Trail Edition Lease...just made a deal

B

big trail

New member
Gents,

Wanted to get your opinion on a lease deal that I just negotiated on a 2010 Silver Trail Edition equipped with KDSS and without NAV.

It doesn't seem that many are leasing lately (probably because TFS's money factor sucks!!! :) ), but buying doesn't make any sense for me right now for several reasons.

I was able to negotiate the price of the car to 1,300 over invoice (which I thought was fairly decent considering that Trails are hard to find), and I'll be looking at monthly strokes of $577.28 on a 48 month 12k lease. The money factor is awful (.00299 for Tier 1 credit), but I'm curious what you guys are paying and what your opinions are...

Can't wait to post pics this weekend when I pick her up!

-BT
 
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Auto Leasing vs. Loan Calculator

That's a super long link to a Loan vs Lease Calculator that I've used in the past that's been helpful.

But I don't know what you're trade in or down payments are, even so, it still comes out just a little cheaper to finance and buy. Which I would think is wiser because I don't think it'd be hard to sell a Trail Edition in 4 years, and you have unlimited mileage. Leasing always looked like just an expensive word for renting to me.
 
Interesting

I think its interesting that people ask for opinions about lease or purchase "deals" after the fact.

$577 sounds high... based on MSPR $38,250, sale price of about $35,300, residual @ 56%, 6% sales tax, money factor as you stated, $500 doc fees and no money down... seems like the monthly payment should be around $500.-525.00.

When I ran the numbers of financing a vehicle, as opposed to leasing for 36, then purchasing it... the difference was about $1,000 - based on current interest rates. I'm also curious why you would lease beyond the manufacturer warranty period.

big trail said:
Gents,

Wanted to get your opinion on a lease deal that I just negotiated on a 2010 Silver Trail Edition equipped with KDSS and without NAV.

It doesn't seem that many are leasing lately (probably because TFS's money factor sucks!!! :) ), but buying doesn't make any sense for me right now for several reasons.

I was able to negotiate the price of the car to 1,300 over invoice (which I thought was fairly decent considering that Trails are hard to find), and I'll be looking at monthly strokes of $577.28 on a 48 month 12k lease. The money factor is awful (.00299 for Tier 1 credit), but I'm curious what you guys are paying and what your opinions are...

Can't wait to post pics this weekend when I pick her up!

-BT
Click to expand...
 
fxoffroad said:
I think its interesting that people ask for opinions about lease or purchase "deals" after the fact.

$577 sounds high... based on MSPR $38,250, sale price of about $35,300, residual @ 56%, 6% sales tax, money factor as you stated, $500 doc fees and no money down... seems like the monthly payment should be around $500.-525.00.

When I ran the numbers of financing a vehicle, as opposed to leasing for 36, then purchasing it... the difference was about $1,000 - based on current interest rates. I'm also curious why you would lease beyond the manufacturer warranty period.
Click to expand...


Thanks for the input...I should have mentioned that I haven't signed anything yet...hence the reason I am asking for opinions. I made the deal on Sunday, and I'm on the road for work all week, so I will get back to the dealership on Saturday to see the car (coming into port this week) and make it final. They have a 500 refundable deposit as good faith, but I'm not committed yet, and that is why I wanted to bounce it off the forum and see what others thought...

I should have mentioned that I am not trading in and that I am not putting any money down (first payment will be one month's lease plus security deposit and registration). The 577 is including a 9.6% tax here (Washington is ridiculous), so I guess that puts the payment at $521.61 before tax.
 
big trail said:
Thanks for the input...I should have mentioned that I haven't signed anything yet...hence the reason I am asking for opinions. I made the deal on Sunday, and I'm on the road for work all week, so I will get back to the dealership on Saturday to see the car (coming into port this week) and make it final. They have a 500 refundable deposit as good faith, but I'm not committed yet, and that is why I wanted to bounce it off the forum and see what others thought...

