Asked to lease a 2013 Prius Four without any option for 3 years. dealer offer price of $29873 as MSRP (tax, fees additional) with 3K down and $420/month for 12000 mile/year. location is Santa Clara North Cal. a few questions regarding this offer 1. do all leases have to be MSRP even with good credit score (700+)? 2. is it true that rebate/cash incentive including toyota loyalty are never available with lease? 3. offer price seems to be unreasonably high, but what do others pay? what's reasonable?
get to answer this myself... that offer is indeed ripoff. I went to another dealer in the same area and the dealer, without any bargain, offered less than 1K down and $410/month.
At that price, why not just buy? I don't know if 0% is still going on, but you could negotiate a 4 down to 27k or less! I am sure you could get an even better discount, especially without a trade. With zero down that would only increase your payment by about $60 give or take. Then you wouldn't be "renting" it and have to worry about milage and keeping it in great condition. Best of luck! iPad ? HD
The way I understand it, a lease is not much different from a purchase as far as negotiating your "buy" price. Money factor in lease terms is your interest rate. If you search for it, there is a way to convert lease money factor to a rate so you can see if you are being hosed. Dealers will inflate it to make money, just like an interest rate.
If you can get a new purchase at $27,000 and get good financing it's just a bit more monthly than that lease. And buying the car is almost always going to be better. I think it's a common assumption that a lease can only be done on MSRP, but as said above, that's not correct at all. I think dealers make a lot of profit on that assumption.
Here is a link to calculate a lease with negotiated prices if you feel more comfortable doing that option. I believe a Prius 4 residual value after 3 years will be somewhere in the neighborhood of around $18500. Auto Lease Calculator at Edmunds.com iPhone ? 2
that's a good tool to use. thanks. I'm looking to get next gen Prius when it comes out, so I don't want to deal with a loan 3 years from now. However, at the same time I don't want my payment to goes above $400/month. It's going to be 5 years if I get 0% APR. How will I be able to get out of that to get the next gen Prius without too much of a hassle? I mean, early termination of lease requires you to pay rest of the payment without having the car. what's going to happen if I get the special financing APR termed for 60 months and want to quit for another car in 36 months?
If you finance at 60 mos, you would only owe about $11500 after 3 yrs. and with a residual of about $18500, you would have a decent down for the gen 4. This of course is if you are comfortable selling on your own. Because you will surely get hosed if you try to trade in. Best of luck. iPhone ? 2
