Lease residuals finally determined!

How do those numbers compare with the lease residuals for 2012 Prius Liftback (with similar options to the Base and Advanced Prius Plug-in)?

 

For what lease length and annual mileage are those figures?

 

my jaw and my eyes dropped after i see my lease figures.....

 

In the above scenario, you can pay the residual + (some fee?) and buy the car at the end, right? Some might choose to keep it and others would be might be able to resell at a profit, right?

(Just trying to educate myself more, since I've always bought and never leased.)

 

So with that residual how is the payment/month calculated? Never leased but considering for PIP.

 

may need to switch to something else....

 

How will the Federal tax credit be handled in the lease? Hopefully as a Cap Cost Reduction?

 

What would be the approximate down payment and monthly cost of leasing an advanced plug in?

 

I've leased a couple of times before.

Isn't the residual based on the percentage of the MSRP even including the port options. If the port options are suppose to be returned with the car at the lease end. So I ordered the rear bumper applique, isn't the residual based on (MRSP with rear bumper price X %residual) to get the final number. The only time options are not included in the residual, is if you buy dealer installed options, like an alarm system. Which in that case, you can technically remove it befor returning and a lot of times, you will see a separate charge for it in the lease.

What is the money factor right now for the plug in then? Does Toyota like Lexus allow you to put extra security deposits to reduce the money factor? (MSD)

You multiply the money factor by 2400 to figure out what the technical APR is. That way you compare apples to apples when you compare leasing to buying.

There should be a acquistion cost, not sure how much it is for Toyota, it's $700 for Lexus. Take that into account when leasing.

Sales tax in CA is paid only on the amount you pay every month. This saves you a bit of money by leasing if you're the type that likes new cars every 3 years. If you bought and sold the car instead, you would have paid sales tax on the whole car when you bought it. This is why in CA, at the end of the lease you must pay sales tax on the remaining balance of the car if you decide to buy and keep the car because you didn't pay sales tax in the first place.

Toyota does not have lease end fees, I believe, like some other car makers do.

I would suggest any future leasers, to go to a site like edmunds and be able to calculate a lease using a handheld calculator and a piece of paper. Not to hard really but I've caught many a dealer tricks doing this. One dealer tried to slip in a extra $400 but I caught them because I was able to calculate my lease payments to the exact penny. Some dishonest dealers know they can do this on leases because it's more complicated to calculate the payments and consumers don't bother to learn how to do it. When I was leasing a previous car, the finance guy was complaining that he has at $100,000 computer program that calculates it, why do I need to do it myself. Well, my $5 pocket calculator can do it in 3 minutes too and it spits out the same figures.

 

Update: Toyota calculates residual differently than other companies. So the port options like Dianne said are not in the residual. As a warning other car companies add them in, so you know the difference.

I last leased a car in 2010. Toyota now charges a lease end fee, $350 if I'm not mistaken.

 

So let's calculate my payments for the Advanced at 15k a year, 36 months.

Assumptions:
The money factor looks like from postings on the internet that if Toyota is not supporting the lease, it will be the standard 0.002 for tier 1+ credit which is a 4.8% APR, which compared to buying APRs is horrible.

Acquisition fee of $695

Disposition fee of $350

Feel free to correct the figures, no cap reduction/deposit.
Never do a deposit or cap reduction on a lease. If you crash and total the car in the first month for example, you just lost the deposit and will not get it back.

1. Residual value
$39525 x 51% = $20157.75
Toyota does apparently does not do the residual off the MSRP with the extra charge of the blizzard pearl paint and Port options, if I read Dianne's post right. I know that other car manufacturers do, so remember that if you lease somewhere else.
This is how much the car is worth after 15k miles a year and 36 months. This is how much you would pay to buy the car at the end plus tax plus disposition fee of $350 .

2. Depreciation
$40000 + $695 acq fee = $40695, Cap cost
$40695 - $20157.75 = $20537.25
The $40000 is what I negotiated for the car, includes the extra charge for BP, rear bumper applique, and destination charge. You add the acq fee and then minus the residual to see depreciation.

3. Monthly depreciation payment
$20537.25 / 36 = $570.48

4. Money factor payment
(Cap cost + residual) x MF =
$40695 + $20157.75 = $60852.75 x 0.002 = $121.71

5. Monthly payment
$570.48 + $121.71 = $692.19 x 1.0725 = $742.37
Sales tax of 7.25%

$742.37 is a crazy amount. As a reference, it's cheaper to lease a BMW or Lexus at this price. I have a fully loaded Lexus HS250, MSRP of $46500 or so, this with all the options then some. I pay $440 a month for my lease, same terms. No deposit paid.

 

In my calculations above, I used $695 as the acq fee, not $650 like Dianne said.

You can tell us the MF for tier 1+ customers but I understand it's proprietary information too. But it's easily available searching the internet too. So up to you.

Some dealers mark up the MF so it's nice knowing what the straight MF is from Toyota Financial is for negotiation purposes.

But the standard like I said from what I can find is 0.002 for Tier 1+ credit, which is pretty bad but then again, they don't have a need to support the lease.

 

Just posting this to inform people of their options. Not trying to cause drama.

I will speculate on my own of why the lease rates are like this.

1. Toyota know they don't need help selling this car, at least not yet, for the early adopters who'd pay up the nose for it anyway.

OR

2. The next gen Prius Plug In will get 50+ miles on a charge and in 3 years when the cars are being returned they really will decrease in value by 49%, which is pretty bad for a 3 year old car. On top of that the new Li-On batteries with all the constant charging will deteriorate to only give you less than 8 miles on a charge eventually. So in 3 years why would anybody want this generation plug in....haha.... And Toyota really does not want this car back. They are pretty much guarenteed that even if a person decides to return the lease, they will get more money negotiating it as a trade in or private selling, or going to Carmax.

But on a serious note, these rates are probably best for people who might be able to deduct a lease for work. True, the car will definitely be worth more than what the residual is, this is 100% unless something really bad about the plug in is discovered. So if you know you will sell the car is 3 years, leasing at this high rate is worth it, so that you avoid paying sales tax, which you never get back. But consider that if my MF of 0.002 is right, that's a 4.8% APR. You could get a auto loan for 2% these days.

We still don't know if we'll get the $3000 federal credit for a lease and I don't know how the $1500 from CA works for a lease.