I should have clarified, after a nice $8,000 discount/rebate the 2019 will hold its value based on the low cost.
The 2020 is not likely to have rebates but will have reluctant dealers to heavily discount as they are expected to be popular.
Bear
Thanks everyone. You guys are a wealth of knowledge. Glad I found this site from a Volkswagen forum.
I called that dealer and they only do TFS, no Ally and no US Bank.
In NJ my wife leased a Highlander SE back in the Summer of 2018.
$45k sticker
12k/36
$400/mo, First month DAS.
Unfortunately, pricing from 2 years ago doesnât help much
Yeah I thought that was the case. Couldnât remember for sure.
Edit: tried for an even 400. They said no. Maybe now they will come to 415 as a compromise lol.
At this point if it were me, I would go back and ask for 415/M. But that is just me. You can also shoot for the 12% off MSRP. Also keep in mind Toyota does not include GAP with their leases.
Side note: You are also getting a break in fees it looks like. i paid 650 acquisition fee and a 599 dealer doc fee. Plus 317 for DMV. Make sure that is all included in their quote, if so it make is more tolerable.
I know this is a lease siteâŚbutâŚit looks like the perfect purchase. 12% off; YOU ARE DAâ MAN, Great work.
TFS leases are a ripoff!
BUY, BUY, BUY!
To me at 20 cents a mile to buy costs you $2,400 a year plus interest (or opportunity cost if you pay cash).
With a 750 credit should be able to get 2.48% for 63 months (PNC Bank).
Bear
You can buy miles upfront for 10c a mile not 20c so not sure where you came up with that number. Also at lease end if your over its usually 15c a mile. I highly doubt they will honor the 12% off (assuming he can get them to that) if he doesnât lease it.
Why pay 2.48% when he can lease it at 0.6%?
Not to argue, but at $415 a month for 1,000 miles a month that is 41.5 cents per mile; A HUGE RIPOFF!
Buy and pay 20 cents a mile plus interest (or zero interest if you buy with cash).
A lease is only a good deal when cost per mile is reasonable, 41.5 cents is not reasonable.
For example a Tundra (I know, not everyone wants a Tundra) is about $3,000 more in MSRP yet costs just $240 a month with similar miles; that is a good deal.
Bear
What are you basing this number off of?
A reasonable assumption is to buy for $36,435, sell for $29,235 in 3 years with 35,700 miles.
Itâs not guaranteed but is doable if kept in pristine condition.
Bear
You can do that exact situation if leasing
Gotcha⌠youâre just making up numbers.
At an OTD price of $36436, youâd need to be at a selling price of under $33000. Where have you seen people getting 25%+ off on highlanders?
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Bro, you give bad advice.
Letâs say you purchased it for $39,195.04 which includes taxes and fees from his current offer. Finance for 63 months at 2.48% with PNC bank as you said. Payments would be $664.17. After 36 months you would of paid $23,910.12 with an outstanding balance of $17,424 remaining. Now TFS is setting Residual at 59%. Letâs assume thatâs what itâs really worth after 36 months. So you have a value of $26,082.72 and a balance of $17,424 on loan. So equity of $8,658.72. Subtract that from the total payments of $23,910.12 which was paid through 36 months of you 63 month loan. Thatâs $15,251.40 over 36months. Thats $423.65/month realized payment over ownership of car. This all assumes his current offer sales price for purchase, 2.48% loan rate over 63 month term, 59% RV on vehicle. Now if you sell for more or less than RV is all a guess of what the future holds. $423.65 is slightly less than the $426 he is being quoted for lease. But with a lease heâs not having to make loan payments of $664 and hope the value is at least 59% after 36 months.
Fortunately, cars never depreciate more than expected right when a new, completely updated version of the same vehicle comes out.
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