Prius 2010 on order, should I buy or lease? HELP Please

Leasing makes sense if you're in the habit of buying a new car every couple years. Otherwise, go the purchase route.

Myself, I like to buy new and keep it for at least 10 years (run it into the ground if possible).

 

I've never leased a car before, but decided to lease the Prius for basically the same reasons as you. The auto industry over the next few years is going to change a lot, and alternate energy vehicles will be a big part of that. I decided to let Toyota take the residual value risk on this car.

Regarding the lease payment amounts, I realize there are differences by country, but your looks a bit high. FWIW, back in June I got a 36 month / 15K miles per year lease on my Prius V w/ nav ($30,020 MSRP) for $456 + tax = $499.

At the time, a 48 month / 15K miles per year lease would have been $418 + tax = $456.

 

i believe buying is better. but the down payment was major concern for me so i am leasing my2010 barcelona red. 36 month 12,000 miles after $2000 down. at $394 month (got a "free" remote start thrown in)my residual is set at $15,000 at the end of the lease. which, and i do get confused on this, means that i can buy it for that amount or sell it for more and keep the change (right)

 

Well as far as I have been told, on my new Prius still to be delivered, the Lease seemed to be the better option as well. I agree the Auto industry is going to change a lot so think it makes better sense to Lease the new one. Yes your Residual is what it will cost you to buy the car at the end of the lease. Based upon your lease you typically only pay for Excess wear and tear. If you drive normally that should not be an issue. If your car is worth MORE than the residual, then you can work out your next deal with the overage, or sell it and pocket it.

 

you are rich!!

if you always want the latest toys, go for the lease., after lease expire, there will be more hybrids including those you mentioned about.

I have been living in US for 20 years, and I am still driving my 2nd car. The 3rd one I am going to buy is a hybrid too.

 

On 7/21/2009 I leased my Prius IV with Nav for 396 per month. (x35 months) + $2700 paid at signing. Total of Payments: $16,550.

Here are the details.

25800. 2010 Prius IV
1800. Nav Package
67. wheel locks
200. carpet mat
750. delivery processing and handling
---------------------------------
28,617. MSRP

28,275. Gross Cap Cost: ( what I paid )


195. Gap Insurance
703. cap cost reduction
396. first month payment
70. registration fee
75. tax on capitalized cost reduction
1193. NYS sales tax
68. doc fees/nys waste tire
-------------------------------------------------
$2,700.

I had ordered, and then turned down the same Prius from Toyota of Manhattan, NYC. I was told it would cost me 472 per month - 2195. down payment. Total payments 18,715.

I leased this Prius from Glens Falls Toyota in Glens Falls, New York. I feel I was treated very fairly, and highly recommend this dealership. Howard Liebowitz, the ower, is a third generation Toyota dealer.

 

I have always liked leasing. I like a new car every three years. However, the best type cars to lease are ones with the highest residual value. So, at the beginning of a model year, foreign car, etc, will get you the best monthly rate. The prius defitnitely fits the bill.
There is a website called www.alg.com that is the Automotive Leasing Guide. It gives the cars with the lowest depreciation (highest residual) as a FIVE STAR rating, all the way down to ONE STAR. Guess where the prius is? FIVE STAR!! THat's why my prius is a lease!

 

there are so many factors:

a. mileage, leasing is only advisable for people who drive 10-12 K miles (you do your own KM conversion). If you are only driving 6K miles a year you shouldn't buy/lease a prius, let someone else buy it who will put the mileage on it that the prius is designed for. If you are driving 15K+ miles a year you'll pay huge penalties for going over on the miles on a lease.

b. resale value. leasing is great for cars that depreciate very quickly and are very unreliable (aka american, british & korean cars). It is unwise to lease a car that holds its value very well. Japanese cars are designed to outlast all other cars, they can be frustrating because you want to buy a new car but that old one wont quit on you.
There is nothing wrong with liking a new car every 3 years, I get bored myself, I typically buy a 18month old car and sell it when it is 36 months old. I think if you do the math, you will see that it is cheaper to buy the prius and sell it to a private party after 3 years than to purchase a 36 month lease (the savings is worth the time/money/energy it takes to sell you car)

c. color. very few colors look better than a brand new black car. unfortunately black cars look like garbage after only a few years because they absorb much much more UV radiation than other colors they lose their luster very quickly, they also show minor scratches & hood rash very prominantly (trust me I had a black avalon I know what i'm talking about). But this is normal wear and tear so you are still able to return a 3 year old black car to the dealer if its a lease. but if you buy a black car you are totally screwed come resale time.

d. incentives. Cars that aren't selling well the manufacturer or dealers may offer great lease incentives. But cars like the Prius that are flying off the lots there will be no good lease incentives.

So as an example, if I drove 10K miles a year and wanted a black Dodge Magnum, a lease would be a wise choice for me. But if I drive 15K miles a year and wanted a Barcelona Red Prius, buying is the smarter choice.

fyi, when you owe more on a loan than your car is worth, that is called being upside down on your loan, that will never happen on a prius unless you drive 25K+ miles a year (in which case imagine how much gas money the prius has saved you). You will be upside down on any loan for an american, british or korean car.

