2010 Prius TFS Leases: What are the Residuals and MFs?

Actual Year 1 Year 2 year 3 Year 4

Cost 25,000
Max Allowed 10,960 4,800 2,850 1,775
Basis 16,780 13,180 11,043 9,711
Business miles/yr 12000 12000 12000 12000
total miles/yr 16000 16000 16000 16000
gas 750 800 850 900
insurance 1,200 1200 1150 1100
maintenance 800 800 850 900
taxes 400 400 380 360
"Interest,4%,48m" 900 660 414
"Lease, 6.4k/y" 6,400 6,400 6,400


Deduction,bus mile % 8,768 3,840 2,280
Lease write off 5,200 7,223 7,245
Mileage 3850 6600 6600

Sorry, found an error. I applied the first year lease for 12 months, but if you begin the lease on 6.1.09 you would only have 7 months of lease. Leasing a car at the beginning of the year will have similar deductions to purchase in the above scenario. However purchasing mid year leads to a higher deduction for purchase and over 3 years. By the above numbers total deductions over 3 years would be $21968 for purchase and $19668 for a lease. At a maximum bracket in California this would be an almost $1000 savings over 3 years.

Sorry for the error, Rich