Newbie here! (go easy on me)
So this is the proposed deal I have on a 2018 TRD 4x4 off-road Tacoma and I want to make sure its a good deal. This is what the dealer sent me. TIA!
12k miles per year
36 month
MSRP $37,218
Discount $4,750
Trade $3,500
Balance $31,011
MF 0.00171
Georgia Tax 7%
73% residual ($27,169.14)
Payment $268
Deal looks OK but have them write you a check for the trade in.
You will never see that money back if you total it and it’s never a good idea to pay for a cap cost reduction.
Is the dealership using US Bank or Ally for the leasing company ?
Since you went to Caltech, you should realize that they are stiffing you on the trade. Can you lookup kbb of your trade thanks …
Trade is a 2003 300k mile 4runner. KBB is $2500.
It’s with Toyota Financial
IT’s a great residual !
But the MF seems inflated - is your TFS incentivized lease 0.00150 ?
I’m not sure what you mean by incentivized lease.
When you go thru TFS for leasing, you get an discounted lease MF depending on region.
Your 0.00171 is higher than mine in Calif @ 0.00150
Just wanted to make sure the dealer is not marking up the MF for extra profit…
They showed me a sheet with tier 1 credit on that truck and it was .00171. I’m not sure if that was official or not.
I did ask about MSDs and didn’t really get a good response, but they are going to add in 4 and give me a price on that. Could I use my trade for MSDs and the rest as cash?
Yes, good idea to use the trade as MSD.
Make sure they apply it as MSD - not security deposit or cap cost reduction!
Your MF must be a southeast region…
Is there a $1000 rebate on this truck in your area ?
I don’t know about any rebates. They just told me that they only do MSD for people with bad credit…
Also they are telling me if they add the 4750 discount and 3500 for trade (8250 Trade) that it will decrease the amount of taxes I pay. So on paper I will pay full msrp, but get $8250 off. This seems fishy to me. What are your thoughts?
You should check NADA guide online to see what rebates you are eligible for.
MSD is to reduce the MF (%).
The Trade in is something I don’t know because your state has taxes that I don’t have to worry about when I trade in a car.
Your state may have a tax rule on retrieving back sales taxes when you sell/trade your old car in…
I would take the trade in as cash instead of rolling it into your lease.
You risk losing your trade in if you rolled it into a lease…
Have you checked the value of your trade on Carvana or Vroom online ?
The dealer might be trying to take your trade to make money on an undervalued trade.