Hello everyone, just wanted to get your thoughts on the following. I’m totally new here, but found this site super helpful.
MSRP: 41,302
Price: 38,700
Net Cap: 39,350
Residual: 28,085
Depreciation: 11,265
3 year / 12k
Drive Off: 980.39, Minus 500 Rebate = 480.39
Lease Payment: 501 (includes tax)
That is a very bad lease, you would be far better off buying that Highlander since they barely depreciate. If you plan to lease it, you need to get at least another $1,500 discount and lower money factor (interest rate). To get to that monthly payment with the information you provided, the money factor would have to be about .0021, which is equivalent to 5.04% interest. I personally wouldn’t pay that interest rate on any loan/lease. However, if you are dead-set on leasing this particular vehicle, you could shave about $100 off the monthly payment by getting the dealer to discount the car an additional $1,500 (we have seen others getting about 10% off so shouldn’t be a problem) and applying the max number of multiple security deposits (9) to reduce the interest rate by 1.728% (.00072 reduction in money factor). Also, consider the XLE model since it may have a lower interest rate from Toyota Financial and result in lower lease payments.Long story short, I would expect a $41k Toyota with a high residual (68%) to lease at or under $400/month.
Thank you, Jason, this is very helpful. I should also mention that it includes the following accessories:
Zero Down
SE Package
Cargo Cover $179
Rear Bumper Protector $139
Mudguards $129
Carpet Mat & Cargo Liner Package $230
IIRC some of the Highlander AWD trims have (or used to have) a 1% higher RV than FWD
There are a couple things you should keep in mind when you’re trying to figure out if a lease payment is good or not. I found this article super helpful in detailing what to look out for: [SPAM]