 

There are some good lease deals out there, but yours is not one of them. My sister got the $179/mo. deal on a Prius II, but I don't know how much she put down. I put $1240 down on a Prius IV w/nav and pay $316/mo. (including $6 gap insurance). The money factor was only .00075 so I figured it was time for my first lease. When the lease terminates, I will probably want to buy the car, but I will offer less than the agreed price. There will be lots of Priuses coming off lease at that time and they can take my offer or leave it.

 

WooHoo! Another future Québecois PC'er. :rockon:

My first Prius, bought in 2006 was rented. My buyback was 13.5k but Toyota took me out 4 months early for the 2010. I was paying 750$/month @ 5.5%.
(Plus back then the US/Can exchange was HIGH - base was 32k$)

Now I was stuck with the same problem as you. With a Prius you have to throw out conventional wisdom, and look at TCO (Total cost of ownership).

That's why I bought mine, 30263+tax @3.9% for the Premium at Spinelli Fairview.

If you ask to rent 5 years, look at the buyback. It was 12k$. Which you would buy-back with Toyota Financing of HIBC at 8% to 9%.
Add that up, say over 3 years.

So if you rent, then buy, you pay 24K + 12K plus at least 7 years of interest.

If you buy, you pay 30K + interest for 5 years. TCO is lower. Not a huge difference, but there is one.

What SUCKS is that the Camry (all models) is at 0.9%. Meaning you could get the Camry Hybrid Full Equip for a TCO that is MUCH lower than the 2010 Prius.

Lower monthly payments with the Camry H and you'd get easily 6l/100km summer and 8l/100km winter.
Compare that to the Prius 4l/summer & 6l/winter.

With an EBH - electric block heater I got my 2006 Prius down to 5.4l in the winter instead of 6.5. So in Canada, an EBH pays for itself in two winters in fuel economy.


Bottom Line - You should save between 1.5k$ and 2.5k$ buying instead of renting, assuming you rent 4 years and buy it over 3 years, versus buying it in 5 years.

If you rent - you risk Toyota offering you to Trade-UP in 3+ years, then get stuck in the perpetual "rent-for-life" game.

I fully expect m Premium 2010 Prius to be worth - street price - 15k$ in five years. IOW, I can easily sell it with a 30$ ad on AutoHebdo.com.

*** but I won't!!! *** (today's feelings)
(Depends on the what happens in 4 years - the 2012 PHEV Prius...)

 

The local dealer here was offering $199 per month for 12,000 miles per year 36 months -residual $15,400. How can anyone turn that down. Car was 2010 II , If you drive more miles than that buy it and resell. Its a no brainer at that price.

 

Down payment for everything tags, taxes, etc was $2,500

 

Bought 5 years, Premium package 2010 Prius with extended warranty 5yr 120,000km.

I paid separately :
- All the GST/PST taxes
- Window tinting
- 3M products : Clear bra, seat protect, paint protect
- Remote Starter (((( Waaaaaayy Coooool )))) but expensive 830$

So my monthly is 599.61$ for 5 years. About 7k$ cash down.

The extended warranty is superfluous, however, I took it in case in three or four years from now I get the 2012 PHEV Prius.
Easier to resell with that warranty.
I do about 18,000km per year.

So (taxes included in both scenarios - identical as much as possible):
(Using Toyota.ca, build & price)

Buy: 60 * 679$ = 40,740$.
Car is worth at least 12k$ street price at the end. Will be higher.


Rent: 48 * 571$ = 27,408K (w/4 yr extended warranty 100,000km)
Lease end value (buy back) is 12.9k$ + taxes = 14k$
Loan at 9% of 14k over 3 years is 445$, or 16k$
Total spent = 43k$, thus 3k$ more expensive than buy
Car is worth 10k$ street after 7 years

Buying is cheaper, and at the end, you have a 5 year old car instead of a 7 year old car. That factors in the TCO also. You lost at least another 2k$, making renting+buy vs buy 5k$ more expensive.

The best deal for a hybrid in Canada WAS the Camry. The Red Tag special at 0%/0.9% is over, it's now 4.9%. The Corolla is currently at 1.9%.

Had you asked me a month ago, I would have said get the Camry Hybrid at 0.9% in order to get a lower monthly payment.

If you can't pay 679$/month, put a cashdown. Or wait 4-5 months before buying.

Remember - renting is good for dealerships, never for the consumer. You pay less now, but more expensive in the long run. *always*

Had I bought my 2006 instead of renting, I wouldn't be stuck paying for another 5 years, I would have had just two more years to pay.

For a car that lasts 500,000 km's w/o repairs !!!

 

Careful !

Some people are quoting US prices! Can $$$ Prius is much more expensive!

If you buy in the US and import into Canada, you have to pay lots of fees, at 15% customs tax, and be obliged to have it serviced ONLY in the US, like at Plattsburgh Toyota, a 2+ hour drive from Montreal.

I looked into it, it's damn difficult to do. A US dealership will even refuse to sell or finance to you if you have a out-of-country address.