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Prices Paid: Buying & Leasing Experiences Toyota Venza Lease Questions
58 messages, Last post on Nov 03, 2009 at 7:23 PM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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When I've looked at leasing Toyotas in the past including the current Camry, from what I read, the residual value of many (if not most) Toyotas is based on the base price, not the bottom line sticker price including factory installed options. What that means is that you're paying for 100% of the cost of the factory options in the lease which makes the lease payment really high. I know that Lexus does not calculate leases like that. The residual value for a Lexus is based on the bottom line of the sticker price, not the base price. The reason I'm asking is because if you want to lease the 3.5V6 AWD with the premium package #2, navigation package and sun roof, that's $8K in options and if you have to pay for 100% of the options in your lease payment, it will be very high, probably higher than a comparably equipped Lexus RX350. Does anyone know how Toyota Financial Services calculates the residual value? Maybe Car_man or what of the other hosts can help me out. Thanks in advance.
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Replying to: sam_k (Mar 16, 2009 4:45 pm) It's fairly convoluted.... enough so, that each vehicle has dollar amount residual, so that the dealer doesn't have to calculate it. So... a higher MSRP unit will have a higher residual than the lower MSRP unit, but as you've noted, not on a straight percentage. Bottom line? Highly optioned Toyotas usually don't make for very cost-effective leases. Hope that helps.. kyfdx |
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Replying to: sam_k (Mar 16, 2009 4:45 pm) Toyota’s residual calculations are not all that different from many manufacturers that have several “trim” levels. Good examples are an Audi A4 that has a lower residual on the loaded “Prestige” level compared with the basic “Premium” level. Also the Nissan Murano has a top-of-the-line LE model with a residual 5% lower than the mid-range SL model. And since the Venza doesn’t have trim levels like the Camry (i.e. base, LE, SE & XLE), the residual calculation must look at the option packages installed on a particular car. These variable residuals are based on the economic realities of the used car market. When buying a 3 or 4 year old vehicle, consumers are not likely to pay a huge premium for a navigation system or a high-end stereo system. Thus the cost of those expensive options depreciates more quickly than the rest of the vehicle.
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Replying to: md_outback (Mar 18, 2009 6:13 am) Many years ago I went with an ex to lease a Toyota 4Runner and the Toyota dealer gave me the money factor and residual percentage so I plugged them (along with the MSRP and cap cost) in my lease calculator on my Palm handheld. I calculated a monthly payment that was $150 or $200 lower than theirs. After the sales rep went back and forth into the finance office several times to get clarification I finally got fed up and followed him in there and the finance representative explained to me that the residual value was based on the BASE price on the window sticker not the bottom line price including options which meant their calculation included financing the thousands of dollars worth of options in the lease. Some of you might be asking how can the payment be so drastically different. If you get $6k or more worth of options and finance them over 36 or 39 months, it can easily add $150 or more to your monthly payment. I'm actually curious to get the lease details on this car and the Camry SE V6 so I might stop by a Toyota dealer and ask someone to explain to me their lease calculation.
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Replying to: sam_k (Mar 18, 2009 6:43 am) I agree that if that is the way Toyota is calculating their leases it will ultimately raise the monthly payment and may lose some business. It really makes no sense for them to do this for "factory-installed" options; Lexus doesn't do it and they use the same financing company. Honda does this for the "dealer-installed" options, but that makes a little more sense since the dealer doesn't install $7000 worth of stuff. On the other hand, it will reduce your buy-out at the end of the lease, so you could turn a small profit if you sell the car yourself or trade it in a few years. Maybe this is a new tactic that Toyota is trying so they get more cash up front and not have consumers complain that their vehicle didn't hold its value by the end of a lease. But that is pretty misleading, imo.
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Replying to: md_outback (Mar 18, 2009 12:29 pm) I think Toyota does this to push people into buying instead of leasing. A lot of car companies don't like to lease anymore because it seems that the cars always end up being worth less than the residual value. Like you said, it you're buying the car at the end, then you either can pay for the options through the lease or just pay for them later but I always return my cars at the end of the lease so it's not worth it to me. Most car companies make you pay for 100% of dealer installed options/accessories in the lease and that make sense since they won't recoup any of that money back when they resell the car after you return it but Toyota should residualize the factory installed options. According to Car_man, Nissan residualizes factory installed options and most dealer installed options which makes it a lot better to lease a Nissan than a Toyota. I was considering leasing a Toyota Camry or Venza but it looks like they're off my list. |
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Hey CarMan, I know there haven't been any major incentives thus far for Toyota's Venza. Can you tell me the latest money factors and residuals for the following: 2009 Toyota Venza V6-AWD, with Prem. Pkg #2, Navigation System, Panoramic Roof and Mats. Total MSRP is about $38,400. Looking to lease for 36 months  12k miles per year. Do they have a standard 39 month lease package? Thanks for your help. MD
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Replying to: md_outback (Apr 27, 2009 1:12 pm) According to the latest information that I have seen, if you were to lease a 2009 Toyota Venza V6 AWD through Toyota Financial Services right now for 39 months with 12,000 miles per year, its buy rate lease money factor and residual value would be .00285 and 60%, respectively for consumers who qualify for its top aka "Tier 1+" credit tier. Keep in mind though that TFS places restrictions upon the options that can be residualized. As a result, it is difficult for consumers to calculate the actual dollar residual values that are needed to arrive at a monthly lease payment on their own. Car_man Host Prices Paid: Buying & Leasing Experiences Forum
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Replying to: Car_man (May 07, 2009 2:27 am) Thanks for the info. The Toyota finance guy was giving me a really crazy high money factor of .00395 and a low 51% residual for 36 mos/36k miles. The good news is that I got more than $4600 off MSRP so I bought it. As far as being a bit expensive, I guess it's all relative. But for $34K fully loaded, it's a much better deal than a Lexus RX, Audi Q5, Volvo XC60, Infiniti FX35 and Nissan Murano LE. It's quicker than all except the FX, has more cargo room than all but the RX. Lower priced competition I also considered are Subaru Outback and Forester, Toyota RAV4, Mazda CX7 and Ford Edge. All good vehicles, but I came away thinking they were all "cheaper" feeling and less refined than the Venza. Bottom line was that the Venza was the best overall package for my needs. MD |
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Anyone know what the June lease numbers are looking like for the Venza? Specifically I am looking for MF and Residual for the AWD 6cyl version for both 12 and 15k miles.
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