$800 to skip the 6 month wait list. Worth it?

[makisupa79]

There is a dealer in my area (Cleveland ohio) that has a special Rent-to-own Prius program with Toyota. Bacially you have to rent the vehicle for 4 months before you can buy it out right.

During the 4 months you pay $900 per month to rent the vehicle, of which, $700 goes towards the payment of the Prius and $200 is the vig (for any gamblers out there) that the dealer pockets.

So after the 4 month period, you will have put down $2800 on the Prius and given $800 to the dealership. Its a hefty price to pay to avoid a waiting list, but since I would be saving $400 in gas and my trade in(2003 jeep liberty) would lose an additional $500 in value (if I put on 10,000 more miles in 6 months while waiting), I am thinking about joining this program. The dealer also throws in the perk of their Platinum membership...which includes free tires for 48 months.

Any thoughts on this? Should I just be patient? I have $500 down (refundable) at another dealership...but was told not to expect anything for 4-6 months, and even then, a package/color combo I want is a roll of the dice.

[Patrick Wong]

Relying upon your analysis, you will pay $800 to save $900, plus you will get free tires for 48 months. If you drive 20K miles per year, you will go through at least three sets of tires in 4 years or 80K miles.

Sounds like a no-brainer to accept this dealer's rent-to-buy offer, as long as there are no issues with the vehicle warranty period, hidden fees and charges, etc.

[prius729]

Sounds fishy but if it works for you go for it. Just make sure you read the "fine prints" carefully.

[amm0bob]

If you absolutely positively gots ta have it... then it's not that many coins to get started...

I didn't pay to be on a list...

We picked up a Silver Pine Mica w/#6 the first day we went shopping for the car. I drove it home last night... spent less than 5 hours total.

It depends how far you are willing to travel, and how much coins you have for the down.

[Optimus]

Well, when I saw the title of this thread (and before reading it), I was going to sugggest you figure out how much money you'd save in gas over that 4 months, and how much another vehicle will depreciate in that same time, but you've already done that. I bought my 2002 Prius (albeit used) earlier than I planned because gas was going up, and I could make up the extra money I was spending (rather then spending a little more time shopping around) rather quickly with fuel savings. That being said, the Prius vintage I had been looking at have now gone up in value about 40% since then, I wouldn't of been able to afford one had I waited.

If your math is correct, you are paying $800 extra now but are saving $400 plus $500 in depreciation of the Jeep. So, you are theoretically $100 ahead if you buy/rent now. Something else to factor in is that SUV's and trucks seem to be depreciating at an even faster rate, and it's "possible" the Jeep will depreciate even more (and perhaps it won't).

If gas goes up even higher (the most likely scenario), you will save even more than the $400, and the Jeep will likely lose more value than you expected. If gas goes back down, you are still saving a few hundred dollars on fuel, and the Jeep is still going to depreciate.

I would say go for it, seeing as you already had money down to get one anyway.

[makisupa79]

I implied, but forgot to mention that with this program you can go and pick the prius up today. 0 waiting. Yes, it sounds a little fishy...but they were interviewed on the news last night as well (reporter left right as I pulled onto the lot), and it seems like a pretty legit program. They got into Prius sales before anyone else in Cleveland, and when they saw the demand rise they decided to convert a large portion of their rental fleet into priuses. After they are fleet cars for 4 months, they are able to sell them, so this program just lets you pick up a "fleet car" which you are buying. When you sign up, you sign a 1 month lease agreement, and and some kind of "intent" to buy purchase order. You let your insurrance company know you are renting a car for a month, and its covered. And then during the rental period you go in to the dealer ship once a month to sign another 1 month rental agreement.

[DaveinOlyWA]

i say it depends on your financing. putting off the purchase date goes against you. but at the same time. i be willing to bet that Priuses will be more valuable in 6 months...i actually think they will be MUCH more valuable.

you are basically putting $700X4 into an escrow account that THEY hold and collect interest from. you are so much further ahead to pay the $800 premium today and cash out the deal if you can.

i can also say since i waited 6½ months for my 2004 that waiting is HELL

to avoid the stress and anticipation, it might be worth the money just to maintain your sanity...i know it was very tough for me.

[Patrick Wong]

Originally Posted by makisupa79

...They got into Prius sales before anyone else in Cleveland, and when they saw the demand rise they decided to convert a large portion of their rental fleet into priuses...

OK, it sounds like the dealer is getting an additional Prius allocation by calling them rentals? Seems reasonable, however, please carefully review all contract docs to make sure you are not surprised later on.

[pdhenry]

If it means you cut ahead of others on the waiting list (as opposed to your car coming from a different allocation) I'd be against it - basically you're encouraging the dealer to sell the cars above MSRP. Did I mention I'm on a waiting list at the moment?

[Patrick Wong]

Originally Posted by pdhenry

If it means you cut ahead of others on the waiting list (as opposed to your car coming from a different allocation) I'd be against it - basically you're encouraging the dealer to sell the cars above MSRP. Did I mention I'm on a waiting list at the moment?

Well - Cleveland is not that far from Pennsylvania, maybe you should make the trip!

Don't forget the free tire replacement for 48 months, I would say this is worth at least $700 to the OP given the relatively high miles that s/he drives.