'16 Lease Residuals (not for everyone, I know)

I have a lease on mine. 2016 Access cab 4x4 2.7 SR basic utility package with auto trans- 36months with 15k miles per year- $18,300 residual at the end of the term.

 

I did a 3 year lease on a 16 dclb trd or. I put 3k down my payment is 339 a month. my residual is $22,500 at the end

 

Sorry I'm new to leading but the residual is what the cost is if you want to buy it at the end of a lease? What's money factor?

 

Money factor is the interest percentage of the lease.

Residual is how much it would cost you to buy the vehicle at the end of the lease.

Also, a common misconception is that you're 'locked' in during the lease term. That is absolutely not true. You can buy out the vehicle at anytime during the lease. If you pick the right vehicle and get a low money factor, you can be right side up in a years time.

 

Thanks, what about MSDs? is that the down payment?

 

MSD = are multiple security deposits. Toyota allows you to put 9 x the monthly payment in turn they lower the money factor with each MSD, thus lowering the lease payment.

With MSDs, they are also returned to you at the end of the lease, so it would be a no brainer to take advantage of.

 

So if I get over 100% for the rwg what exactly does that mean?

http://www.ridewithg.com/rwg-calculator/

 

If all the numbers are correct, that means you are getting a decent deal.

Remember the 3 main variables in every lease!

1. Money Factor (if your credit is good, you should always get prime MF rate -- if they quote you higher, then you may be getting screwed)
2. Residual (the cost of the vehicle afte the lease ends)
3. Negotiated out the door price (remember, just because you lease doesn't mean the cost of the car cannot be negotiated. The lower OTD price, the lower the lease payments will be)

Be mindful of all three and you should be OK.

 

Question on leasing. Can you drop more of a downpayment on your lease so that when and if you decide to buy it, you owe less when it comes that time? Also, can you cancel your lease at any time to go to a conventional buy payment?

 

1. Yes, you can put as much down as you want, thus lowering the residual. Most folks don't like to do that on leases since it doesn't affect the monthly payment too much, and they prefer to keep the cash liquid.

2. Yes, at any time during the lease term, there is a 'buy out' price. If your lease company/bank allows, you can convert that lease into a traditional finance loan. You can't 'cancel' the lease, but you can certainly buy it out. If your leasing company doesn't allow you to convert into traditional finance, then find a different bank and have them buy out the lease.

 

So I realize leasing is not a great option if you plan to buy but to keep payments low and ending up with a lower amount to finance at the end of the lease is not a bad idea yeah? As long as your okay with say 3k of interest paid?

 

everyone's situation will be different when it comes to leasing. Some have their own businesses so they can write off the lease payment.

Some like to keep their cash liquid for investments that has a higher ROI than the interest.

Some want to just drive a new car every few years w/o ever having to worry about selling themselves (although I would highly NOT recommend that)

The Tacoma is a bit of an anomaly when it comes to leasing. The residual (buy out price at the end of the lease) is super high on the tacoma--because they hold their value so well. While it makes the monthly payment really low, it makes the residual high enough for most folks to just turn it in at the end of the term. Again, that is not something I recommend. You are better off just selling it yourself, and pocketing the difference.

BTW, I did not lease my Tacoma, but my wife and I have had leased a car before, and we were able to be right side up on the lease about a year into it and sell the car for more money than the current-at-time buy out price. I have done a lot of research. Toyota is nice because they offer MSDs. We're looking at a 4 runner, and would definitely lease that instead of buying outright.

 

Down payments on a lease is a No-No. Research the reasons why on Google. Plenty of info out there. MSDs are different than a down payment.

 

Yeah I'm looking at leasing a Subaru to keep the payments low and keep my truck not putting on miles. Just not sure if I'd keep the Subaru later.

 

Hi All - I'm planning on getting my first Tacoma in the coming months and am going to go the lease route (I've leased in the past and it works for me, although I know not for everyone). I'm thinking the SR5 DCSB 4x4 V6 with the SR5 Appearance Package (additional $1500). I've built one online and the MSRP is $33820. I've done some digging and found that the RV and MF for my area (DuPage County, IL) is around 70% and .00190. Does anyone have any idea what I can expect as a realistic, but aggressive payment? I've heard of a lot of people having luck getting their Tacomas at like $500 over invoice. Thank you and can't wait to close the deal!

 

You wouldn't be interested in leasing one from Tulsa would you? I leased my Taco but also work as an Internet Manager at a Toyota store in Tulsa...

 

I'm going to stick with the Chicago/Northwest Indiana area. Getting a lot of internet quotes that are all over the board, for the same truck.

 

You can get a TRD for pretty close to that price.

 

New to the site, so first, Hello! I, spontaneously, decided to take a look at a Tacoma this past weekend. I've owned a Tundra & F-150 in the past, but I believe my full-size days are behind me. So I stopped by my friendly, neighborhood dealer and expressed interest in a test drive and a lease. I carefully explained I've leased several vehicles, have top tier credit, know how it works, and would appreciate them skipping the run-around... they came back with a .00300 MF. I laughed and walked out.

My search continues...

 

When I ask for a lease quote, I always say that charging the base MF and acquisition fee is a non-negotiable requirement for earning my business.

In my experience, any dealer that marks up either is not a dealer you want to work with anyway, either sales or service. ESPECIALLY if they are already charging a ludicrous "Documentation Fee". That fee is like $600 at most dealers near me; it's $80 at a dealer in a neighboring state. I'm inclined to recommend to the sales manager that he fire all of his staff, since apparently it takes them 7.5 times as long to do the sales documentation as their competition a state over, but we all know that $600 is just pure profit designed to fleece their sales staff of commission.