residual value

[cpconst]

my buy-out on my 2007 sr-5 dc is about $20000 when my lease is up in april 2010. my question is will I be offered a lesser buy-out amount from toyota motor credit when the time comes? I mean, look at current auction values today!

[waiting tundra]

Anyone buying a truck at this time can drive one heck of a bargain. The dealer may not like it, but when the tables were turned a few years ago did they let up? Business is business.

[troystoy]

I'm in the exact situation as you and i'm going to be way over my miles so i've been looking at buying other trucks right now and parking my Tundra. After seeing all the car lots "deals" right now, it would cost me more to buy a similar year F150- damn scam artist!!!! Anyway i asked my dealer if the worth of my Tundra was 5 grand less than my buyout if they would consider a new fair price for me to buy it and they said they never seen it happen before. So they give me a 800 number to call toyota and the guy there basically laughed at me and said your in a contract that you have to honor. I told him it would be in toyota's best interest to work with me or they will get their truck back and end up taking a good 5 grand loss. He told me Toyota doesn't work that way and it's their problem but they always stick to policy! So your answer is NO, they will not sell it to you for less than your buy out on the CONTRACT! Long story short though, it also doesn't pay to try and buy another truck from a dealer as i said, they want as much for a used FORD as your Toyota would cost to buy out, sad really even in this economy. Thus, i almost got 36,000 miles towards the warranty, so a lift is going on it along with other mods and i'm just going to buy it and be happy i don't have a Ford right now lol!

[waiting tundra]

When I bought my tundra they tried every sales trick in the book to get me in a lease. I indeed up buying my truck for less than what the lease would have cost. I feel for people who got in a deal 6 months before me. If the economy stays on the same course people will be saying the same about people who bought when I did. How low can we go?

[BigBlueKY]

When it comes to lease end residuals, TFS will not budge one bit on the buy out price. I know it doesn't make sense but that's the way they are. If you know someone with a dealers license you might want to find out where the truck will be auctioned off at and get someone to buy back the truck at a lower price even after paying them a little something. That's what sucks about leasing especially if you've put alot of money into the vehicle, it's almost like renting an apartment you put money into it to make it nice, but in the end you loose your A$$. Good luck and keep us posted.

[cpconst]

I guess I was thinking back when my lease was up on a 2000 silverado and gmac offered me a buy-out that was 3000 less than my contract. The deal was great because I actually got a dealer to buy out my lease for 3000 less and I didn't have to pay sales tax on a new truck that I traded it in on and I was only taxed on the difference between the new truck and my trade in. So, although I will be over on my mileage when my lease is up it will be much cheaper, monthly, for me to just lease another Tundra then to finance 20 large over another 48 months! Ahh, that new truck smell.

[ajaySR5]

When i went to my dealer to buy out my 2003 Toyota Sequoia,I learned a few things about leasing a vehicle..First and foremost when you buyout a vehicle Toyota only gives you anothr 36 months to pay for it,Secondly that $20K buy out you have it does not include APR in which toyota on a buy out will give you minimum 8%APR (Even with good credit),third you have to pay sales TAX...When i told my salesmen to compare numbers between buying out the 2003 and getting a 2008 vehicle the 2008 vehicle came out $23.00 a month cheaper than the 2003.So,I decide to just get a new one and this time its a BUY and not lease...LEASE i learned is good for a company vehicle not personal vehicle that is why dealers try to put everybody on LEASE 1st because in a long run they make twice as much money on LEASE vehicle...(Less monthly payment but in 3-5 years lease contract remember you still do not own a vehicle).In a buy situation within 3-5years you have titled to your vehicle and its yours..

Also you have to pay for over mileage,wear and tear such as dents and scratches.When i got my 2008 thank to my salesmen he told me that he will cover wear and tear payment after 3 weeks i got a bill for $2,3000.00.I did not pay for it because it was in my contract that dealer will pay for ant bills from my 2003...

[troystoy]

Because of my mileage and "wear and tear" i pretty much have to buy my toyota out, so the modding is starting early lol! I didn't know if the truck needed tires i would have to pay for them in a 36,000 mile lease, my tires have 32,000 miles on them and they are down to the wear bars already!

