The lease is expiring on my 2018 RAV4 XLE Hybrid and I need advice on a new lease (or purchase).
My current lease payoff as of today is $19,500 (3 payments left on lease). It’s a 2018 RAV4 Hybrid with Convenience and Weather packages. The car was sold (leased) at $30,000 exactly. I’m considering purchasing it but it doesn’t have Apple CarPlay and it needs new tires and brakes.
Here is my best offer so far on a new lease:
2021 RAV4 XLE (non-hybrid) (with convenience, weather, and audio plus packages)
Price - $32,747.29 (MSRP $33,838.00; discount of 3.22%)
Rebate - $1250 (other dealers don’t know where this is coming from because it’s not a current toyota rebate)
Fees - $571.97
Taxes - $689.84
Current lease trade-In Value After Payoff - $405.77 ($20,000 - $19594.23)
Net Sales Price - $32,353.33
I wanted to get $22,000 for my current lease. Local dealers are selling similar cars for $24,000 - $26,000 so I thought my trade-in offer was reasonable?
My goal is to get payments as close to $300/mo as possible.
Thanks for any advice!
Get purchase quotes on the trade from carvana, shift, Vroom, etc.
Then you’ll want to establish a pre-incentive discount target on the new vehicle based on comparable deals in the shared deals and marketplace listing and establish a target deal from there.
Treat these as two different transactions.
Thanks so much for the info.
I’ve heard that I have to pay sales tax (~$1,200) if I sell to Carvana/Shift/Vroom, etc?
Is that true?
I heard if I trade into the dealer I don’t have to pay the sales tax …
You only have to pay sales tax selling to a 3rd party if your current lease is through a bank that does not allow 3rd party buy outs (there by requiring you to purchase it from them first and then resell.
Who is your current lease through?
I’m leasing through TFS (Toyota Financial Services).
Carvana is offering me $23,557 (and I’ve indicated small scuffs/dings but otherwise in excellent condition).
Are there any caveats? This is MUCH higher than the dealer’s $20,000 offer.
I believe there is no issue with selling a TFS lease to a 3rd party. Selling to carvana is super easy. I would recommend that you save the offer now and then over the next few days go to carvana logged out of your account and input the info to appraise again. Often times, the offer goes up, and if you log in on the “Save my offer” page at the end of the offer process, it’ll update your carvana offer to the higher value. If it’s a lower offer, just don’t save it.
Thanks so much for the information again! I’ve saved the offer which is valid through May 21st.
Any idea if Carvana typically deducts after performing a final inspection? For example, I do have some small scuffs/dings. My tires also need replacing soon (but the Carvana quote didn’t ask about them?)
This is incorrect. Carvana offers are good for 7 days. They have some weird website glitch going on right now where it displays a month on the main splash screen, but then updates to the 7 days when you actually click on the offer details.
I’ve always found them to be fairly lax on the inspections.
Ahhh, darn. It would be a HUGE help to last until May 21st because the car I want to lease isn’t arriving until June 1st - 7th.
Also, I confirmed with TFS that there is no sales tax owed and 3rd parties are allowed to purchase the vehicle.
Vroom also offered $24,167 so that extra $4,167 is going to help tremendously on the new lease!
Thanks everybody so much!
I would keep checking the carvana appraisal to see if it goes up. Personally, I’d much rather deal with carvana than vroom, so if the offer gets close, I’d lean that way.
You may be able to get the dealer of the new vehicle to put you in a loaner temporarily to bridge the timeline gap while waiting for the vehicle to come in. I’ve had dealers offer that before.
I have been going back and forth with Carvana over text. My dealer buyout quote is delayed, and will not make it in time for my deal offer expiration, which is today. According to the text I got back from Carvana, my offer is good for the entire month. We will see how that pans out in a few days when my dealership offer shows up. It is kind of weird as well, but the first screen shows 7 days, and second screen shows 30 days. I wonder if they adjust to 30 days, once they have all docs uploaded?
They may have extended it since waiting on the dealer offer is out of your control I suppose.
Thanks again… I’ll definitely have to ask them.
I’m trying to manually figure out my lease numbers but I’m having a problem.
Do you know if taxes/fees are rolled into the lease price?
Sale Price = $31,497.29
Fees+Taxes = $2,461.79 ($571.97 fee + 6% of sale)
Total Sale Price = $33,959.08
Deposit = $4,572.77 (profit from trade-in)
Residual = $22,333.00 (66% of $31,497.29)
Capitalized Amount = $29,386.31 ($33,959.08 - $4,572.77)
Depreciation = $195.93 (($29,386.31 - $22,333.00) / 36)
Finance Charge = $101.89 (($29,386.3 + $22,333.00) * 0.00197)
Lease Payment = $297.82 ($195.93 + $101.89)
PA Tax (9%) = $26.80
EDIT: Something still doesn’t look right…
Yeah, quite possibly the case. Like I said, we will have to see. They have had me jumping through hoops for the past week, thinking I only had 7 days. It would really suck if they did not honor the deal at this point…
Ahhh, OK. I’ve edited my post above, can you re-check it?
It still doesn’t seem right … I’m coming up with $325/month when my estimate was only $333 before the extra $4,000+ down.
Rather than try to do this by hand, fill out the lh calculator
Do you know if this dealer is using TFS?
Do you have an actual dealer offer sheet here?
RV is based off MSRP, not sale price.
The calculator doesn’t quite work for Pennsylvania I don’t think?
The sales tax is 6% but the monthly sales tax is 9%.