Deal Check - RAV4 Prime XSE + PP

Ask the Hackrs
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Need a second set of eyes for a lease buyout deal I’m looking to do on a RAV4 Prime XSE with premium package + weather package. Doing the buyout so I don’t really care about the MF/miles but it’s 0.00420 for 3yr/10,000mi. No money down, no trade in.

MSRP: $52200
Dealer Discount: $3500
Vehicle Sell Price: $48700
Doc/License/Title/Tax on Cap Cost Reduction/Document/DMV: $1150
First Month Payment: $785
Total (Fees + first month): $1920
Gross Cap Cost: $49350 ($48700 sale price + $650 acquisition fee)
Lease Cash: $6500
Capitalized Cost Reduction: $4570 (6500-fees-first month payment)
Adjusted Cap Cost: $44776
Rate: 0.00420
Residual: 57% ($29942)

Overall Drive off Fee: $0
Projected Buyout Fee (Adj Cap - 1 month depreciation): ~$44476
CA Sales Tax: ~$4000

Total All In: ~$48500

Seems like a pretty great deal in CA for the Prime XSE with premium package and without garbage dealer add ons. Capturing about $5000 of the $6500 lease cash plus negotiating down the sale price with a dealer discount of about $3500. Pretty much getting the XSE+PP for the price of a regular XSE.

Appreciate the thoughts.

2

Have you considered Lexus RZ for a lot less?

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Want a sedan but curious how much cheaper it is? I also don’t want a long wait time/hunt for a car that doesn’t really blow me away (RZ). Plus, don’t feel like we’re ready for a full EV.

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That’s better than some brokers here. Nice
Just making sure, this is Toyota Financial and Not Ally right?

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5

Looks good they bumped the MF but like you said who cares. Premium package under msrp is always good as most dealers are getting msrp for them.

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6

Yup, TFS - and yea it seems to be!

7

Why would they be giving me this deal? I didn’t even hard ball negotiate so it feels strange….

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It’s not. It’s unfortunate when people just compare monthly payments and don’t worry about total cost.

Your RAV4 Prime deal will beat the RZ’s TCO easily. Only question that remains is whether you want a Prius Prime for the sedan form factor.

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9

A RAV4 for $800/mo?
What a time to be alive!!

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How does this math work?

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It’s not about the monthly payment they’re going to buy it for around 6k off msrp which is under mmr last I checked. They can drive it for 3 years for around 200/mo max most likely.

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12

How do you figure 200/mo?

Total all in says $48,500. Residual is $30,000. That works to $500/mo over 36 months.

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Check the pricing on a used 2022. If the market stays even relatively this high they will pay very little to own this car for a few years…

Carmax is still selling used 2022s for 50k

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OK so the residual is wack. Gotcha

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Sorry meant to say SUV. Yup would rather have the utility of the RAV 4 then the Lexus EV.

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So the drive off costs are essentially deducted from the lease cash so I pay nothing at pick up. Agreed with above, we’re buying this out right away before the second month payment hits for a total of ~$48,500.

Can probably sell in 4 years and get 70% value. Let’s say we sell for 33k in 4 years (who knows if it would go for this but I actually think this is reasonable based on used Prime market), my per month cost of ownership is around $322. Math is hand wavey but think this is in the ballpark, more likely I think this car could be sold in 3 years for about 80% value (in line with current used Prime prices) which would bring the monthly over 3 years to about $270/month.

In reality, this is the SO’s car and she will hang onto it for a while but nice to have solid value on the car if she has a change of heart.

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17

Couldn’t find a more perfect fit for your scenario.

Take it before someone else does.

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18

Thank you! With these type of deals, is the smart move/LH mentality to offload this car quickly for maximum value back?

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Do you mind if I DM you for dealer contact?

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If you like the car keep it. If you find a good deal to replace it with then do that. Can’t really lose on these…

1 Like