Something doesn't seem right...
When you say the price of the car is "$29,605", does that include the $2,500 for your trade and the $500 down payment?
If it does, then the price of the car is actually: $32,605, and then you subtract the $500 down and the $2,500 for the trade, and that gives you $29,605.
If the actual price of the car you're looking at is $32,605, then the price is absolutely ridiculous. The dealer invoice on a Limited RAV4 without any options (no floor mats, body side moldings...nothing except standard equipment) is $29,069. So the dealer paid $29,069 for the car.
Bottom line is, you should try to get the actual price of the car (Gross Capitalized Cost, in this case, since it's a lease) as close to $29,069 as possible. Understand that the dealer needs to make some money, so anywhere around $29,600 or so is sufficient. That should be your target price BEFORE your down payment and/or trade are added.
So, start with $29,605. Then deduct your $500 for your down payment, and the $2,500 for your trade. That gives you $26,605. There are also usually dealer fees and a $650 bank fee from Toyota. Let's say $1,000 in fees total. That means the price of your car is $27,705 (this is called the "Adjusted Capitalized Cost")
Your monthly payment is calculated by subtracting your residual value from the adjust capitalized cost of the car, dividing by 36 (for 36 months). There are also taxes, and a financing charge from Toyota that get added each month.
So, take the adjusted capitalized cost ($27,605) and subtract the residual ($18,426)...you get $9,179...and then divide by 36. That's your base monthly payment before taxes and the finance charge. That's $255 per month.
I will tell you that Toyota's RAV4 finance charges are dirt cheap right now. If you are in Tier 2 Credit, the money factor is 0.00056, which is equivalent to a 1.34% interest rate. You multiply the money factor by 2400 to find the equivalent interest rate. If you qualify for Tier 1 credit or better, it's even better. I'll assume you qualify for Tier 2 credit, so that amounts to about $25 per month in financing charges.
So, add $255 + $25 = $280 per month, then add your taxes. I don't know what taxes are like in your state and how they apply to leases, but if they add up to $78.33 a month, something is wrong...I'd move to a different state!!
Also, Toyota is offering $800 rebates for 36 month leases right now, so you would subtract the $800 from the adjusted capitalized cost, which would lower your payment even more.
Basically, you should be NO HIGHER than $280 a month BEFORE you add taxes in, for a 36 month lease at 12,000 miles per year for the RAV4 you are looking at, assuming that the $2,500 for your trade and the $500 cash down are going towards the deal. So the dealer is taking you for a ride, and you need to ask them what the heck is going on.
Btw, I work at a Toyota Dealership in the Boston Region, so my figures should be pretty close. Make sure you know what the price of the car is that you're leasing. It seems to me that they are stealing your trade and down payment, literally.