Prius Prime Lease? Convince me please!

all the best!

 

This is probably the important question you have to answer: do you want to choose a cheaper car you can swap more frequently via lease, or a Prius Prime you buy and keep for longer ?

I haven't done the arithmetic, but as a guess:
New Corolla every 3 years,
or Prime you keep for 9 ?

 

If you consider a lease remember that most places and the feds do not allow for the EV credit on leases. If you took the MA credits (I haven't looked up NY) and the federal credit, your Plus would have a price (with no negotiations) of $21000. A 60 month loan at current average rates would run you $380 per month. At the end of 5 years on a Prime the residual value will certainly be higher than $2500, which makes up the full difference in the lease versus purchase. A 5 year Prius Plug-in with 60k miles has a residual dealership price of $12,000 at the lower end. That means that 12000-2500 / 60 = $158 which is the amount per month you save over the lease if you sold exactly at the end of your loan and got a similar value. The 2500 is the delta between the lease price per month and the loan price per month and assumes during the entire 5 year period you would be paying a lease of equal value. The only advantage you get in this for the lease is at the 3 year mark you get a newer vehicle, but you have tossed ~$6000 out the window in value (158 * 36).

Just something to consider as you make your pitch for the new vehicle. That said, this doesn't necessarily favor buying a Prime for you, but it does favor buying a car to remove the lease. The credits and incentives for buying an EV certainly helps to bring these cars down in price.

 

The leasing company gets the credit. Whether they pass the savings on to the consumer is a different question.

If Fed + State credits are $6500 total and a Prime + is bought for $25.5k like I paid a couple of weeks ago in NY, $19,000 could be financed over six years at 2% apr. The monthly payments work out to $280. That is getting close to Corolla territory when fuel savings are included, and in 6 years OP has a really good car free and clear for one, and a car that he can reduce his insurance costs on as an additional benefit for two, and I imagine about $10k in equity.

Heck of a deal compared to repeat Corolla leases, and that is before we consider any money down spent on each new lease.

 

wow, congrats! big change in price, well done. all the best!

btw, did you get a prime advanced, or a lift back prius two as your info suggests?

 

Sorry but a lease is ALWAYS a bad deal financially versus getting a loan to buy a car.

Well maybe unless you end up with a really BAD loan.

Or better yet, save up and pay cash.

Edit: Well I see that you ignored the predominant advice that you got here.
Why did you even ASK in the first place ???

 

Keep in mind the $2000 NY tax credit....figure out who gets that...you or the dealer and are they reflecting that in the lease price.
Usually the Fed credit in lease goes to dealer and you get cheaper lease price out of it.

Keep in mind we might see attractive prices in Fall, although price seems nice now.

It seems I am a day late and a dollar short on this advice. Good luck!
Also if in LI consider LIE free HOV, but you're not there...

 

You must be new to the internet. People usually are looking for affirmation of their choices, or advice how to realize their preferences.

Go with the flow, and do not take it personally. And while I agree with you regarding leases, OP found a pretty sweet deal, so good for him!

 

It is REALLY simple.
You could have structured a loan to purchase where you would have come out with the SAME payments.......and at the end, you would have had say about $10,000 in equity in something you actually owned........instead of NOTHING when your lease runs out.

I don't understand how you, or anybody else for that matter, can say "I'm not just throwing money away" because in a very real sense you ARE.


@Sam Spade merged. Use. Multi. Quote. Don't post back to back.

Quite the contrary.
It was a rhetorical question.......mostly.

 

Well yes, kind of.
It does irritate me when I hear of cases like this when some slick salesperson is able to convince potential buyers that a lease really is a good deal for the buyer.........WHEN EVERY HONEST FINANCIAL EXPERT IN THE WORLD SAYS IT IS NOT.
They try to convince you that an extended warranty is a good deal for you too.......when the claims history for those things proves beyond a shadow of a doubt that the odds are WAY against the buyer.