Last post on Apr 01, 2013 at 10:27 AM
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Toyota Tundra, Car Leasing, Truck
#106 of 235 Re: 2005 Tundra SR5 -lease buyout info. [2005tundra]
Jan 15, 2008 (5:50 am)
I just bought out the lease on my '05 DC 4x4 as well. My residual was only $19,500 though. Funny they were that far off..mine is about as loaded as an SR5 can get and was a 12k miles/year term. I did a lease assumption on mine though so I had nothing out of pocket initially and the lower residual actually helped me. I did a lot of looking and I felt $19,500 was a fair number. Toyota refused to negotiate the buy-out. It would appear $21,000-$22,000 is probably real world money on a private party sale, with 27k miles. $24,000 sounds a little high even with your lower miles, but it could depend on your region. Pacific northwest seems to bring a premium on these.
In general the used full-size truck market is in the dumper and your competing with new trucks that are heavily discounted. There was a time you could pick up a decent equipped '07 Tundra DC for around $25,000 and you can currently get an '08 for $27,000. Probably won't be long the '08's will have even more rebate as well. Not likely to find a buyer that will pay anywhere near what a new one is selling for uless they just really wanted the older bodystyle in which case they have gobs of choices. Toyota pushed a ton of these out on lease back in '05/'06 and there's a heavy stream of returns pouring through. I'm sure their plan was to have folks coming off lease and buying a new Tundra....but the new one doesn't interest me at all.
#107 of 235 2005 Tundra SR5 -lease buyout info
Jan 15, 2008 (8:36 pm)
Thanks for your feedback! Currently, I'm coming off a 3 yr. lease w/ monthly pymts of $234 (due to the $5K downpymt). I have a cap on the back of the truck, grill guard & running boards..KBB value is at $24M (keep in mind the low mileage (14K). I feel buying out the lease is the best bet since the 05' still looks and feels like a new truck. I don't want to keep paying lease payments 4ever.
TFS told me to go to the dealership to process the paperwork for a buyout ..and they will not negotiate (the price is the price / a closed end contract). However, the stealership told me to contact the TFS if I want to buyout the car. I hope they don't continue to jerk me around..I really want a seemless transaction w/o any unnecessary hassles. Again, thanks for your information it is very much appreciated. Let me know your thoughts.
#108 of 235 Re: 2005 Tundra SR5 -lease buyout info [2005tundra]
Jan 16, 2008 (4:14 am)
Are you going to finance the remaining balance or just pay cash and be done with it? Heck, at the rate you're going with such low miles on that vehicle, that thing will last you 40+ years!!
It's a solid truck, no doubt!
#109 of 235 Re: 2005 Tundra SR5 -lease buyout info [ocautoseeker]
Jan 16, 2008 (9:03 pm)
Most likely financing the buyout. Need to ascertain whether the buy out price can be a bit lower...with regards to applying any incentives or rebates (if any). Thanks again for your help...really appreciate it. I believe the truck will last a number of years...but (40?) come on now..LOL
#110 of 235 Re: 2005 Tundra SR5 -lease buyout info [2005tundra]
Jan 17, 2008 (8:41 am)
KBB seems to be high by all regards. I tried to sell mine a couple months before the lease end and couldn't get any takers at $22,000 which is what I needed to make it worthwhile in my mind. I've done several lease assumptions and I usually come out very good on the tail, almost getting all my payment money back. Dropping much below $22,000 didn't appeal to me so I just bought it out. Didn't see many good lease assumption deals floating around anyway and I like the truck. It's always better to buy a vehicle you know everything about and that's worth something in my mind.
TMC told me I had to use a dealer and that's what I did. I called and talked to the credit manager who handled everything. Essentially, they have to buy it from Toyota for your residual and then sell it to you for the same amount. This is different than other leases I've used and I don't know exactly how that relationship works with the dealer. Since your residual is so much higher, I'd certainly try to negotiate with Toyota. They told me no-way, but like I said, my residual as of January 15th (i did the buyout around december 20th) was $19,400. Even with the low miles, (mine has 27k) that's a pretty big difference. The cap/running boards etc. likely didn't add anything to the residual and the residual is based on the original miles, not what you currently have. Yes, the vehicle is currently worth more but I wouldn't exactly TELL them it only has 14k miles on it...!! Mine was about 10k miles under the allowance and I told them I "thought it was pretty close". They still said no.
