Hello, planning on taking advantage of $11850 lease cash offers here in Colorado, the latest twist I am hearing from all dealers is I am “required” to keep the lease for 6 months. I challenged one of them today and asked if this is a hard requirement and a contractual obligation… here is the response
Hey Bill,
It’s not a hard requirement, the reason we say 6 months is because it can take time for our corporate office, TFS and the DMV as well as the state to process everything. From what I was told, if you buy out the lease too early you could end up forfeiting the rebates at which point you would have to do it through your tax filing I believe. You might want consult a CPA on this part if you wanted to get those rebates through tax filing. I think you can do it as early as 3 months once your vehicle is registered and everything but 6 months to be safe. It’s not a hard requirement but it’s highly recommended, 100% your choice on what you want to do. Basically if you do it too early you would be considered financing the vehicle to TFS and those rebates come from TFS.
I am assuming its just dealers trying to recover costs but I asked because I did not want to get to the final signature and have the dealer or TFS spring a 6 month restriction, would kill the deal for me. Appreciate your input and accessment of deal attached below
Sounds like BS. Unless it is the lease agreement, there is no requirement to wait for 6 months prior to buyout.
The part about getting the rebates through tax filing is clearly wrong, at least as far as the Federal portion of the rebate is concerned. Getting Federal credits through tax filing only applies to purchases, not leases. The RAV4 Prime does not qualify for Federal tax credits on purchases, hence the need for the lease/immediate buyout hack.
I spoke with my Business Managers and they said that the reason you want to wait 6 months is you want to make sure that everything gets processed correctly before paying off the lease. Contractually there is no restrictions however you have a lot of moving pieces when financing and especially when leasing, between our corporate headquarters, the DMV, TFS and Titling paperwork as well as rebates. I want to make sure you get your rebates, another option we could explore is what’s called one-pay lease, you pay for the entire lease upfront, for the two years you want and it still qualifies for the $11,850 Rebate.
I went through same issue with my dealer, but they asked me wait for 3 months. Technically, you can buy out the vehicle after TFS account is created. But dealership were not ready to process my buyout.
TFS does not like to process buyouts they will ask you to go to a dealer, contacted other dealers in the area they just asked me to go through with TFS directly. Just pushed TFS a bit they sent all the info needed from my end for buyout. I pushed the dealer as well simultaneously, they agreed to process my buyout after first payment to TFS.
After going through all this, I actually bought it after 3 months of leasing (my dealer processed it) due to unexpected personal expenses that came in.
Why would waiting 6 months kill the deal for you? Is that the breakeven point where it no longer makes financial sense to do the deal? What if it takes 3 months? In the end you are still getting $11,850 in rebates that a straight up buy might not get.
My thinking is I can can the $5000 credit here in colorado whether I buy or lease, its only the $6500 that requires leasing and that is what I am trying to capture with leasing. If I am required to wait 6 months at a 900/mo payment, that is roughly 5400 which I am only guessing at this point is interest, so would lose most or all of the 6500 benefit by time fees are added. I like the car, but dont think its worth 50K, at closer to 40 that works for me
You are not going to pay anywhere near $5400 in interest during those 6 months. The point being it is not going to take 6 months for the buyout. You might make 2 payments (first due at signing). Lease and buyout ASAP is the best path forward, even if it takes an extra month or two.
@livecash I am a broker here in CO. You can pay it off whenever you’d like but we always recommend waiting until the lien has been filed with your respective county.
If you can wait, I have a white / black XSE Rav4 Prime due to arrive mid-May. MSRP + $799 doc fee. Buy rate. No other charges above and beyond that. You can pay off the car on your way home for all we care. If you’re interested, shoot me a DM or at dparysz@centleasing.com
I can do at least 2k off msrp plus all incentives at my Colorado dealer. Pay it off anytime. Shouldnt have to make a second payment. If you do the payoff decreases anyway
So far no, but sounds like I should be a little more aggressive given the last few posts. I have really only made initial inquiries to daye, are these CO dealers you are mentioning
I have silver se. White grey or red xse all in transit. This dealer usually sells them before they arrive with their discount. Western dealers don’t seem to have the same high discounts I get in the East on these. Usually 3k+ off
