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Toyota Prius Lease Questions

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  • mdmdmdmdmdmd Posts: 3
    edited July 2010
    Just signed a deal in SoCal for a Winter Grey Prius IV with navi + mats for 3 years/36K miles. I thought I'd share my experience and ask for tips to see where I could do better as this was my first major car lease negotiation.

    Edmunds MSRP: $29,840
    Agreed Upon Value: $27413.53
    Total Capitalized Cost: $27413.53 + $650 acquisition fee -$8.99 Cap cost reduction = $28054.54
    Residual Value: $18713.00
    MF: 0.00016
    Drive off including first month's payment, title, etc. $744
    Lease payments including tax: $293

    Any feedback for future negotiations would be great. Is the acquisition fee negotiable?
  • delta737hdelta737h Posts: 603
    edited July 2010
    Hi again Artwheels,

    Sounds like your dealer engages in sloppy half-assed business practices. Personally, I have zero tolerance for slop. I would insist that the contract be re-done with correct figures. Incorrect items such as cap cost reductions and the adjusted capcost are inexcusable. I would contact the dealer's GM if you haven't already done so. Without seeing your contract, though, it's difficult for me to comment.

    The bottom line is that you have a right to documents that are accurately completed. Hand-written notes in lieu of typed IOU's, signed by an authorized individual (e.g., GM), is disgraceful and grossly unprofessional.

    You need to return to the dealer and demand that the contract be completed correctly. Lease agreements are sent to the fund provider and, if you decide to terminate the lease early, you may be overcharged particularly if the adjusted cap is overstated. However, the fund provider generally requires both the dealer's LEASE WORKSHEET as well as the agreement and performs an accuracy check. If there are any mistakes, they kick it back to the dealer in most instances. But, I wouldn't rely on the fund provider to do this. This nation is loaded with incompetence and laziness. And, yet, some people have the nerve to wonder why jobs are going overseas... wages is just a small part of it... believe me.

    If you like, email me a copy of your lease agreement at

    diffeq@zoominternet.net

    and I'll be happy to analyze it for you.

    John
  • dwynnedwynne Posts: 4,018
    Just a reminder to look at the III with no options. Last month the MF was the same for II and III and the residual was higher making it a "no brainer" to pay the $2 or so per month for the III with the upgraded stereo on BT handsfree. I have a post about that in this thread, IIRC.
  • dwynnedwynne Posts: 4,018
    I am like John, I have to have my numbers match their numbers and see where every penny goes or I don't sign the contract.

    The folks at TFS will also require that the numbers make sense - the residual has to be the same as shown on the invoice for the car and the MF has to be no lower than the advertised rate (though the dealer can mark that up). The net cap cost is the only other thing that really matters, the difference between that and the residual with the MF applied has to resolve to your payment. Unless there are math errors shown in the contract if those numbers work out then they will approve and fund the contract. If the out of pocket is right along with the payment and the dealer does not come after you for more than you already paid up front, then the other stuff may not matter - but it should have been done correctly in the first place.
  • delta737hdelta737h Posts: 603
    edited July 2010
    dwynne makes a very good point... all numbers must be correct and all calculations must square. If they do, and even if the net (adjusted) cap and payment are inflated but all calculations are correct, the fund provider will "approve and fund the contract". If you terminate early, as I had indicated, your lease balance may be inflated as well which may end up costing you more money than if it had been done correctly in the first place.

    John
  • artwheelsartwheels Posts: 6
    Hi John,

    Thank you SO MUCH for your feedback. It is MOST HELPFUL! I appreciate your kind offer to analyze my lease very much. I've emailed it to you, & look forward to your comments.

    Gratefully,
    Artwheels
  • beyond97beyond97 Posts: 2
    Hi everyone, I am new to this forum, car leasing, and Prius so whatever help and opinion you can provide is much appreciated.

    I am working with a Northern California Toyota dealer on a Prius III lease and here is what they can offer me:

    Base Prius III (no roof or Navi) with floor mats and cargo mat. 36-month lease with 12K miles annually. $0.15 per miles over 36K miles. 2-year schedule maintenance is also included.

