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Toyota Prius Lease Questions

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Comments

  • delta737hdelta737h Posts: 603
    edited June 2010
    dwynne,

    If your read my post carefully, you'll discover that my example is purely hypothetical. I don't know the exact MSRP and I routinely include destination in the MSRP as most fund providers residualize destination. However, TFS may be an exception. I simply rigged the MSRP so that 68% x MSRP = 15,504. And, of course, it came out to $22,800 (recall your leasecompare post). Also, my sell price of $20,000, again, is strictly hypothetical. I leave it to the reader to supply the correct information. This was purely a teaching exercise in which I supplied a template with hypothetical data. The data can be changed to meet the requirements of a specific lease transaction.

    Regarding a payment of less than $250...

    If we assume an adjusted cap of $23,450 (including acq fee and NJ taxes) and a $15,504 residual coupled with a 0.00075 money factor, the payment is $249.94. So, yes, an under $250 payment expectation is very realistic and certainly doable for a II in NJ.

    John
  • whats the MSRP on your vehicle? and what is the major difference between the II and the III? should my II be less money?
  • John, thank you very much for your post, but the residual i posted is actually .0020 and not .00075, am i being misled?
  • delta737hdelta737h Posts: 603
    edited June 2010
    unemployable,

    Actually, you posted .00020 which seemed extremely low which is why I asked if you were sure as I was thinking that it should be 0.00075 instead.

    If you have excellent credit, you should be able to get the top tier rate which is 0.00075. The 0.00200 money factor seems very high. A credit score in the 650-690 range could trigger such a high money factor.

    At 0.00200, there is no way that you're going to get a payment below $250 unless your adjusted cap is $21,790. If, indeed, you can't do better than the 0.00200 money factor, I would take the $265 payment and run with it! Before you do anything else, though, double check that money factor because that's very critical.

    John
  • linhtwulinhtwu Posts: 15
    Difference between 0.00075 and 0.0020 lease factor is about 3% interest or 1.8% vs 4.8%. Just an FYI for comparison in real interest rate terms. Good luck.
  • linhtwulinhtwu Posts: 15
    I will be singing Prius III lease for $246/month, 35 payments left and paying $331 walking out the door. Hope to have this done early next week. Good luck.
  • delta737hdelta737h Posts: 603
    edited June 2010
    Thanks, linhtwu. I'm aware of the difference of the approximate interest rate equivalents between 0.00200 and 0.00075. The interest rate obtained by multiplying the money factor by 2400 is only an approximation but it's very good appproximation as it's extremely close to the actual rate. The smaller the difference between the adjusted cap and the residual, for a given term, the better the approximation. This means that lower depreciation values give better estimates.

    John
  • Hi everyone, I need a car asap and I need your help to see which one is a better deal with zero down if purchase. Thank you in advance.

    Here are the deals:

    Prius II Lease Option:
    Amount due at signing includes DOWN PAYMENT of $1,800, FIRST MONTHLY PAYMENT of $199 and no security deposit. Tax, title and license are extra. Based on MODEL #1223 (5 Dr. Hatchback) TOTAL MSRP $24,374, & NET CAPITALIZED COST of $22,273. LEASE END PURCHASE OPTION is $15,232 plus tax, title and license. Customer is responsible for excess wear & tear and 15 cents per mile over 36,000 miles. Dealer participation may affect final negotiated price and applicable taxes. NOT ALL CUSTOMERS WILL QUALIFY. Payments are calculated using TFS Tier 1+ rate. Other tier credit payments are higher. Offer ends 8/2/2010 and you must take delivery from dealer stock between 6/2/2010 and 8/2/2010. Offers available in AR, LA, MS, OK, and TX. 2010 EPA 51/48/50 city/highway/combined mpg estimates. Actual mileage will vary.

