Hello guys,
I wonder how I did on my first ever lease. I did the paperwork today. 2024 RAV4 Prime XSE with the premium package. I was able to get $2800 off the MSRP plus the $6500 rebate from Toyota. Please any help would be appreciated. I’m picking up the car in two weeks. I’m putting zero down! My plan is to buy it out in 30 days!!
Yes, buy that out ASAP. The 0.00395 MF = 9.48% is brutal.
Do you think I can negotiate that at the dealership at delivery?
If you’ve already signed the negotiation is over. They probably marked up the MF to compensate for the discount. So if you are planning to buy it out, better to keep quiet about it since the dealer won’t be making the kickback on the marked up MF they thought they would.
Ok, the dealer doesn’t even have the car, it’s in transit. I’m really hoping to get it for the $45,754 plus tax … I wanted at first to go with the hybrid version but I saw others doing the $6500 deal and I had to try it out.
You should be fine. Just don’t bring up the early buyout with the dealer and deal directly with TFS on it instead.
Numbers don’t seem right, where is the $2800 off? If it’s 0 drive off with $2800 off this should be your calc. I might be wrong, best have someone else look at it.
MSRP IS $52,354 and the agreed price is $49,554
@Jrouleau426 could probably chime in
You want the MF to be maximized in order to maximize the discount.
You got something for free (the additional discount) without having to pay the additional cost (the higher rent charge). Because you’re paying it off in <30 days.
Don’t mention any of that to the dealership
So dealers do not know that many folks are doing a lease with immediate payoff to capture the EV lease credit? Or are not that many people doing this?
I don’t think most assume they are going that route. Especially if they’re giving a discount like this and marking up the Mf.
My dealer knows my customers would be doing it, but I don’t think it’s super common. Many people prob see the 6500 off and just lease it not knowing they can buy it out immediately
Most dealers will tell you it doesn’t work, because you have to pay all remaining payments on the lease.
Could be that they fail to read the lease terms and don’t understand the difference between an early termination and an early buyout. Could be that they don’t want to risk collecting on any participation on mark ups by you buying out too soon.
Can you explain, what is the buyout price? I guess you don’t have to make all the payments first so how do you get to the buyout price?
Thanks
I believe Cody at tustin toyota has a better deal
In most contracts, the buyout price is the adjusted lease value, plus buyout fee and any applicable taxes. The adjusted lease value starts out at the adjusted capitalized cost and is reduced monthly by the depreciation portion of each payment made. Typically, the depreciation portion is determined by removing any monthly tax and monthly rent charge, as calculated by the annuity method.
As a quick estimation, if you’re interested in the immediate buyout after leasing, it’s roughly equal to the adjusted capitalized cost listed on the lease contract, plus tax.
Like this person Your Options for Ending a Car Lease Early - Car and Driver
Quality journalism right there
I manually checked all the calculations in the PO’s lease contract and it looks good to me. PO’s DAS = 0. The discount is 2,795.11 or about 5.3% discount off MSRP. Don’t know if that’s good or not. Wish PO would have posted the information dealing with the calculation of early buyout and the adjusted lease balance calculation. However, most fund providers calculate early buyout and lease balances in much the same way. That said, the exact TFS calculation of the initial lease balance most likely is…
Initial balance = Adj. Cap – 1st. payment
= 45,754.40 – 740.55
= 45,013.85
And, the adjusted lease balance after 1 month is just the future value of the initial lease balance 1 month into the future…
Other charges may apply (e.g., taxes, admin fees, etc.).
FYI - Observe that if the lease goes full term, the adjusted lease balance equates to the residual value.
You are now in the hands of TFS. For the buyout amount, you may want to read my post above.
