How many Prius owners leasing their car

We're leasing since the Prius is our second car and we hope to get a PHEV or BEV when we're done with the Prius. When we leased the Prius we didn't have the circumstances to get a PHEV or a BEV, but hopefully we'll soon be able to as prices drop.

 

I bought my 2006 from a person that leased a new Prius. He swore he would never buy again, he also got a no money down lease and liked the idea of getting a new car every 3 years.

 

Only problem with a lease is you never really own the car. Sure you can buy it if you can pay off the amount owed at the end which usually requires a loan unless someone is rolling in dough. And if you ever stop leasing and happened to trade in your original car and not have a second car you would in essence be hoofing it from there until you either bought a new car or signed another lease. I looked closely at leases, still buying cars...

As far as the thing about a new car every three years, you can do the same thing with purchasing a car. Just arrange the financing accordingly so you don't have to sign a five or six year note. I just bought a brand new 2013 Model 3 Toyota Prius. I was allowed $11,500 trade in on my old 2009 Toyota Prius, I put $4000 down and have to make 36 payments of $326 and then I own the car free and clear. If I want to get a new Prius after that, I have no doubt I will get a lot more than the 11,500 I got on the last one since the new one would only be 4 years old with roughly 40,000 miles on it.

Lots of ways to look at all of the options and angles involved. For the average person a lease is really not the best financial tool. Leases are primarily used for very expensive cars, along with business men and women plus company's that have a fleet of vehicles.

FWIW, Toyota is offering zero % interest to those who qualify for it on a new car or truck purchase. If you have good credit, you should consider sitting down with a good salesman and negotiating a reasonable price for a new Prius. I had intentions of using my credit union to finance the car, but Toyota actually beat the credit union with a 0% Interest loan.

Ron

 

New cars are nice, but I prefer not having a payment (just paid off our Prius in less than a year) and not worrying about dents and scratches because its already broken in.

 

Not trying to brag, but when they ran my score, it came in at 799. All I can say is that I pay my bills on time, don't miss payments and do not over extend my credit. Credit scores reflect on how well one manages their finances over time. Higher scores not only benefit you in interest reduction, but also will benefit you when you are trying to secure insurance, jobs, and a lot of other things.

Ron

 

I had been driving a 2005 Rav4 which went over 110k miles and was looking at a new exhaust, timing belt and some other repairs all due in about 4 months when the inspection would be due. As I was just back to work after 3 months off after surgery that kind of money wasn't laying around. Then the Prius C Two lease came along. We actually got enough on the Rav as a trade to cover the money down and a check for a few thousand to take with us. So far we are saving in gas more each month than the 99 payment (compared to the gas mileage of the Rav). While at present I'm going thru miles faster than the 24k/24month's lease we signed I've fallen in love with "the little roller skate" enough to know that I want to keep it when the time is up (and I'm 6'3"). So at some point with the addition of some seat extenders and eventually an upgraded set of sway bars I'm looking to make this my ride for the next few years

 

After your lease is up what is your residual value? I think I'm saying that right. Basically the value of the car if you were to buy it once the lease is up?


iPhone ?

 

Would have to check the paperwork but I remember that being listed in the ads both online and in magazines etc. Probably a little higher than what it would have been at the same point in time had we dickered a straight purchase price instead. However that wasn't an option at the time since with only the Rav for a trade and needing some of that value back to cover some of the medical bills the monthly payment for a purchase would have been much higher than the $99/month we are paying now for the lease. Not being in much of an advantageous point at all when looking for a car we went with the best we could find. So far with the Prius C saving more in gas costs each month compared to driving the old Rav than the monthly payment is I can.say that it's made itself worth the trade so in that respect we haven't lost any ground.

 

There is now a dealership near me that has the Prius Two for 89/month with money down or 169/month no money down and the Prius V Three for 109/month with money down or 189/month no money down - the wife wishes we had been able to wait for either of those vehicles as for her the C is too small (and she is 4'11" where I am.6'3")

 

I purchased (monthly) my 2012 Prius Plug In Advance. The incentives were too tempting to resist. Closeout 2012, 0%, 60 month financing, $2500 tax credit, zero down. At that time, I had a leased 2011 Lexus IS. Leasing is easy and tempting. After three years, I thought about purchasing the Lexus and resell it for higher than the residual. Rather than going through that hassle, I drove to the dealer and turned it in. Couldn't have been easier. Satisfying experience. In retrospect, I probably should have leased my 2012 Plug In. So many possibilities with new EVs and PHEVs on the horizon. At this point in my life, I don't see keeping my current Prius for the sixty month scheduled pay off. Other options might be too tempting to resist moving to something all EV or PHEV with more EV range. One note regarding leasing. Be aware of advertised "low ball" monthly leasing rates. Most will be much higher.

 

All things being equal - purchase price, incentives, finance rate, etc. leasing has one advantage to individuals (businesses can get big tax breaks making it a different story) which is that in a lease, the lessor assumes the risk of depreciation. When buying, it is you the buyer that assumes that risk. As an example, when you lease, the depreciation is agreed upon at lease inception, and that helps set the rate. However, if it turns out the vehicle is worth less than estimated at that time upon turn in, the lessee can turn the vehicle in no strings attached. You may also purchase the vehicle based on that new lower value. If the reverse is true, and it's worth more than anticipated, you can buy out the vehicle at the original lower price, and resell it at the higher price, or even negotiate additional cash at turn-in.

Most people lease because it's a painless way to have a new vehicle every few years, but properly understood it gives the lessee a lot of power in the transaction.

 

So when you turn in a vehicle how much do they scrutinize the condition of the vehicle? I just noticed some scratches on the bumper I can't buff out. Although I'm still in year one of my lease so I'm sure there will be more to come...


iPhone ?

 

For those that leased, if living in a state that gives a sales/excise tax break for purchasing a hybrid, did you get that benefit when you leased?

Getting some mixed information from dealers and the DMV. Any help would be great, see other thread for more details.