Has anyone done a lease on a 2010? I am not able to so far through my credit union because they say they have no data or residual values on the 2010 to write a lease. That a company called ALG must post the data and they have not as of yet. Am I to assume that all the people who already have their cars did regular loans?
Toyota has the residual values on the vehicles printed on their invoices. Your credit union uses the same companies posted residual values that my old dealership used to. They won't have any information for residuals for about 6 months or so unless Toyota supplies it to them. You can always ask the credit union to use a standard residual and calculate the lease that way. Unfortunately for you, this tends to be roughly the same payment as a purchase considering that you are paying a standard amount of depreciation over the 3 years of the lease. If you have or the dealer has the invoice to your Prius yet, ust ask them to run the lease numbers for you. The only thing that could hold them up from this is not having a money factor from TMC yet.
The ALG comes out bi-monthly if I remember correctly. Been awhile since I used one. ALG stands for Automotive Lease Guide btw. It is a company that banks contract to provide a real world residual for cars. And it will included just about every car sold in the US. Most manufacturers do not use it, they use their own residuals. ALL banks, not affiliated with a manuf. use the ALG. Bottom line, I will bet a very shiny new penny that the ALG residual will be lower than Toyota's residual.
You are correct in stating that it comes out bi monthly. I was only going by experience when i worked for Pontiac GMC and ALG took 6 months to get residual values on the Solstice and the G8 when they came out. It may be a bit different since the Prius has some bit of history behind it that those models didn't.
Well that is not good news. I may need to cancel this whole thing. I am not going to pay Toyota over 6% when my bank is offering 4.9%, and if ALG does not have the data by next week when my car comes in I cant do the deal.
I have always felt that I have not earned the right to have a new car if I cannot pay cash for it. I have never paid $1 worth of interest on a car loan and never will. The Prius will become our fourth car along with our airplane and, at the end of the day, we will owe no one nothing. Debt free has always been a hard fast rule for us. Dan
Well I agree with you, but many of us can not lay that all out at once. But I do applaud you for being debt free and staying that way.
Thats very nice but its of absolutely no relevance to the question at hand. Have you asked Toyota what their residual is? I'd be inclined to agree with Jabber that Toyota's residual is going to be better than ALG's. Have you multiplied out both money factors to see what the interest rate difference is? Its possible Toyota might have a higher rate and a lower payment because of a higher residual. If the payment works out, who cares what the interest rate is provided you aren't planning on buying the car at lease end...
Much agreed. First time I'm able to do cash and the lack of stress just walking in and writing a check vs. worrying about credit scores is fantastic. Thank you AMZN. What kind of plane?
Credit is like fast food or drinking, some people can handle it and some people have to avoid it completely or they get in trouble. If that's what works for you that's great, but learn a bit of math and you'll see there are many ways to turn the tables in your favor.
And to be honest, sometimes it makes more sense to finance the vehicle. If I got you a loan at 5% APR, and you had access to a 3.5% CD, you are better off financing the vehicle and keeping your cash (semi) liquid. Total interest paid over 5 years: $3400 Total interest earned over 5 years: $4600 Just figure in your taxes and make the decision.
I agree 100%. I personally would never pay cash for a car, although I could. I'd rather hang onto my cash provided I'm earning as much or more in interest then the cost of what I'm financing. Plus, if you can write off for business then you can deduct the interest paid on the loan or the entire cost of a lease. Makes little sense to me to pay cash.
Thru my credit union I can get a lease with no acquisition fee, no first month, no last month and no disposal fees. Also the car is in my name not in the banks name. Its something only credit unions can do it seems. They call it a MAPS loan.
