How do I work out the deal for a lease? I’m looking to get a new Rav 4 limited. I don’t know how to work out how much I should pay each month. With tax/title/tag the OTD price is $45000. I tried to use this lease calculator but I’m struggling with it.
Hello
First of all, i do not think that Rav 4 is a good candidate to lease. If this is a must be car for you, i would rather finance and keep it for at least 5 years.
You can check it here
Second of all, there is no such a thing in lease like OTD price.
If you want to learn how the lease work, you need to start from Leaseling 101 section on this forum.
Good luck
Buy the Rav4, do not lease the Rav4.
Toyotas lease notoriously poorly and you will spend markedly more than if you just bought it and sold it back to Carmax in 3 years.
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Over a 3 year time period, that’s not guaranteed to be the case.
Taxes: More favorable with a lease, since you don’t pay tax on the entire cost of the car with a lease
Fees: More favorable with financing, because there’s no acquisition fee on a finance contract
Interest: Case by case basis; depends on the rate
Equity: It’s a wash because with either financing or a TFS lease, you can sell the vehicle and capture any equity
A RAV4 is a vehicle you should finance and keep 6+ years to see any savings over a good lease of a comparable crossover.
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pay to play vehicle
Depends on what your goals are.
If you want to lease a vehicle, return it at the end and lease again, choose something else. That strategy on a RAV4 will be one of the worst automobile-related financial mistakes of all time.
If your goal is to drive a RAV4 and only a RAV4, then you should buy it.
When it comes to cars there are a lot of square pegs and round holes.
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