Trying to decide between leasing (36/15) 2017 RAV4 Limited with Advanced Technology Package FWD vs all same options with a Hybrid. I would never use the AWD function of the Hybrid, but gas prices have recently hit $2.99 and fewer trips to the gas station sounds nice.
Location: Orange County, CA
Drive off: 1st month payment
What do you guys think the monthly price difference would be? Does it make sense over all?
According to the Toyota website, the difference in price between the RAV4 Limited and RAV4 Limited Hybrid is about $4,000 ($30K vs $34K) - pretty big difference in price! The rule of thumb is that for every $1,000 more in the carâs price, the lease price goes up by about $30/mo, so thatâs $120 more per month for the hybrid version (though you can probably do better shopping around). Still, itâs a big difference and would take many years to recover the $$ difference based on the cost of gas alone (havenât done the math but probably does not make sense from a $$ standpoint in a 3 year lease). That being said, you would have less trips to the gas station and the RAV4 Hybrid has more power than the gas version and has plenty of get go for a hybrid so you get better acceleration plus significantly higher city mileage (23 vs 34 in the city). Note that the highway mileage is the same (30mpg) for both models so you have to consider whether you will be using it more in the city or for highway trips.
Another plus for the Hybrid is that it would likely have a higher resale value (especially if gas prices keep going up). Personally, I would go for the hybrid because better gas mileage is a huge priority for me and I sold an older version of the RAV4 (first generation) because I didnât like driving a car that got mileage in the low 20s. You need to decide for yourself if the saving gas or having a lower lease payment is more important.
Thanks for the quick reply Vachier!
When I looked on the Toyotaâs website Iâm only getting a difference of $2,625 ($33,890 vs $36,515). Maybe the Advanced Technology Package is throwing us off?
Surprisingly the total fuel tank range is negligible - 76 miles difference (398 vs 474 miles), so thatâs maybe two more for me between fill ups.
Iâm curious about the ârule of thumb is that for every $1,000 more in the carâs price, the lease price goes up by about $30/moâ. So if Iâm doing the math right, a typical $30K car should lease for about $900/month ($30 x 30)?
Do you think the lease deals are better for non-hybrids because hybrids, plug-ins, etc. are so popular nowadays?
youâre doing the math wrong. 30k car 300 payment. 33k car 330 payment
Youâve misunderstood this rule of thumb. Otherwise a $60k car would be $900/month more than a $30k car.
Itâs not about differences in MSRP on two different cars, itâs about difference in cap cost on the same car (all else being equal)
Think there are promos coming up on the standard or hybrid soon? Does it matter that the 2018 will be out in four months?
Yes, thatâs true about it being for the same car. In this case the OP is comparing 2 very similar cars (ie different trim of the same car) so the rule of thumb is not far off.
Iâll ballpark $1000 extra MSRP at ~$15 to$16/month for a 36 month lease.
On first glance - Note that $1000/36 moths ==> $27.77/month. Throw in some interest and youâll get ~$30/month.
Suppose though that the car has a RV of 50% after 36 months. In that case youâd only have to pay $500 over 36 months plus interest. In this case youâd get $13.88 plus interest ==> ~15-16 $ a month extra.
24 month leases cost a little more for that extra $1000 in MSRP.
Your ârule of thumbâ is completely off. The correct rule of thumb is about differences in selling price on the same MSRP. I.e. everything else being equal, including MSRP, each $1,000 difference in selling price changes your monthly payment by ~$30, give or take.
You cannot compare cars with two different MSRP and apply this rule of thumb. To show you the absurdity of it: You say a $34K MSRP RAV4 should be $120/month more expensive than a $30K MSRP one (e.g., $420/month vs $300/month). By the same logic, a $26K MSRP RAV4 would be $120/month cheaper than the $30K one. Do you think that would ever be the case? That a $30K MSRP car would lease for $300 and the same car in a slightly lower trim and $26K MSRP would lease for $180?
