Better to Lease than Buy PiP?

The decision to lease or buy is usually best made based on the currently available deals for lease vs. finance, and based on individual needs and wants.

I generally agree with you regarding the PIP, and the low MF, paired with larger cash incentive for lease than purchase, made me decide to lease. Three years is relatively short in car years, so I don't expect significantly more battery mileage on the next version. Even if they did, it wouldn't change most peoples actual energy consumption all that much.

The relatively low residual the PIP has reflects the uncertainty of the future value of these cars. With a lease you lock in that value ahead of time and can choose to walk away or buy based on several additional years of experience, or even buy and resell at a profit if the values are higher than predicted. When the lease works out the way it currently does with the PIP, it gives you a lot of flexibility you don't get with a purchase.

 

I agree 100 %!

 

it also depends on the annual mileage you drive. I choose to purchase as i need to drive more than 20,000 miles per year. thanks.

 

the lease residual is best known by the car maker. if toy was going to make a tech leap in the short term, the lease would reflect that in higher monthly payments and etc.. the recent excellent lease terms reflect both low interest rates and sales incentives which can also be had o a finance or purchase.

 

Two of three are a given, advanced technology and at least doubling of EV range. Leasing isn't a bad option.

 

Residual after 3 yrs on BASE model is 17,280.

Also remember many states have/had 7300 incentive off the top.(so no need to worry about getting tax rebates)

Buy at lease end if you are over in miles.

I leased mine last year, and Dad just leased his 13 last week. We both plan to buy them in the end however if the next GEN is something amazing we have the option to turn it in.

With a 7300 incentive these leases make alot of sense for many.

 

Yup'

 

I did the same as your Dad last week right before the lease incentives expired. Had to go to Hackensack, NJ to get one because I procrastinated but I couldn't be happier.

 

I can possibly see 15 or maybe 20 mile advertised range but not 25. Unless they change A LOT of the design of the current car then I would be very surprised if they can get over 20.

That being said...isn't the advertised like 12 right now? And a lot of us can get 15-20 when it's warm. So a 20 mile advertised range would be able to get someone 30 or more...in theory.

 

I will share my experience...i wanted to buy but the guy was not bulging down on sale price...somehow on lease he went down ...this is what i lease of 285 for 35 months then residual as 16920. The simple maths said it is cheaper to lease then to buy then to buy outright....so i went for lease....

V

 

Don't all these contracts have a wear and tear type clause where they can charge you at the end of the lease for misc wear type items?

 

Yes, it's possible, but that should really be part of your equation at outset. I take exceptionally good care of my vehicles, so I don't expect any issues, especially knowing that many leases are corporate cars that are not well cared for. They also want to sell you another vehicle, so they can't treat you too badly.

I know plenty of people that I would never suggest a lease to for just this reason though. Their cars look worse after 3 years than mine after 10.

 

I have leased at lest 10 vehicles from 4 different car companies and have never been charged for wear and tear, or anything else, matter in fact my 2010 Prius had 800$ damage due to getting hit I rear bumper that Toyota ate because I was leasing the PIP!

 

Well i didnt wanted to go in details. There is one in my lease too. How to workaround it. here is what i did . They had some special if you buy the toyota care for 1 more year ( 3 year and 36,000 miles) and wear and tear off(something to max of 5,000) instead of 1400 it will cost me 900 and after lot of bargaiing they made it to 780 in over 35 months .

So now my total lease is around 309.00$ per month but this include one major service of 30,000 and one minor service of 35,000 plus the wear and tear off as well so i paid around close to 400$ more out of my pocket(imagining the major and minopr service cost around 400$) in 35 months . I hope this helps.

V

 

So you don't get Toyota Care free with a lease?

 

I got it free on mine. Two year lease. And on the PHEV, it's included for three years.

 

yes ofcourse TOY care comes with the lease as any new toy does.

what is being mentioned is a TOY LEASE INSURANCE program (EWU) that all TOY dealers will offer or try to sell you. Most good bargain hunters can work this cost into the lease. Retail is 899 but most dealers will charge you 395 for it. I worked mine in free due to going back and forth between dealerships.

This does not really matter to me however since I buy my leased cars always and sell or keep them, due to fact im anal about my cars condition.

This lease insurance is a smart item to add for MANY people as it covers 5grand worth of scratches,chips,paint,interior or anything that they do not like at lease end. So this makes the car sellable for TOY after return and most people can get it for 395 total ($11/mt)

Leasing is typically always gonna cost more in the end over buying, however in the case of the PiP wth 7300 off the top, its actually the best approach IMO to get this car.

Dan

 

as said earlier two years was free....i added one more year and added the TOY insurance...

V

 

...I may be shooting for buying one used after you guys lease runs out, somone like ZH, who keeps in great shape