Is Ally a good bank to lease from? Their residuals are higher than Toyota, why don’t more dealers use them?
Because each Toyota dealerships have their certain agreements with Toyota and the lessors they choose is one of the them. Usually Toyota wants Toyota to be its only lessor. But if they are using Ally or USBank, they would have to pay Toyota more and the dealerships don’t want to pay them.
From time to time we see scenarios / vehicles on here where it makes sense to use Ally. Keep in mind that you need to evaluate all the inputs and not just focus on RV. While Ally typically has a higher RV on Toyota, their business model also calls for higher rates / mf…sometimes it works in your favor and many times the higher mf cancels out the higher RV.
3 Likes
How do you find the money factor and residuals with Ally and US Bank? I’m looking at a 36/12k lease on a 2021 Highlander LE, I already have the MF and Residuals from TFS but a few dealers have thrown me price quotes using Ally and US Bank and I have no idea if their money factors/ residuals are correct or tweaked. Thanks!
USBank does not publish APR, Ally does but it’s difficult to access as a consumer.
The dealer told me, he didn’t say it was Ally but that’s my guess.
I experienced a Toyota dealer today Told me I could have the advertised lease special for a 7594 Tacoma SR D Cab. 179 mth 2999 at start + tax/fees.
We were at the point where I gave him half my Social Security number and then said Send this directly to Toyota financial not in House so I don’t get 2 hits on my credit. Salesman says its going to Ally. Red Flags!!!, as it turns out the Toyota interest-rate is near zero and they have a lower residual by $4000. The dealer was able to get me the Tacoma through Ally for the same price and same down payment but if I decide to keep the car at the end of the lease it was gonna cost me 4000 additional dollars to buy it out. The dealer was able to pack $6800 additional profit into the deal and try to sell me the car for above MSRP.,
They showed me the “Toyota 179 lease special was now 375 a month with 3000 down. Instead of 189 with tax and 3k down!
If you do find a money factor, Multiply it times 2400 to get the effective interest-rate (approximate) for comparison.
Make sure you read the Leasing 101 a couple of times on the main page. I think you may be confusing a few things. Tacoma’s are pretty common on here so search through the “Share a Deal” section and work out the deal you are targeting first.
They didn’t pack an additional $4,000 in profit, the captive or Ally in this case is using a different RV than TFS. Which is typically offset by a different MF as I mentioned.
If you are leaning towards buying it at the end, most likely it will cost less to buy it now. With the disclaimer that you need to run the numbers based off current incentives for each scenario to determine that.
1 Like
Ty for the response. Bottom line is the dealer wouldn’t do the TMCC advertised lease for 179. They instead offered 375/36 through TMCC. That would be $6800 additional from the regional ad. Instead, they switch you to Ally and give you the TMCC advertised payments and down payment except for now the residual is 4200 additional at the end of the lease. It’s a bunch of crap. But, I understand They do not want to take the mini deal on a hot vehicle and make more through Ally.
Manufacturer advertised dealers always have a ton of missing taxes and fees in them. They never actually come out to the advertised numbers.
I get that but what happened to me today was out right attempt to deceive. I had to dig to see the residual and they never would print out the full lease details. Further, I was a former salesperson at a Toyota dealership and I figured these leases for customers at my desk and knew every variable that goes into figuring the lease.
If you ask for deal “A” and they give you deal “A”, how are they deceiving you? At that point it shouldn’t matter how it’s structured, since they are giving you the deal you asked for.
If your planning on buying it when the lease is over with you should probably just buy it to begin with, especially on a Tacoma
1 Like
i have a taco thru ally.
sure cheaper monthly but negatives
- lease transfer only in state
- third party buyout higher than if the lessee buys out
- at dispostion, at mercy of local dealer to accept and take care of vehicle until picked up by ally. also, who knows how nit picky the inspection will be.
- bad customer service, offshore call center.
1 Like
Thank you. You hit the nail on the head
Ally is not TMCC.
I’m sure the dealers do not Point out the buyout is over $4000 more. There’s no damage waiver through ALLY. The maintenance package they give you will now have to be done at that dealer not at any Toyota dealer.
Who knows what their situation will be three years down the road whether they want to keep the vehicle or turn it back in? I’d rather get the deal that was advertised and be able to buy the vehicle out for $4000 less and simply pay Toyota financial services directly
Wish I understood that third party buyout gotcha before I engaged with ally. Would have changed my decision. Never use ally if you want to go the carvana/carmax/vroom route at lease end. Ally wants clean retail value from a third party, which of course they will never pay. Forget ally.
1 Like
Curious how many folks have had success with Ally since they seem to be much cheaper than Toyota
I did one last year, at the time the deal through TFS wasn’t very good. I think right now you’re better off with the TFS program(with MSD’s). To me it’s all about the payment, I don’t care what the residual/buyout is, because I have no intentions of cashing out equity or buying it. I’d much rather go with Ally vs US Bank, Ally use to be GMAC and I never had an issue with them.
2 Likes
But if your paying $4000 less throughout the lease with another bank your not getting ahead with that buyout at the end. Like your example, you’d still be ahead $2400 with Ally vs Toyota. Toyota also doesn’t include gap insurance, so that’s another cost. Not sure why you would buy a maintenance package with Toyota since the first 2 years are covered.
I think you are either too attached to Toyota financial from your past job or your currently still working there trying to convince people how to spend more money over a lease
1 Like