Considering a PiP - some questions

0 down and no trade.
I think it was like 4500 incentive at the time. Honestly can't quite remember.

 

That would make sense, as it would come to $7k in incentives, or very close to where the lease deals are today.

 

same here except 28.4k before the goodies - Boston area incentives which I think were true of NY state
not a penny down for the 0% 60 mo financing

 

I happy for those that are getting great end-of-year lease deals.

Much better than what's being offered in the San Francisco Bay Area.

 

wow you got one hell of a deal for a purchase, I dont know anyone who got one that cheap on a buy. As mentioned the lease 7300 off is advertised, so there is more off if you can "deal". Also the other thing many people dont realize is getting the rebates are not always as simple as the dealer says. Many people do not qualify for them in full or at all. That is when the lease is best IMO due to the fact toyota is building in those tax credits into their lease incentives, which is a large chunk of the 7300.

The other thing to consider is payments, leases have always helped people get into a more expensive car then they could afford to buy outright. 179/mt is darn cheap for a payment. Then you can get a loan at the lease end to buy or simply lease another one around sept/oct when these crazy deals come out again. Unless you are gonna keep the car for many years , lease payments are easier for many people to handle.

You sure got one heck of a deal on a buy, i have not heard anyone getting one for that cheap...since they sticker at 33,500 or so.

Dan

 

Which also means that a lot of people that do leases are buying more car than they can really afford.

 

thats not really the point here though is it......

also with that statement, consider how much fuel savings a person has each month.

everyone is different, buys make little sense for many people who own business's.

 

I don't understand that statement, if you can afford what ever monthly payment you have, what is the difference between the real value of the car. I lease 3 cars at the same time and every 3 years we get a new car, if you want to keep a car forever that's your Busness but don't put down leasing. I don't have to deal with depreciation , resale , of major repairs.

 

Sorry man, but from a pure financial sense there is very rarely a reason to lease.

Not sure how to explain it if you don't already get it. But my guess is that since you don't understand it...that is why you are leasing.

 

Don't mean to harp on this subject, but life isn't pure!

 

Markabele, I used to think exactly like you until I was convinced by people who knew a lot more about leasing than I did that I was wrong. (Before this car I've never owned a vehicle with less than 80k miles, and the one it is replacing has 180k) When it came time that I was considering it, I finally took a long hard look at it, took the time to dig into the details, and realized that I was wrong.

As I said above, there are lots of terrible lease deals, but that's a red herring because there are lots of bad purchase deals as well. Most importantly, what's the real difference between financing a vehicle and leasing it? Either way the bank owns the vehicle, not you. What's the difference if you are financing the entire value of the vehicle or only the depreciation?

Either way can offer low or zero interest financing, making it smarter to leverage that than tying up your own capital. You don't really 'have' anything at the end of a vehicle loan other than the vehicle that you paid for already, and that's not much of an asset as it continues to depreciate further every day. If you want to talk total cost of ownership, well in that case why buy new in the first place? The cheapest total cost of ownership will nearly always start by purchasing used.

I went through some of the benefits of leasing earlier in this thread - primarily that the bank takes the risk on the end value of the vehicle, not you - yet you still get the better position of being able to buy it out at a pre-determined value if the value is higher than was estimated at lease inception. If the gap were big enough you could even buy it out and sell it on your own pocketing the profit. If the value is less, you either turn in the keys, or negotiate to buy it at a lower price if you really want to keep it - again saving you money as you've effectively gotten the benefit of hindsight in negotiating 'half' of your purchase deal.

There is also the huge tax incentive for businesses, even small ones, in being able to write off the entirety of a lease payment, rather than being limited by the IRS's fixed depreciation schedules. For an individual, the tax benefit is that you only pay tax on the part of the vehicle you use, rather than on the entire value as when you purchase.

This topic has been debated to death on one of the largest automotive forums on the Internet, and these are the basics of what that huge group has come up with. If you have some hard facts you'd like to counter with, I welcome them, but I don't care to be told that in your gut leasing is a bad deal or that I'm 'buying more car than I can afford'. Let's stick to facts please.

 

I couldn't have said it better!

 

Thanks. Speaking from very personal experience here, leasing is easy to have a bias against. What's much harder is justifying that bias.

And lest any conclusions be drawn by my statement at the top of the last post, let me assure you that judging someone's financial position by the age of the car they drive is an extremely dangerous thing. Owning old cars has long been a choice, not a necessity.

 

Totally agree that buying a used vehicle and running it til the wheels fall off is the very smartest choice financially. And I also agree with you that we all make lifestyle decisions that cost us some money. However, leasing and having a new vehicle every three years is a more expensive lifestyle choice than buying and keeping the vehicle for 7+ years. If you don't believe me simply google lease vs buy and there are financial experts and financial calculators all over the internet that agree with me. If you don't, I'm sorry, but there is no getting around fact. That being said, every now and then there are some amazing lease deals that can make almost as much sense as buying (I would put the current PiP lease in this realm).

 

Ahhh, finally....this is what I've been saying all along. I hate leasing 99% of the time for myself. But $7300 OFF THE TOP is truly incredible.

Dan

 

Remember, I said same realm, not better. (Just marginally worse.)

 

You have to look at the entire purchase, and yes, there are times that buying and keeping a long time will certainly work out better. There are times that it won't, too. When you purchase and finance for say, 5 years, you must put a large down payment to prevent you from being dangerously upside-down on the loan for years. That's money that you can't be using for other things. After three years you become responsible for maintenance and wear and tear on most vehicles. At some point you become liable for repairs as the warranty expires. You hold the risk for how much you can sell the vehicle for. If you take the easiest road and trade it in, you've most likely thrown away any money you would have saved right there. But selling private-party costs money and time.

I have never said that leasing is always a good idea; it isn't. Nor is it always a bad one. It is always a weighing of the pros and cons for each transaction. For every theoretical article one can dig up showing the negatives, an opposing viewpoint can be found. There is no one right answer for every situation, but being open-minded to all options has the potential to save you money. If I were to decide to buy out my lease, there is the very real possibility that I could end up purchasing it for thousands less than your already fantastic deal. The difference is, If the resale for these goes in the tank (residuals are already low compared to a regular Prius) I have no obligation to the vehicle. That gives me flexibility you don't get as easily with a purchase.

As an example, our previous vehicle purchase was done used, off a two year lease. We intended to keep that vehicle a very long time. Within a year of ownership, we found ourselves expecting a third child. The vehicle works for now, but will eventually need to be replaced ahead of schedule, and we'll probably take a bit of a hit as a result. If it had been leased, the total out of pocket expenditure would have almost certainly ended up lower. That's the kind of risk you carry in purchasing an expensive vehicle.

 

Whatever, not gonna change my mind. I just hope your 401k is fully funded every year.

 

I'm not sure I should respond to a dig, and I prefer modesty when discussing such matters, however as I said earlier, beware your assumptions. I will just say I've been quite fortunate in life, and if my 401k were the only thing I were counting on, I'd still retire comfortably indeed.

 

Once again couldn't say it better! And what does buying or leasing have to do with ones 401k. If an individual wants to drive a 7 year old car good for him, I don't!