Is the Prius Plug-in right for me?

Discussion in 'Gen 1 Prius Plug-in 2012-2015' started by bina12834, Oct 8, 2013.

  1. rockerdan

    rockerdan PiP Rocks!

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    2013 sept lease incentive, Dad just picked his up last week. $7300 off the Base model.

    Dan
     
  2. bina12834

    bina12834 New Member

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    ive never really leased a car before so im not 100% sure on exactly how it works. but from what i understand you basically have an agreement to pay per month for a certain amount of time (usually a couple of years) and then at the end of that tiem period you have the option to just outright buy the car, correct?
     
  3. zhenya

    zhenya Active Member

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    There are extensive threads here on how leasing works - look through them for a more complete understanding.

    In a lease you pay for the depreciation of the vehicle for the period of time that you use it. There is a 'purchase' price just like if you were buying it, and an estimated 'end' value (the residual) set by the manufacturer based on the lease term and mileage. You pay the difference between those numbers on a monthly basis, plus any finance charge (money factor).
     
  4. bina12834

    bina12834 New Member

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    thanks ill have to look into it more as what you said just confused me even more. haha. i just dont understand how you can lease a car and end up paying less for it than if you were to just buy it and have regualr monthly payments from the beginning.
     
  5. zhenya

    zhenya Active Member

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    The difference is that in a lease you don't keep the car at the end - that's why you are only paying the depreciation - or the loss in value from your use of the vehicle. With a purchase you pay more, but you keep the vehicle at the end.
     
  6. markabele

    markabele owner of PiP, then Leaf, then Model 3

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    Whatever you do...don't be fooled by the price reduction they just announced. People will end up paying pretty similarly to what they are right now.
     
  7. bina12834

    bina12834 New Member

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    dont you have the option of buying the car at the end of a lease though?
     
  8. bina12834

    bina12834 New Member

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    what makes you say that?
     
  9. jdk2

    jdk2 Active Member

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    Yes, you do and with the recent lease incentives that expired in September, the price is substantially less than the MSRP.
     
  10. zhenya

    zhenya Active Member

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    Absolutely. You can buy it for the 'residual' value of the car or whatever you negotiate, which ever one is lower.
     
  11. zhenya

    zhenya Active Member

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    It's a common trick on cars that have had large incentives tacked onto them. They have just lowered the MSRP, but won't offer as large an incentive. Out the door price will likely be about the same for the foreseeable future. Chevy did the same thing with the Volt recently.
     
  12. bina12834

    bina12834 New Member

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    so doesnt that make it more attractive to lease rather than buy right now?
     
  13. markabele

    markabele owner of PiP, then Leaf, then Model 3

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    It's a classic car sales trick. Did you think they would keep these massive incentives forever or make it look cheaper to the average public by just lowering the sales price. It may be just a hair cheaper than now but personally I don't think they can go much lower. 1. Hurts their bottom line. 2. Will hurt regular Prius sales.
     
  14. zhenya

    zhenya Active Member

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    I think it does, which is why I leased. It's an unusual combination of offers that makes a better than average lease deal. You still need to do your homework because if you don't understand how a lease works, it's easy to get taken at the dealer. Dealers count on this.
     
    Lourun likes this.
  15. bina12834

    bina12834 New Member

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    wanna come with me and be my 'general counsel'? haha.
     
  16. zhenya

    zhenya Active Member

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    Ha. An evening online can teach you what you need to know.

    1) A lease is absolutely negotiable on price just like a purchase. Run if they try to tell you otherwise.

    2) Ask for how the lease is calculated. They should give you the MSRP, total discounts to get the selling price, the residual (either in a percentage or dollar amount), the money factor, and any cap additions (acquisition fees, doc/title fees, etc), and you should know your tax rate.

    The residual is fixed by the manufacturer and cannot be changed. The selling price and sometimes the money factor are where they can try to hide things (well, plus the normal dealer add-ons). The MF should be effectively 0 right now if you have good credit. The residual should work out to about 51% of MSRP for 3yr/36k. If the dealer won't give you this info and/or you can't validate their calculations to the penny, run away. There are lease calculators online or for you phone to help you calculate this.

    My suggestion is to do this over the phone or email where you can work with it at your own pace and not feel pressured by the dealer.
     
  17. bina12834

    bina12834 New Member

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    wow that was a lot to take in. lol
     
  18. jdk2

    jdk2 Active Member

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    Research is your friend. Take your time and make sure you fully understand how this works BEFORE you go to a cut-throat dealer.
     
  19. bina12834

    bina12834 New Member

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    im reading the Considering Leasing Prius Plug-In... Deal to good to be true? thread now.
     
  20. SJ PiP

    SJ PiP Member

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    arggh ... being early adopter cost me a few grand
     
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