2012 Prius Package 2 Lease Deal Question

Could you buy your current car for a low residual amount and then sell it for more to a private party? Just thinking it might be a way to save some bucks. Turning it in and leasing a new one is easier I'm sure, but you have to pay for easy.

 

If your credit is top notch then you should not have to put any money down. I just leased a 2011 Prius model 2. Zero down. I never understood putting money down to lease a vehicle.

 

I used the site cars.com to see what was available at the different dealers. However the data does not change fast enough, so a car listed online might not actually be available because it was recently sold. But this is a problem with all websites, not just cars.com. If you are ready to pull the trigger then I would visit the lots on a Sunday or during off hours and look yourselfs and write down vin numbers of the cars you like. I find that is better cause a lot of the time the sales people don't even know what they have in stock.

 

I suggest checking out this guide to car leasing on Edmunds:

Car Leasing

 

Also, just a bit of advice if you're leasing: You don't want to just agree to a monthly payment and go from there. You could be happy with the monthly payment but get screwed on the lease rate, trade-in, fees, etc. You want to be clear on the term, residual value, new vehicle price, down payment if any, trade-in value, and any fees. That way, you can make sure that you are getting a fair deal on the trade-in value, new vehicle price, and residual value. With that info, you can calculate the lease rate (basically an interest rate) and monthly payment. Use an online auto lease calculator (Edmunds has one). All you need to do is plug in the values.

Dealers can get you to agree to a monthly payment that seems reasonable by stretching out the lease term and hammering you on the lease rate and junk fees.

 

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First you need to separate the different parts of the purchase: What they are charging for the new car -- the finance costs ... often called "money factor" of the lease -- all the fees and the costs to return the car -- value they are giving you on your car.

You have to look at all of them as they are all areas where dealers try to make money.


I was looking at the leases -- and the only ones that made sense on the Prius were the Toyota factory subsidized ones that they did a few years ago. You are paying a premium for a high MPG car and then because of the pricing of the lease and the mile limits built into the pricing not able to get the money back.

You don't want to go in with a monthly payment amount. I went with the 5 year 0 percent 0 down loan .... it was the cheapest way to get into the car.


The one benefit of leasing -- when a car is stolen or totaled -- the lease will be cheaper then a purchase.

 

Hey Macky, did you get the new prius? Wondering what you netted out with the lease for the 2012 Gen3, total price and lease terms. My credit is "very good" according to the toyota website. So any help you can provide in getting the best price would be greatly appreciated!

 

Leasing is never a good idea. People claim for business use it is a better tax write off. This is not true. It is an easier tax write off.

Leasing forces people to get a new car every 3 years. This makes the consumer eat most of the depreciation of the vehicle and start doing it again after 3 years.

If you cannot afford the payment of buying compared to leasing, maybe you’re trying to get more car then you can afford.

 

Actually...the best thing to do...is get an extended warranty, and roll it into the lease. Sorry, couldn't resist...

 

Really the savviest Prius owners: Lease their car, buy an extended warranty, buy prepaid maintenance, Teflon coating for the exterior and interior, nitrogen in the tires, rust proofing, protective undercoat, Rain-X coating for the windows, protective plastic covers for the headlights.

 

Over the years we have leased vehicles -- you have to crunch the numbers .... I have had situations where it was cheaper to lease a car for a given time and miles then it was to purchase for the same.

Manufacturers sometimes throw a sizable sales incentive at the rates.


The one benefit to leasing -- you know all the costs. And if the car is seriously damaged or totaled ... no worries.

 

No matter how you crunch the numbers a lease will always be more expensive over time. On your first lease the payments will be lower than buying. After the lease you start over with a new lease. This is where things start getting expensive. You will eat most of the depreciation of the first vehicle and turn it in with nothing to show. Then you will have to come up with a down payment on the second lease.

Normally if they offer a special rate on a lease they offer a low interest rate on buying and a large rebate if you are paying cash.

You will know all the costs if you buy or lease. When you hit a pothole and destroy a tire and rim you are responsible to fix it if you lease or buy. If you put 45,000 miles on over 3 years you cannot turn the car in with worn tires. If the car is seriously damaged and your insurance does not fix it right you are responsible in making it right with a lease.