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

Thanks for the tip about the semantics regarding "base MF" etc. This local dealer just sucks. I test-drove both a Canyon and Tacoma on Friday/Saturday respectively... they haven't even attempted to make contact. I assume they must be selling vehicles left and right considering I haven't even received a call since. Of course, I live near a large military base, and that $1000 rebate brings lots of business.

 

I was wondering what the negatives would be of a 2 year over a 3 year? Why are 3 years so popular?

Also I was thinking of using my truck asa trade in and buying all the msd's I can. Is this possible?

Is it pretty normal in the tacoma world to get invoice pricing for a lease?

 

Use the trade in value to buy the MSDs. It's possible.

3yr vs 2yr, for Tacoma, gives you a marginally lower payment, but you're still building equity,so there's not really much downside to the 3yr instead of the 2yr, as the truck will tend to be worth close to or more than your buyout the entire term, so you can still walk away after 2yr if you want.

Whether or not you get invoice is no different for leasing vs buying. Leasing is just buying, with a guaranteed sale price at a certain date.

 

Thanks. Do most people tend to get invoice when buying a tacoma our is negotiating around for that difficult?

 

Some people do better. Some people do worse. There are other threads on here for that. Seems to depend on where you're at, how picky you are, how many dealers you have access to, how good of a negotiator you are, and how much of a rush you're in.

 

Does anyone (Letsgoplaces?) have the residuals for 2017 models?

Thanks

 

i don't understand the negative nellies regarding leasing.

1) if you're planning to keep your truck at the end of the lease - it's just another way to finance. in my case the rate was 2.99%. lower than the financing for 'purchase'. i still own the equity as i have the right to buy the vehicle.

2) i'm actually paying a chunk down because it's less to finance.

i used to hate the idea of leasing. but now i've had a couple of leases (Honda) where i had significant equity at the end of the lease. i hope to be in the same situation with the taco.

 

lease residuals will depend on the negotiated price of the truck.

 

No, no they don't. They are a percentage of MSRP set by TFS for each model/trim.

 

What kind of fees do you pay for ending the lease early? I leased my '16 for 5 years also and wanted to know in case I want out early.

 

Interesting. I didn't lease my Taco, but on our Honda - residual was based off a percentage of the sale price of the vehicle.

 

Every lease program that I've ever investigated (HFS included) is a percentage of MSRP. This is because the residual is basically the price that the finance company agrees to purchase the vehicle for at the conclusion of the lease; how good a deal you got on the car (in terms of discount from MSRP) has no bearing whatsoever on what the car is worth to the finance company in 3 years (or whatever the lease term is).

 

Well, i've never turned in a lease car before. We've always bought outright or sold prior to lease ending.

 

From what I understand, Toyota will not negotiate the residual at lease end much if any at all. Some manufacturers throw out offers to try to get you to buy it so they don't have another one to have to get rid of. Toyota likes leasing. They want your car to certify and re-sell at the end of the lease. And they want you to buy another car from them.

There was a guy who wanted to buy his Tundra at lease end. Loved the truck. The residual was crazy high, and they would not negotiate. So, his friend who worked in fleet at a Toyota dealership, had him return the truck, he bought the truck from Toyota, and resold the truck back to his friend. Apparently, he was able to save a lot of money.

 

Dealers rarely if ever have to pay the finance company the full lease residual to acquire a lease return vehicle for their lot. Typically, they pay wholesale price. For brands like BMW that severely inflate their residuals (above reality), this means that you can return a car to the dealer then buy it back with a CPO warranty for less than your lease residual. Probably more rare with Toyota, since they actually try to keep their lease residuals accurate.

 

I have had friends with domestics that the manufacturer was offering some sweet deals to just buy it at the end. Some of them starting a year before the lease was even up.

 

We have a 16 Tacoma now. Traded in a 14 Tundra, which we traded in a 14 Tacoma for that. I cannot believe what they gave me on trade. Damn near what I paid for them. And I only paid invoice, + TTL on the new ones. I watch the old ones on the lot, and they still sell.

 

Best residual in 16 was the trd off road manual. 75%. Crazy

 

I have a 2017 TRD OR DCSB MT on order arriving mid October. I'm new to Toyota and this forum, but I've spent a lot of time here researching. Despite the known issues of the gen3 (I know is a hot topic on TW) I still want to get the truck but will pay close attention during the test drive. My intention was to buy and keep for 8-10 years, but after reading this thread and thinking about the new-gen issues being worked out, I'm thinking that leasing for 3 years, and depending on how I like the Tacoma, getting into a 2020 model year is the way to go. Besides, I always have intentions to keep a car/truck, but my last 5 vehicles I've kept an average of two years each. And there's something about leasing that I think would allow me to sleep better at night if my truck ends up having issues or quirks. I'm curious @smitty99 if you would have preferred to lease (I assume you bought) if you could do over. I'd have to run the numbers but I assume that if I bought and financed but ended up selling in 2 years, I'd come out worse than if I had leased. Thoughts anyone?

 

Not sure. I'd have to crunch the #'s