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Pricing and DealersDiscussions that are specific to vehicle pricing, preferred dealer pricing, current incentives, rebates, and experiences.
This is a discussion thread titled "Lease buy out negotiation", within the Pricing and Dealers forum, part of the Marketplace Forums category.
Just thought I'd check and see if anyone who may have leased their Tundra has tried negotiating the buyout price.
My residual isn't bad at $20,893 for my 06 DC SR5 4wd, BUT, with gas prices and the rebates and incentives on 08's the true "market value" of my Tundra has dropped below the residual value.
The original lease was a great deal and I like the truck but I don't want to pay more than needed or more than it's worth. A lot of folks who are coming to the end of their leases with these trucks are going to be in the same boat.
The way I see it is: If I turn in the truck, they will most certainly auction it off. If they send it to auction they will more than likely get $11-12 thousand for the truck. My residual is $21k so why not split the difference at say $15k. If I buy it for $15000, they make money, I get the truck for a fair price and everyone is happy.
It would just seem to make economic sense for Toyota to reduce the number of lease returns buy offerring favorable buyout packages to current lease holders in the form of reduced buyout amounts or good financing or both.
Has anyone tried to negotiate their lease buyout?
Last edited by TUNDRA&LIGHTNING; 07-19-2008 at 12:19 AM.
Reason: Didn't finish
There was a post a couple of weeks ago on this subject. Toyota would not come down on the price. Good luck I hope they do but if they dont you are free to get a killer deal on a new to you truck.
__________________ At least they have circled the problem.
Yeah... I'm wondering the same thing. My lease is done in April 2010 and my buyout is $24,000 (CDN). If gas prices continues to rise, it won't be worth that much.
It seems silly for Toyota not to adjust the buyout. I mean, you could just give it back to the dealer, then turn right around and want to buy it as a used truck, in which case you certainly can negotiate the price. So, the dealer would have the choice of sending it to auction or selling it back to you for a few more $.
The nice thing about buying it back as a used vehicle is that you know exactly where its been.
I'm just not sure though if my truck is a keeper after the issues I've had with it. The next 2 years will determine that.
I am in the same boat..my payoff will be around 20k in Jan 09...my brother in law just got a 08 for around that....I hope and wonder if Toyota will negotiate....buy a new one or pay off my 06????
We leased a '95 4Runner Limited for 36 months through Toyota -- I don't believe it WAS Toyota, just a surrogate here in the Southeast -- and was somewhat amazed at how the buy-out price continued to fall all-by-itself as we delayed making a decision on what we intended to do with it at the end fo the lease period. I want to say the residual was about $22.3k (it had an MSRP of $33k) and they seemed to drop it by $1k every two or three weeks as we neared the end of the lease and ended up buying it out for $18.5 or there abouts.
It's the only lease we'd ever had on a vehicle and in talking with some folks in the biz they just didn't want the vehicles back. Given their willingness to continue dropping the residual, I never bothered to counter-offer.
Of course, that was then and this is now. However, given the current market value of trucks, I doubt they want the trucks back and would be very motivated to negotiate. However, I could be wrong.
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Toyota currently does not negotiate the lease prices. Why? They're insured against unfavorable market swings.
When you turn the vehicle in, Toyota has an independent appraiser look at the truck and make a determination if there should be anything back-charged to you. Then the truck is put online for dealers to bid, then transported accordingly. I'm not sure what happens if nobody buys it, which is a very likely circumstance with the current market. But either way, you could have your dealer attempt to buy it back and then sell it to you for an agreed upon profit. Just have to find a dealer willing to play that game.
"We leased a '95 4Runner Limited for 36 months through Toyota -- I don't believe it WAS Toyota, just a surrogate here in the Southeast -- and was somewhat amazed at how the buy-out price continued to fall all-by-itself as we delayed making a decision on what we intended to do with it at the end fo the lease period. I want to say the residual was about $22.3k (it had an MSRP of $33k) and they seemed to drop it by $1k every two or three weeks as we neared the end of the lease and ended up buying it out for $18.5 or there abouts."
