2010 4Runner Lease
- Thread starter cenwisc
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Lease payments are a function of depreciation. If a vehicle is expected to depreciate slowly, as your 2003 was, then the lease payment is low.
With SUVs being out of favor, I suspect that Toyota believes the 2010 4Runner depreciation will be accelerated in comparison. And thus the high lease rate.
MikesToy
Banned
Leasing is not bad. Depends how low you want your payments or whether you want to keep the vehicle or not. If you want to have a new vehicle every 3 years, then leasing maybe good for you. If you want to keep the vehicle for more than 3 years or forever, then financing is good for you. I'm not a financial advisor or anything of that nature but with my experience with math figures, i have leased a vehicle and bought it at it's residual value which was less than the dealership would offer me if i had financed it in the first place. Anywayz, i've leased an '02 Honda Accord EXL Coupe V6 for $299/mo for 3yrs/15K with a residual value of $11,750 at the end of the lease. Total payments = $22,514. The sticker price back then was $25,995 and they could only go down to $23,650. So leasing then buying @ residual value saved me $1036. That money ($1036) helped me towards installing Comptech supercharger, headers and exhausts. Since i knew i'd be buying the car, i cared less if i went over 15K/yr and modded it up.
sevenstorydrop
New member
Gulf States is now showing a lease special for the 2010 4runner. $449 per month with $2999 down, for 35 months. It does not specify any other terms...
If you guys think that lease rate is high, I was chatting with a friend of mine the other day. He is a Mercedes salesman. Several years back, one of his customers leased a Mercedes SLR. MSRP was $513,000. The payments for a 3 year lease were ~$12,800 per month. $12,800 * 36 = $460,000. Yup, the customer paid almost as much as the MSRP over the term of the lease, and at the end had nothing.
Lease payments are more than just a function of depreciation. The residuals for the 4Runners have remained somewhat constant over the years....which is relatively high vs their American counterparts. The factor that affects lease payments most is the current money factor....which changes monthly. Think of the money factor as the interest rate on a standard loan. The lower the money factor, the lower the lease payment. I've leased about a dozen cars in the past, mostly Hondas. A slight change in a money factor can equate to a substantial change in your monthly payment. I've seen payments drop by as much as $100 because of small changes to money factors.
Don't expect the residuals to change much, either. With a relatively low inventory of 2010 4R's on the lot and a strong demand, I would not expect Toyota to lower money factors anytime soon. Simply put, they don't need to get aggressive with a truck they have no problem selling. That might change down the road after the newness of the truck has worn off and there are more of them on the road. Right now, they're still pretty hot.
fxoffroad
New member
Yeah... that's for a 4x2
At buyatoyta.com it says...
Amount due at signing includes DOWN PAYMENT of $2550, FIRST MONTHLY PAYMENT of $449 and no security deposit. Tax, title and license are extra. Based on MODEL #8642 (2WD 4Dr. SR5 SUV V6 Automatic), TOTAL MSRP $33878, & NET CAPITALIZED COST of $29490.
No thanks.
At buyatoyta.com it says...
Amount due at signing includes DOWN PAYMENT of $2550, FIRST MONTHLY PAYMENT of $449 and no security deposit. Tax, title and license are extra. Based on MODEL #8642 (2WD 4Dr. SR5 SUV V6 Automatic), TOTAL MSRP $33878, & NET CAPITALIZED COST of $29490.
No thanks.
kingpin748
New member
Can anyone explain to me in what scenario a lease is worth it? I've never been able to see the cost benefit.
Sometimes in high end cars (e.g., Mercedes, BMW, etc.), the manufacturer is loath to reduce the MSRP or give visible incentives, so instead the manufacturer subsides leases, taking a loss to move cars. In those cases, or if you can write the lease payments off as a business expense, then it might make financial sense. For the average person, however, it costs more money in the long run.
In addition, the unfamiliar terms -- capitalized cost, capital cost reduction, money factor, etc., -- are incomprehensible to the layman. The are, IMHO, explicitly designed that way. The goal of the lease industry is to make sure that you don't have a clue what the heck the numbers mean, so they can snow you and overcharge you and you won't even know that your pocket has been picked. The best mark is the mark who never even realizes he was conned.
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kingpin748
New member
It still made more sense for my company to finance the truck instead of leasing it. Canadians definitely pay a premium for these things.
US tax law makes it easy for companies to expense leases, but purchasing is treated differently and must be depreciated over a number of years.
fxoffroad
New member
Hmm... incomprehensible? Seriously?
Capitalized Cost: The amount you pay for the vehicle.
Cap. Cost Reduction: Any money you decide to put down to reduce your payments.
