If I have a dealer install a remote start and door guards is that residualized? They want 800 to install a remote start on a Highlander SE so it it was just the 33%/$264 depreciation that I actually paid out over the 36 mnths Id probably do it.
I doubt it’s residualized. Port installed options probably are though.
That was my guess but dont realy know for sure.
TFS will only residualize a couple dealer installed options and the MSRP allowances for them are not what the dealer charges. Alloys wheels, bed liner and tube/side steps are allowed on some models and the components have to be factory made. A lot of Toyota’s port installed options can also be dealer installed. The only difference is with port installed, the content shows up on the original Monroney and is tracked by Toyota in their database of VINs and what content is built each one. If the same content is installed at the dealer, there is no information relayed back to Toyota as to what content is installed on each VIN. So there is no ability to track the content and the value it brings at auction if it is dealer installed.
You can tell at the lot by looking at the Monroney label. The dealer installed options will be on the far right side usually as a separate sticker.
On this Highlander, the remote start will not add anything to the $RV. I have seen some Toyota dealers install the hardware for remote start and in some markets alarms/kill switches on the bulk of their entire inventory and then activate the functionality if the customer chooses to purchase it.
@RVguy great answer thank you!
@RVguy this was a email I just got from a dealership does this sound legit to you?
Spoke to my finance manager for you. Toyota does not discount lease rates with security deposits, unless there is no discounted rate available. There is on the Highlander, and the best rate in our region is .00133 for 720 scores and above. The one for 700 is .00143.
They can not be discounted more than that.
The security deposit on a Toyota lease is for only 2 reasons. 1 being used with someone with no so good credit, and the other to bring down the rate when there is no special rates available like on a 4 Runner, Land cruiser etc.
Yes that is correct. As soon as they dip below the standard rate, the MSD option goes away. Your only option to find a lower MF on a subvented model is a dealer that is willing to use a 3rd party lender that might have a lower rate.
@RVguy I had a dealer get back to me with a quote today saying the MSDs would be $4500 for a 00109 rate!? He said they always add 00005 to the rates so instead of 00133 it started at 00138 and it only dropped my rate 00029 to 00109. He said the first one doesn’t drop it the next 8 do? From everything i’ve read 4500 seems way to much to only drop it 00029. Its on a Highlander SE Msrp 43408. Obviously that’s a horrible deal for me but is he just inflating the rate to drop it down to add profit?
800 for remote start is high. The Toyota dealer here in Mass will do them for 400 to 450 and even run cheaper promotions in fall
I’ve had MSD applied to an MF of .00056. The finance manager even called TFS in front of me and the only stipulation was that it could not go to 0 (min .00001).
@max_g @RVguy he’s saying it’s 4500 for 9 deposits and only the last 8 lower your rate.the calculator on here says the MSDs are over 1000 less and I’ve read nothing on only the last 8 lowering your rate. Thanks guys!
What’s the MF according to Edmunds and what is your monthly payment?
@max_g @RVguy I got a dealer to apply the MSD on a 00133 dea down to 00072 but hes calculating the deposits on what my payment would of been at 00133 and after tax. Is that correct? Or should it be at the lower rate or before tax??
Thanks guys!
I’ve heard of both. I’m not surprised when MSD are calculated at the original MF.