Shocked at how low the Prius Plugin resale value is, watch out!

285?, that's all?, what are you re-upholstering?

 

I've never leased but I never thought of it being a good option for me.

Tax liability, I have plenty! .... But heck I've been driving my two 2006's for years now with no payment, this Feb my 2010 is paid off and I've yet to hit 100000 miles on it. It will have years of life left even as much as I drive!

On the other hand, if you say "I don't drive that much so leasing is a good option".... I still don't see it.

Not driving much just means you fit their terms! When your lease is up the resale and longevity is so good on a prius that they get a nice car back again and you have nothing.?

At least if you owned it you could get a great tradin or private sell if you really needed a new one.

Mine tend to get passed down to my kids and young relatives.

Does anyone have a good reason to lease?

Alan...
Sent with Tapatalk 2

 

when you lease, part of the terms are the "residual" value. You have the "option" to purchase the vehicle for that price at the end of the lease. If it is worth more, you buy it. If it is worth less, you turn it in.

 

But when you choose to buy it, how much more do you end up paying verses if you had just bought it in the first place?

I know it's a gamble as they try and estimate what the market will be.

If you do a lease. You can walk away without having to deal with resale or trade in but at what expense does that luxury usually cost?

Alan...
Sent with Tapatalk 2

 

Typically you have a purchase price, sales taxes, title fees, registration fee, lease/finance fees, rent, depreciation, and the residual.

think of the "rent" the same as the "interest expense" on a regular loan (usually determined by your credit score).
think of the "depreciation" the same as the "principle" on a regular loan.

the depreciation is typically tied to the miles of the lease, and there is some variance but I think a typical 30,000 mile 36 month lease = 40% depreciation. vehicles with high resale will be 36,000 mile, 36 month = 40% .... they try to set the residual to what the vehicle is expected to be worth in 36 months with the mileage and normal wear/tear.

I am sure a retail finance person could explain this clearer than the mud I just stirred and I know there are a couple on PC.

short answer ... the " lease fees", typically $500 - $1000.

 

I'm interested in adding leather as well, and most likely will do it next year. Will appreciate if you can share your experience.
Agree with the interior being so cheap, my co-workers / family just can't believe what I spent for this car.
We could've purchased Lexus CT200H for the price we paid (CT has decent interior).

Question.
I am getting rattles from both front windows. Rattles from glove compartment and dashboard area. Already got it serviced once, but it came back. Anyone else getting rattles?

 

Tradin is always mediocre returns so lease may be a better option for that, just not sure if true if your willing to consider private sell or keeping it till it dies.

Money is not everything, there is a group of people who just love to be in a new vehicle, I understand that.

I get mine all customized the way I want it and get a bit emotionally attached so I would hate to have to just give it up with nothing I get back.

But that's just me.

Leasing is popular in business for obvious reasons.

Don't think it's a Dave Ramsey thing!

Alan...
Sent with Tapatalk 2

 

This is just a rough calculation from my fleet sales days. It was easier then with a computer.

Figures source: Dianne's SoCal DEALS thread for the PlugIns for 2012 / 2013 models | PriusChat
Prius PiP Base MSRP: $32,795 (destination included)
Selling Price: $31,688

Lease Payment $393.97 + tax ($354.34 + tax, if you add the $1500 CA state rebate in advance)
Residual is $18,240 (effective percentage 55.6%)
Base Payment (Negotiated Price - Residual - Down Pymt) / Lease Terms = (29188 - 18240 - 777) / 36 = $282.53
Interest Expense (Net Cap Cost) x Money Factor = (29188 - 777 + 18240) x 0.00083 = $71.81
*Money Factor is estimated. MF 0.00083 translates to 1.92% interest rate
@ 7.75 tax rate = $381.80 per month with $777 upfront commitment and $2585 in interest expense (over 36 months)

For a purchase to get the same car payment:
$31,688 - $500 (TFS) x 1.11 (rough out the door cost) = $34,618
$20,873 down @ 36 months
$16,291 down @ 48 months
$11,710 down @ 60 months
You pocket $1500 + $2500 in rebates for CA.