    No money down and nothing due at signing which includes all doc fees, first year registration, and first month lease payment and tax. I just sign the paper and take the car.

    I am responsible for 35 payments of $240 + tax and the 2nd and 3rd year DMV registration.

    I could get all the lease related figures by backing out the numbers but the deal seems pretty good to me by just looking at the sum of cash outflow. ($240 X35 = $8400) vs. the advertised deal on TV which is $1999 down and $199 per month for 36 months ($1999 + ($199X35) = $8,964 but for a Prius II.

    Any comments?

    Thanks a bunch.
  • dwynnedwynne Posts: 4,018
    Your logic is sound - just based on the cash outlay and the amount of the payment I would say a really nice deal.

    To really analyze the deal you need to know the agreed selling price of the car. That plus any dealer doc or prep fees gives us a number we can compare to invoice or other folk's prices at see how the car is priced in your deal. The DMV, taxes, bank fee, MF, residual, etc are all fixed for you so the only thing you can change to help the deal is a lower selling price - if possible.

    We leases a III for my wife last month and paid first payment only at signing and our base payment is higher than yours. But every area is different (pricing, incentives, lease residuals and money factors, etc) and that was last month as well.

    Get the selling price and see if there is more meat on the bone you can take off, but just based on $0 down and $240 + tax for a III that sounds really good to me.
  • beyond97beyond97 Posts: 2
    edited July 2010
    I backed out the numbers so here is what I think the details should be:

    Prius III Invoice $22156
    Reduction to Invoice $(577.59)
    Destination $760
    Acquisition fee $650
    Doc Fees $45
    Tax on doc $4.39
    CA Tires fee $8.75
    DMV $29 (got that from previous posts let me know if that is not true)
    Dealers pays for First month and taxes $263.4
    Dealers pays for mats set and cargo net $160 (estimate)

    Total Capitalized Amount $23498.95

    I used MF= 0.00075 or 1.8% APR

    Residual value (68% of MSRP, excluding Destination) $16,184

    35 Monthly Payments left ($240 + tax of 9.75%) = $263.40 (or $9219 for the lease term)

    Terms: 36 months lease with 12K mile annually.

    One thing I am a bit confused.... should there be first year DMV registration as well? That usually costs $200-300 if I am buying a new car... but not sure how it works for leased cars. The dealer told me that they will pay for first year and I will pay for 2nd and 3rd.

    I think it is not bad of a deal but please confirm ... I dropped by another dealer last night, the guy's first offer was $600 down and $273 + tax per month. That was without the mats and cargo net... the difference in face value is over $1700. Of course, I didn't negotiate at all and walked out of the dealership in about 20 minutes.

    So what do you guys think??? I would go in a sign the lease tonight!
  • tjpriustjprius Posts: 5
    I'm in Los Angeles and would love the same deal. Which dealer did you get this lease price from. Any where close. Anyone out there want to tell me where to go for a similar car, or which dealers will give me the best lease deal for the II or iv or v
  • Hi,

    I am looking into a Prius lease. I just want the sunroof, but you have to get NAV + roof. I am looking into the numbers to see if I will do this. However, I think its getting out of my price range. I was told MSRP $28,849 my price $26,897 less $750 rebate. Residual is only $16,683. They want $679.84 ( which includes your 1st monthly payment ). The Lease is $343.59/month. Not bad, but unless I can get this down to $300 range its not worth it to me. Does the residual seem low? I read post earlier for IV with NAV in CA and residual was in the $18k range. I also read Dyane's post that 68% of MSRP for residual. That puts it at $19,617. However, I am not sure if that applies to III with roof. Also, is there any way to get out of the lease inception fees. I hate paying fees when I am already paying interest to them. Money factor quoted was .00075 In NE Ohio. Thanks
  • bomb617bomb617 Posts: 4
    mdmdmd, may I know which dealer?

