Money factor for SETF lease

why can't you treat it like a purchase, email a few dealers and get the best deal?

 

What is so special about this 3 year old prius? I find it very hard to believe that this Prius would be worth $28,000.00. I find it hard to believe it would be even worth $22,000.00.

 

Need more details about your Prius, miles, packages, etc. Agree with the other poster who noted that a 3 year old Prius is not going to be worth $28k let alone $22k. Though, maybe I am missing some thing??

I'm looking at purchasing a certified used 09 Prius with 40k miles for $15500 (though, it isn't one of the higher packages).

 

OP: your argument is not going to sway the dealer. Giggle -- maybe.
The residual value (RV) on your current car is a fiction that Toyota decided on 3 years ago when they sent cars to dealers for leases. Today is a new day with todays RV. You can no more use the 2007 RV than you can use the 2007 money factor in arguing about a new lease arrangement.

Understand the parts if not the math behind the lease monthly payment:
1. Depreciation = RV = loss of value of the car over time, *set* by Toyota
2. Car cost = what the dealer will sell the car to you for
3. Fees = fees
4. Interest rate (apr) = money factor * 2400.

Negotiate 2 - 4.
The best apr in the car loan market is about 3%;
The best car purchase price is 5-10% off msrp;
The best fees are 0, although I gather that Toyota charges around a $625 lease fee the dealer must collect, but some dealers will try to set a higher number and keep the difference. I also gather that state title and licensing goes through a dealer in leases. Refusing to disclose money factor is the same as a dealer refusing to tell me how much my purchase price is, and only agreeing to say how much the loan monthly payment and duration will be. Find a dealer who does not treat you like a sucker. All dealers will try to give you a good deal on one part and shaft you on another. It is easy to see if the dealer says "$1000 off msrp, but $1500 in fees," you are paying more than (msrp and zero fees). Knowing how much a difference in money factor is worth is harder for most people. For a ballpark number use $750 for every one percent. Since 3% apr is about the best isolated competitive rate available for excellent credit (and 6 - 8% for poorer credit ratings) you do the following as an example: if the dealer offers a money rate equal to 4% for your excellent credit, you know they have added $750 to the total end cost, or another $21/month to the monthly payment (750/36).

The fact that you are returning a lease car has no effect, other than you giving the dealer the advantage in knowing that you are going to be without a car from a certain date.

 

good luck!