I will most likely lease my PiP as I have done with my earlier models. My 2009 comes off lease in March 2012, so timing is just about perfect. However, the MSRP of the Basic and Advanced models are so much higher than the typical Prius, I am now wondering about a number of items. How would Toyota Financial even come up with a 3 year depreciation model on this model given there is no history (Not the least of which they were so far off my 2009 at the time of my lease, the car is worth roughly 33% more than my payoff)? What type of terms would one reasonably expect as a monthly lease payment for a $32k and $39k car like this? I certainly would bet Toyota will NOT offer any incentives for leasing (or financing for that matter).
It's worth noting you won't get the $2,500 tax credit if you lease. However, I might still consider leasing if the terms weren't too awful and I thought there was a good chance of something better coming along by the end of the lease term. At the current rate of technological change, that might not be a bad bet.
Yes, but then again, I would not be paying Sales Tax on the entire amount either. At a 7% tax rate (some states are even more), that $39k actually leaves you owing close to $300 more in Sales Tax than the tax credit. If we say that the car will loose $15k in value over 36 months, you would only pay slightly over $1,000 in Sales Tax - the end result is that $2,500 tax credit is now reduced to roughly $780 difference on your side. Combine that with the interest you will be charged with owner financing and I suspect that $780 difference will evaporate long before the 36 months are over - even with todays low interest rates. $2,766.75 Sales Tax if Purchased Outright @ MSRP @ 7% $2,500.00 Tax Credit ------------------- $266.75 net loss $1,050 Sales Tax if Value is $15k under MSRP in 36 month with lease -$266.75 from above ------------------- $783.25 difference to lease BEFORE added money down and interest At least, thats the way I'm viewing it until some tells me I am stupider than my nick
On the Volt the Lease company gets the tax credit but it figures back into the calculation to lower your payments. If you're lucky Toyota Financial will give you a capital cost reduction credit for it, or they may add it back into the residual value like in the Volt lease.
All good points. In my case, the motor vehicle sales tax is 6.25% on a $40K car, so the $2,500 fed tax credit is exactly offset by the $2,500 state sales tax. They give credit for trade ins in TX, but of course I won't be trading since Toyota is making me buy the PIP from a CA dealer. Leasing would free up some cash from the sale of my current car, but at the cost of a monthly payment. I'll have to take a careful look at this when the time comes.
As far as a lease goes, in CA when the HOV lane stickers run out after three years, if they don't get extended or re-issued, then you don't have to worry about the car - just leave it with Toyota and move to the next best thing to get you into the HOV lanes. If you're in a good place with it as far as value goes, then you're gonna have equity. If you're not, then it's TFS' problem. On lease, no prior experience with this car is actually a little silly... it is, after all, a Prius. It can only be worth the same as a typical Prius model with similar options/features or MORE. They will probably think to be better safe than sorry and just calculate the residual at very close to what a then-current 2012 equivalent model is. Can't go wrong there. Much like with any advanced tech package wagons or V package Prii, leasing makes no sense because TFS residuals are extremely low on their extra items IN those tech packages. Example: a Prius v Wagon with AT package, a package that is $5,580 at MSRP, only adds $350 to the residual to the regular Prius v V package wagon! Serious... it's like the dual sunroofs are the only value in that package after 3 years' lease. I guess that till there are Blue Book values on things like self-park, laser cruise, pre-collision and fake leather... these things are just goin to be depreciated and paid for my the car's driver int he first three years.
When I value my 2010 with AT on KBB or other sites, none of them gives any credit for the extra features. Yet another reason I shouldn't be trading it for a PIP, especially the advanced version!
I leased a 2009 decked out - Touring, 16" wheels, all the NAV/Audio Options etc. Monthly payments through TFS were $280 a month or $10,800 in payments over 36 months. The buyout on my car is now $7,000 less than what I have been offered for it. So for almost 3 years of use and a total monthly cost of roughly $3,800 - I am sure getting it a return on my investment from somewhere - all the high end stuff paid off for me!
Great Point - Who Knows where the technological change will be. Will the 2015 PIP go 50 Miles and make the 2012 PIP Worthless? This is the thing that might hold me back. I think we are on the verge of a Giant Brake threw in the next few years.
All sounds good, but you are leaving out you initial Cap Cost Reduction. How much cash or low-ball trade loss did you give up then ?
