Drive-off amount isn’t the same. Click on the zero drive off option in the calculator and the numbers match up pretty much exactly.
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Knowledge is power and there might be a fire sale with a bunch of incentives where $289 is the standard going rate of the lease terms for the car, but in actuality a great deal would be $250.
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Toyota Financial should be something like .00008 per MSD last time I checked
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TFS is .00008 each with 9 max, but OP is in the SET region.
Newbie here so bear with me…but why does the sales price, residual and/or money factor matter at all?
Doesn’t it all just come down to getting the lowest total payments to use the vehicle for 3 years?
I’ve been offered $0 down and $289 a month for Tacoma Off Road V6. For a vehicle with a $37000 MSRP that seems like a decent monthly price. Especially compared to other $37K vehicles where $0 down leases are more like in the $350/month range.
Am I missing something??
You need those variables to know you’re getting the best deal. You can get a $40k+ Tacoma for less than $289.
Furthermore, going off 1 % rule (lease payment is 1 % of MSRP) that is so popular here is kind of dumb because specific makes and/or models have MSRPs set way too high and then have to be discounted to be sold (M3/M4 CS for example 
)
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The 1% test is just a sanity check but I agree it’s not effective with the bloated MSRP’s,
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It’s not popular here at all
Apart from a couple noobs, no one even mentions it
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Idk…it seems like it’s mentioned quite frequently as gospel, and it just won’t die. Although, I can say I’ve seen it less frequently as of recent. Agreed it’s a dumb measurement of a good deal.
If it’s on the internet, it has to be true, right?
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I think I like it because so many people don’t, it’s a great rule for cheapskates like myself.
And, how do you know whether or not your total payments are the lowest possible without crunching the numbers? You could get quotes from two dozen or so dealers and select the dealer with the lowest total payments and still leave money on the table. For example, every dealer could have used a marked-up money factor. You have to do your due diligence by collecting and vetting input data (e.g., money factor, residual, acq and doc fees, rebates/incentives both manufacturer to customer and manufacturer to dealer, etc). Next, you have to calculate payments, taxes, etc… Do it manually! Don’t rely on online calculators as they all have short comings. Bottom line is that you need to learn leasing including the mathematics. There are no short cuts!
I think the payment as % of MSRP is a useful tool for comparing the attractiveness of leasing different vehicles.
Once you’ve got a vehicle in mind, I think it’s actually really helpful to pause and consider payment as % of selling prince. This helps you understand whether a lease is a great deal because of lease-specific terms like MF, Residual, etc, or if it’s because of selling price and incentives. Sometime the dealer will add on additional incentives to buy, making that an attractive option (particularly if you think the RV is on the lower side).
Fun stuff!
I don’t disagree. But I reckon more people could benefit comparing the payment to percentage of their income . . . As has been mentioned before by those wiser than me.
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I know you got yourself a nice % number on the base payment, but roll your $4k DAS in and it won’t be so pretty 
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How does that help? Over half of that was VA taxes, which are unavoidable on vehicles of similar price. The only other drive offs were pretty standard up front fees that are similar between vehicles. I didn’t do any Cap Cost Reduction on the vehicle itself. All of that would be the exact same on a purchase (at least in VA). My point was just that a good lease deal could be an even better deal as a purchase. It’s worth considering that before signing.
MSDs are an interesting part of the equation, but I believe these are certainly worth it if you can tie up the funds for a few years. If you can find a similar deal for a similar vehicle that doesn’t require MSDs, that’s a significant plus.
Because it still has to be paid.
Total cost vs total cost is the only way to compare in a genuine manner.
Is the “1% rule” on here of MSRP? I thought it was 1% after rebates and discount, i.e. bottom line sales price.
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Illustration of the uselessness of the “rule.”
It means 10 different things to 10 different people.
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Just showed you that your 0.XX% means absolutely nothing. And I know everything about VA tax. You should also consider your property tax while at this 1% nonsense 
A good lease doesn’t mean a good purchase at all. Incentives are different.