Price Paid on PIP?

Discussion in 'Dealers & Pricing' started by brighamwj, Oct 9, 2012.

  1. Mike71

    Mike71 New Member

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    Thanks a lot exbauer! I picked up the 2012 PIPA gray one today for $29888!!!
     
  2. markabele

    markabele owner of PiP, then Leaf, then Model 3

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    Wow, amazing price!
     
  3. usbseawolf2000

    usbseawolf2000 HSD PhD

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    That's before the $2,500 federal tax credit right?
     
  4. Mike71

    Mike71 New Member

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    Yes thats before the $2,500 federal tax credit!
     
  5. exbauer

    exbauer Active Member

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  6. LakeMichBoatGuy

    LakeMichBoatGuy Junior Member

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    The short story:

    Blizzard Pearl (white) PiP base
    MSRP: $33415 (with the extra cost paint, and carpeted floor mats & carpeted cargo mat)
    Invoice: $32007 according to TMV
    Price paid, lease + buy: $26,946 + tax
    Discount from sticker: 6469
    Contact: Internet Specialist Shawn Gormley at Acton Toyota in Littleton, MA (Boston suburb)

    ------

    Prelude:

    The 24 month leases can yield a lower monthly payment when there is a lot of Toyota lease cash/rebate, and some customer cash applied to down payment...because...$1000 on a 24 month lease changes the payment about $40-ish/month (depending on interest factor and state tax rate)...and $1000 on a 36 month lease changes the payment only $26-ish per month.

    So, in zones where there is, say, $5500 lease cash all applied to cap cost reduction (down payment), plus, say, 2500 customer cash, with most going towards down payment, the payment on 24 months drops very quickly. $7750 total down payment lowers a 24 month lease payment $310/month (compared to zero down). The same cash lowers a 36 month lease only about $200/month compared to 0 down. Of course, 36 month leases with zero down have lower payments than 24, so there is a break even point for those focused on monthly payment.

    In the end, you can calculate how much you have to give up front, plus how much you pay in total payments, to come up with a total cost of the lease, 24 or 36. And then you have the residual, if you intend to buy at the end. 36 month/15k miles per year drivers could end up buying new tires before lease end, if they don't inflate and rotate carefully...so that is a consideration. There is also a lifestyle consideration: do you want the lease for 2 years or 3? We wanted to try it for 3 years, regardless of payment, and then make the decision to purchase or not at that time.

    ------

    Here is the deal we receive in June 2013, along with a top notch source for Toyota/Scion (pasted from PiP leasing thread):

    Our lease contract shows the "selling price" of the vehicle is $31472.00, $535 under invoice. According to TMV, our white car has a MSRP of $33415 (which is correct), and a dealer invoice of $32007. Not much mark up.

    There is a $650 lease acquisition fee by Toyota Financial. This dealer added a $290 dealer fee (doc fee), which I didn't say anything about since they were selling at a nice discount, and they didn't charge us extra, over the advertised special, for the $395 extra cost paint. And there was a minor $17.63 fee of some kind called "taxes" (license plate, title and registration were done back here in MI). But still, let's call the "selling price" from the dealer, $245 under invoice, considering the DOC fee.

    This brought the total cap cost up to 32429.63 including all above fees

    We only paid the first payment to start the lease, 294.02

    So, the entire $5500 lease cash went towards "down payment" referred to as "capitalized cost reduction."

    Adjusted cap cost 26929.78

    Residual buyout 16960.00 (and you can buy it directly from Toyota Financial with no added fee).

    So, that makes the 36 month, 15k miles per year total depreciation $9969.78 (If a 12k miles per year lease was chosen, instead of 15k, the depreciation amount would be less, so the payment would be lower, and the residual/buyout value would be higher, since the lessee is not depreciating the car as much with mileage. Pretty simple.)

    Divide by 36 = 276.94 monthly depreciation (the "payment" before interest and state sales/use tax).

