I’m looking to get a new Prius Prime. In Colorado we can get a $5,000 tax credit ($7,500 if I could find an SE under $35,000 MSRP but no luck so far). When I started talking to the dealers and then reading about it I hear that Toyota can qualify for an additional Federal ~$4,500 tax credit if I lease. I’m in a lucky enough situation to be able to pay cash for the car so I’m trying to figure out if I can do the lease then buy out after 1-3 months and come out ahead. Here is the information they’ve given me so far:
They indicated in the email, "I’ve attached a full quote for a lease on the incoming XSE in blue we’ve been discussing. This includes all fees, including startups (on the tax line), which includes the first month’s payment. Just a loan, each monthly payment in the lease buys down the principle. Each payment is taxed individually. Your price would depend on when you purchased the full lease. The starting point is 30,320.09, minus any down payment you include upfront. With each payment, you’re buying down residual. When you convert it to financing or write a check, the remaining balance will have sales tax applied.
Aside from a bit of lease interest, which will be less than a loan and substantially superceded by the rebate, the lease is an all-around win. Almost all of my Prime customers have opted for the lease in the months since we’ve had this special."
I’m struggling to make sense of the numbers or put it into the lease calculator. Do I need additional information from them? Is this even worth pursuing? Any advice or direction would be much appreciated!
I’m having trouble finding the exact way this is figured. About the only thing I’ve found is Consumer Reports saying it is the difference between the normal Prius and the PHEV which tracks with the ~$4,500.
Shouldn’t the Balance Forward be the top 4 minus the rebate? I’m getting $29,670.09.
Can there be anything in the contract to prevent me from buying the car after the first payment? From what I’ve read people doing this are pressured by the dealership to keep it as long as possible but eventually let them buy the car. I’ve also read that early termination fees only apply if you are not buying the car.
It seems like a lot of the financing and factors like residual value do not majorly impact me if I’m doing an immediate buyout. Do I need to look at more than sale price plus all fees (right now starting fee and doc fee and possibly buyout fee)? I’ll be paying a small portion of the taxes on my first payment then having to pay them all when I do the buyout right?
But shouldn’t the balance forward factor in all of the above including my first payment and down payment and that’s what my buyout will be?
they are missing a line for Acquisition. That’s the 650 difference
Basically
Purchase = Price
Leasing+Buyout = Price - rebates + Aqc + Dis (Or Purchase fee) + some interest, so to earn the leasing rebates, you pay an addition $1000-1500 worth of leasing fees
Thank you! Seems like a good deal then. How likely are the dealers to budge on the fees? The car is pretty in demand and some dealerships are starting out over MSRP which this one thankfully isn’t. Is there anything else I should look out for?
If you plan to buyout , then there is nothing but the MSRP (Dealer will try to markup the MF, but if you pay it off in 1 month it makes little difference)
So things to watch out for (If lease purchasing)
Paying MSRP or Over MSRP
Paying for Add Ons such as Nitro
Buying an extended warranty or such when you didn’t want to.
Fees are fixed in most states so you don’t have to worry about that.
