.
Is .0017 correct for both trims of the Highlander?
Are the residuals XLE - 67% and Limited - 64%??
Thank you!!
For 36mo, 12K/yr? Yes
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Thanks for the reply. Is it the same for the RV, or it should be the same regardless of the region since the RV numbers are coming from ALG?
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what the moderator is quoting you is the bottom rate as set forth by the lending arm of the manufacturer; and like all pricing that comes out of the dealer - rates and prices are negotiable. I have found trying to negotiate at the dealership for your best rate/price is a waste of time. The only time I got a dealer to jump through hoops for me in person was when a competing dealer was calling me while I was sitting in his office. It was like having someone in a head lock or choke hold. I should of put him on speaker phone and had the two duke it out while I just sit back and watch them eat each other.
Unfortunately, it doesn't match the numbers here exactly. The residual on a Limited AWD with no additional options is 62%.
Can they be fudging these numbers?
Also, am I gathering here that $900 over invoice (Costco deal) is not the greatest deal? Should I try to haggle more??
Thanks!
So I guess that leaves my last question. Should I be looking at a better deal than $900 over invoice?
MSRP XLE: $37950
Captain Chairs: $275
Rear Seat DVD: $1810
Destination Fee: $885
Total MSRP: $40920
True Market Value: $39070
Acquisition Fee: $650
Doc Fee: $299
Gross Cap Cost = $39070+$650+$299 = $40019
Trade in Allowance = $4350
Net Cap Cost = $40019 - $4350 = $35669
Residual 67% = $40920 * .67 = 27416
Depreciation = $35669-27416 = $8253
Sales Tax 7% = ($40019 - 27416) * .07= $882,21
Tire Tax = $7.50
Vehicle Registration = $299
Money Factor = 0.0018 - (9 MSDs * 0.0008) = 0.00108
Base (35669 - 27416+882.21)/36 = $253.76
Finance = (35669+27416)*0.00108 =$68.13
Addl Fees (Tire Tax + Vehicle reg = $306.50/36 months = $8.51
Total $330.40
Total Monthly Payments = $11894.40
Trade-in = $4350
9 MSDs = 9* $350 = $3,150
I am impressed to see you guys getting 62% residual value and above, but maybe it is because of the platinum portion dropping in price so much?
According to my dealer I was $200 under invoice in Dallas TX. The dealer indicated they are all about volume and getting their 3% form Toyota is reasonable to them as they are all about moving inventory. Each dealership has their strategy some make money by volume at lower margin, others make more money per deal by charging more but perhaps sell less units. In the end either strategy works for the dealer so long as people are buying/leasing.
Personally if I am not at $500 or less than their "invoice" then there is no deal. The costco deal is based on how popular the car is compared to other models with Toyota. They can charge a premium because the demand is fairly high for highlanders. What is nice about Costco is there is no negotiation on price from the manufacturer just on the dealer options. I was not impressed with Toyota Costco deals in searching for my vehicle this time. Whereas with my wife's Honda, the Costco deal was $200 over invoice on what is the best minivan on the market today.
To each his own, but I would definitely look to lower that agreed upon price below $900 over invoice, seems high compared to other deals out there.
Sales Tax 7% (36425.50-27416.00)*0.07 = $630.67 which is $200.00 reduction.
You show a doc fee and a registration fee at $299 per, is that accurate? Seems redundant? Regardless even without duplication I am still getting a higher monthly rate prior to MSD reduction.
I would also think the the additional registration and tire tax rolled into the loan would be subject to interest thus increasing your monthly rate as well, albeit slightly.
Your determined MSD may be off by $50.00 per unit to $400.00. With your taxes rolled in I calculate a monthly rate of 365.18. The MSD unit cost is based to the nearest $50 dollars, rounded up, before the reduction in MF. This would take your MSDs cost to $3,600. Thus reducing your down payment from your trade-in which jumbles the whole equation. However with the adjusted tax calculation above it balances the calculation a little bit.
My dealer had a 0.0017 MF to start not a 0.0018 as you have indicated, so perhaps they can bring it down? I think MSDs are a great tool to house money with a return based on the reduction of the total loan worthy of the $3,600 investment you are speaking to. In fact I am calculating around a savings of $1,671.12 for the life of the lease with that $3,600 investment and you will of course get that $3,600 back minus the disposition fee when you return the car.
