Insane lease deal for 2018 Advanced Prime

Discussion in 'Prime Main Forum (2017-Current)' started by chong1110, Jul 5, 2018.

  1. chong1110

    chong1110 New Member

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    2018 Advanced Prime in OC, California with sticker price of $34,800. My credit score is 800 and my lease deal for this car came out to be $675/m for 36m 12k mile/yr with $1000 due at signing. I am stoked. The dealer told me the payment is high because the residual value is low for the car. Either the dealer is playing me or Toyota really thinks this car is not going to worth much down the road. What's going on? A fully loaded Chevy Volt costs only around $415 to lease a month with 0 down for 10k mile/yr. I am so confused about the deal that Toyota dealer gave me.
     
  2. Digloo2

    Digloo2 Active Member

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    I purchased a 2017 Prime Premium with a sticker price of $28.8k. I have a 76 month loan, and my payments are $777/mo after a $1000 down payment. I'll let you take over payments on my car (only 2500 mi!) and I'll pay the difference from $675.
     
  3. 2k1Toaster

    2k1Toaster Brand New Prius Batteries

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    You're paying $60k for a $28k car??? I don't get it. $777/mo for 76 months plus $1k...
     
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  4. Hidyho

    Hidyho Senior Member

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    Really really bad deals
     
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  5. padroo

    padroo Senior Member

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    You could be driving a big SUV for that kind of money.:eek:
     
  6. SaraBBrown94

    SaraBBrown94 Active Member

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    Geezus. That's horrible. $25,300 for only getting it for 3 years and limited miles? Turn and run! lol
     
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  7. jerrymildred

    jerrymildred Senior Member

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    Holy crapoly!! That's double my house payment!! And I get to keep the house when I'm done.

    I think, with the lease, they are taking the tax credit and pocketing it and wanting you to make payments like there was no credit. Hence the big difference between original "value" and residual value.

    And $777/mo for car loan payments must be quite an interest rate. Ain't no way I'd pay that, even if I was a millionaire.
     
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  8. dalecooper

    dalecooper New Member

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    Holy cow - people need to learn how to use a basic loan calculator before signing papers.

    Digloo - $777 a month?!! That tells me your interest rate is on another planet and means you really should've never bought the car. I'm sorry but that's a horrible financial decision. Edit: Assuming a 27500 "loan" amount -
    Total cost of car loan
    $58,987
    Monthly payments
    $776
    28% INTEREST RATE OMG

    PLease tell me this is a joke.



    Original poster - you're also getting a horrible deal. Why are you paying MSRP? You're stoked to be paying $600+ for a prius, Wth. The cost of a lease is the sale price minus residual price. THe dealer doesn't set the residual price - toyota of America does that. I think its like 53% or 54%. You also need to find out the money factor, aka, interest rate on the lease.
     
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  9. ETC(SS)

    ETC(SS) The OTHER One Percenter.....

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    Leases are fleeces,

    Nearly.
    Always.

    However, (comma!) they're even more fleecy for vehicles which would otherwise qualify for the tax kickbacks, since the rebates stay with the owner of the car instead of the chump who is making the payments and only getting to drive the car for 1/5 of it's expected life span.

    All of the discussions that people have about whether you realize a ROI by driving a hybrid/phev long enough to recover the higher initial buy-in become very simple with fleeces.
    You're paying $25,000 to put 36,000 miles on a vehicle and after that, all you get IF YOU'RE LUCKY is the privilege of delivering a nearly showroom condition (otherwise you will pay more $$$), nearly paid for car back to the dealer so that they can sell it at a profit......to somebody like ME.
    Thanks BTW!
    :)
    You should really thank the dealer who is flashing the "DANGER! DON'T DO THIS!!!!" lease deal at you.
    Normally, Toyota would lure you in with artificially low lease payments and then stick you on the back end of the deal with goofy service agreements and concierge roadside assistance and 36 months later you will discover that the residual is not quite as high as you were led to expect.

    Also.....you may want to do a little research on "breaking a lease".......just in case you're not as much in love with your Prime at month 18 as you were when it was sitting on the same rocks as the siren who is trying to lure you in.......


    Good Luck!
     
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  10. Mendel Leisk

    Mendel Leisk Sand Pounder

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    I have just enough brain cells, to stick to cash-only deals. I'd pretty much assume when someone is offering to loan you money, on either a purchase or lease, it's only advantageous to them.
     
    #10 Mendel Leisk, Jul 5, 2018
    Last edited: Jul 5, 2018
  11. Salamander_King

    Salamander_King Senior Member

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    Lease on Prime is never a good idea. You can't claim the $4500 tax credit if you lease it. It is much better to purchase it. IMHO
     
  12. Witness

    Witness Active Member

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    Here I thought the title suggested - Insane, good. Nope, Insane bad.
     
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  13. chong1110

    chong1110 New Member

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    I was telling the sales manager that if the residual value is truly determined by Toyota finacing, then putting this lease deal to me is suggesting me to never buy or lease this car. I was expecting the car to hold 50% of its value on the 5th year, but they seems to show me that it will be half or even below that of the orginal value in 3 years with 36k miles. I really want a prime, but looks like leasing a Volt is a much smarter deal to take. Still looking for better deals for the prime though.
     