I should have mentioned that I am not trading in and that I am not putting any money down (first payment will be one month's lease plus security deposit and registration). The 577 is including a 9.6% tax here (Washington is ridiculous), so I guess that puts the payment at $521.61 before tax.
Click to expand...

I leased my last 2 4runners (2003 & 2006 Sport V8's with MSRP of $36k) for 3 years no money down 15K per year. One was $390/month while my last one was $373/month. So when I was researching my 2010 Trail, lease prices had nearly doubled, so I bought it this time around. I would say those prices are way too high to lease.

Again just my opinion, but payments with a few grand down if you buy will be very close.

Brandon
 
If you have to lease I would hold off until there are better deals.......My 07 limited is on its last few months of a 3 year/36k lease where I pay 500/month and that was with nothing down......I am hoping that by August lease prices will come down.
 
Just ran the payment tool in excell based on a 3.5% and 4.5% interest rate. Based it on $35,300 purchase price (so would be tax as well I take it if you bought it - not sure where you are at and the tax rate).

Based on 48 months

3.5% -- you would owe the car after $789 / month
4.5% - you would owe the car after $805 / month

Now 60 months

4.5% -- $658 / month and you would owe the car

I guess to me the point is always what does it take to owe the car after I am done paying and could I live with it. It would be $100 more for 12 more months - that may be doable for some and not for others. You may also not be able to get that interest rate, but I just wanted to serve it up as it is the way I always looked at leases.
 
Have you thought about going on to Edmunds and getting some online price quotes from other dealers? This might help your process and confirm or change your opinion.

big trail said:
Thanks for the input...I should have mentioned that I haven't signed anything yet...hence the reason I am asking for opinions. I made the deal on Sunday, and I'm on the road for work all week, so I will get back to the dealership on Saturday
Click to expand...
 
big trail said:
Gents,

Wanted to get your opinion on a lease deal that I just negotiated on a 2010 Silver Trail Edition equipped with KDSS and without NAV.

It doesn't seem that many are leasing lately (probably because TFS's money factor sucks!!! :) ), but buying doesn't make any sense for me right now for several reasons.

I was able to negotiate the price of the car to 1,300 over invoice (which I thought was fairly decent considering that Trails are hard to find), and I'll be looking at monthly strokes of $577.28 on a 48 month 12k lease. The money factor is awful (.00299 for Tier 1 credit), but I'm curious what you guys are paying and what your opinions are...

Can't wait to post pics this weekend when I pick her up!

-BT
Click to expand...

Honestly, that price sounds horrible and borderline dumb...not a reflection of you, just the deal they are offering. I've seen recent commercial for land rover/range rover leases that are just $20-$30 dollars more than that AND they cover the maintenance.

I'm curious, if you're willing to lease for 48 months why buying for an additional 12 months wouldn't make sense to you? Aren't leases usually 36 months and anything above that doesn't make sense? In addition, you start getting into some maintenance around 3-4 years not including the possible overages on mileage because 12k is nothing in a year for most people.

I agree with others, it sounds like maybe you should wait and see if you can get a better deal later or save up some money to lower your payments. Paying almost $600 for a non-luxury car seems ludicrous.

Good luck and I hope it works out for you.
 
ougrad1 said:
Honestly, that price sounds horrible and borderline dumb...not a reflection of you, just the deal they are offering. I've seen recent commercial for land rover/range rover leases that are just $20-$30 dollars more than that AND they cover the maintenance.

I'm curious, if you're willing to lease for 48 months why buying for an additional 12 months wouldn't make sense to you? Aren't leases usually 36 months and anything above that doesn't make sense? In addition, you start getting into some maintenance around 3-4 years not including the possible overages on mileage because 12k is nothing in a year for most people.

I agree with others, it sounds like maybe you should wait and see if you can get a better deal later or save up some money to lower your payments. Paying almost $600 for a non-luxury car seems ludicrous.

Good luck and I hope it works out for you.
Click to expand...

