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    ggood Blue PIP Aficionado

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    So, last I heard from Dianne, Toyota Financial hadn't come out with lease terms yet for the PIP. I've pretty much decided I don't want to buy, since I figure change is going to come rapidly in this area, with more and better options available in the next few years, and I'm not exactly sure this is fully proven battery tech yet. It's also economically crazy for me to be dumping a perfectly good 2010 model 5, given how few miles I drive now (short commute). Finally, I don't particularly want to have $40K tied up in a car right now. So the big question for me is whether Toyota will step up with reasonable lease rates and residual values, that factor in the tax credit the way Nissan does. I've almost pressed the cancel button so many times, this could be a deal breaker for me.
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    DianneWhitmire High PRIUStess

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    I guess they will reveal the residuals soon. Historically, tech packages and electronics never fare well on TFS leases. Base cars are residualized and then the package content is assessed for value added. The residual is not a percentage of the car's MSRP but rather a clear expectation of the depreciation of the higher tech items in 3, 4, and 5 years.
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    ggood Blue PIP Aficionado

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    This is a shout out to PriusTeam and Toyota Financial - HEY GUYS! THE CARS ARE ALMOST HERE! HOW ABOUT SOME LEASE INFO ALREADY! :cheer2:
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    DianneWhitmire High PRIUStess

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    GG - I have already called TFS - and I did that TODAY.
    They have yet to determine residuals.
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    Prius Team Toyota Marketing USA

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    Sorry, I'm late to this thread. Residuals were just released as I think Dianne had mentioned elsewhere.

    The tax credit is available to purchasers of the Pip as it goes to the owner of the vehicle so if you lease through TFS, you would not be eligible for the Federal tax credit. Here's the FAQ from toyota.com/plugin that speaks to this:
    Will the Prius Plug-in qualify for the federal tax incentive? Yes, individual purchasers of a Prius Plug-in vehicle may be able to take advantage of the Federal Qualified Plug-in Electric Drive Motor Vehicle tax credit. The Prius Plug-in vehicle tax credit is confirmed to be $2,500.

    QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE TAX CREDIT

    To qualify for the potential Plug-in tax credit:
    • 1. The Plug-in vehicle must be new. Used vehicles will not qualify.
    • 2. The Plug-in vehicle must be purchased. Leased vehicles will not allow the lessee to take advantage of the Plug-in tax credit.
    • 3. The Plug-in vehicle use is primarily in the United States.
    • 4. The purchaser must retain appropriate documentation showing the purchase of the vehicle and the date of the delivery of the vehicle.
    For personal use vehicles, the Plug-in vehicle tax credit is treated as a nonrefundable personal credit and is limited by the taxpayer's amount of tax liability for the year the car is placed in service. Individual purchasers and corporations who have business use of the Plug-in vehicle are subject to different tax laws that may also substantially reduce or eliminate the above benefits.

    All persons considering the use of this important Federal Plug-in vehicle tax credit should consult with their own tax advisors to determine the specific amount of benefit, if any, that they may be able to claim on their federal income tax returns. Your tax advisor may also have further information on the many state and local tax incentives that may be available to Plug-in vehicle owners.

    Individual tax implications may change, without notice, depending on subsequent changes in the federal tax law or further action by the Internal Revenue Service.

    Please find more information at the Internal Revenue Service (http://www.irs.gov/).


    Best,
    Erica Gartsbeyn
    Prius Product Manager
    Toyota USA
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  6. Offline

    ggood Blue PIP Aficionado

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    Thanks, Erica. Now explain why Nissan can find a way to reduce the lease cost by the amount of the tax credit, but TFS can't. :rolleyes:
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    Prius Team Toyota Marketing USA

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    ggood,

    That's a tough one as I really can't comment how other manufacturers or financing arms structure their tax credit policies with their customers. All I can tell you is that the federal tax credit is designed to be issued to the owners of the vehicle and on a lease, the finance company is the owner, hence why TFS has taken the tax credit on any of their leased Plug-ins. Obviously this should be a part of the discussion between a customer and their dealer and or tax advisor to determine if leasing or purchasing makes more sense for their particular case.

    Sorry, I know that's not quite the answer you're hoping for, but it's the best I can do.

    Best,
    Erica Gartsbeyn
    Prius Product Manager
    Toyota USA
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    DianneWhitmire High PRIUStess

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    One reason MAY be that if the car isn't kept all 36 months or the lease term isn't completed, the money has to go back. That might be the reason TFS isn't offering it.

    I have yet to lease this car to anyone. I don't appreciate the terms at all, and losing the $2,500 tax credit when the car is leased makes 0 sense.

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    ggood Blue PIP Aficionado

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    Thanks for trying to answer. I've since learned GM is also offering a sweet lease deal on the volt. I guess both Nissan and GM are simply willing to do more to move their cars, and toyota doesnt need to. With the state of flux EVs are in, I wasn't willing to buy right now, so the lack of a good lease deal made a difference in my case. Now, where do I sign up for the RAV4 EV? :D

    By the way, does that new Avatar mean you decided it put a C in your garage, instead of a PIP?

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    Prius Team Toyota Marketing USA

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    Toyota Concept Vehicles -- RAV4 EV (sign up for updates at the bottom of the page). Please note, the RavEV is only going to be sold in CA for now.

    Nope, I've got a MY12 Liftback in my driveway and a PiP delivering any day now, just honoring the launch of the latest Prius Family member, little Prius c by switching over the avatar:rockon:

    Best,
    Erica
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    freakinfreak New Member

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    Still no updates on lease terms?
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    DianneWhitmire High PRIUStess

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    leases

    What update is needed?

    The lease terms suck due to the residual being non-aggressive on percentage and the standard lease rate (non promotional or subvented) is average.
    And, you lose the IRS $2500 tax credit.

    I was going to lease mine. Now, I am not. Interest rates for purchase in the US right now are very good.

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    sub3marathonman Active Member

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    I have read the tax code that applies, and I can't find any mention of a certain time period necessary to keep the car.

    Has anyone found any documentation, in the IRS code, that states a certain time period to qualify for the credit?

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