2017 Highlander - feedback appreciated!

2017 Toyota Highlander XLE:

Hi - we’re interested in pulling the trigger on a 2017 Highlander Lease. The Chicago area dealers are running a “special” (http://www.classicdirecttoyota.com/newspecials.aspx) with basic details outlined below in the email they sent me… We’re not wedded to the XLE (would prefer something more premium) but any feedback/thoughts on where I should be trying to net out on this deal? Will be trying to drop the money down in favor of MSDs (not even sure what “cap cost reduction” means)… but any guidance or feedback would be terrific!


MSRP: [$41,169]
Selling Price: [$38,310]
Rebates: [$0]
Trade-in: [$0]

Months: [36]
Annual Mileage: [12,000]

Security Deposit: [$0]
Total Due At Signing: [$4,657] (breakout below)
Monthly Payment (incl. tax): [$339]

Breakout of fees due at signing…
$1999 Cap cost reduction
$172.15 DOC fee
$114 License and Title
$1343 sales tax
$15 Cook County tax
$25 elec vehicle registration
$650 acquisition fee
1st payment $339

Total $4657.15

Zip Code: [60035]
Sales Tax Rate: [7.25%]

I wouldn’t put money down on it. That’s what the “cap cost reduction” is. Almost no one around here recommends it. Take that $1999 and divide it by the lease term in months. Then add that to your payment to see what the “actual” monthly payment is.

In addition to what @anon98469396 said, get the selling price down to $37k, give or take a few hundred.

What’s the MF?

i second @max_g comment regarding getting the price closer to $37k

Thanks for the quick feedback - I’ll be negotiating this over the next couple weeks so will keep folks posted.

Can I assume the $37k recommendation is trying to get to a % discount level off of MSRP? So if I was looking at a more premium model (e.g. platinum versioin @ $49k MSRP) I should be looking for a similar discount level?

Anything else I should be considering when moving to final negotiations?

Yes we have seen members here get 4K or more off a 41k XLE, expect to negotiate a similar % discount on any trim. Of course supply/demand dictates what the final price will be. Go to Cargurus dot com and see how long Platinums in your area have been sitting on lots.

Going back to your OP, don’t be in the mindset of “trying” to get MSD down instead of cap cost reduction. Thats at your discretion, so if you want it you get it.

Keep in mind that Platinum and Limited have lower residual than XLE. So they will have higher lease payments than a theoretical $49k XLE.

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Ya the sale price could def be brought down to 37 or 36.5. Also, there is honestly not many additional features on 2017 limited or platinum than xle. I would recommend putting max msds. If you are around 470, i think thats a good deal. And like @max_g said, xle will also have higher rv than other two models!!

Thanks all - good call out on the different RVs.

@hokiecar - not sure what you mean with getting it around “470”?

I’m hitting a couple dealers this afternoon so will hopefully have some updates!

In December I was offered $37,500 for the same car in Chicago area. I did not go through with it but as they were among the first batch offered for sale I think you can do better now. Dealers were less flexible on SE that used to have 1% more RV though.

So a couple updates…

  1. I received a price of right @ $37k for the car which seems okay.
  2. The dealers are all claiming that “due to the special lease interest rate, they are unable to use MSDs to get the payment down any further”. Basically - the XLE has a special rate right now of 0.00148. They’re claiming that with other cars (who don’t have the special rate) I can use MSDs to bring down the rate, but that a) this is a better deal (vs. finance rates available for other models like the Highlander Hybrid) and b) because Toyota is already incentivizing this deal they can’t do any better with MSDs.

Are they correct or am I being fed a bunch of B.S.? They seemed pretty confident here as I talked to the manager who suggested I call any other dealer and they’d tell me the same thing…

Basically they’re offering the deal @ $410/month no money down… and will bring everything down another $30 for each $1k I put in as a down payment…


If MSD can be used on .00056 MF (see my Sienna thread), it should be usable on this as well. Actually I’m quite certain you can, because multiple others have leased XLEs with MSD.

Find a dealer who will take MSD for this vehicle.

Yeah that’s a problem. I found toyota dealers are not interested in doing that. Many sales people claim they have never heard about it. One of them told me his finance guy says it might be possible but you should be here to check. Anyways you know their current MF of .00143 is 3.432% APR which is by no means incentivised.

This is unfortunately true but seems kind of strange that they wouldn’t learn about it ASAP after you mention it. Talk about people who do not want to get better at their jobs …

Don’t ask the salespeople. They don’t know jack and have any decision making power anyway.

Type up your bid including MSD so that the sales peons can take it in writing to the people in charge, one of the decision makers will bite.

Got a call from the finance head of a different dealer… he had just apparently gotten off the phone with Toyota and they apparently confirmed that they would not allow “double dipping” of using MSDs on an already incentivized rate. When I spoke to him earlier in the day he sounded optimistic this would work but when he called me back he said unfortunately Toyota wouldn’t allow it because it was a “sub-lease” or something like that.

On a more positive note - same finance head is looking into a lease deal with US Bank that he claims will be at better rate than anything Toyota can do… we’ll see.

Bottom line - this guy seems to have confirmed that Toyota (at least in Illinois) won’t allow MSDs on MF that are already discounted through their “sub-lease” incentive programs. Hopefully his US Bank option comes through with something -

Any thoughts guys? Am I just out of luck with MSDs?

Try out of state for MSD acceptance or ask @RVguy if his CU beats TFS programs?

Can’t think of much else.

Yes Toyota Financial Services has 2 categories of models. Subvened (sub) and non subvened. The standard non-subvened MF is .00210 on Toyota models and .00220 on Lexus models.

If you are willing to drive to Indiana, you can go through a credit union that should have a lower MF. I can’t remember offhand what their MF is so I’ll post here tomorrow with the details. The lease with any of our credit union partners includes GAP and comes with a $1k wear and tear credit which covers most people at the end of term. Mileage overages and any wear and tear above $1k are all you really need to worry about besides the usual termination or disposition fee (same as most lenders)

I am also interested in any information you can provide. I am in northeast Ohio and the Toyota dealerships are pretty high with the money factor also. I have tried calling and checking on line to see if there are any credit unions that offer leases, but they all say I have to go through a dealership.

I am also interested in a 2017 Highlander XLE AWD. Lowest I have found is $424.00 with around $800.00 down for 36/12. That includes Ohio 7% tax.

What does “subvened” and “non-subvened” mean? How does it apply to a lease or the money factor if it does?