Lease becomes attractive, especially if the car value drops significantly at the end of the lease term (you just return it). If you find it's higher, drive over to CarMax and they'll buy the car off you (money in your pocket). Initial upfront cost only $777. Total lifetime cost $3362. Take the original $11k down payment and invest it somewhere for 3 years. If there is a new PiP for the same payment and 25+ EV miles in 3 years, perfect time to upgrade. If nothing better is on the horizon, then buy out the lease

 

Clazzio "leather" seat covers for the front, rear and arm rest. The $275 ones are PVC. The $450 ones are PVC outer and perforated leather middle section. While not perfect, they look great for the money and they protect your fabric seats. I ordered the cheaper PCV Clazzio covers from Bean Garage but had to cancel the order when I found out my girlfriend had ordered the leather ones from Clazzio. I spoiled my Christmas present.

 

Thank you F8L; that's a real good price for a seat protection factor with out going the 9 yards of good quality leather finish. Now I was wondering how efficient the seats warmers will be with an extra top layer over it.

 

Still, 20-25% loss on trading-in is pretty decent. Look, the dealer invests a bit in refreshing the car - a good cleaning runs $200, plus whatever is required to refresh the car. Add 10% profit, 3% sales cost and the car would have to sell for 7-12% less than a new car... I'd rather buy new.
That's why trading after one year sucks.

 

In 2015 the Gen 4 will be released. That may be a better time to take the plunge.

 

My guess is it's a perfect storm.
Toyota's incentives on New PiP's.
Potential Tax Incentives.

And the fact that I think the PiP is such a relatively unique product, by which I think most potential buyers are buyers that would be thinking they want a new PiP....they simply haven't been on the market long enough to create a very big base of used vehicles.

With the incentives, and potential tax incentives with buying new, selling a used PiP on the lot, is going to be a difficult situation for a dealership.

I would think this will change with the passing of time. When gas prices increase (When not If) and with the simple passing of time, more "years" of PiP existence, I think you may find a larger audience created that would look at "New" Prius ownership vs. Used PiP Ownership and believe there is value in buying a used PiP.

But right now? Looking at the dealership POV, I can understand the great depreciation that is being reflected, but I don't think it's an indictment against the product. I think it's simply a passing perfect storm of conditions.

 

I just see incentives as basically lowering the price.
Keeping that in mind. It's not fair to compare resale with the mythical msrp.

It will keep resale just fine, it's the folks whole don't purchase with an incentive that will feel cheated as on resale they will be competing with the lower prices cars sold under incentives.

Maybe msrp will cause profits to be made on those cars bought under incentives but I doubt it.... Maybe in time.

Otherwise we all would buy a pip and wait till the incentives drop and resell at a profit even though it's used.... Don't think that will fly either.

Alan...
Sent with Tapatalk 2

 

Kind of sounds like the housing market in the last 5 years!

 

Don't give away my secret

I am normally against leases but for cars like the leaf/tesla that are changing so fast it may not be such a bad idea.

 

Yea I get mine customized too much, would hate to lose it again... But nothing wrong with having a car a long time, especially if you've upgraded and passed it to others in the family that would have had to buy anyway... Saves registration fees keeping it in the family!

Alan...
Sent with Tapatalk 2

 

The big secret is west Virginia! At least for the pip!

Alan...
Sent with Tapatalk 2

 

Off topic but since you mentioned it, lets say that your income taxes on the tax table are $3500 and you have withholding of $$3000 meaning that you owe $500, and you bought a PIP. Do you get $2000 back or just don't have to pay the additional $500?

 

If your tax liabilites are $3500 and you have other tax deductions of $3000. then you get the additional $500 deducted.