In my opinion, $1,300 over invoice for a TE is a pretty good deal, although I won't comment on the specific lease terms. The TE's are rare and if you can buy one for invoice your dealer was a fool - took almost two months for mine to come in.

In addition, comparisons to Land Rover aren't really relevant, imo. Land Rovers are widely known to have significant quality problems, and top the lists of Consumer Reports list of "Vehicles to Avoid". I have a friend with a Land Rover with 60K miles - this past week the oil pump went out, ruined the lower end, and she sold it for scrap value. I'll take a T4R over a RR or LR any day, hands down.

All that is to say that I wouldn't be surprised if Land Rover is offering some attractive incentives to move vehicles...
 
I think the opposite argument could be made... a consumer paying $1,300 over invoice - even for a vehicle that's "in demand" is a fool. I have a buddy here in Colorado who just paid invoice for a TE and he felt he got screwed, but decided any more back and forth with the dealer was gonna send him to a mental institution.

LWN said:
In my opinion, $1,300 over invoice for a TE is a pretty good deal, although I won't comment on the specific lease terms. The TE's are rare and if you can buy one for invoice your dealer was a fool - took almost two months for mine to come in.
Click to expand...
 
Great lease prices on my 07 was the main reason I got my 4runner.........there is no way you can justify leasing right now.........you have to wait until there are some incentives.
 
fxoffroad said:
I think the opposite argument could be made... a consumer paying $1,300 over invoice - even for a vehicle that's "in demand" is a fool. I have a buddy here in Colorado who just paid invoice for a TE and he felt he got screwed, but decided any more back and forth with the dealer was gonna send him to a mental institution.
Click to expand...

True, but you also have to remember certain parts of the country get better deals than others. Here in WI(midwest) there were not even supposed to be any trail editions shipped here, in fact during dealer training the corporate reps specifically told them so. So here, finding one is very very difficult, my dealer was just about the only one who had a single unit in the state! Some of us do not have the time or luxury to go out of state to buy one, so the dealers essentially have us by the short hairs so to speak:whipping2

In these situations, paying over invoice for a model thats in limited supply in general is all one can expect.

Brandon
 
fxoffroad said:
I think the opposite argument could be made... a consumer paying $1,300 over invoice - even for a vehicle that's "in demand" is a fool. I have a buddy here in Colorado who just paid invoice for a TE and he felt he got screwed, but decided any more back and forth with the dealer was gonna send him to a mental institution.
Click to expand...

We all have different financial situations. Getting a car quickly, less hassle and not driving around etc is worth more than a few thousand to some people......

Getting a good deal is what some people will do - they will shop around a bit and then be happy

Others will nickel and dime the heck out of it and spend that time and be happy

All different people in different situations..... I have done all three of the above........
 
LWN said:
In my opinion, $1,300 over invoice for a TE is a pretty good deal, although I won't comment on the specific lease terms. The TE's are rare and if you can buy one for invoice your dealer was a fool - took almost two months for mine to come in.

In addition, comparisons to Land Rover aren't really relevant, imo. Land Rovers are widely known to have significant quality problems, and top the lists of Consumer Reports list of "Vehicles to Avoid". I have a friend with a Land Rover with 60K miles - this past week the oil pump went out, ruined the lower end, and she sold it for scrap value. I'll take a T4R over a RR or LR any day, hands down.

All that is to say that I wouldn't be surprised if Land Rover is offering some attractive incentives to move vehicles...
Click to expand...

I agree with you about the quality issues of a Land Rover, I was simply pointing out that the starting price point and the luxury that the Land Rover offers regardless, seems to justify their price more so than paying the same for a Toyota 4runner.
 
Thanks for all of the comments guys..I've done some more calling around and it seems like .00255 is the best MF out there for the 4runner since TFS is not doing any specials right now. I was able to do a bit better with the dealership, and it looks like I'll still be getting my Silver TE this weekend!
 
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