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12,000 mi/24 months for a 2015 Highlander XLE with MSRP $39,205
$2999 down and $437.64 a month.
They have a factory lease incentive running for $2999 down and $319 a month. I assume this is for their entry level LE which lists for about $35,000. Does $4000 more translate to $118 a month?
Is this 12,000 miles per year or 12,000 miles in two years? Does the $437 payment include tax or is that pretax? (What is your tax rate? Will help with calculations).
Sounds like you will have $13,500 invested in a low mileage lease for two years which sounds a little steep given the high residual of Toyota products.
Leasing is beneficial in some cases, but you need to understand the values they are using. What is the purchase option at the end, regardless of whether you will buy it or not, you need to know this number. Also, if you are driving this few miles, it may be better to take it out a little longer, but only to the limits of the full coverage warranty. If 12k a year, then probably look at a 36 month lease, and always put as little down as possible. Putting money down saves you nothing on a lease, it only is used to achieve a desired payment.
Here are the numbers you should get to really analyze the deal:
MSRP: $39,205
Capitalized cost (what your payments are calculated on):
Lease rate (Not the same as APR):
Residual value (%of original value at end of term):
Purchase option at end of term:
mileage allowed:
Mileage fee if over:
Turn in fee (if any):
I agree, the critical number is the residual, which I don’t know yet. A good deal seems to be when your total payment over 2 years is less than the MSRP minus the residual.
12,000 mi/24 months for a 2015 Highlander XLE with MSRP $39,205
$2999 down and $437.64 a month.
They have a factory lease incentive running for $2999 down and $319 a month. I assume this is for their entry level LE which lists for about $35,000. Does $4000 more translate to $118 a month?
AWD or not?
In March we leased a 2014 XLE AWD put 1500 down and pay about 450 a month which includes tax. The sales price of ours was about 35,600.
For every $1000 you put down it's about $25 give or take lowering your payment. Can you do a 10k lease? Credit is also a big factor in it. Are you above a 720?
I'm not a lease type of guy, but I always cringe when I hear about putting a large sum of money down on a vehicle you don't even get to keep.
Guess what? You don't get to "keep it" till the bank mails you the title 60+ months from now. I always love it when people would tell me this: Oh I like to own my cars-Guess what?? NO title in hand, NO ownership!!!
I agree, the critical number is the residual, which I don’t know yet. A good deal seems to be when your total payment over 2 years is less than the MSRP minus the residual.
MSRP is not a good number to use for comparison since it is most of the times an arbitrary number (due to possible incentives, etc).
Of course residual is also a guestimate value since nobody knows for sure the real market value of a vehicle couple of years down the road, too many factors in play.
Guess what? You don't get to "keep it" till the bank mails you the title 60+ months from now. I always love it when people would tell me this. Oh I like to own my cars-Guess what?? NO title in hand, NO ownership!!!
Yes, you own it, title or not. Because you accrue equity in it. You can pay off the title and sell it, keeping the balance from the sale (unless you're upside down).
And guess what? Time is eternal and 60 months will pass and then you'll have the title and whatever market value the car has then will be your asset. What do you have after 60 months leasing?
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