    Alan
  • mdmdmd,

    I would be interested in which dealer as well... Thats a great deal!
  • dwynnedwynne Posts: 4,018
    Have the dealer give you a break down of where all the money is going, Trying to work backwards to the selling price when fees and taxes are involved can be tricky. If they are on the level they will not mind giving you the numbers. If it looks good, then take them up on it.
  • tjpriustjprius Posts: 5
    Please tell us which dealer. I want the same deal...
  • mdmdmdmdmdmd Posts: 3
    Santa Monica, but it's possible you can get something similar from Manhattan Beach as well which was the original quote I got, but went to SM because it was closer.
  • Here are the numbers for the Prius V that I leased today with the advanced technology package and the preferred accessory package (3 year, 12K miles/year):

    MSRP: $34,280
    Residual: $19,713
    MF: 0.00016

    I paid $500 cash to help with the drive-off fees.

    Monthly Payments are $341 before tax, $380 after tax (San Diego, CA)

    As many people have stated before, 68% (for 12K miles) of the base price of the car contributes to the residual, while the options contribute almost nothing. As a result, the cars with the big-ticket options are sitting on the lot longer, which gives the buyer more negotiating power.
  • I just got a Red Prius IV with navigation + mats for 3 years/36K miles. Please let me know how you think I did and where I could do better. I went off the numbers provided by mdmdmd to see if any dealers would match it.

    The best offer I got is reproduced below. I couldn't get any dealer to match the agreed upon value of $27413.53 th

    Agreed Upon Value: $27644.22
    Total Capitalized Cost: $27644.22 + $45 Doc Fee + $650 Acquisition Fee = $28339.22
    Residual Value: 18713
    MF: 0.000016
    Drive off including first month's payment, title, etc: $1000
    Monthly payments with tax: $293

    So I guess the main difference is the extra $256 I paid on the drive off. How do you guys think I did? Where could I have negotiated to get a better deal? It's my first lease and my wife is looking to get a Prius too so any advice you can share is valuable.
  • tjpriustjprius Posts: 5
    I just got an email from the dealer I am working with in Santa Monica so that I could get the same deal as you did on your Prius IV. He asked me if I could get "Ask him if he'll disclose to you the VIN or his last name or the date he did the deal and who is sales person was.". This website asks us not to post names of salespeople etc. could you give me the VIN and date of the deal? I'm hoping they'll make me the same exact deal if you do. Thanks,
  • evahnulahmevahnulahm Posts: 17
    For dealers in the South East Toyota Region they dont use a straight up percentage to calculate residual, they multiply the MSRP by the % and then add the 2400 to whatever that number is. its weird but thats how they do it.
  • evahnulahmevahnulahm Posts: 17
    I got mine in Greer, South Carolina...sorry but not very close :(
  • delta737hdelta737h Posts: 603
    edited July 2010
    evahnulahm,

    The dealer isn't going to multiply the MSRP by the residual factor (or some %) and then arbitrarily add 2,400 unless there is good reason to do so. It sounds as though it could be a mileage adjustment. For instance, if the residual factor corresponding to 15,000 miles annually for a 3 year lease is 54% and the MSRP is 30,000, then the residual is 16,200. Now suppose, instead of 15,000 miles annually, the customer desires only 10,000 miles annually. If the mileage cost adjustment is, say, $0.16 per mile, then the total credit is

    0.16 x 3 x 5,000 = 2,400.

    So now, the adjusted residual is 16,200 + 2,400 = 18,600.

    Although, this does seem a bit strange to adjust a 15,000 mile residual as baseline residuals are based on 10,000 or 12,000 miles annually. I know of no baseline residual that's based on 15,000 as that's no longer the standard and hasn't been for quite sometime. So, here's another possibility...

    It may be that residual adjustments were necessary due to additional installed options. However, the cost of the additional options or, more likely a percentage of the cost of the added options (e.g., 2,400), would have been added to the MSRP to produce the adjusted MSRP. The adjusted MSRP, in turn, is multiplied by the residual factor to obtain the residual value. Assuming the 10,000 miles residual factor is 57%, we have...

