The only difference is you are paying your initial payment at delivery. Otherwise this is a zero down, not zero due at signing (DAS). Not sure if Toyota will let you roll that first payment into the lease.
You make your first payment at signing, then can complete the buyout.
Does it matter?
This is only a car to be “leased” in the sense that you are buying it out within 30 days.
Getting a RAV4 Prime in Maryland. Looking to do the lease with buyout to take advantage of the $6500 cash TFS is offering. Never done a lease before. Sales person suggested waiting a couple of months otherwise the dealership gets a chargeback. Anyone know the timeframe on this? I found in another post that it was 90 days when using TFS financing for a purchase, but haven’t seen anything listed for lease. I realize that I am not beholden to the dealership, but I don’t want to screw them over either. Any negative to waiting a couple of months (other than paying a little more in interest)?
Nevermind. Gonna do immediate buyout. They lowballed really bad on my trade in. I haggled them up $1,000 when working with the salesperson, then when I was going to sign the lease with finance, the final price was $650 more. Also, finance lady was like “Oh yeah I’ll get you the best deal, and if you want to buy out in 6 months you can.” I was trying not to laugh when I was signing the lease. Adjusted cap was where I wanted but the rent on 24 months was $7,180. I went back after and checked the math. Money factor was like .0041 (equates to 10.1% APR which is the value I understand better). If I wait 6 months I’m paying something like $3,500 in interest. If they were really looking out for me they would have offered a longer lease and not bumped up the MF. I get it she’s hedging her bets hoping I wait 6 months. Sounds like a lot of people are doing the lease and buyout thing.
Just to be clear, this IS a lease through Toyota Financial Services and I can buy it out immediately.
Also, very happy with my new RAV4 Prime SE. has all the options I want. I can charge overnight with the included level one charger, drive to work and back (30 mile round trip) and not use an ounce of gas. Also can take on long family road-trips if I want.
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Congratulations on the new RAV4 Prime. I think the Finance people max out the rate when they suspect you are going to buy it out immediately. Good thing about MD is you don’t have to pay the tax twice when you buy it out.
Hi all,
I’m looking to get a RAV4 Prime XSE Premium and do the lease buyout. Is there anything I should look out for prior to do this, as per the dealer, this is through TFS so I’m expecting it to be fairly standard. I understand that the 2024s are going for MSRP although a few dealers have 2023s in stock, what kind of discount can I reasonably ask for on a 2023 still on the lot. Also, I’ll be buying on the east coast (CT/MA) but registering in IL (is there anything I should look out for (first time I’m doing a lease from so far away as opposed to a neighboring state)). Thanks!
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Hi, so im new to leasing terms as ive always financed. but i,ve been doing research to see if i could in fact save 6,500$. if i were to lease and then buyout… so lets say i want to trade my car in which is worth 20,000$, so i understand that would all go toward the principal of the car?, would that also make my first lease/rent payment smaller? im open to ideas/suggestions how to save the most in this situation
Big swings on these structures depending on taxes, so where you live is the first thing
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i live in southeast Pennsylvania and i know they dont sell primes in pa,so i would be going down to Maryland to purchase
Purchasing out of your state does make the tax situation more complex. It’s cheapest to drive from dealership back home or else you will pay delivery fee. From what I read, it is best to use Toyota Financial Services for the lease. You will make the first payment with the lease. The papers will show you the residual value at the end of your lease and the total rent charges. The trade-in would go to the principal of the car and the $6500 rebate would also make the lease smaller. You should verify all the numbers look good for you including the fees including the acquisition fee and disposition fee which you will end up paying with the lease. Then you request the buyout price from TFS after getting the lease.
It might be helpful to tell the dealership your plans to buyout but they will want you to make a few payments first which is up to you if you want to make a couple more rent charges.
That’s pretty favorable for what you want to do: no upfront tax due on the lease and rebates are not taxed either.
IDK why Toyota wouldn’t sell any Primes in PA though
¿…
So i would prefer to only pay the first month of lease payment which sounds like would be at the dealer and then buy out asap. Bc the lease payment is all technically out the window right?
How much are you getting off? I can usually beat md pricing. Toyota does sell primes in pa. But there’s more allocation for them outside of the state that’s for sure. I secure most of my primes in other states for customers.
Im just very skeptical of trying to buy the rav4 prime this way . Im just afraid there’ll be something im not educated on and it’ll end up costing me lots . When my goal is to take advantage of 6500$ rebate and not have other fees fill that 6500$ back in up to what msrp would have been anyway… or higher. Which is a LOT of money .
So im not looking at a specific prime at the moment , i just wanted to talk/conversate about it first to learn more about it before i do anything
Don’t EVER tell the dealer you are planning to buy out the lease immediately. They will lose money on the deal. Just lease the vehicle with the least amount of money down as possible. If you have a trade, it might be beneficial to sell it to CarMax or who ever will give you the most for it. If you are in MD, then you get a tax break on the full trade value, but the dealer knows this and will low ball your trade by 6% and tell you it is still a good deal. For some reason most dealers feel they are entitled to YOUR 6% tax savings. Once the lease is set up with TFS or whatever bank, then simply request a payoff. Send a check, get the title, then register the vehicle in your name. MD will give you a break on registration since you already paid tax on full value of vehicle at start of lease. It should only cost you a few $100 to re-register in your name with new plates. What you are attempting to do has been discussed many times here.
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No, every payment has 3 parts: depreciation, rent and tax. The first part reduces your balance.
Any cash or equity DAS will reduce the balance you’d owe to buy the car out within one month of leasing it.
As mentioned don’t tell them you can pay it off in less than six months.
Leased my Rav4 Prime at a Maryland dealership at end of June, and paid $500 doc fee (aka extra dealer profit) Finance guy told me I HAVE TO buyout through the dealer, and I will have to pay this doc fee again when I buyout the lease, and as of July 1, the doc fee goes up to $800. I don’t understand why I have to go through dealer for the buyout, since I will be buying out from Toyota Financial Services, or TFT. Is there any way to avoid paying this second doc fee?