    The total payment with 6% MI tax is 294.02 (with tax being 16.64 per month). 294.02 total payment minus 16.64 tax minus 276.94 monthly depreciation = $0.44/month interest. Or 15.84 interest for 3 years. You could say Toyota financial is only "financing" the $9969 in depreciation, but it is also deferring/carrying the $16960 residual along for 3 years at no additional cost. Basically zero interest. (note they do get the $650 acquisition fee up front, so you could figure out an effective interest rate from that, but I won't go that far :)

    Sorry to give that ugly lease calculation on such a beautiful car. But many people are not clear on how a lease works: monthly depreciation + interest (if any) + state sales/use tax (if any) = total monthly payment.

    As far as a total price to lease + buy: take the tax out of the lease payment first 294.02 divided by 1.06 (6% tax in MI) = 277.38 times 36 months = 9986. Plus the 16960 buyout = $26946...all plus state sales tax, if any.

    If you are near Boston, or even if you're far like us, I would definitely recommend contacting the Internet Specialist Shawn Gormley at Acton Toyota. We have no connection to him or this dealership, other than the plug in lease. And we did the entire deal by email, no phone calls. Although they had 4 white Plug Ins when we first contacted them, some up to 60 days old on the lot, Shawn was kind enough to get a fresh incoming white unit right off the truck for us, detail and inspect it to verify perfection, and then keep it inside during all those nasty thunderstorms in June...for over a week. I mean, c'mon. Dealers always want the oldest unit sold first. But he did that for us.

    I don't know if this forum allows email addresses, but Shawn's appears below. I'm sure he would be glad to answer a question for anyone here, even if you're not buying from him. Super nice guy. Feel free to reference our deal and/or this forum if you contact him.

    [email protected]

    --------

    And if you're really bored, here is the story of how I picked up the car, and how great the salesperson and dealership were...other than the price (also pasted from "Leasing a Plug In Prius")

    We previously ordered a 2007 Touring #6 brand new in super white. Great car. Sold it with good timing after a few years, and got most of our investment back.

    Just having sold our last vehicle, we were looking to buy a Prius package 3 in June 2013 for cash (didn't care for the synthetic leather), but ended up leasing a 2013 Plug In Prius Base to get the big incentive. It's packaged like a #3, with dark interior, plus the addition of heated cloth front seats, remote air conditioning, upgraded PIP-specific aluminum wheels, and a few cosmetic touches.

    Ours is white (Blizzard Pearl), an extra cost paint, with total MSRP $33415. There was virtually no interest on the lease (.0001 factor), so we just paid the first payment of $293. 35 more payments of $293 (with 6% MI sales tax included). This is for 15k miles per year, even though we usually only drive about 10-12k (we may go down to 1 car, both working from home, and we are buying it at the end anyway). So, if we take the 6% sales tax out of the payment, we have 276.42 per month x 36 = $9951. The 36mo/15k buyout on our car is $16900 and change, and we intend to buy it at the end, and keep it another year, two, three. So, we have an effective purchase price of $26850 + tax on the $33415 car. $6565 off MSRP, including paying the $650 lease acquisition fee in the payment. Some may have found a better deal, but we are very pleased with this. By the way, you can pay off the lease at any time, and/or pay off the entire car. We could give Toyota Financial the payoff today, pay the remainder of the MI sales tax, and then it's owned free and clear. But with the $650 acquisition fee already calculated in the lease, and the option to turn it in if something goes awry, why not ride it out for the 36 months, and see what happens?

    They don't officially bring the Plug In to Michigan, so I traveled for it. Buffalo, NY would have been much closer, but I found an exquisite dealership with an amazing Internet department, called Acton Toyota in Littleton, MA. Shawn G was my rep. That area had $5500 lease cash, which the dealership gave us all of, plus sold it under invoice (there is only about $1300 from invoice to MSRP on a Plug In, which is crazy on a 33415 car, but...there must have been a volume incentive from Toyota to cut it that much). It was an advertised special on the dealership's website. I just emailed, confirmed the terms, and said, I'll take one in white. They didn't even charge me extra for the extra cost paint.

