Any guesses on what the APR and money factors Toyota will offer for the 2010 Prius?

Discussion in 'Gen 3 Prius Main Forum' started by sluday, Apr 30, 2009.

  1. sluday

    sluday New Member

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    I was wondering what some of you guys and gals think Toyota will offer as far as APR and lease money factors for the 2010 Prius. Do you think Toyota will be aggressive even though they don't have to be? The economy and super high unemployment rate should work in our favor. Right ???:confused:
     
  2. raidbuck

    raidbuck New Member

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    I too am interested in what interest rates Toyota finance will offer to an 800 Credit Rating customer.
     
  3. rcsting

    rcsting Toyota Fanatic

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    My Credit Union is offering 4.74% for 60 months. They are offering this lower rate for fuel efficient vehicles. A Toyota salesman told me that he couldn't beat that rate.
     
  4. dbacksfan

    dbacksfan Member

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    I think Toyota is just rolling out their "Perfect Timing Event". But, no details are available on their website. To get details, the website requires you to complete a form in order to be contacted by a local dealorship.

    Hopefully, there are some new incentives for the 2010 Prius.
     
  5. Jabber

    Jabber Chicagoland Prius Guy

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    Standard money factor and rates will apply on the 2010. Toyota is going to incentivize the 2009 model. In fact, just announced in the chicago region: $1000 rebate or 0% for 60 months on 2009 models. Check your local region as I have a feeling it is country wide.
     
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  6. dbacksfan

    dbacksfan Member

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    Jabber, thank you. I was hoping you would respond. This is off topic, but are there any incentives for the RAV4 or Venza?
     
  7. candela

    candela New Member

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    Dealers in MD have been offering $1000 rebate on 2009 for several weeks.
     
  8. Jabber

    Jabber Chicagoland Prius Guy

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    RAV4, yes. Venza, no. But the various regions have different incentives.

    So have we. I should have boldfaced the 0% for 60 months part. That is what is new.
     
  9. 1SMUGLEX

    1SMUGLEX I love the smug!

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  10. saxamoophone

    saxamoophone New Member

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    0% for 60 on 2009's is tempting....

    If I could get a Touring w/ Leather and Nav for low enough to make me not want a 2010....I could bite...
     
  11. sluday

    sluday New Member

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    Penfed credit union is offering 3.99% for 12 to 60 months financing for new cars. 0% and $1000 rebate for the 2009 Prius is a great deal but it still depends what the 2010 will sell for even at sticker the many upgrades and new features in the new car are hard to pass up.
     
  12. Jabber

    Jabber Chicagoland Prius Guy

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    Just want to clear this up. The offer is $1000 OR 0%, not both. But 3.99 is a GREAT rate.
     
  13. SageBrush

    SageBrush Senior Member

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    Pefed is Penfed.org
    Join their military club for a couple of dollars to qualify for membership. Excellent CU -- I have banked with them and USAA for years.
     
  14. sluday

    sluday New Member

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    thanks, I just changed the spelling. I joined them last year for a $20 deposit. they are great. I have not used them for any loans yet but no one can touch their rates.
     
  15. Bob 411

    Bob 411 New Member

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    If you want a 2009, and plan to pay cash, 0 % doesn't help any. What is Toyota thinking, not increasing the rebate?
     
  16. Jabber

    Jabber Chicagoland Prius Guy

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    Actually, it can make sense. Albeit it is harder in these times. But if you get a CD at 3%, and you are talking about paying cash, you are better off taking the 0% and let your money work for you. ALWAYS use someone elses money, especially if it is free. The interest you will earn is still double what the rebate is, even after figuring in taxes.
     
  17. Bob 411

    Bob 411 New Member

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    I am by no means a financial wizard. Please all feel free to correct me.:)

    I'm trying to figure out how much better the 0% financing is than the $1,000 rebate.

    Lets take a completely hypothetical situation :rolleyes:, where after the taxes, and down payment I take the 0% for 60 months for an amount of $20,000.

    CD rate for 6 month is a little under 2%, a little over 2% for 1 year.

    $20,000 divided by 60 is $333.33, or $4,000 a year. Let's say every year for 5 years I keep out enough for the payments, so the money I would earn is...

    year1 $20,000 x 2% = $400.00

    year 2 $16,000 x 2% = $320.00

    year 3 $12,000 x 2% = $240.00

    year 4 $8,000 x 2% = $160.00

    year 5 $4,000 x 2% = $80.00

    TOTAL $1,200.00

    Is that right, or even close? Also I expect the economy to get better, possible/probable inflation, and interest rates to go, because of that, but let's keep it simple.:cool:
     
  18. eglmainz

    eglmainz New Member

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    This would be correct if you were to remove the full year's payment and that year's interest on the day that it accrued each year. Because in fact, you would be withdrawing fro that fund monthly to make the payments on the 0% APR loan.

    I would suggest that if you do have the cash to make the outright purchase, buy a 5 year 20k CD, which compounds interest daily. Then, after you finish paying off the loan with other funds, and at the end of those payments, you close out the CD, and collect your money, with 5 years of accrued interest. This would then pay you about $400 the first year, and every other year as well, plus a tad more, as it will also pay the 2% on the interest accrued. That should give you at least $2,000 as compared to your $1200 made in your example. Not to mention that if you were to look online, you would find some online banks that are paying much higher than 2% on a 5 year CD.

    (http://www.bankrate.com/funnel/cd-investments/cd-investment-results.aspx?local=false&tab=CD&prods=19) shows the current rates, nationally available on a 5 year CD. In some of these cases, they are paying over 3.6%, which would be closer to $3,986, based on the CD calculator: (http://www.bankrate.com/calculators/savings/bank-cd-calculator.aspx), and assuming $20k @ 3.64% on a 5 year CD. This makes things more interesting.
     
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  19. Bob 411

    Bob 411 New Member

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    Thank you. My wife just asked me if we should pay off our house instead. We owe about $35,000. The interest rate is 4.75. We never have enough to make it worth itemizing, always take the standard deduction, so no tax savings. I like having more money in savings, than I would have left after paying it all off. I'm thinking about calling the bank back, and see if I could just pay off $20,000 of it.
     
  20. eglmainz

    eglmainz New Member

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    My personal thinking is that it is nice to have some $$ in the bank in case of a rainy day. However, that said, I hate to borrow money, especially if I have the cash that I could use to pay off the loan. I would rather stop paying 4.75 (even though that is a great rate on a mortgage), than collect only 3.64% or less on a CD, which probably charges me the equivalent of a year's interest if I need any of that balance... In other words, yes, I think that is a great idea..., especially if you are not able to deduct that interest.

    However, that said, unless you are completely certain that you will get the financing I would wait until the deal is done before paying that balance on the mortgage down. Otherwise, let's say something happens to your credit, even if only temporary due to ID theft, or anything else. As a result, it could prevent you from getting approved for financing, and now you would no longer have the $20,000 as a backup plan.

    Instead, I think the prudent thing to do is to hang on to that cash (by keeping it in an interest bearing account) unless you make the first interest free payment on that new Prius. Then, take that money, and pay down the loan.

    Just my 2c worth, since you asked.
     
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