Tacoma SR Lease - Too good to be true?

Its the morning, what did the dealer say?

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Any idea what the minimum is?

I’ve run into it before in low or no tax states. The depreciation line of the contract can’t be under $2500. So I don’t think you can get a check for the rebate

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Dealer has said they will do the deal. Am I just headed to an application and everything only for them to say no because the bank?

With the depreciation line that @Jrouleau426 stated, I wouldn’t be surprised to see a a bit higher payment.

Either way, great deal on a Taco.

Everything went through! I rolled first month, admin fee, upfront taxes, upped to 12k miles per year, and added all weather floor mats for $0 due at signing (I don’t know the terminology, but I didn’t pay a cent to take the car). Total payment = $124/month.

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Congrats! Hope this works out. Only thing to keep in mind it would typically be about a week till US Bank gets the file, processes it, etc…which is why the contract says “if the bank doesn’t fund the deal we need you to bring it back and unwind the transaction”.

Hopefully this does work and you got a great deal! Keep us in the loop.

Nice deal!

Is this a unicorn @Jrouleau426?

Sounds like no if it gets clawed back :neutral_face: I guess worse case I traded a credit score hit for a free truck rental for a week, lol.

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I can’t get this price and think it will get rejected by usbank.

Worst case it’s $50/mo more. Still a fantastic deal

The highlighted line needs to be 2500. So your deal needs to be 1200 more.

Hmm. Makes sense, I guess. Kinda annoying the dealer wouldn’t know that rule (obviously you warned me, but doesn’t feel like my responsibility to tell the dealer). I’m not going to be excited to go back to pay more, will be curious to see how they handle it.

You could always ask the dealer to pay you the $1500 rebate instead of rolling it into the contract. That should fix the depreciation line minimum if theres an issue of it getting funded.

I have been studying our competitor’s lease programs for years and find so much joy when they unknowingly originate volumes of leases that are guaranteed losers.

Assuming the deal somehow gets re-written to bake in the $2500 of depreciation, here are the financial details on this one and how it relates to the lender’s balance sheet. That $2500 depreciation figure is such an arbitrary number and should be automatically enforced through an automated RV drop if the cap cost gets so low.

Granted, no one could predict $5500 in total discount/rebates on a $34k Tacoma (16.2%!!!) when they are setting RVs but the trend in production and demand has been getting stressed in the last 18 months.

US Bank will earn $1570 in interest income on this over the full term plus the $595 acq fee and dispo fee putting their gross income on this lease around $2565.

I think the dealer makes a $200 flat on Tacoma through US Bank and the car will sell at auction for around $26,000-$26,500 (best case) but will incur about $300 in selling costs (transport, auction, inspection). So their best case scenario is if they only lose $400 when this lease completely nets out.

Here is the price of the equivalent end of term vehicle selling at auction now:


Lease ‘me for as long as US Bank is dumb enough to publish these RVs!

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Lol. I financed less than a dollar on my last few BMWs. Bummer!

Could you add maintenance beyond toyota care or wheels?

Unless you bought them and paid cash, that’s not possible on any BMW lease.

The thing is banks work on a fractional reserve system. For every dollar they have they can lend 10.

So if they have $100 they can lend $1000 at 25% interest on one of their credit cards. So on that original $100 they can make up to and above $250. That’s the game…so they might lose on a lease but they can make much more elsewhere, they just need that initial $1 to lend $10.

Banksters…

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It was $8.48 my bad

The interesting tidbit is that the FED just lowered the fractional reserve requirements for banks lol

Indeed they did. Interesting times…