Should I go through with this deal? Turned in my 2018 Highlander Hybrid LE with 10,100 miles over and last payment due of $329. Supposedly the dealer cut a check to TFS for around $1,900. The deal is for a 2020 Highlander LE AWD 36 months 10k miles putting $1,000 down at $364 per month.
To me it actually looks ok.
2508 Off - 1000 = 1508 discount + 1900 for your other lease (If not just paid off)
So 3408 off.
The payment of $364 looks good for that.
So no you didn’t get ‘ripped off’ in fact you got a decent deal IMHO
It depends… Did you get a purchase quote on your trade before turning it in and compare against your buy out?
I wouldn’t be surprised if you lit a bunch of equity on fire.
Hopefully you’re driving less this go around and don’t blow through the miles again
I didn’t know you could get a purchase quote for a lease, but it definitely makes sense. I just wasn’t looking at the deal from that side. You guys are super smart, thanks for your help. Should I re-negotiate?I haven’t picked up the vehicle yet and there is a 3-day right to cancel in my area.
Thanks for your help Forbs, I really appreciate it. They said I got $2,000 in rebates/non cash credits. Does the rent charge seem high? Is that related to the MF?
Plug your trade in info into carvana and see what they would offer on it. Should take you about 3 minutes and give you a little better idea of where you’re sitting.
Did you sign the deal and haven’t picked up the car or just haven’t signed the deal?
Also, check MF with Edmunds.
Signed but haven’t picked the car up.
Thanks for your help mllc42, I really appreciate it. Carvana is saying they’d only give me around $21k for trade and $22k to sell. My buyout is $24,700. I feel like those numbers are low from Carvana.
You can also check with shift, vroom, algo, and Rodo. They should all give you numbers.
It may be that there wasn’t equity to be had, but that’s always something you want to check. Sometimes dealers will buy out your lease like they’re doing you a favor and then make a bunch off of the equity in it. Sometimes when they do this, they’ll show a bigger discount on the new car to make sure you go with them. You need to know what value is in your trade, if any, when evaluating the new deal. It sounds like here they aren’t doing that though
Awesome, thank you! Do you know anything about the rental charges? On the form it reads $1,668 in rental charge. Does that seem high and is that anything related to the MF? Should I be concerned about it?
Rent charge is essentially the interest you pay. The MF is what you use to calculate the rent charge. Did you verify the mf they were charging against buy rate before signing? Based on that rent charge, the mf used is .00073.
The Finance guy said it was a really low MF. I can’t recall if he told me it. Is .00073 decent? Also, how do you know all this stuff?
It’s always a good plan to verify mf/rv/incentives with Edmunds before signing. .00073 is definitely on the lower end, however, if buy rate is, say, .0001, then it’s still marked up. It’s really not as cut and dry as just the number being high or low.
How do I know all this? Lots of research, experience and way too much time spent on here.
Very impressive! Appreciate your insight.