[thumbster]

Originally Posted by cpconst

my buy-out on my 2007 sr-5 dc is about $20000 when my lease is up in april 2010. my question is will I be offered a lesser buy-out amount from toyota motor credit when the time comes? I mean, look at current auction values today!

You're actually ahead of things in terms of the direction the truck market took these last few years. Because you have the option of getting rid of your current truck, you could probably get a brand new truck for less than your buy-out on your lease. Hopefully you don't have any mileage penalties or excessive wear and tear.

[Only Toyota for me]

I've been leasing Toyota's for over 10 years, and my experience is that it's best to pay for the additional mileage of 15k per year vs. 12k. This reduces your residual by a lot, and also gives you a cushion at the end when it's time to negotiate.
I did this on my last 02 tundra, and the residual on that was $14k at the end of 5 years. Thinking it was $16.5k, which is what i told the dealer it was when prenegotiating on my new truck. I actually ended up with $2500 in equity toward's my 07, which i thought wasn't bad. But it was in great shape, and had low miles too.

Leasing is a good way to go if you're self employeed, cause the whole payment is wrote off come tax time. Not just the depreciation. This has been nice for us. However, if you can't write off the payment it is best to buy it outright.

Of course, either way (depending on what you buy) it can bite you in the Azz in the end when you decide to get rid of it.

I guess it all boils down to how long you like to keep your trucks. If you like to get a new one Every 3-5 years; leasing is not a bad way to go.

[augustus88]

On January 8, I was at the end of my three year '06 DC Tundra SR5 lease. Fortunately the truck was in excellent condition and I was 75 miles under the mileage allowance. Detailing the truck is a good idea before you turn it in. I considered keeping the truck, but the residual was $20k +tax and Toyota refused to negotiate. I simply surrendered the truck to a local dealer and purchased new for just under $23k + tax for an '09 SR5 Tundra DC (sticker $31k + tax). Three weeks after turning in my '06 lease I received a refund check of $340 for my initial security deposit. The lease was great because I don't drive too much and I'm not rough on vehicles. The interest rate was 0% and the payments were very low. I'm a long time Honda owner and the lease was a great way of introducing myself to Toyota without a super long term commitment. I plan to keep the '09 for a long time so I purchased it.

[3putt]

I leased an 07 5.8 double cab on a 3 year lease for $331/mo which includes tax. They were very proud of that truck then, hence the the higher residual which translated into a lower lease rate. IMO, all of the above posts reguarding residual being less than they thought are correct. We shall see soon enough if the leasing company is willing to reduce the residual to folks who want to buy the truck. It is in their best interest to do so, but sometimes egos get in the way. I plan to keep my truck right up to the last day and see if they want to make a deal. If not; they get it back.

[tundradreams]

I guess I will be the spoiler here. Did anybody do a search first? This has been brought up many times before. Toyota will not negotiate the residuals as lease end, even for dealers that want to buy them. Toyota is not going to take the loss you think they are. They insure themselves in case the market turns the way it has, and then they recoup much of the cost after it sells at auction.

Another thing. Why get into a lease if you believe you will be over on miles or want to keep the truck? I can understand people that lease, then decide they love their truck and do not want to get rid of it. Other than that, do not put yourself in a position to where it will cost you money at the end but not up front. Many dealers will show you a lease payment as it is typically cheaper than the purchase. We do not sell a payment at my dealership, we sell position. The lease is not always less expensive, but after 3 years of typical driving, you do not have to worry about being "upside down" and you can get a new vehicle by starting fresh.

For all those harping about resale values, must not have seen the MSN.com article a couple of days ago stating that used cars are making a big comeback. I believe one Toyota dealer stated they were looking for people to trade in their sought after vehicle for a new one, just so they could resell the pre-owned ones. A 4Runner that sold for around $14k during the summer was now selling for $19k.

[SFTundraMan]

It is pretty simple, if your car was worth more, you wouldnt cut Toyota the check difference so you shouldnt expect them to do the same if the value you goes down. It is a contract set for a reason. As stated above, Toyota will not lose big on these. That is what insurance is for.

The statement that you can only finance the car for 3 more years is false. Depending on the age of the vehicle determines how long you are able to finance if you decide to buy out your lease

I would always lease my cars if I didnt drive 150 miles round trip every day. Especially if there was a lease special rate on that vehicle