Last post on Apr 01, 2013 at 9:27 AM
You are in the Prices Paid - Buying & Leasing Experiences
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Toyota Tundra, Car Leasing, Truck
#180 of 235 2008 Toyota Tundra SR5 4X4 Dbl Cab 5.7L
Jul 29, 2008 (6:09 pm)
I am about to make a purchase and I'm trying to decide whether I should lease or buy. The conventional wisdom is telling me that if I plan on keeping it I should buy it outright, but the dealership in Houston, TX is offering me an extra $2K incentive for leasing. Should I take the bait??
* I managed to negotiate the truck to $22,800 (including 3500 worth of installed options) - This deal is after the $5K manufacturer's incentive currently being offered.
The deal being offered based on my questions to the dealership:
36 months lease / 12K miles / 325 down (1st payment), but I can't seem to get him to tell me what Money Factor used to arrive at the number and he claimed that the residual value will be 17K at the end of the lease. I don't seem to be able to understand how he came up with that 325.33 monthly payment.
Thanks in advance.
#181 of 235 2008 Tundra 5.7L Double Cab (Houston, TX)
Jul 30, 2008 (12:27 pm)
I have a lease deal proposed to me with a Money Factor of 0.00340 on a 36 months lease with a residual value of 17,500 on a Tundra 2008 with the selling price after 7K of rebates/incentives. Is that a good deal?
I'm trying to make a decision on whether to purchase vs leasing
#182 of 235 Re: 2008 Tundra 5.7L Double Cab (Houston, TX) [6a14ugx4]
Jul 30, 2008 (12:42 pm)
in CA the buy rate on a lease is 0.00016
#183 of 235 Re: 2008 Tundra 5.7L Double Cab (Houston, TX) [6a14ugx4]
Jul 31, 2008 (1:40 am)
that's an atrocious mf!! they have to be quoting you numbers from an outside lender. tfs' rates are very low right now in most regions,making it a great time to lease a tundra, if you don't mind the extra fuel expense, though.
in many regions, if you qualify for tfs' tier 1 + credit, your rate will hover around 1%.
#184 of 235 Re: 2008 Tundra 5.7L Double Cab (Houston, TX) [ocautoseeker]
by kyfdx@Edmunds HOST
Jul 31, 2008 (7:43 am)
Either that.. or he left out a zero..
Aug 13, 2008 (6:37 pm)
I am looking to do my first lease and I am still a little unsure how to know if I am negotiating a good deal;
I am between a '08 Tundra and '08 Tacoma;
I am located in Milwaukee, WI 53227, Tax rate 5.6%, and fall into a Tier 1 credit rating
The 2008 Tundra I am looking at is as follows;
CrewMax 4x4, SR5 w/ Off-Road Package
MSRP: $39,700 w/ delivery
Can anyone tell me what money factor and residual will be on this truck; I'm looking at doing a 3 year/36K mile lease and hoping to walk away with just 1st month, taxes, and registration.
Let me know what you think the best possible deal I can walk with this truck is. The dealer said they have a $1000 rebate through August and an additional $1500 if I can register it under my business name.
I was told this month is the best month of the year to lease a Tundra. Thanks for your help!
#186 of 235 Re: [endlessmoto]
Aug 14, 2008 (1:58 am)
With resale value down in the pits, I'd think Toyota being conservative would make it difficult at best to lease. Other manufacturers have walked away from it completely.
Aug 14, 2008 (6:44 pm)
If you're gonna' lease, definitely do it now! Toyota Financial Service's money factors are insanely low right now!! When you find the exact vehicle you want, ask the dealer what the residual value is - they will more than likely be truthful with that figure as it's set by the lender. TFS residualizes each vehicle differentley based on options, but depending upon annual mileage allowances, anywhere between 51-54% on a 36 month lease.
Rates also vary by region, but should be between .00015 - .00075. Unlike the residual value which is already set, the dealer can and probably will want to "mark up" the money factor. Since you have a ballpark of where the rates are, request those numbers from your dealer by asking them what the residual and "buy rate" money factor are? Or, ask them what that tier 1+ base rate is? If you're 720+, you're tier 1+ with TFS.