Money Factor: Interest Rate
Residual Value: The amount the vehicle will be worth at the end of the lease term.
There are many sites, like Edmunds, who spell out what leasing is all about. It's really very simple... even to the layman (aka Average Joe - like me).
For personal use, a lease may make sense if you don't drive a lot, won't make modifications to your vehicle, and like to get a new vehicle every 2-3 years. In many instances, purchasing a vehicle will make more sense... for others, not so much. Bottom line - do what's best for you.
Capitalized Cost: The amount you pay for the vehicle.
Cap. Cost Reduction: Any money you decide to put down to reduce your payments.
Money Factor: Interest Rate
Residual Value: The amount the vehicle will be worth at the end of the lease term.
There are many sites, like Edmunds, who spell out what leasing is all about. It's really very simple... even to the layman (aka Average Joe - like me).
For personal use, a lease may make sense if you don't drive a lot, won't make modifications to your vehicle, and like to get a new vehicle every 2-3 years. In many instances, purchasing a vehicle will make more sense... for others, not so much. Bottom line - do what's best for you.
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And if they were trying to make it understandable to the average person, they would use the terms:
- sale price
- down payment
- interest rate
- trade-in value
But instead, they use the terms above, which most people don't understand. It is like the old 4-square sales system, designed to mislead.
fxoffroad is right. Leasing is NOT complicated. I find that the folks who bash leasing usually don't understand how leasing works. In a lease, all you are doing is paying for the depreciation of the vehicle while you are driving it. So, in a lease, the bank says that the vehicle is going to depreciate x amount of dollars for how ever long your lease period is. Your payment goes to paying off that amount, plus interest.
Yes, if you live in the world of "Dave Ramsey", leasing is almost always not going to be a cost benefit. But for those of us who want to enjoy our lives while we're young, too, and wish to drive nice, new cars rather than old beaters, leasing is an easy way to get a new car every few years. And to the people who claim you have nothing to show for it at the end of the lease, you aren't leasing the right vehicle. I've leased MANY cars over the years, all Hondas and Toyotas. At the end of every lease, I've been able to either buy it myself and sell it for a profit, or do a third-party lease transfer through a dealer (which is basically trading it in) and use the equity in the vehicle as a cap cost reduction on my next lease. So the only thing I really commit to is always having a car payment, which is always much smaller than a new car loan payment.
Leasing is a personal choice. It really depends on what you want in a car. If you are the type who can drive a car for 10 years, then no, leasing is crazy. But if you like that new car smell and hate dealing with maintenance and break downs, perhaps leasing might be the way to go.
fxoffroad
New member
As an self-declared AVERAGE JOE, I don't find these terms too difficult to understand.
Any person who might consider a lease, should probably have the ability/common sense to do some research to become informed.
You write as if someone is trying to pull a fast one, that's simply not the case.
It's just like the folks who don't do their research when purchasing a vehicle and end up paying the MSRP.
Educated buyers do better at making educated decisions... that holds true for a lot of things in life (IMO).
Any person who might consider a lease, should probably have the ability/common sense to do some research to become informed.
You write as if someone is trying to pull a fast one, that's simply not the case.
It's just like the folks who don't do their research when purchasing a vehicle and end up paying the MSRP.
Educated buyers do better at making educated decisions... that holds true for a lot of things in life (IMO).
These vehicles are undoubtedly on the more expensive end to lease, and I can't say that I would do it or recommend it without other factors being available (business write-off, etc.). It's just an expensive lease when crunching the numbers!
MSRP: $38,215
Agreed Sale Price: $36,075
Residual: $20,349 (~53%)
Money Factor: .00275
15,000 miles | 36 months
They obviously got a good chunk back on the money factor which almost broke the deal, they originally came in at .00355 :wtf:
Shop around ahead of time and you can get a better rate than Toyota Financial someplace like leasecompare (.00224).
Be aware that if putting $0 down (why would you put anything down and risk losing it), you'll need GAP insurance at about $795 and Toyota Financial will try to charge a $650 acquisition fee.
Hopefully this gives some idea of what you'll face in negotiating a 4Runner lease.
MSRP: $38,215
Agreed Sale Price: $36,075
Residual: $20,349 (~53%)
Money Factor: .00275
15,000 miles | 36 months
They obviously got a good chunk back on the money factor which almost broke the deal, they originally came in at .00355 :wtf:
Shop around ahead of time and you can get a better rate than Toyota Financial someplace like leasecompare (.00224).
Be aware that if putting $0 down (why would you put anything down and risk losing it), you'll need GAP insurance at about $795 and Toyota Financial will try to charge a $650 acquisition fee.
Hopefully this gives some idea of what you'll face in negotiating a 4Runner lease.
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