Toyota Tacoma Costs Peanuts to Lease and It's All Down to Residual Value ($174/Month, $0 Down)

  • Tacoma projected to retain up to 84% of its value after 24 months, resulting in cheap leases.

  • High residual value is advantageous because the cost of leasing is driven by depreciation expense.

  • Third-party, non-captive lenders offer competitive interest rates and are worthy of consideration.

To the surprise of many, a vehicle's residual value still matters when leasing a car. 

When you lease, you're paying for the depreciation that occurs from your use of the vehicle. For example, if a vehicle sells for $20,000 new and the projected value after 36 months is $11,000, then your total depreciation expense is $9,000, or $250 per month. Add a monthly finance charge on top of that, and voila, you've got your monthly lease payment.

A high residual value helps minimize the depreciation expense. For a good lease, you want the smallest delta between the vehicle's selling price and its residual value, along with a low interest rate (known as money factor in leasing lingo) to minimize the finance charge.

Toyota's midsize pickup truck, Tacoma, has some of the highest residual values of any vehicle. So it was no surprise when we found fantastic deals on them, from California to New England to the U.S. South, while browsing Marketplace postings on Leasehackr Forum. Here's what you need to know to score a great deal on one.

Toyota Programs Are Regional

Unlike with most other brands, programs through Toyota's captive leasing company, Toyota Financial Services (TFS), are regional. This means the residual value, money factor, and cash incentives for Tacoma will vary depending on your location.

That said, expect 24-month residual values for Tacoma to be at least 80%, while 36-month residuals will be at least 70%. Expect the money factor to be around .00200 (4.8% APR) or higher.

Consider Multiple Security Deposits

The money factor on Tacoma leases through TFS is fairly high. Fortunately, TFS offers a Multiple Security Deposit (MSD) program that lowers the money factor by .00008 for every refundable security deposit you pay upfront. Each security deposit is equivalent to the monthly payment rounded to the next $25. TFS allows up to nine security deposits in total.

Here’s a sample lease of a 2019 Toyota Tacoma SR5 Double Cab in Southern California through TFS. With an eight percent dealer discount and nine security deposits, it results in a $0 down, $174 per month lease, before taxes. In this example, a $1,800 security deposit saves $985 over the course of the lease—a fantastic ROI.

Consider Non-Captive Lenders

TFS is a captive lender, meaning that it is a finance subsidiary of Toyota Motor Sales. Generally, captive lenders are hard to beat, as they offer subvented leases at below-market interest rates. With the sky high money factor on Tacoma, however, it’s worth checking out non-captive lenders, too.

Non-captive lenders include US Bank, Ally, and various credit unions. Not every dealer has a relationship with non-captive lenders; here’s a user-generated list of dealers that offer non-captive leases. Your dealer will be able to tell you which lender offers the most favorable program for you.

Leased a Tacoma recently? Share your experience below, or on Leasehackr Forum.

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