Thanks in advance for taking the time to review this. This is my first new car and twice as expensive as I’ve ever paid for previous used cars and I find this stressful. I don’t feel like I need the absolute best deal but want to make sure it’s at least reasonable.
I’m not sure I’m using the calc correctly. The lease payments are 818 (741 base + 77 tax) in the lease but calc shows 733 (672 base + 61 tax).
i don’t see where the purchase option is but toyota came up w/ 27070
i was told it is a closed end lease
there is a early termination fee
“you may have to pay a substantial charge ifyou end this lease early The charge may be up to several thousand dollars. The actual charge will depend on when the lease is terminated. The earlier you end the lease, the greater this charge is likely to be”
UPDATE: the lease has total cost as 29459 (Depreciation: $15741
Rent Charge: $10943) and the calc has 28236 (Depreciation: $13,572
Rent Charge: $10,604)
so I think the data I put into the calc is at least close
At a .00435 mf, the only reasonable thing to do here is buy the lease out immediately to capture the ev incentive. This is not a lease you want to hold to term.
Thanks for the quick response!
Here are the lease details. I was concerned by the big early termination box and generally just being unfamiliar with leases. If I buy out immediately does this seem reasonable?
I am planning on making a decision and going back today at 8am.
Backup plan is a much less expensive Outback
From Edmunds:
.00335 MF and 57% residual
$6500 lease cash
The MF is not an issue assuming I buy it out asap correct?
One of my bigger concerns is they tell me I’ll be paying more by leasing which seeing what others have done online it seems like the 6500 discount should be better than getting a loan or even paying cash.
If the loan looks good otherwise and I’m not making a huge mistake then I’m still seriously considering it.
Mostly an issue of me being insecure as I’ve never leased nor paid this much for a car before.
Wow to get a fully printed contract and not sign it, that’s a first for me.
You do pay more by leasing (if you intend to buy at the end), because of Acq, Dispo, and that extremely horrible 10.4% interest rate.
HOWEVER if you lease and buy immediately you get the benefit of $1000 Discount and $6500 Rebate. (Minus Acq and Dispo) You are in the green of $6500 (A+D is $1000 BTW) AND if you refinance it at 8.24 (Lightstream as of 2/10/24)
So the benefits of Leasing then buying? You get $6500 off the car (at 8.24)
The Benefits of Buying? You get no hassle of waiting 30 days and refinancing it. (7.99 as of 2/10/24)
Let’s say I sat at the dealership for a long time yesterday. I had requested them send the info previously and they made me drive there and was a huge waste of time. At the end I said i wanted to review it and i’d come back in the morning with a decision.
No shenanigans I can see , $1000 Off MSRP and $6500 rebate and a nasty MF.
Can you get more off MSRP?
Edit , the MF is marked up, but they are probably ‘trying’ to hide it with the $1000 discount. That could make a $50/month difference. but this only matters if you don’t buy it out immediately.
They already are saying i’m getting a great deal and didn’t seem flexible on the MF, which seems dramatically higher.
I’m planning to pay off so I may go ahead and jump on it. I think I could probably do better with more time and education but as long as it’s not crazy bad I can justify this as my husband gets free charging at work
Edit: so the 1000 discount you’re referring to is off the MSRP? I put a 1000 refundable deposit down the day before to hold the car before driving up to see it. I called at the end of the day after my husband had been talking and texting with the rep ALL day long!
For West coast, yes, it’s a pretty good deal. Just ask them for more discount since you are paying for a marked up MF, just don’t tell them you are planning to buy it out immediately since they would then remove the ‘discount’…
I’m not going to argue the ‘get a different car’ at this stage you are set on a Rav 4 obviously (happy wife happy life motto?)
Your immediate buyout is basically the adjusted capitalized cost as listed on the contract plus sales tax. (it’s a more complicated calculation than that, but that’ll get you within a couple hundred dollars).
The discussion of early terminations is irrelevant. You’re not doing an early termination under section 29 or 30 of the contract. You’re exercising your option to purchase the vehicle under section 32. The only relevance of any of the discussion of section 29 is how the adjusted lease balance is calculated. The contract confirms that the unearned rent charge is not due, which is what makes it cost effective to do an immediate buyout.
