2024 Toyota Prius lease and buy out advice with $4500 lease cash credit

Ask the Hackrs
21

If you are worried about interest rates then just put more money down and or pay it off sooner when you refinance the lease in two to three weeks

Forget the MSDs

22

You should know before talking to the dealer what the money factor should be on a normal lease and what it should be post MSDs. The easiest way to pull that data is via RateFindr, which you get access to by being a super supporter of the site.

For the financing interest rate, youā€™d need to look at what banks you would use.

Then itā€™s a matter of calculating the amount paid in each case.

23

The MSDs lower the Money Factor (MF) used in calculating the lease payment. No impact on buyout amount either 1 month in or at end of lease. They just lower the overall lease payment and are refunded at the end ofbthe lease.

If you lease, the $4500 will be factored into the lease payment and also lower your buyout by about the same amount less lease inception fees. You will be better off leasing and buying it out quickly if you can find a loan at a rate lower than the MF equivalent.

24

Also, I am glad to hear you are only paying MSRP. There was another person here a while ago that was happy to pay $5K over MSRP because he was going to keep the car for 12 years. He thought that was a good dealā€¦

1 Like
25

Yeah I saw that thread and he got charged double in tax since he lives in Texas. Thatā€™s why I am confused and post a new thread here. I am here in LA donā€™t know why LA donā€™t need to pay tax twice.

26

I already put a deposit early in July the sales told my my car is schedule to be arrived early next year. Cross fingers. I will post all the info here once buy out in process. Thanks.

27

I already put a deposit early in July the sales told my car is schedule to be arrived early next year. Cross fingers. I will post all the info here once buy out in process. Thanks So in general in most case would I be better off just do buy in out in first month?

28

Because it isnā€™t Texas. Texas does things extra weird with tax on leases. Texas is the exception, not the rule.

29

LA is right next to Texas :rofl:
The more we discuss this, OP will get more confuse.

OP: just buy it out at the first opportunity you can after you take delivery. You donā€™t need to worry about other things.

30

So when I do buy it out should I look for new car loan or used in advance. Thanks

31

Whatever the better rate is, rates are lowest for new cars but some credit unions let you have new car (lowest) rates for a car that is few months old.

Good luck!

32

It wonā€™t be a new car per se. And almost every bank or CU charges more for used car loans than new.

Your best bet is a lender that allows current model year vehicles to be eligible for new car loans.

33

There are some credit unions that consider anything under 1500 (or other similar arbitrary mileage amount) a new car for loan purposes.

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34

Ok, to summarize your post-this is what you need to do:

  1. Start looking for a loan to buy out the lease, loans are usually good for 90 days or so, some will consider this a NEW car
  2. If the $4500 is still available when car is delivered-SIGN A LEASE it will be cheaper than just buying the carā€¦
  3. When Toyota Financial establishes your account in the first month-ask them for a buy out quote or you may be able to do this online
  4. Enjoy the car
35

Your lease should look something like this:

36

Wow thanks everyone so much for all your help in this forum. And big thanks @BYGFEET. One thing when I do this should I mentioned to sales about this strategy. I hope more people to use this loophole whey they buy the new Prius prime.

37

It wont do you any good to discuss it with the dealer

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38

NO, donā€™t mention to dealer that you plan to buy out right away-they may confuse you with BS. (like: you need to keep the lease for 3-4 months etc, so they can get their bonuses or what not) unless you really want to help them out-buy it out after the 3rd month :+1:

EDIT: Hereā€™s a link to check some loan rates, most are in the 6%+ rates

1 Like
39

Thanks. So in my case I should just apply for new car loan even itā€™s buy it out?

40

You should talk to the bank youre using to see if the new car rates or used car rates would apply for them.

3 Likes