Hello, New California leasehacker member here hopefully someone can give me an advice for my upcoming 2024 Toyota Priuse Prime purchase.
I am in the market to purchase a 2024 Toyota Priuse Prime XSE for MSRP $39,370 and my car is estimated to be arrived early next year. So No mark up for my case.
Currently Toyota financial is offering a $4500 EV tax credit if I choose to lease.
In my situation if I lease first and buy out after lease ended in 3 years will I still enjoy the discount, or the $4500 discount will cancel out after lease end. Can someone break down the math to show how does this works?
Greatly appreciate everyone input.
Thanks.
Below is the details of this promotion: Disclaimers
$4,500 Cash from Toyota Financial Services, Inc. on the lease of a new 2024 Prius Prime from participating dealer’s stock and subject to vehicle availability. Must lease through your dealer and Toyota Financial Services to qualify for cash and cash must be applied as capitalized cost reduction on lease. There is no cash back option. Lease terms on approved credit. Not all customers qualify. Cannot be combined with TFS APR Cash, Down Payment Assistance, Trade-in Assistance, Customer Cash, APR, APR Subvention Cash, Lease Subvention Cash. Offer available in CA regardless of buyer’s residency; void where prohibited. Expires 01-02-2024. See your participating Toyota dealer for details. Toyota Financial Services is a service mark used by Toyota Motor Credit Corporation (TMCC). Retail installment accounts may be owned by TMCC or its securitization affiliates and lease accounts may be owned by Toyota Lease Trust (TLT) or its securitization affiliates. TMCC is the servicer for accounts owned by TMCC, TLT, and their securitization affiliates.
If you are planning on owning the vehicle its best to sign a lease and then buy it out in the first 2-3 weeks of your lease to get the $4500 applied to the total
If you keep it as a lease and make multiple monthly payments you are wasting a lot of money because the money factor on the lease is atrocious
By the way there is no guarentee that the $4500 rebate will be available when your Prius arrives because Toyota has the option to change their incentives every month
Thanks Jeff. Ok if i finance through a third party bank for buyout lease the final price will be cheaper compared to directly purchase right. But how much? Someone mentioned in this forum there will be double taxation for lease buy out? My question is how much saving can I really enjoy? Thanks so much for your advice.
So there will be double taxation? I will have to pay additional $2k on taxes? Why? So actually I only save about $2k in reality then with double taxation
No double taxation. You will pay sales tax on the $4,500 at lease inception, but that $4,500 amount will reduce the buyout amount by $4,500, so you will save taxes on the buyout.
Don’t forget about msds. That could lower the rate enough that it’s worth keeping it as a lease for 3 years then deciding later if you want to buy it out. Protects you incase you have an accident that kills resale value too. I believe it drops the rate to around 5.9% from 7.8%. If you’re financing it you’ll prob be over 7% anyway so just another option since you’re already paying the bank fee. If rates drop you can always buy it out sooner as well
So I will enjoy $4500 discount if I choose to lease buy in out route. Final price I pay for lease and buy out purchase will be $39370-4500 with all fees and interest charged. Could someone break down the math for me? I just want to have number in my head when I talk to my sales next month. Thanks so much.
This question has been answered dozens of times this past year if OP were to search. Welcome to LH @vickar112 - Search is your friend in your quest to save thousands.
Msds have no effect on the buyout value at the end of the lease (other than that instead of returning the msds, they may apply them towards the buyout).
Other member mentioned if Msds is lower then it’s worth keeping for 3 years then deciding later if I want to buy it out. How does this works compared in math? Sorry I am all confused.