As for a selling price/cap cost, $500 over - $500 below invoice + any additional incentives in your region. Or, a dealer discount of ~$3500-$4500 + additional incentives.
#188 of 235 Toyota Tundra 2008 Lease SR5 V8 5.7
Aug 15, 2008 (11:27 am)
I am interested in leasing a new Tundra and I am tired of getting the run around. I have been to a few different dealerships and I am confused.
I have a 734 credit score and I keep getting told to get the vehicle I have to put money down and still have a payment of atleast 450 - 500 a month. I know that there has to be better deals. They keep telling me I have to pay the MSRP for the lease.
What is the break down on how this works. Do I really have to pay MSRP or how do I talk them down? What is the cap and invoice price mean? Also, I have been looking on other posts and see stuff like 00016 and 00075...what does that mean? I am in Tennessee with great credit and would like this truck for 350 or less.
Please help....TUNDRA V8 4X4 5.7
#189 of 235 Re: Toyota Tundra 2008 Lease SR5 V8 5.7 [alicia33]
Aug 16, 2008 (12:14 am)
At 734, you qualify for Toyota Financial Services' top tier credit rating, otherwise known as Tier 1 Plus.
Invoice is an approximate amount that the dealer paid the manufacturer for a particular vehicle.
The Cap or Cap Cost is just another word for Selling Price, but when leasing the term is known as the Captitalized Cost.
The numbers .00016, .00029 and .00066 are known as the money factor. In simplest terms, it is the interest/fee you pay to the bank/leasing company. To convert the money factor into an interest rate (apr %), simply multiply it by 2400 (i.e. - .00016 x 2400 = 0.384% - yes, less than 1%!)
Trying to sell you that vehicle/cap the cost at MSRP is an absolute joke! I realize that 4x4's and CrewMaxx's are in higher demand, but there is no reason that truck should not be had for any more than $500 over invoice.
Again, I am not in your region and the leasing sources I utilize are in Southern California and the Midwest, however, my previous post listed a range of money factors that you should find across the country. Also, TFS sets a residual value for each vehicle independently and depending on which options it's equipped with could raise, or lower the value. With that said, don't expect anything higher than about 55% or lower than about 49% (depending on mileage allowance) on a 36 month lease.
With most lending sources, you'll obviously have the highest residuals based on the shortest terms and lowest mileage allowances (i.e. -24 mo/10k miles/yr).
Find out the residual value and "buy rate" money factor from your local dealer (ask a few to confirm). Then, negotiate the price just as if you were purchasing the vehicle - this agreed upon value will be the cap cost. It's really simple, the difference between the price you negotiate and the set residual is what you pay for during a lease.The difference between these two numbers is known as the depreciation. Now, you would take the depreciation and divide it by the number of months you plan to lease (24,36, 39, 48, etc). This will be your base monthly payments. Btw... the best term on a Tundra right now is 36 months.
But, we're not finished, then you have to calculate the interest on the loan. You take the residual and add it to the cap cost, then multiply it by the money factor. Add that amount to the base monthly payment, then add in your local tax rate and you have your out-the-door monthly payments.
2008 Toyota Tundra CrewMaxx 4x4:
Assume a 36 month/12k-mi/yr lease:
Dealer Invoice: $36,500
Cap Cost: $37,000
Residual: $20,760 (53% of MSRP)
Money Factor: .00016
$37,000 - $20,760 = $16,240 (Depreciation) / 36 = $451.11
$37,000 + $20,760 = $57,760 x .00016 = $9.24 (Interest)
$451.11 + $9.24 = $460.35 + tax (assume 7% = $32.22) = $492.57/mo.
Now, in many regions, there is additional cash available on leases. In Socal, if you lease through TFS, you get the low money factor and an additional $1000 bonus cash. This money should be used to lower your cap cost in addition to what you already negotiated. Going back to our example, we stated a cap cost of $37,000. If bonus cash is available, the new cap cost would now be $36,000 and thus would lower your payments even further.
Large rebates such as the $5500 available in SoCal are not comaptible with leases through TFS. They are for purchases only. You could take it if you leased through an outside bank, but you'll find that the the residuals and money factors will be much higher.
Hope this helps?