  14. PT Guy

    PT Guy Senior Member

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    How are residual values established for a model as new as the Prime? Are there any on used car lots for price comparison?

    The tax credit goes to the buyer (the lessor--the bank), but that should be reflected back to the lessee (you) in a lower capitalized cost. If it's not, that's a sign of a sleazy deal. Always remember...the more the dealership can get you to pay, the more each person involved puts into their pocket and takes home.

    Do you know who they were offering to have lease the car to you? Toyota Financial, or some other outfit? If they can get the buyer to pay a higher rate, the selling dealer gets kickbacks and its people pocket some of what they cheat out of you. Here's the info from Toyota Financial:
    Lease a Toyota | Toyota Financial

    Are you turning in another car before the end of its lease? You still owe the money until the end of that lease, so this money is added to the cost of the new car. This raises the monthly lease cost of the next car.

    So...first, do not tell the dealer how you'll pay for the car. Keep them guessing. Negotiate the lowest purchase price you can, then tell them that you'll lease at this price less the federal & state tax credit. Now negotiate the money factor, which is a confusing term for interest rate. You'll have to take their word for the residual value, but take a stab at getting this more in your favor. You have a good idea of the mileage you will put on the car during the term of the lease, so have that written in. You KNOW that they'll throw numbers at you so fast it'll make your head spin. They're pros at this. Take all the time you need to understand everything on paper in front of you. Expect to get cheated. Catch them at it. It won't hurt their feelings...they don't have any.

    Consumer Reports lists this web site as places to hunt for fair lease deals:
    How to Get the Best Car Leases | New Car Buying - Consumer Reports
    Credit Union Leasing of America
    You can also check your local lenders for lease terms--banks, credit unions, any other financial institution. Just start calling them.

    Leases are fleeces. I like that. Leasing is almost always the most expensive way to get a car. The only exception is when the manufacturer is trying to unload excess inventory and offers great deals. Don't count on that.
     
  15. Starship16

    Starship16 Senior Member

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    NUTS!!!!!!

    They must be young people, right? Or they are rich, dumb, and have money to burn?!

    $500, $600, $777 car payments???!!! For EIGHT YEARS?! Plus another $150 a month for insurance? I just peed my pants. :ROFLMAO:

    Don't mean to sound so judgemental, but so many people now days just cant seem to live within their means... No financial common sense whatsover. (It's not cool to be broke!) There is nothing wrong with buying/driving a 2 or 3 yr old Corolla or Honda Civic.
     
    #15 Starship16, Jul 5, 2018
    Last edited: Jul 5, 2018
  16. Dudley1030

    Dudley1030 Active Member

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    Did they trade in a car that had a huge amount left to pay off that they rolled into the new loan? Just a simple 28,800 / 76 = 378 so it shouldn't be over 425 a month with sales tax, interest and extended warranty. Maybe you got screwed on an expensive extended warranty? I would have a lawyer or someone knowledgeable look over the loan papers. Maybe your bank or credit union....not the one that has the loan. Maybe an error on the paperwork? My first reaction to this post was Wth?
     
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  17. 2k1Toaster

    2k1Toaster Brand New Prius Batteries

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    Nothing wrong with $500, $600, $777, or $2000 a month car payments in general. But all seem high for any Prius. I've seen coworkers with $3k/month car payments but at a great interest rate so it is a simple choice to do that versus take $200k out of the bank.

    For example my Leaf is $540-something a month. 5 years at 1.99% for $31k on a $32k sale. I paid them $1k in cash and got to leave with a brand new car. In 5 years I will have paid $32,593 for a $32,000 vehicle. Over those 5 years I can use that $31k in cash I didn't spend on a vehicle and even with modest 6% to 8% returns I come out ahead. And I got a "cash advance" of almost half the amount due to the federal, state, and local BEV credits making it a smoking deal.

    Debt is not a bad thing if used wisely, it can be a tool to help leverage more wealth. But at 28% APR, there have been some bad debt decisions in the past that are coming back to bite. After a decade of paying higher premiums on time, they will realize you are more credit worthy and that number will drop. If you then leverage that much higher credit score to get a lower mortgage interest rate on a house, paying $40k now to save $200k over 30 years 7 years from now, is also a win. Everybody's situation is different. :)
     
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  18. Mavi

    Mavi Active Member

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    This must be a joke lol.. no way someone could fall for something like this. the one following this post must be a super troll..lol. Honestly.. why would something pay 25k for the ability to LEASE for only 3 years. Just buy the car outright instead.. same price.
     
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  19. Dudley1030

    Dudley1030 Active Member

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    I'll lease my iphone, but I'll be damned if I'll ever lease a car instead of buying. :eek::eek::eek:
     
  20. 2k1Toaster

    2k1Toaster Brand New Prius Batteries

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    What about an iCar when that comes out? :p
     
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