    Prius II Purchase Option: $24,000 walk out
    0.0%, 2.9%, 2.9% Annual Percentage Rates (APR) on all new 2010 Toyota Prius Models available to Tiers I+, I, II and III customers with approved credit through Toyota Financial Services only. Special APR available on 36 month loans, monthly payments of $27.78 per $1,000.00 borrowed; 48 month loans, monthly payments of $22.09 per $1,000.00 borrowed and 60 month loans, monthly payments of $17.92 per $1,000.00 borrowed. Offer ends 8/2/2010 and you must take delivery from dealer stock between 6/2/2010 and 8/2/2010. Not available with lease offers. Dealer sets final price. Contact Dealer for details. Offers available in AR, LA, MS, OK, and TX.
  • dwynnedwynne Posts: 4,018
    "Residual 58% plus 2400 residual assistance = 18,798 "

    What is "residual assistance" ?
  • dwynnedwynne Posts: 4,018
    Look at the fine print details on the lease and see what the money factor is (MF). Multiply by 2400 to get the effect interest rate. Is it higher or lower than the buy rate? Here they are doing 1.8% effective lease.

    Notice also the lease deal is limited to tier 1+ while the purchase rate is available to those with lesser credit.

    Leasing is not for everyone, no matter if a lease deal is better than a purchase deal. If you drive a lot of miles, trade cars often, don't take good care of your cars, or don't have top notch credit then leasing is not for you.
  • dwynnedwynne Posts: 4,018
    edited June 2010
    The biggest no brainer I have seen in leasing :D .

    The MSRP on the III is $1,000 more than the II and that is just for an upgraded stereo and BT hands-free. Does not sound like most folks should or would want to pay that extra, but that is not the case if you are leasing.

    The invoice difference between the II and III is $750 so that is (hopefully) all the extra you will be asked to pay when you negotiate your selling price. The good news is that the residual percentage is the same for both, So if you have a II with just mats and III with just mats you are looking at $23,750 MSRP, $22,912 invoice and $24,750 and $23,662 invoice.

    Residual (here, anyway) is 68% of MSRP not including the mats or $750 destination for 12k leases and 66% for 15k leases. So $22,800 * .68 = $15,504 * .66 is $15,048 for the II and $23,800 * .68 = $16,184 * .66 = $15,708 for the III.

    So on the 12k lease the residual difference is $680 and $660 for the 15k. Since the difference at invoice between the II and III is just $750 then your extra cost for the III over the II is just $70 for the 12k lease and $90 on the 15k lease! Divide by 36 payments and you have < $2 a month or $2.50 more to get the III (plus interest, but here that is 1.8% effective using 0.00075). Now that is a no brainer if I ever saw one!!!

    The only downside is that it is easy to find a II equipped like you want it, there are few options (mats and bumper thingy being the most common) while a lot of the III models are loaded up with the NAV pack or NAV + roof pack. For pennies a day it is worth finding a non-loaded III and enjoying your upgrades :-)
  • linhtwulinhtwu Posts: 15
    Just signed a lease on a III for $246+tax. The lease on a II would have been $239. I figured the $7/month was getting upgrade stereo and BT.
  • What options did you get with the III? I am looking for a III with the roof, no leather. Wondering how much they are leasing for with zero down. I am in Cleveland Oh 44067
  • dwynnedwynne Posts: 4,018
    The III does not come with leather. W/O any options you are looking at $275 to 299 plus tax, but the fees and rates and taxes do vary widely. The roof and nav package adds $3,166 to invoice (what a rip) and maybe $1.5k or something to residual. So the high residual that makes the Prius such a good lease does not extend to the options.
  • linhtwulinhtwu Posts: 15
    Eaasternguy2.....Only option I got was floor mats. If you are interested, I can send you the email of sales person I dealt with. She was up front and gave me the best quote from the beginning. I was very pleased and transaction was easy as I was in/out of dealer in about 60 minutes on delivery.
  • dwynnedwynne Posts: 4,018
    edited July 2010
    Picked it up the other night for my wife.

    Prius III with just mats and the dealer installed remote start (0% residualized, of course).