According to my spreadsheet I have a monthly payment of $383.83 prior to reduction of MF including taxes and other fees. Then with the MSD reduction in MF I get a monthly rate of $337.41. Keep in mind I have reduced your Trade-In allowance from $4,350 to $3,900 based on my MSD comments above. Total cost of the loan not including your trade in or MSDs is at $13,071.32.
So it seems to me that we are in the same ballpark and most likely we are dealing with a rounding error keeping in mind your MSDs may be $400 per and then a lesser reduction in Net Cap Cost due to a lower amount of your trade-in going into the down payment...
Not sure if that is helpful, but I do think you are VERY close. I was not satisfied until I knew the total cost of my loan was within a $1.00 and when my deal was done with, my math compared to TFS, was off by only $0.44 and the monthly rate calculation was off by $0.01, so I felt everything was in unison, and that made me happy with my deal.
Enjoy your Highlander, the car drives great, looks great and feels good to handle; but the Entune Dash is still not up to snuff with where real technology is today.
Cheers
Thanks again.
Negotiating a lease on a Toyota is not a very straightforward process, sorry to say.
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What is the percent off of MSRP you are getting, including any dealer options as well?
MSRP: $38,810 includes destination charge
Adjusted capitalized cost: $34,301.60
Lease end purchase option: $28, 652
Due @ Signing 1st Month $349 +tax $21.81 =$ 370.81
Cap Reduction $2,000 +tax $125 = $2,125
Plates and Reg Fee = $ 135
Doc Fee $329 + tax $20.56 = $ 349.56
Bank Acquisition fee $650 +tax $40.62 = $ 690.62
Total Due $ 3,670.99
$349 monthly payment (excluding tax)
Does the sound like a good deal?
That $2000 works out to $83/mo on the payment - better to keep the money and have a higher payment for the lease.
However .. with the numbers you've provided me, and using the base MF of .00160, I get a pre-tax payment of $333.44/mo for 24 months with $0 down payment. The dealer could be marking up the MF on you.
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
What's the money factor and residual on an XLE AWD with 36/7.5k?
Thanks!
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
Is the XLE FWD with 36/7.5k the same?
Subtract 1% from the residual for FWD
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
Dealer is saying they never do anything under 12k for miles. That doesn't sound right to me. Have you heard of that from Toyota before?
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My 2012 Highlander SE lease was due this coming Tuesday, so just in the nick of time. Current is 36/12 lease, and I had 27,400 miles on it and great condition in and out, so I had good equity in it. Residual was only 21,979. This same exact car with similar mileage is listed at 27K in pre-owned Toyota showrooms). On the 2015, I got the exact color and options that I wanted. I was looking for a Ooh La La Rouge Mica (Maroon) with black interior, and VERY few dealers had them. If they did, it was the almond interior or options that I had no interest in. I just wanted the rubber floor mats (no carpet), and this one has wheel locks (wheel will be a little more secure). I think dealers knew it was rare, so they wanted a premium for this color.
Anyway, I contacted about 8-10 dealers in the NYC/Long Island area. I never put money down when leasing, so I only look to pay first month and DMV upfront. I got quotes all over the place, from $470 to $594 (LOL). I always asked for residual, money factor, so I could try to match their math, but it NEVER matched up. When I called them out on it, they said that I didn't know how to calculate a lease. Next!
I always give my current dealer (Star Toyota in Bayside, NY) the first and last shot. I'm loyal like that. LOL. I spoke first to them in December when I started thinking about getting a new one. His quote was about $480. I was paying $408 for my 2012 Highlander, so I wasn't crazy about the 2015 lease price. Then starting in late January, I got more serious about it and started contacting others. I hate that most keep asking you to come in, like it makes any difference, and some don't even want to negotiate by email or phone. Next! I can't ever get pressured into anything that I don't want so I did physically visit with a few hoping it would help lower the price. It didn't. So by early March, I had my best quote which was $470/mo with about $700 out of pocket (first month and DMV), and the equity in my old car (they didn't tell me how much they would credit me). About 10 days ago, I contacted my current dealer to give him one last shot to beat it. He said that he had the exact car I was looking for coming in from the factory mid-March. And he came back with $449/mo with NOTHING ($0, nothing, nada) out of pocket, and I give up the the equity in my current leased car that they would buy out. But it would be a 39/12 lease, 3 extra months. No brainer. SOLD. The car finally arrived yesterday, a few days late.
