2019 Highlander Limited - something seems off


Hello Leasehackr community, looking for some advice on this deal I just got from Ourisman Fairfax Toyota. I am running these numbers and the monthly payment just seems way off.

Vehicle: 2019 Toyota Highlander Limited AWD
MSRP: $45,343
Sales Price after Negotiating: $$40,358 (inclusive of all dealer processing charges)
Tax: $2,421.48 (Maryland 6% sales tax is charged on sales price)
Tags: $272
Total Capitalized Cost: $43,051.48
Residual: $26,752
MF: .00178
Lease Terms: 36 Months, 12k per year

The dealer is quoting me a monthly payment of $669.10 and said they can’t go any lower and are asking me to come in to sign the deal.

Just doing some simple math:

Cap Cost ($43,051.48) - Residual Value ($26,752) = $16,299.48

Monthly Depreciation: $16,299.48 / 36 = $452.76

Adding in the lease apr/rent charge: Cap Cost ($43,051.48) + Residual Value ($26,751) = $69,802.48

$69,802.48 * .00178 (MF) = $124.25 (Monthly Interest Payment)

Total Lease Cost should be: $452.76 + $124.25 = $577.01

Am I doing something wrong? Is the dealership just trying to show me lower numbers but trying to get me to agree on the monthly payment so that when I sign the papers, all I end up looking/caring about is the monthly payment? Please help!

Even if you got 577, would you want the Highlander for that price?


You sure about that residual? Seems pretty high.

The reason why I chose highlander was (from highest priority to lowest):

  1. Decent third for (for kids)
  2. Memory Seats (wife and I switch vehicles a lot to avoid putting too many miles in one car)
  3. Blind Spot Monitoring
  4. Parking Assist
  5. Lane Departure

Alot of people have mentioned the QX60, but its a more expensive car.

What is the point of leasing this car? Get a QX60 for half the price or buy the Highlander.

Yup - that is what the dealer quoted, in writing (email).

With $0 drive-off, I get $612 a month.

QX60 has all of these options and even if you got them - it would be cheaper than the Highlander.

It seems sort of crazy to spend $600ish a month on a 45k car when you can get a QX60, which seems to fit your needs well, for half the price with MSDS. I would seriously reconsider this deal. If you are stuck on the highlander buy it cause that lease is XC90 territory.

1 Like

He won’t get as good a deal on the QX60 as others have done, due to MD taxes, but it will probably be a lot lower than this Highlander

bottom line, this deal sucks. I think the base line for a GOOD DEAL and why you’re on leasehackr, is 1%. You’re way over. Ignoring what other people said about getting a QX60, which invovles, VPP, Conquest, Loyalty, and if a Highlander is what you’re dead set on. Then at least get close to 450/month after taxes. Always remember this, you’re literally doing the dealer a favor by taking a depreciating asset off their hands. This is why some members have been able to score amazing deals on cars that sit on lots, dealer/manufacturer/bank is taking a hit the longer that car sits there.

TLDR; ignoring all the numbers and math, come up with a solid monthly that you would be comfortable paying. I say no more than $500/month.


Dude, just hit up @Jrouleau426. He will get you a deal on the highlander

I’m guessing @Jrouleau426 can do dramatically better even with MD taxes. His dealer uses a CU and pretty sure they only write leases in PA, NJ, and MD.

We test drove Highlander right before testing driving QX60 (and signing for).
Thirst row on QX60 is much better.

QX60 PURE AWD has $47k MSRP and after 14% which we got easily sale price was $41k. So the tax will be comparable to what’s on this highlander now.
Pure doesn’t have memory seats but it does have everything else listed.

Has higher residual that highlander. And MF even without MSDs is 0.00086 which is better than Highlander also.
I’d strongly suggest just for comparison purposes test drive and get a quote on QX60.

No way to pay these money on Highlander.

How about the Highlander XLE? Considerably less than the Limited.

I agree, consider the XLE trim. I just leased one (2018 model) for $380 with just around $600 DAS, including NYC taxes.

Many posters are giving you all kinds of advice EXCEPT they’re NOT answering your question. This seems to be an epidemic on this website. So, I’ll answer it…
Your calculations are correct IF the net cap and total cap are the same. I suspect that the net capitalized cost is higher than your total capitalized cost which might explain why the dealer arrived at higher 669.10 payment. The net (aka adjusted) capitalized cost is what you should be using in your calculation. Where is the acquisition fee? Doc fee? What are you paying upfront (please itemize)?
Correct terminology is very important. There is no such thing as “total capitalized cost”. It is either gross cap cost or net (adjusted) cap cost. Also, selling price is virgin territory and should EXCLUDE all dealer processing fees, acq fees, DMV fees, etc. The sell price is the agreed upon market value of the vehicle and is exclusive of any and all fees. Adding all capitalized fees to the selling price yields the gross capitalized cost. Deducting any cap reductions from the gross results in the net (adjusted) cap cost.
You should have the dealer itemize all fees that are capitalized in the lease as well as an itemization of all fees due at signing.The 0.00178 MF seems high. The base MF is 0.00090 according to edmunds. The residual reflects a residual factor of 59% which appears to be correct.
Ask the dealer for their lease worksheet. This will tell you everything you need to know. Post it and I will help you. Something isn’t right which could be any number of things. If they refuse to provide their lease worksheet, my advice is to walk.


Why did you go to VA to buy? Their dealer fee is $699 vs. $299 in MD. I suggest to check fitzmall.com out, they should be relatively straightforward.

Don’t forget the RX350L which has a $6k incentive in the Northeast - people getting those for about $400-450/mo. I’m not sure if that covers MD.

I can do a 2019 highlander limited in Maryland for $475/mo tax and tags included. $0 down. Just First payment due at signing. 39/12

Xle will be $50/mo cheaper approx