PIP Lease Terms - Will Toyota Give Us a Fair Deal?

I guess they will reveal the residuals soon. Historically, tech packages and electronics never fare well on TFS leases. Base cars are residualized and then the package content is assessed for value added. The residual is not a percentage of the car's MSRP but rather a clear expectation of the depreciation of the higher tech items in 3, 4, and 5 years.

 

GG - I have already called TFS - and I did that TODAY.
They have yet to determine residuals.

 

Sorry, I'm late to this thread. Residuals were just released as I think Dianne had mentioned elsewhere.

The tax credit is available to purchasers of the Pip as it goes to the owner of the vehicle so if you lease through TFS, you would not be eligible for the Federal tax credit. Here's the FAQ from toyota.com/plugin that speaks to this:
Will the Prius Plug-in qualify for the federal tax incentive? Yes, individual purchasers of a Prius Plug-in vehicle may be able to take advantage of the Federal Qualified Plug-in Electric Drive Motor Vehicle tax credit. The Prius Plug-in vehicle tax credit is confirmed to be $2,500.

QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE TAX CREDIT

To qualify for the potential Plug-in tax credit:

• 1. The Plug-in vehicle must be new. Used vehicles will not qualify.
• 2. The Plug-in vehicle must be purchased. Leased vehicles will not allow the lessee to take advantage of the Plug-in tax credit.
• 3. The Plug-in vehicle use is primarily in the United States.
• 4. The purchaser must retain appropriate documentation showing the purchase of the vehicle and the date of the delivery of the vehicle.

For personal use vehicles, the Plug-in vehicle tax credit is treated as a nonrefundable personal credit and is limited by the taxpayer's amount of tax liability for the year the car is placed in service. Individual purchasers and corporations who have business use of the Plug-in vehicle are subject to different tax laws that may also substantially reduce or eliminate the above benefits.

All persons considering the use of this important Federal Plug-in vehicle tax credit should consult with their own tax advisors to determine the specific amount of benefit, if any, that they may be able to claim on their federal income tax returns. Your tax advisor may also have further information on the many state and local tax incentives that may be available to Plug-in vehicle owners.

Individual tax implications may change, without notice, depending on subsequent changes in the federal tax law or further action by the Internal Revenue Service.

Please find more information at the Internal Revenue Service (http://www.irs.gov/).


Best,
Erica Gartsbeyn
Prius Product Manager
Toyota USA

 

ggood,

That's a tough one as I really can't comment how other manufacturers or financing arms structure their tax credit policies with their customers. All I can tell you is that the federal tax credit is designed to be issued to the owners of the vehicle and on a lease, the finance company is the owner, hence why TFS has taken the tax credit on any of their leased Plug-ins. Obviously this should be a part of the discussion between a customer and their dealer and or tax advisor to determine if leasing or purchasing makes more sense for their particular case.

Sorry, I know that's not quite the answer you're hoping for, but it's the best I can do.

Best,
Erica Gartsbeyn
Prius Product Manager
Toyota USA

 

One reason MAY be that if the car isn't kept all 36 months or the lease term isn't completed, the money has to go back. That might be the reason TFS isn't offering it.

I have yet to lease this car to anyone. I don't appreciate the terms at all, and losing the $2,500 tax credit when the car is leased makes 0 sense.

 

Toyota Concept Vehicles -- RAV4 EV (sign up for updates at the bottom of the page). Please note, the RavEV is only going to be sold in CA for now.

Nope, I've got a MY12 Liftback in my driveway and a PiP delivering any day now, just honoring the launch of the latest Prius Family member, little Prius c by switching over the avatar:rockon:

Best,
Erica

 

Still no updates on lease terms?

 

leases

What update is needed?

The lease terms suck due to the residual being non-aggressive on percentage and the standard lease rate (non promotional or subvented) is average.
And, you lose the IRS $2500 tax credit.

I was going to lease mine. Now, I am not. Interest rates for purchase in the US right now are very good.

 

I have read the tax code that applies, and I can't find any mention of a certain time period necessary to keep the car.

Has anyone found any documentation, in the IRS code, that states a certain time period to qualify for the credit?