Summary... I got an XLE for 449/mo for 39 months (38 payments left), with literally nothing out of pocket. The lease contract shows a trade-in credit of $2021 for my 2012 Highlander lease end, so if you add the residual of 21979, that's $24,000 that they paid. I'm sure they will make at least $1500-2000 more on it still. So that $2021 credit covers money due at signing: first month, tire fee, and sales tax.
If anybody is interested:
MSRP is 39,115
Sale price says 38,219 (I know it's relatively high, but I only look at the final monthly payment, these numbers aren't important)
Adj Cap Cost $39,359.29 (includes acquisition ($995- credit union, not TFS) and DMV rolled in)
Residual 24,592.05 (63% of MSRP) for 39 monrths
Depreciation 14,767.24
Rent charge 2743.76
Total 17,511 ($449 per month x 39)
I learned a long time ago not to look at these numbers too closely but instead look at what I pay monthly and what the total is. This is my 4th straight Toyota lease, and the numbers never make sense, but I always get a good monthly rate.
My advice: Be patient. Leave yourself a window to shop, especially if you have a current lease ending. Don't be in a hurry. Don't seem desperate, and be willing to walk away over $5/month. If they say that you can budge on the $5, so can they. Contact as many dealers as you possibly can. Also, keep a list so you know who you spoke with, when, and what their best quote was because they will try to up it if you're not careful. I kept confusing their offers and who (person's name) I spoke with. Remember, they need you more than you need them.
If you are looking for a Highlander in NYC area, contact Anthony Cruz at Star Toyota in Bayside, Queens. Tell him Eric sent you and he'll hook you up. And if you lease/buy, we can split the referral bonus. LOL
Dealer called me at 4pm. I went in at 5:00, was on the road by 5:30. He had me sign a few things (lease contract, odometer statement for my old car, odomoeter for the new car, privacy policy, DMV, and something else) and I was off.
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Hoping for some negotiations tips!
Looking at a 2015 LE Plus 36/12 and hoping for zero down. In talks with a dealer in Las Vegas and this is what he has given me so far:
MSRP: 34978
Dealer Price: 33086
Tax: 2720.43
Title: 28.45
Doc Fees: 499.50
Residual: 21574
MF: .0018 (which is okay for us I think, as our credit score is about 680 - thoughts?)
The monthly lease payments I have been quoted are:
$0 down 506
$1000 down 475
$2000 down 444
I don't know the invoice price but when I told him I was shooting for $32k, he said that was below invoice.
I really need the monthly payments to be as close to $400/month as possible and would like to avoid committing to a down payment.
So my questions are 1) does that residual seem low? And 2) what should I go back with to negotiate the best deal? I don't have a calc spreadsheet and am struggling to get the dollars to make sense given some of the great deals I've read about on this thread!
Any advice so appreciated! Thanks in advance!
You can calculate the invoice price by using the tabs at the top of the page.... Edmunds will also give you their estimate of market value.
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Residual is on point based on my recent purchase, I have seen residuals mentioned above that were much higher but I am not sure it is apples to apples comparisons. I had the same 12k/36month proposal as you but my MF was 0.0017 on the lease. They may be adding that extra 0.0001 due to your credit.
Currently you are a 5% discount from MSRP as you have stated above. While not amazing it is fairly reasonable to think that you are likely at invoice price or just above it. The demand for the highlander favors the dealer so they are less likely to budge on price. That should give you perhaps 3% of wiggle room to haggle down. Perhaps less depending on what the dealer strategy is. You should have more than one dealership in Las Vegas so hopefully you have time to play the game if you are looking for best price. Anything above a 7.5% in this leaser's opinion is amazing on such a high demand vehicle.