From what the TMC person told me, if you turn the vehicle in it's put into an online auction for dealers who can then buy it. I highly doubt any dealer would pay that much for it so TMC is going to lose out. I'd talk closely with the dealer about it and see what they say. My dealer told me Toyota would give them an opportunity to buy it, but I couldn't get any details out of him as to what he though they could get it for and if it would be less. Good luck!
#111 of 235 Re: 2005 Tundra SR5 -lease buyout info [sebring95]
Jan 18, 2008 (9:16 pm)
Spoke to the stealership guy and they will "not make any deals" in regards to buying out the lease. The residual on the contract is $21M for the buy out.
To clarify, the KBB trade in value is $21M / & / Private Party value is $24M. I've also put down $5M upon initially leasing the vehicle. (That would bring the total car cost up to $34,500 or $35,500.) Does that price seem high to you ? or on target (I've lost track). I am not interested in selling this vehicle..as I want it for my own driving needs.
Pls. let me know any pitfalls to avoid when finalizing the buyout paperworkl at the dealership. This bullcrap really stresses me out.,,,for real.
The stealership keeps pushing for me to lease an 08' or finance a loan w/ TMF. When I explain that I want to buy the 05" he suddenly does not want to discuss anything further...(Things that make you go Hum?). (What gives?? )I guess that's how they make their money.
To tell you the truth I'm stuck on my SR5 05'. I noticed the newer model tundras don't have the fog lights (it's an additional option/ not standard) except on the Limited version. THANKS A MILLION FOR ALL YOUR HELP ! You guys know all the loopholes..if any">.
#112 of 235 I'm Going with The Tundra
Jan 18, 2008 (9:44 pm)
Hi Car man,
The Frontier turned out to be too small and too light! I feel a Tundra It's going to be much more comfortable and spaceous for the family for our summer vacation trips... besides my Shadow didn't fit too well on the back of this truck.
Therefore, could you please provide the current money factor and residual from TFS for a 2008 Tundra CrewMax SR5 4x2, 4.7L, 5 spd auto (model 8260), 36 or 39 months and 12K miles.
Thanks again for your help.
#113 of 235 Re: I'm Going with The Tundra [pcantore]
Jan 18, 2008 (9:47 pm)
Car man, we're in South Florida...
#114 of 235 Re: 2005 Tundra SR5 -lease buyout info [2005tundra]
Jan 19, 2008 (10:46 am)
I think Toyota requires you to use a dealer simply as a marketing tool. Obviously, any customer they can get in the door is a good thing.... Make sure you ask about "document fees" and such before you use that dealer. My dealer charged $50 for title transfer and such. If you're going to finance it through one of their lenders, the dealer will get a kick-back from the lender so they're not doing this for free. Of course they want to sell you a new one...they get your low mileage used vehicle that they'll make a profit on plus sell you a new one. That's why I didn't speak to anyone at the dealership besides the finance manager and told him exactly what I wanted from him. They were ok to deal with, certainly didn't give me any priority. I started the process about a month before my turn-in date and ended up getting the title yesterday (4 days after my turn-in date). So nothing happens quickly!
IMO, KBB is high on these in both trade and private party. At least what I've seen and was offered when trying to sell mine. I'm happy with it though but I'm not sure why your residual is so high. My truck sticker was around $34,000 and the sale price was around $31,000. Residual was $19,400. Obviously the higher residual helps you on payment, but makes the buy-out a little less attractive. But I'd say you're probably still ahead because of the low miles. If you like the truck, it really doesn't matter in my book. I didn't find anything I liked better so when nobody would give me my asking price, I just bought it.
#115 of 235 Re: 2005 Tundra SR5 -lease buyout info [sebring95]
Jan 19, 2008 (8:43 pm)
I feel the same way ...I'm buying out this truck irregardless ..just because it offers me everything I want in a truck. I'm located in the NE so that's why the values may be a bit higher.
Yet again the saleslady called today...wants me to come in to discuss my options. I specifically asked for the finance manager ...& that ended that phone call. Suddenly, when you say your buying the truck ..these salespeople literally hang up on your ear..
In any event, just got paperwork for the odometer reading..& I will meet with the finance manager next week to get things rollin... Thanks again for the heads up...on the Slow Turnaround. Like you, I am starting the process earlier to get things in order..prior the the lease end. Hopefully, I will have a seemless transaction at the Toyota dealership. Again, I appreciate eveyone's feedback it has been very helpful.