You’ve definitely got to look into this more. When a dealer gives you a nice, round payment number like $500 something is fishy.
Transaction #1: You’ve got the MSRP of the truck ($41,000). What is the selling price of the new Tacoma (you should dictate this to them from market research)? What is the current TFS money factor/residual value of the new Tacoma?
Transaction #2: What is the buyout for the current Tacoma? What is the dealership offering to buy it from you for? Have you checked with multiple car buying sites (carmax, carvana, give me the vin…) to get the best price for your current Tacoma?
Transaction #3: Have you checked with multiple dealers in the area/state? Have you looked at dealing with any brokers or dealers from LH Marketplace in your area?
I hear ya but Carmax didn’t used to lowball and 5K difference between their value and payoff without noting the damage is a pretty significant negative.
Can you provide any specific details, like mileage and model of the existing Tacoma coming off lease? Does she have an offer in writing from the dealer on the trade in? $500 a month for a new Tacoma sound high, but need to see the deal sheet to help you and your daughter.
43400 miles 2021 army green TRD 2wd has scratches on rear fender flares. Toyota dealer offered a 2024 Tacoma msrp of $40474
$499/month 3 years 36,000 miles no out-of-pocket money . However, I realized it was a manual shift vehicle so I asked for one with automatic and they came back with one with an MSRP of $43,544 but the color, my daughter didn’t like plus an extra $25 a month to $524/month. They said she had roughly $2500 of equity in the vehicle. I think she would get $1000 Toyota Loyalty bonus… If they would’ve found another vehicle like the original deal in the color she wanted she probably would’ve taken the deal. At $499/month.
I’m not sure if it’s worth going to Another dealer.
It appears what is happening here is the Toyota dealer is over valuing your trade and giving little to no discount on the new vehicle. The giveaway is the $499 lease payment. I am not sure how AZ taxes leases, but using the numbers you gave with $0 discount, $0 down and $2500 trade equity, I get a payment of around $500 a month. Now this might not be a bad deal if the damage and any other wear and tear adds up to a considerable charge at lease end. She may be better off taking this type of deal than having a large bill at lease end and nothing to drive. Personally I think the dealer has some more room to negotiate some type of discount, but not without seeing the actual vehicle and getting the Used Car Manager to approve any over-allownace on the trade.
Has the turn in inspection flagged the fender flares as an item you’ll be charged for? How much? Have you considered ordering new fender flare and you or her or together making a quick project and swapping them out.
Let’s just look at the new vehicle and not the current one. How much are the dealers and brokers on LH indicating the price would be on a very similar Tacoma? How does it compare to what you’re looking at.
What have the usual places ( Carvana, Carmax, etc ) quoted on purchasing the current one?
Any thoughts on fixing or not fixing the fender flares and her just buying out the current vehicle? It’s a Tacoma that is reliable. As a former Tacoma lessee I’d strongly consider just buying it out.
Does she want to do no money das and she is ok with paying interest and higher taxes on the fees?
As @Jon noted you pretty much keep asking the same thing and appear as though whether this deal is good, great, or terrible you want to take it. What @Wtmeyer is saying is most likely pretty accurate in this scenario too.
Not necessarily saying this is a bad deal. It’s hard to evaluate without seeing where the dealer’s numbers are coming from. Hence, asking for a deal sheet.
I really mean this as a genuine question, OP, but how much effort are you and your daughter willing to put into this, and are you willing to act upon any of the solid, actionable advice you’ve been given here?
No one can help you, if you’re not willing to follow through on some of the basic measures suggested here.