    MSRP: $24,750 + remote start ($529 or more)
    Sell price: $23,985 including remote start
    Acquisition fee: $650
    Doc fee: $250
    Taxes / fees / tags / title: $99
    Net Cap cost: $24,984 including remote start
    Residual: $15,708 (high mile)
    Term: 36 months / 15k miles per year
    Money factor: 0.00075 (1.8%)
    Payment: $288.19 + tax
    Due at signing: first payment + tax

    Not the world's best deal, but I thought it was a nice deal. My wife loves the car so far. I did get quotes from several other dealers, one that came too late was $268.64 plus tax per month with just 1st payment due at signing. This was for a III with just mats, no car starter at this price.
  • dmannjdmannj Posts: 2
    Toyota is offering a lease deal in the NY/NJ area:

    "Valid in NY, NJ and CT only.
    Lease a new 2010 Prius for $179 a month for 36 months with $1,799 due at signing, which includes $1,799 down payment which totals $1,620 down, and $179 first month's payment and $0 security deposit.
    Example based on model #1223. Base MSRP excluding freight is $22,950. Monthly payments of $179 total $6,444."

    What other fees can I expect? What is a Lease inception fee? Tax in NJ is 7%. Does this apply to $179. per month or part of it?
  • delta737hdelta737h Posts: 603
    edited July 2010
    dmannj,

    Lease inception fees are fees that are due and payable at lease inception such as DMV fees and taxes. For instance, both NY and NJ require that taxes be paid at lease inception. However, taxes (or any fee for that matter) can be capitalized (i.e., financed) in the lease. The fund provider simply pays them on your behalf and, then, finances them in your lease. Doing so, of course, will increase your payment. The $170 payment in the ad does not include taxes and assumes they're paid upfront at lease inception by you.

    Besides the acquisition fees, other fees include DMV/Gov fees, dealer doc fee, and taxes. You may want to read my post #170, for whatever it's worth, to get an understanding of the entire process.

    Hope this helps.

    John
  • cestlaviecestlavie Posts: 1
    I'm currently looking for a Prius II in MA and it sounds like you got a great deal with $215/month and zero down. Any chance you could share where you bought the car and a breakdown of what you negotiated?
  • artwheelsartwheels Posts: 6
    Recently, I researched car leasing extensively. As my local dealer agreed to a deal of 0 down, & $200 monthly payments for 36 months; I leased a 2010 Prius II yesterday. I spent 3.5 hours attempting to ensure that the deal was correct. Initially, the incorrect inflated monthly payment was corrected. However, the dealer refused to change other things I questioned. Today I have some questions/concerns about those figures. BTW, the dealer told me I have a 10 day grace period, which I&#146;d be surprised if true. Three basic questions:

    1. The amt due at signing was incorrect, & instead of lowering other fees, the dealer refused to change the contract & instead gave me a so-called &#147;Bill of Sale&#148; w a hand-written note that dealer &#147;to pay DMV fees of $274.13 (the amt overcharged via our agreement). Is this legit? Will the dealer pay the DMV fees?

    2. Some basic figures were correct (ie: the sales price, monthly payment and total monthly payments); however, others were not (ie: cap cost reduction [my trade-in is shown in the one section, but not on the line for cap cost reduction, instead another fee half the amt of the trade-in is shown], adjusted cost reduction & adjusted cap cost are incorrect&#151;higher than they should be). Depreciation & rent charges are shown, whereas I didn&#146;t have them in my worksheet. Is it a problem that the basic figures are correct, but others are not? Do I need to go back to the dealer and tell them to revise the contract and make it correct, so I don&#146;t run into problems in the future? Can cap cost reduction, adj&#146;d cost reduction, & adj&#146;d cap cost come into play in the future, or are they only used to calculate the monthly payment?

    3. The receipt for my first month&#146;s payment only shows that it was paid, it doesn&#146;t show the balance due. When I asked the dealer about this, he said it doesn&#146;t show the balance. I&#146;d feel better if the receipt showed the balance due, esp since the contract shows an inflated amt due.

    Thank you for your response! I appreciate your feedback & advice.
    Artwheels
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