I’ve never leased a car before. But I want to do this to get the lease cash. And I heard 1 pay lease is the best way to go here in Illinois (not chicago). I will also be buying out the car asap.
Are these numbers correct?
TIA!
Whos the bank? I dont show Toyota giving a 1 pay discount
It is TFS. Has to be for the $6500 lease cash. They don’t offer better rates for 1 pay leases? I have excellent credit. Just figured it would have been better from the get go. Dealer is being secretive with the MF.
I also need to ask about residual value. From what I read it should be around $29k-$31k???
The one pay is hiding a lot, if this is chicago, there are some nasty taxes which might balance it out
But no, TFS isnt offering discounts on one pay, you might as well go monthly
Reach out to @Jrouleau426 - he can probably get you a better price on a RAV4 Plug-In
This dealer is in chicagoland. But we are driving up 4 hrs to get it. We live in illinois. Metro East STL. So I want to make sure everything is correct before driving up there.
We were advised to do the 1 pay lease and immediate buyout to save on sales tax??!
@GraphicWombat you need to know the RV and base mf which you can get either by signing up here as a super supporter or posting on the pertinent Edmunds forum and await the reply from a moderator. In fairness if you are doing an immediate buyout it would almost be preferable to have a marked up money factor in exchange for a larger discount from MSRP.
Good thing it isn’t Chicago.
TFS currently has the same One-Pay option they have always had:
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Why don’t ask a couple of brokers here for a Toyota. They will be able to even ship to you and your jumping around “ton save in taxes” while doing OnePay could be just a hodgepodge lie from the Deaelrship. Never heard a person doing this trick to save on taxes. Interest charge - yes. But not taxes
What if the scenario was an immediate buy out with a 1 pay lease?? This is what I’m after. Wouldn’t TFS unearned rent charges come back to me when I buy it out?
But why do you want to go through that gymnastics? to save on taxes?
I suggest that you read this…
Single Payment Adjusted Lease Balance Calcuations, Optimality, and Purchase Option.pdf (948.6 KB)
You may find it very helpful.
??? Let me know.
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How does IL handle taxes on a lease vs buy? It looks like you are paying taxes on the total lease payments. Wouldn’t you also then have to pat taxes on the current value of the vehicle when you buy it out of lease, not the residual?
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The dealer quote was created by a world class moron who has no idea how to structure a lease or what the numbers means. It’s just plug and chug and the hell with what the input/output means. Lots of info missing (tax rate, residual, money factor). Add to that, the fact that a -$96 payment could be triggered by a 23240.88 down payment (cap reduction). But why disclose a negative payment when the cap reduction is so high that it causes negative depreciation?
They did not disclose (include) the 650 acquisition fee. Why are they calling the 29740.88 a cap reduction when it isn’t used as a cap reduction? It’s just taking up space and doesn’t seem to have any purpose.
The discount seems very weak to me.
Bottom line: Find another dealer.
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Correct. At buyout it would be on the buyout price. Which residual value does factor into it but I’m not quite sure how.
Yeah, this salesperson just isn’t answering my questions. I asked him what the residual value on this lease would be and he responded, “out of office till wednesday”. Wish I could just get a new sales rep there. My wife says it’s because it’s chicago and people in big cities are just rude.
So I’m exploring another option today. They are a lot closer, about an hour away. I’ve been to this one before in 2019 to test drive a regular rav4 hybrid. It’s not one of the colors I want. But it’s sitting on their lot now. Gunna see if they can price match. And write up a lease with a lot more details.
I have this printed out. And I keep revisiting it. It’s just a lot of numbers that don’t make sense to me. I keep trying though.
That’s because they don’t know anything. Incompetence in the American workplace has skyrocketed.
They wouldn’t make sense to anyone including me. I wouldn’t waste your timer with it.
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They finally got it worked out and are mailing me the lease agreement. Apparently they were on the phone with TFS for a couple days trying to get a 1 pay lease worked up correctly for me. So hopefully it is right. We will see.
My new sales rep has disclosed the MF they used is indeed .0024. And the RV is $30,621. Which seems a little high. But I don’t think it will play into my immediate buyout cost with this 1 pay lease?? From what I’ve read it will be my (ACC - 1 pay lease amount - unearned rent for 35 months)= Buyout + sales tax. Does this sound right?
Why are you bothering with a one-pay lease if you are going to buy it out immediately? It seems you would be better off agreeing to a higher MF in exchange for a better discount than complicate the picture with the one-pay. I am not sure of the tax implications with a one-pay versus standard lease. Do you have to pay all the taxes for the term of the lease upfront in the one-pay lease?
If IL taxes leases the same way as NJ/NY then taxes are the reason.
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