    57% x (30,000 + 2,400) = 18,468.00


    I think I covered all the bases and hope this is helpful.

    John
  • tjpriustjprius Posts: 5
    Thank you to previous post by mdmdmd on the Prius IV.
    I just made the same deal in Manhattan Beach. They agreed to the deal over the phone. The Gross Capitalized cost on my contract was $28,095.36. The agreed upon value was $27,445.36. The residual is $18,713. The window sticker was a little over $30,000. Don't ask me what it means, I'm just trying to give you the numbers. I paid $750 which represented the first month payment and registration ($383) acquistion fees $45 and some other little fees. My remaining payments are $293 for 35 months and this includes tax. I qualify for the Tier 1 financing.

    Oh, I got the winter grey prius as well.

    Elway Toyota in Manhattan Beach made the deal and they were terrific. They stood by their word that they gave me on the phone. Call and speak to the bmc manager. I just called their 800 number. I know we can't post names here or I would. I shopped the deal that mdmdmd posted and Manhattan Beach was the only one that would do it, and gladly. Great guys to work with (and free popcorn). Give these guys a call they are serious about moving cars.
  • Shucks! My coworker just got a new Prius IV + Navi from Manhattan Beach Toyota for an agreed price of $27130. Now I feel like I just got taken for a ride. In Buyer-remorse-dom right now.
  • Hello,
    I Leased a 2010 Prius II in the mettalic white color (adds $200) Is this a good deal for Virginia, or anywhere for that matter.

    Purchase price $22,350 (includes $200 color charge)
    No upfront fees other than first months payment of $259.
    36 month/36k miles $259/month
    Residual of $15,504

    I don't remember the money factor. Please let me know how I did!
  • mdmdmdmdmdmd Posts: 3
    Unfortunately I don't feel comfortable revealing that, but based on the other posts it sounds like going to Manhattan Beach may be the option. I didn't find the SM experience very good.
  • yellow578yellow578 Posts: 2
    edited July 2010
    Hi all... I'm in Southern California and the best deal I've received so far is:

    Prius III +navi + mats + Blizzard White

    MSRP = 27,090.00

    walkoff amount = 1678.00 mthly = 244 + tax

    plus the 2 yr maintenance program

    this is for a 3 year lease and 12k

    Is this a good deal? I need to buy by tomorrow end of month quotas u kno?! thanks all!
  • samramsamram Posts: 4
    Here is the offer I have been able to get (need to close tomorrow)
    Signoff amount 2500 (all inclusive and the first month payment included with tax etc)
    Monthly: 170 (inclusive of tax) for 35 months
    2 yr maintanance
    15k miles/year

    Havent been able to get the mats etc. What should I negotiate for?? Please advice..

    SAM
  • yeahdickeyyeahdickey Posts: 3
    edited July 2010
    In South Florida .... just picked up the car after very difficult negotiations with several dealers internet depts.

    Finally, ended up taking the best offer that no one else would match ..

    Prius III w/Navigation Package, Leather, Mats, and Toyoguard Plus Protection Group.

    MSRP $29,202.00
    Sales Price $25,661.00
    $0 down 36 months 15k miles/ year $325 (including tax)
    Sign and Drive Lease with only 1st payment out of pocket ($325).

    Picked up the car a few hours ago and they threw in a tint job for me.

    I feel this is pretty good for South Florida ... but you South Cali guys are getting amazing deals!
  • mac213mac213 Posts: 2
    Just picked up my new 2010 Prius IV with NAV package. I think I did very well on the pricing, just looking for confirmation.

    MSRP $30,030

    Negotiation started at $372p/mo - $333p/mo - to finally $319

    $0 down 36 months 15k miles/ year $319 (including tax)

    $800 Due at signing including 1st month, Reg and Doc fees

    My potential savings with this Prius is over $400 per month between the difference in payment from my trade and gas savings. 1st tank has averaged 52.3mpg mostly hwy with some traffic, my previous car was 16mpg.
145791016
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