Prius Prime $4500 rebate immediate payoff: residual strangeness in calculator

Ask the Hackrs
1

I’ve negotiated a price for a 2023 Prius Prime SE of $39k, and will be picking it up tomorrow in Texas. Yes, I know that is a high price ($5k over MSRP) but I’m willing to pay it since my daily driver is totaled so time is of the essence.

I have the cash to pay in full, but I want to take advantage of the $4500 toyota lease rebate so I’m going to do the trick where I lease then pay off the lease with TFS immediately. The idea is that I don’t pay most of the finance charges, so I end up with effectively nearly $4500 off my sales price.

So I don’t really care about the financing costs since I’m not paying; the lease quote from my dealer has a money factor of 0.00475 while ratefindr shows 0.00325 but who cares, right? If it makes the dealer think they are getting more money than they actually are (bc I could fail to pay it off), that is just deal grease right?

Here’s the numbers my dealer gave for the lease:

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What has me concerned is that ratefindr shows a residual of 64% ($24,960). but the quote from the dealer of $22109 for “Final Value” is only 56.69% of $39k. What is the mathematical formula for converting “Final Value” to “Residual Value” since those numbers don’t seem to be the same? If I subtract the tax and origin fee from $24,960 that yields $22,154, which is close to the dealer’s final value of $22109; could that be the formula?

BTW, I’m also assuming that the $999 for 23) Ttl fees in lease (w) on my dealer quote above is the TFS acquisition fee $650 and $350 disposition fee that ratefindr generates. If line 23 is for something else in the calculator, maybe that is why my numbers don’t match up?

Here’s my calculator numbers using the 64% that ratefindr autogenerates, but overriding the money rate to the dealer’s 0.00475 money factor:

This gives a monthly payment of $569, much lower than the dealer’s $638.91 estimate. I am wondering if the dealer is hiding something in their residual.

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Yikes. Hopefully you haven’t signed the actual contract.

You can pay less on a rav4 prime lease. I pay $565 on a rav4 prime lease with a 47k sticker

5k over? Have you looked around? I’d think @Jrouleau426 could help here.

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How convenient that they left the MSRP off the worksheet since you’re paying over sticker. The RV is based on the MSRP, not the sales price.

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Yeah, the dealer pumped up money factor makes the lease payments much higher so would never pay those lease payments. What I’m trying to get at is whether they are hiding something that will affect my payoff.

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if you want to save $5k and get it for MSRP, i highly suggest you join this group and make a post asking for who has one available.

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I guess I’m unclear on exactly what is meant by MSRP in the calculator. My original deal sheet shows:

Base MSRP * $32,350.00

Distributor Installed Packages & Accessories $1,500.00

Dealer Installed Packages &
Accessories. $toomuch

Delivery Processing and Handling $1,195.00

So are the distributor installed packages considered part of the MSRP for the purpose of calculating residuals? Is the Delivery charge?

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Isn’t Texas part Southeast Toyota Financial or Gulf States, which is a different entity and could very well have different buyout rules?

OP - perhaps LTMCC is the lessor but I would want to confirm that you can do what you think you can do first.

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I’m with @GOAT join that group and get one from out of state don’t sign that 5k over

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your MSRP is base+distributor+delivery. dealer installed are not part of msrp

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Money Money Smoking GIF

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Thanks. Entering my MSRP as $35045 (Base+port+dest) the calculator gives a residual value of $22,429, still $320 more than the dealer’s final value of $22,109 for some reason, but I suppose that’s close enough not to worry too much given that it’s in my favor. Dividing $320 by .64 gives $500 so I guess someone missed $500 somewhere. Probably worth checking when I get the final lease contract.

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dang $565 a month- would love to know the lease details.

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I did join and post in that no markup fb group; thanks @GOAT and @anon65069371.

Good tip! Apparently from my web searches, Gulf State Toyota includes Texas and their HQ is in Houston where the dealership is located.

I tried the GS variations in ratefindr and they all had the same numbers for residual value and rebate, and they pointed to the US standard lease:

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Are you aware that in TX on a lease buyout, you get to pay sales tax again?

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so pay full sales tax on selling price to start lease and then pay full tax on buyout again? lol bye $4500

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Actually my research shows that in TX you don’t pay the tax again at buyout, but I’m interested if you know something different.

According to section (b) in this TX code:

https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=3&rl=70

Tax is not due for lease buyouts by the original lessee if the market value is not over the payoff.

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Yah, that’s what it says, but I’m yet to see anyone successfully manage that

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What have you seen as far as unsuccessful management? Was the buyer an original lessee or a new buyer (which doesn’t qualify for the buy tax waiving)?

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People having to pay full tax again on buy outs

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To be complete, my reading of the TX statute is that if the purchase price is above fair market value, then you might have to pay tax on the difference between the residual and market. The bimmerfest thread had lots of people talking about what is market value so I’m guessing that was in play for some. Others were probably not the original lessees, who would definitely have to pay tax. And I’m not even sure an immediate payoff is considered a buyout; it may be considered differently for tax purposes.