As a side comment you mentioned the following:
When you consider what your parameters are, you should really think about the cost of the car itself and ask your self can I meet my goals. Based on the cost of this type of vehicle, you will not achieve your goal of $400/month because the numbers don't allow it. Be reasonable in your expectations and understand what limitations you have. You will always be a happier customer if you leave the transaction knowing you got the best deal within your expectations. Try to stay within your budget otherwise you will find yourself in a place that can be difficult to come out of.
Good luck and definitely try to get them to lower the price by 7.5% below MSRP. Then you should feel confident that you are indeed getting a great deal.
Thanks in advance!
.00170 and 60% for 36/15.
Add 2% for 12K miles per year.
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
MSRP without dealer options is the best equalizer accross dealerships as they should be the same.
The dealer options are a place you can really achieve some significant discounts if the dealer wants to move the car.
In the end it is supply and demand, so timing and the demand of the vehicle will sway the deal in both directions, in favor of the buyer or in favor of the dealer. If you can get invoice and you believe it, then go for it by all means. When I see invoice sheets from dealers they are on ancient computer printouts that could be written by a typewriter, and frankly I just don't think they are legitimate, but when you look at manufacturer MSRP accross dealerships the values seem to be consistant and offer a starting value to work from. Getting 10% off MSRP on a Toyota/Honda is quite the achievement because their cars hold their value longer, with American cars, even Cadillac, I would expect 10% to be the minimum discount off MSRP because that is how American dealers roll.
To each his own.
2015 Limited MSRP 42,985
Sales Price $40,482
36 month lease
12K miles
MF .00185
Residual 26,592
Down (with first payment) $1000
Payment of $528.88
As you may have read above putting any money down is never advised since it is just giving the dealer/manufacture the money that you would lose in a total loss situation (Like in an accident). However, if it lowers your payment and that makes you feel better, more power to you.
If I include the down payment the monthly rate goes down to $508.41, which is below your monthly payment above.
The difference in monthly payment totals out to $1,210.68 over 36 months, with your $1,000 down. So in essence over the life of your lease, your $1,000 down payment saves you $211. If you think of your down payment as an investment (which it is NOT) your $1,000 turned into a 21.1% savings which is not terrible as you would be hard pressed to make 21.1% in a bank over 3 years (about 7% per year not counting for inflation), but maybe not the stock market or 401K? Just some food for thought.
The final monthly calculation i have listed above assumes some additional fees but perhaps others I am not? These include TTL, Dealer Fees, and Acquisition Fees. Based on your numbers with the down payment they are most likely close to accurate if you don't include taxes in your loan. Taxes will of course be added per payment each month as it is in most states, but in other states the Tax is rolled into the loan, so each state is different. I think the calculated monthly payment is most likely accurate that you provided above.
As for if it is a good deal, with my mindset you are getting a 5.8% discount from MSRP which I believe is fairly good for a 2015 Highlander Limited, but with the highest end models (Limited, Limited Platinum), you should definitely try to lower that Sales price to 7.5% below MSRP or $39,976.05. Dealers are sometimes more flexible with the higher end cars because they don't move as much as the XLEs. Toyota dealerships are so enthralled with their residuals, because they can be, that they tend to not be so flexible in the lowering of their sales prices. SO you need to work out some other deals, Toyota care included for another year perhaps, or some other goodies like all weather mats, something the dealer provides to make the deal sweeter.
Good luck to you, I love driving my Highlander, except for the enTune system of course, and it was this site that made the leasing experience an awesome one for me.
Cheers!
Thanks so much.
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I am looking to lease a XLE, FWD no extras. I am in the Dallas area. My credit is terrible, but I have a cosigner with excellent credit (800+). I am really not good at negotiating, but going off the threads in this forum, I think I am getting quoted much too high a payment. 2 dealers have quoted me 615-700/month (~40k MSRP). with only first month and and doc fees. They keep waiving my credit over my head and say it justifies the payment. However, they refuse to share MF or residual. I know I should go to a different dealer, but I wanted to get some advise from everyone here. Thank you!
Leasing in Texas is expensive; sales tax is assessed against the entire selling price of the car, which makes the payments higher than in other states.
Your credit may be affecting your payment; the base MF on the Highlander was .00170 last month. If the dealer is marking that up, the rent charge can be quite high.
Yes, reach out to a different dealer (or two, or three).
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