Hi, I’ve been reading on here since yesterday and was hoping someone could help me out. I’m trying to lease a 2016 Toyota Highlander XLE. I started talking to a local dealer and this is what I’ve come up with so far:
MSRP: 39.755
Selling Price: 35,890
Residual: 31,009 (24 months/12K per year)
Money Factor: 0.0024 (pending credit)
Acquisition: 650
Doc Fee: 299
Reg/Lic Fee: 135
Sales Tax: 6.25%
I’m coming up with monthly payment of $384 and Drive off $837. I would probably take advantage of the MSD’s with Toyota as well, but looking for some guidance here. Did I calculate correctly? Also, the money factor seems high to me. I have tier 1 credit so shouldn’t it be better than 5.76% APR?
Here are the numbers for Highlander XLE AWD in MA:
24/12K: 78% residual (super high!), .00200 MF (also high)
Your selling price is great – almost $4,000 off on a popular SUV. The MF was parked up by roughly 1% APR… perhaps a way for the dealer to compensate for the low selling price.
At the end of the day, $384/month and $837 drive-off is fantastic for a $40K Highlander. MSDs will be icing on the cake, if you don’t mind loaning Toyota your money for two years.
Hi Michael, are these numbers the same for So. Cal?
Thanks for the response! So if I can ask a couple of dumb questions…
A high residual is a good thing? High money factor is a bad thing? Right?
Also, did you actually run my numbers so you’re saying they’re correct?
Dealer came back with $431 using all the original numbers I gave, with $566 due at signing (first payment and reg fee). I guess all the other fees are rolled into the $431 but I’m still not sure where their number came from. I gave them my number and they’re saying $431 is their best payment since they always offer their best pricing upfront.
I got the following offer from a MA dealer:
2016 Highlander XLE
Security Deposit lowers M.F. to 0.00008
$3,150 in Security Deposit
$379/mo + Tax = $403/mo
However, my target is what I saw in Edmunds forums. See these recent posts:
cool_kk Posts: 1
May 19 edited May 19
I just put down deposit for 2016 Highlander XLE AWD with captain chair & floor mats for 35,000 + 349 (doc fees) + Taxes. Total price is 37,600 (after tax) Do you think this a good price in Boston?
and this one in CA:
sundeviloc said:
I pulled the trigger on the 2016 Highlander XLE in the Los Angles area. Current money factor for Highlander is .0020 in the LA Area. I ended up doing the max security deposits (9) for $3,150 and took the rate down to .00128. This is actually a great return on your money when you do the match. I am essentially getting a 17% return on my refundable security deposit. Definitely something to look at if you have money laying around not earning any sizable return. Many dealers are not familiar with the MSD program so you need to ask around to find someone that knows it and is able to put the deal together. This dealer sold me the car $343 below invoice. $350 per month on 12K 36 mo $1312 drive off and the $3150 refundable deposit.
What MA dealer was that? I don’t understand how the MF could get that low even with the max number of security deposits.
Jacob, it was Herb Chambers Toyota Scion of Boston. Please note that it was for a 36/mo lease!
Also, every MSD reduces the MF 0.00008 so the dealer was not actually disclosing the final MF but the discount per MSD. Assuming the MF is 0.002 then 9 MSDs is 0.002 - 0.00072 = 0.00128 when multiplied by 2400 yields the actual APR of 3.072
I doubt I’ll be able to get a much better lease rate but I will still look to lower the sale price to invoice or under invoice. The 2016 AWD Highlander XLE Invoice is listed in Consumer Reports at $35,403.
2016 Consumer Reports MA Pricing Highlander XLE
The 2017 Highlander is around the corner and at some point they’d want to clear the lots for them.
Hi Michael!
Can you please share the 2016 Highlander XLE MF and residual values for FLORIDA for 36 months and 10.000 miles?
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Thanks for clearing that up. I’m still working the numbers with 2 different dealers.
What should I be shooting for as a lease hackr score on an SUV. I read somewhere that 9.5 is good for a sedan. What’s good for an SUV?
The number is not pegged to the type of vehicle (the leasehackr calculator does not even ask you what type or model of vehicle you are leasing) but to the comparison of purchasing the vehicle versus leasing it. If a score is good for a car, it must also be good for an SUV, Truck or any other vehicle that you could lease or purchase.
So I’m shooting for a score above 8 or 9? I read it somewhere but just re-read leasing 101 and the other stickys, but can’t find it. I think my latest numbers came out to a score of 10.5 after putting in MSD’s. How easy or hard is it to get the security deposits back at the end of the lease?
