Interest rates on a used Highlander vs buying new

Ask the Hackrs
1

I just learned about this forum tonight and have been reading as much as I can. I’m getting hammered at 9.14% through the dealership. 84 months (no difference between that and 72 months they said) for a used 2021 Highlander LE that I’m scheduled to pick up in the next day or so. I’ve put down a deposit, but it’s refundable. $36,700 OTD with 19K miles.

I’m comparing that against the option of a new Highlander LE at $43K OTD with a 4.75% rate. I plan to call some credit unions tomorrow and see if I can do better on the used car. My credit score is above 800.

Any advice or other tips to get a 2021 or newer LE or above? On some Toyota forums I’ve heard of folks getting nearly $4K off MSRP for FWD models in states that see lots of snow where people want AWD, but I haven’t found much inventory searching those areas.

2

if you are asking about how to negotiate a used car there really isn’t a strategy to that. A lot of used cars have firm pricing or little wiggle room. The only time there is room on them is if the dealer bought it for well under market value but even then they might not want to give up their profit margin on it.

The longer a used car is on the lot the more the dealer will typically start chipping away at the list price until there is minimal profit or its a loser deal just to get rid of it.

Sounds like you have already done some homework and I’d just focus on the new 2023 since the price swing isn’t much. The better APR, better warranty, free maintenance, and no miles should easily sway you to new

4

5.5% off msrp on an xle in SoCal Socal/Norcal Toyota + Lexus Purchase and Lease deals - #698 by Jeff_BeachCitiesAuto

3 Likes
5

Check out the credit union thread.

6

Between the price difference and APR, get the new one.

1 Like
7

I am about to head to a dealership in South FL to likely proceed with a new Highlander LE. $0 down. I connected with Jrouleau426 beforehand, but there just isn’t inventory at the moment that fits what I need.

Should I consider gap insurance and if so should I buy it from the dealership or a 3rd party? Any other add-ons I should consider at this time? I’m thinking about rubber OEM floor mats if they can provide a good deal.

8

Check your insurance company for gap coverage

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9

There’s no material “gap” to insure against on a well-bought Highlander.

What’s your purchase price and loan amount?

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10

$43,100 OTD and I’m going to try to qualify for the Toyota 5.49 @ 72

11

How much you putting down? if 10% you are probably good for no gap on a Toyota.
Btw that’s 10% of MSRP + Dealer Addons, as those aren’t part of Gap.

12

Decline everything that you can’t make a passionate case for buying.

14

0 down is my plan (my deleted post was accidental)

15

Depending on Cost tire and wheel is something I have on EVERY lease

16

This one I’m financing. What about in that scenario?

17

SETF will try to give you a ‘fake sticker’ with ‘fake MSRP’, your Gap only covers real MSRP, not fake.

18

You paying msrp for a highlander? GG boys

19

I closed on the new Highlander LE FWD at $42,984 and went with 72 months at 5.49%. Did not take finance add-ons. Thank you everyone for your help throughout this process.

2 Likes
20

Congratulations and welcome to LeaseHackr!!

1 Like
21

Post your deal in signed!

22

Sure, does that mean create a new thread here?

or is there an existing thread somewhere I can post to?