    They picked me up at the Manchester, NH airport, free lunch at the dealership's restaurant, and had everything perfectly in order. I was in and out in 45 minutes, including lunch. Right to the turnpike with no Boston traffic, because they are in the burbs. Stayed in a fantastic eco-hotel called Hotel Skyler (with dedicated EV parking, but no plug) in Syracuse, NY that night...$90 on Priceline, which I booked in 3 minutes after pulling over immediately after a toll booth on the turnpike. Dined at a James Beard chef's restaurant called Parisa. The next day, Sunday, I headed for home, and was lucky to hit 4pm happy hour at Iron Chef Michael Simon's Lolita in Cleveland, OH...a delightful neighborhood spot. The car is so easy and comfortable to drive that I didn't mind the extra 2 hours for not going through Canada. A few hours later, I was back home in the suburbs of metro Detroit at 7:45pm.

    If you don't mind a road trip - and working from home, I kind of miss them - I couldn't recommend this dealership, or my rep Shawn, highly enough. For those curious, I was going as fast as possible without getting stopped on the way home, and got 46mpg (no plug in at all). At home, we charge as much as practical without obsessing, and get 60mpg combined, which is slowly increasing. The shorter the trips, and the more frequent the charging of course, the higher your combined mpg. Some people never use gas. DTE energy here locally will install a dedicated, breakered 240v circuit, to code, and install a complimentary charging station for free (up to $2500 total)...and then sell you off-peak electricity at half price. It's not necessary for our particular driving and charging needs (and the PIP's tiny charge), as the included charger fills it up very quickly. But we may try it anyway. That's our story. We could not be more pleased with the car.
     
  7. markabele

    markabele owner of PiP, then Leaf, then Model 3

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    Wow, no offense but did anyone get through that whole novel?
     
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  8. El Dobro

    El Dobro A Member

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    I'm waiting for the Cliff Notes. :D
     
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  9. LakeMichBoatGuy

    LakeMichBoatGuy Junior Member

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    Sorry guys. At the beginning of this thread, I now see that it requests anonymous pricing information only, and nothing else. I guess I blew that one.
     
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  10. El Dobro

    El Dobro A Member

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    No biggie. :D
     
  11. Mike71

    Mike71 New Member

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    The lease deals offered especially in Boston are very enticing on paper even if you are condering to buy it at the end of the lease period. I was actually working with the same dealership. But I think there is a flaw in the math and it works out more expensive than buying. You cannot get federal tax credit of $2500 for the lease which you get when you are buying the car. I was able to get dealers to offer me 2013 PIPB for $28k. So after the federal tax credit the price works out to $25.5k. These are just ball park numbers. Also the lease acquisition fee further increases the overall cost for no reason. Hence I dropped the idea of leasing and then buying it at residual value. I found the 2012 PIPA at a great price and I believe it is worth paying the extra for PIPA as compared to the PIPB.
     
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  12. 510bg

    510bg Member

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    2012 blizzard Pearl basic.
    $27,755 before rebate & Tax and titling fees
    Vehicle purchased in CA
     
  13. brunnersnj

    brunnersnj New Member

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    Lawrence Toyota in NJ: offering 24 month lease with 12K miles, for $95/month lease on 2013 PiPB with 2599 down if anyone is interested.
     
  14. lensovet

    lensovet Not your typical youngin :)/BP Brigade 207

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    for california, that's a pretty good price! where specifically did you buy?

    also, i'm back from hibernation, and just updated the spreadsheet with all the numbers i missed since april. cheers!
     
  15. 510bg

    510bg Member

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    thurston toyota

    Please update my price to $27750 before tax and titling.
     
  16. lensovet

    lensovet Not your typical youngin :)/BP Brigade 207

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    Yeah that's what I figured, it's already that way!
     
  17. Mike71

    Mike71 New Member

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    Lawrence Toyota has lowered the lease to $49/month with $2599 down for 2013 PIPB. I believe Toyota is pushing for leasing and has increased the bonus cash for lease to $7300.
     
  18. wjtracy

    wjtracy Senior Member

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    really?
     
  19. Mike71

    Mike71 New Member

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    Yes. Or you can pay $159/month with $0 down.
     
  20. wjtracy

    wjtracy Senior Member

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    ...I am seeing how many $20's I have in my wallet
     
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