Platinum lease this expensive?
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There is a shortage of 2020 HL Platinum's, so that monthly lease payment probably reflects a price that is over MSRP, and/or an above-market money factor (implied interest rate). If you want a more "normal" lease rate, you may have to wait 6 months or so.
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If that dealer really is padding the price over MSRP, then it's time to find another dealer. In general, 2020 HL is not selling at MSRP or above, not even Platinum. But there are a handful of dealers out there who think they can capitalize on this very short window where 2020 inventory is still very low.
So yes, something is wrong with that lease. Capitalized cost is too high, residual value is too low, or the money factor is nuts. It's probably a combination of cap cost and residual.
So yes, something is wrong with that lease. Capitalized cost is too high, residual value is too low, or the money factor is nuts. It's probably a combination of cap cost and residual.
Dealers will ask for high prices if they think there might be a chance that someone will pay it. You can call it greed, but everything works that way. When supply and demand become more into balance, the price will come down.
Supply and demand are theoretical economic concepts which sometimes don't reflect actual real world situations. Calling it dealer greed or supply and demand I this situation is still the same to me - A rose by any other name still smells the same to me...
You are correct, until someone actually pays their asking price, in which case it is very real. There are some people who have to have a 2020 and have to have a Platinum trim level.
The price of an auto is usually negotiable. No one should assume that the asking price is the sellers best price. It may be their best price for now, but that can change if it remains unsold (just like real estate).
It can change in the time it take you to get up from the salesman's desk and walk to the door. I know because I've had it happen to me a number of times.
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That's like half of a mortgage lol. My guess is that they are charging you at least 5% APR. Compared to let's say 2020 Toyota Tundra with 0% (but financing, not lease) that deal seems like a daytime robbery.
That been said I am lately trying to wrap my head around $50k+ Toyota myself. It's just not right. Car prices are too damn high nowadays. Or we can just stick to much more normal $35k L trim and call it a day lol.
That been said I am lately trying to wrap my head around $50k+ Toyota myself. It's just not right. Car prices are too damn high nowadays. Or we can just stick to much more normal $35k L trim and call it a day lol.
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+1. Once I experienced a change of several thousand dollars during that walk!
So what’s interesting is lease calculator on Toyota’s website began working today for the 2020, and indeed shows a $0 down lease for 36 months at $850. But a comparably priced 2019 at under $650, which is more reasonable. How could there be such a difference? It appears to be calculating on similar MSRP. Not sure the residual value could be $7,000 different?
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What's the APR? If APR is same for both - then the only difference is residual. $850 is really a lot imho for a lease!
So just wanted to provide an update as it’s been a few weeks with my 2020 Explorer ST. While it doesn’t seem like too many people are listing this as an option, so far I am VERY impressed with mine. Power, handling and technology are all much better than I had expected, and given the price is comparable/ better than the Highlander, to me it’s a no brainer. And I had drove my prior Toyota for over 5 years. Just my 2c.
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Savagegeese just posted a review of the Explorer that was pretty negative. Might scare some people away. The biggest takeaway was that the vehicle didn’t seem finished and the transmission was borderline dangerous. KBB also just posted their review and had similar transmission issues. Glad you’re liking your’s, but these reviews may push some folks to the Highlander.
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I got to drive an ST model at the last auto show. While I think the newest Explorer is compromised compared to the competition, its still nice and the ST trim would be the one I'd get if I got one, though it would be below the HL and the Korean twins for consideration. It does drive pretty well for a SUV. Can't complain about the tech for sure!
The lease they offered you was trash. Too high MF, I guess because of the vehicle's popularity, no incentives to do so unfortunately. Might as well lease a Mercedes or BMW for that price.
I have no idea who would pay that price.
Even if you are willing to spend $850 per month on a lease, there are nicer vehicles you could drive for the same lease payment. A fully loaded 2020 Lexus RX 350L would probably have lower lease payment than that.
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Pretty simple. Lease cash. Most luxury makers offer them on their models. For a $850 payment on a HL, I doubt Toyota gave any at all.
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