Ok, so after a couple of days of negotiations I ended up pulling the trigger on a new 2016 Highlander XLE AWD. The dealership was really confused with the whole security deposit thing, but they did a little homework and figured it out (I think). The finance manager told me he’s been there 3.5 years and has never had anyone ask to make security deposits, and this is one of the highest volume Toyota dealerships in New England. I think I did pretty well, but I can’t seem to match the numbers with the lease calculator. Here is the final deal:
MSRP: 39,405
Selling Price: 35,411.53 (10% off)
Residual: 30,736 (24 months/12K miles)
Money Factor: .0020 (lowered to .00152 after MSD’s)
My payment came out to $315/mo (with tax included).
I paid all of my fees up front, acquisition, doc fee, 1st payment, reg/title, and MA inspection ($1,572.00 total), then made 6 security deposits ($315x6=$1,890). Total upfront costs were $3,462.00
I’m guesstimating that this is a lease score of around 11.
I also got them to throw in all weather floor mats in addition to the carpet floor mats that it already came with, and also got a Cargo liner thrown in.
Just wanted to say thanks to everyone here for schooling me on how leases work. I don’t know that I would say it was fun, but it was entertaining to see the dealers’ heads spin!
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Wow congratulations. Amazing deal you’ve got trust me. Here in FL is impossible to get for less than $400/month and they refuse to take MSDs. Please do share the name of your dealer. I am flying to MA to get mine 
Haha…it was Boch Toyota Scion in Norwood, MA. My salesman was Hue (yes that’s the correct spelling), and he was good. He was impressed with what I knew and didn’t try to act like he was a know it all, which I appreciated. Really friendly throughout the whole process unlike some others at other dealerships who just gave me the impression that they thought I was just another pain in the a$$ customer.
I apologize for the novice question but I am in So-Cal and am hoping to replicate this deal. With the numbers OP has provided, what is the best way to go about this? Should I email the dealerships to see what their offers are?
Appreciate any help. Thank you!
I’m a newbie too but I am the OP. What I found was that the larger dealerships are willing to play ball online with their internet sales departments. There’s always a hard push to get you to come in, but I just told them I was shopping the deal around and I’ll visit if and when we come to mutually agreeable terms. I think you get the internet price, which is usually pretty competitive, much quicker than the salesman’s “let me see what my manager can do” game. Once you have a deal worked out online then visit the dealer. A lot of them don’t know anything about the MSD program but when you send them a Toyota link to the program, they’ll look into it. Contact 3-4 nearby dealers and try to get them to beat each other’s bottom lines. When dealers start to “fold” and say they can’t match the other one then I would say you’re pretty close to the bottom line.
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Hi Michael!
Do you have the updated MF and residual for June in MA for:
24/12K and 36/12K for both Highlander XLE and Limited trims?
Here are the June numbers for MA:
2016 Highlander XLE AWD
24/12K: 78% residual, .00200 MF
36/12K: 70% residual, .00200 MF
2016 Highlander Limited AWD
24/12K: 75% residual, .00200 MF
36/12K: 67% residual, .00200 MF
The residual is amazing. MSD helps make the MF reasonable.
The June numbers for Southern California are the same as they are for MA (see above).
Here are the numbers for FWD, as you likely don’t need AWD in sunny CA. The residuals are 1% lower:
2016 Highlander XLE AWD
24/12K: 77% residual, .00200 MF
36/12K: 69% residual, .00200 MF
2016 Highlander Limited AWD
24/12K: 74% residual, .00200 MF
36/12K: 66% residual, .00200 MF
Yes I know. I am trying to calculate Jacob’s deal to offer his dealer for a Limited and instead of 24 months for 36 months. I am confused as based on the New England regional offer shown below, my numbers just don’t compute. Can you help me?
Here is the regional Offer valid until July 5:
2016 AWD Highlander XLE MSRP = $39,400
Sale Price: $34.648 (~14% OFF)
Residual Value = $30,732 (78%)
Period = 24 Months
Monthly payment = $294
Down = $3,000 (acq. fee $650, cap cost reduction = $2,055, first month $294)
This means the MF used is roughly 0.00019 and not 0.002 or there are some other hidden incentives I am not aware of.
In any case, I’d like to make them a reasonable offer based on the leasehackr calculator and known data as follows:
2016 AWD Highlander Limited MSRP: $43,275
Sale Price (based on -14% OFF) = $37,316
Residual Value (based on 67%) = $28,994
Period = 36 Months
Leasehackr monthly payment = $303 (assuming the same cap reduction cost as above of $2,055)
Is my offer reasonable?
I am planning to lease in MA to ship to FL. Do you know if my MF and Residual be based on my home state or the dealer state? I assumed dealer state above!
