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What should I do in my situation?

netsurfer733netsurfer733 Posts: 3
edited February 2016 in Toyota
I am trying to find a new car because our old 2005 Toyota Prius (with ~115k miles) suddenly died at a red light, and it now apparently requires at least $750 in repairs to replace the ECU in addition to what they say could be $3000 extra. As such, we need to be prepared to pay $3,750 in order to repair that car. Enter the new one.

It's the first time my fiancee and I might be buying a car, but my father still helps pay for some things despite how I got a new job (it doesn't quite cover all expenses we have).

So I have a few questions. Since my folks still will be paying for some expenses, they are insistent that we do not buy a 2016 Prius, which is basically my dream car of the moment. But that will come to about $400 per month. However, my father insists that there are deals such as this one out there:


______________________________________________________________________________
http://www.toyotaofmorristown.com/specials/lease.htm

"Lease a new 2016 Toyota Corolla S Plus only $69 a month for 24 months!

$69.00 per month for 24 months
$2,487 down
Featuring ToyotaCare - a "No Cost Service & Roadside" plan
4 DR, FWD, 4 CYL, AUTO. STK: GC585702. MSRP: $21,605. RESIDUAL $15,791. $69 PER MO, 10K MI PER YR. $0 SECURITY DEPOSIT. $2487 DOWN + 650 BANK FEE + $399 DOC FEE + MV FEES + 1ST MO PAYMENT + $1000 TFS LEASE CASH. EXCLUDES TAX AND TITLE. * $3979.18 CAP COST REDUCTION. NET CAP COST REDUCTION $20296.27. NOT ALL BUYERS WILL QUALIFY FOR FINANCING THRU TOYOTA FI-NANCIAL SERVICES THROUGH PARTICIPATING DEALERS. MONTHLY PAYMENT FOR EVERY $1,000 FINANCED IS 0.0% - 60 MOS. = $16.65 To qualified Tier 1+ customers through Toyota Financial Services (TFS). Photos are for illustration purposes only. Not responsible for typographical errors. See dealer for complete details . Valid only in the United States and Alaska.
Offer expires: 02/29/2016 "
______________________________________________________________________________


So he says he'll foot that bill of what he believes is $3000 so that we can sustain $69 per month for a Corolla (a car we don't want because environment, and how frequently it will need to be refueled compared to a Prius). He even says he'll do this TWICE for us, so we can have two cars, one for my fiancee and one for me.

We keep telling him however, that this deal cannot possibly be real. We also can't prove it, because we're in Maryland and he's in New Jersey (but the pressure is on - we've been paying for a car rental for weeks given what happened to our 05 Prius and how insistent he's been). We even spoke to our local Toyotas - two of them - and they both said that these are deals that don't include a great deal of things, so you will never ACTUALLY end up with $69 per month. They themselves offer about $270 a month for the Corolla, so we're quite sure he's living in a fantasy world. However, we can't prove it.

We would much prefer to get a Prius c for the same ~$270 per month cost (I suppose it was more like $295), though I'd much prefer the $400 per month brand new Prius 2016.

Can anyone with experience speak up here to help cite any evidence or reason as to why these $69 per month deals truly aren't real? What would this actually come out to be if we were to actually drive 4 hours north and investigate this fake deal? (My credit is currently quite good, if that helps.)

And thanks for any help in advance - I can really use the ammo, here - especially since he doesn't trust the word of our local Toyotas!

Comments

  • Mr_ShiftrightMr_Shiftright Sonoma, CaliforniaPosts: 64,490
    I suspect when you add in all the fees (not the DMV fees) + tax that the monthly will be more like $160 a month...if....IF you quality with your credit score. On a lease, it has to be very strong. Also, you have a 10K a year mileage limitation, and if you go over that, you'll be charge .X per mile---.15 to .25 cents per. Also the front money that your dad will pay out will be more than $3000. Also on a lease you'll need gap insurance, so you'll have to check what extra your insurance company will charge for that.

    If you plan to keep a car a long time, buying makes a lot more sense, as you will have equity--expecially if dad helps out with a down payment. So yeah, it's $400 a month to buy but after you finish paying off the loan, say in 60 months, then you begin to amortize the yearly costs because you have the equity. With the lease, there is no equity (usually, and certainly not in this case).

    Also, the Prius is still worth fixing, if it's in nice shape. You couldn't replace it for $3000.
  • Thank you very much, that should help fight his weeks-long insistance on those leases. It's quite appreciated.

    Additionally, that's interesting what you say about the '05. It actually is in good shape, but I hear that at 100k+ miles it's going to be a pain and a half to maintain, from here on out. That plus how it basically died in the middle of the road leads us to believe that it could have got us in a fatal accident if we were just a little but less lucky. So because we were told we'd only get $500-1000 in its shape for a trade in, I was thinking it wouldn't be worth it. Oh and it was in for a $900 repair for its alternator and battery naught 3 months prior :disappointed: . Do you think despite this, we should be confident in restoring the 11 year old car that has indeed been in otherwise good shape? It certainly has served us well...
  • kyfdxkyfdx Posts: 133,854
    The fine print on that deal is pretty clear. But, add it all up, and with tax, etc., the initial payment is closer to $4500, not $3000. Making the actual outlay over the 24 months to average about $230/mo. But, if your father is willing to pay the $4500, your payment will be about $69/mo.

    Is that as cost efficient as buying the car? Probably not, but here comes the advice part. You don't get to pick your dream car, when you are unable to pay for it. Take your father's generous offer, and drive a brand new car for $69/mo. Then, in two short years, you can go buy whatever you can afford.

    Your father would likely want to see you start supporting yourself. He would probably rather make a one- time gift to help you accomplish that, rather than supporting you monthly. On the plus side for you, if he can stop supporting your monthly living expenses, you can spend your money however you want.

    I give this advice as a loving parent, myself. Good luck!

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    Edmunds Moderator

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