Different story back in '98. They weren't insured and were taking it on the chin because they were aggressive in their lease pricing (overinflated residuals).
Turn it in. Walk away. Go back the next day and buy your truck back at 2.9% financing and a reduced price they should of given you in the first place. Seriously!!!!
__________________
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hi,the smartest thing for you to do is: turn it back in.
and buy yourself a brand or lease new 2008. i hear they are going for less than 300 a month. not a bad price for a 2008.
or
buy or lease a gas saver.
just in case gas price's rise even higher.
gorilla
Turn it in. Walk away. Go back the next day and buy your truck back at 2.9% financing and a reduced price they should of given you in the first place. Seriously!!!!
I disagree whole hearted on this. Our resale value is in the toilet and if toyota discounts it even more what will it do?
__________________ At least they have circled the problem.
I disagree whole hearted on this. Our resale value is in the toilet and if toyota discounts it even more what will it do?
It would keep them from having another truck on the lot that they can't sell.
__________________
Bilstien 5100's front and back
Rev Tek diff drop kit
Wet Okoles
Husky liners
Tinted windows
Weather Tech window vents
Line X
Line X'd Nerf bars(soon)
As far as haggling over the lease I think you are at a lose. You signed a contract for that amount and they will stick with it. You may not fair any better but instead of turning it in you can trade it in and take that amount toward the purchase of a new vehicle (any kind). Just turning it in could affect credit rating. Your credit rating can affect every thing you buy in the future including your credit card rates. I had a lease in the 90's that I was not happy with and I just traded it in on a new purchase and back in those days I got more for the trade than the residual, even though it was only $300 more. The trade was a Toyota for a Toyota.
I don't understand how credit rating could be affected? There is no obligation to keep the vehicle at the end of the lease term. If you didn't make the lease payments, well then credit rating could be affected.
As far as haggling over the lease I think you are at a lose. You signed a contract for that amount and they will stick with it. You may not fair any better but instead of turning it in you can trade it in and take that amount toward the purchase of a new vehicle (any kind). Just turning it in could affect credit rating. Your credit rating can affect every thing you buy in the future including your credit card rates. I had a lease in the 90's that I was not happy with and I just traded it in on a new purchase and back in those days I got more for the trade than the residual, even though it was only $300 more. The trade was a Toyota for a Toyota.
I'm not sure what you're comprehending in the original post....but most of that makes no sense. This guys lease is up soon, so he can either buy it for the residual value or turn it in. Won't effect his credit score in any way.
The fact is, he can't trade it because the trade in value is about $8,000 less than the residual. And he can't negotiate the buy-out because Toyota doesn't negotiate.
And just in case I wasn't clear on my previous post:
TOYOTA FINANCE IS INSURED AGAINST THE RESIDUAL VALUE ON THESE TRUCKS. THEY WILL NOT INCUR ANY LOSSES SO THEY'RE NOT GOING TO NEGOTIATE!!!
Now it will likely drive up the cost to insure their future contracts but that will get passed onto the consumer and will likely effect ALL captive finance arms so they all can raise their lease fees......
I was in a similar situation back in 95. We had a local Nissan dealership leasing new Nissan P\U's for $49.00 month for 12mo and 12k miles. I leased one and the residual was $11,200.00 when it was time to turn it in, the same truck in a 96 version was selling for $8,995.00, so i figured i colud negotiate a good deal on the one i was driving since it was a year old. when i asked the dealership about it, they flat out nold me to buy my the one i was driving would cost me $11,200.00 or they would sell me a new one for $8,500.00. i ended up walking away since i really didn't need the truck anyway. i did however go 2k over on the mileage and they didn't charge me for that.
Lease buy out negotiation
At least they have circled the problem.
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