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Car Financing, Car Leasing
#496 of 549 Re: Need advise, lease vs. purchase [qbrozen]
Apr 10, 2009 (6:11 pm)
Lease includes tax. Thanks for advise.
#497 of 549 lease or buy 2009 Prius??????
Apr 27, 2009 (4:03 am)
I’m thinking of leasing a 2009 Toyota Prius - $268/mo on a 3-year lease. Buyout stated up-front by Toyota $14,634; dealer says that because this car holds its value, the buyout cost will likely be less than its Blue Book value. Because the next generation of Prius is coming out soon, the dealer claims this is a really good deal being offered by Toyota to try and attract customers who otherwise might wait for the new models. Money factor – which I only sort of understand – is stated at 0.00017.
Same car, cost to purchase outright is $23,469.
Other part of this picture is that my personal finances are a little uncertain right now, but will be more stable in 2 or 3 years. That is, for the immediate future, the low monthly payments on a lease are attractive; 3 years from now (when I probably would purchase the vehicle rather than turn it in for another lease) the higher monthly payments are less likely to be the problem they are now.
Help! Some unbiased thoughts from someone experienced with leasing would be much appreciated!!!
#498 of 549 Re: lease or buy 2009 Prius?????? [cagn]
by kyfdx@Edmunds HOST
Apr 27, 2009 (7:19 am)
That sounds like it could be a great deal, but you've left out some info..
Amount due at signing?
Does that include tax?
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#499 of 549 Re: lease or buy 2009 Prius?????? [kyfdx]
Apr 27, 2009 (7:23 am)
Amount due at signing? $1000 + $1000 trade-in on a vehicle that won't pass state inspection without at least $2000 worth of work
Does that include tax? yes
Mileage allowance? 15,000 per year (45,000 over the 3-year period)
#500 of 549 Re: lease or buy 2009 Prius?????? [cagn]
by kyfdx@Edmunds HOST
Apr 27, 2009 (7:27 am)
Well... I don't know what the purchase price would be, but with the $1000 rebate, I'd guess around $20K-$21K..
Given that, the lease payment looks very good, and the residual is unrealistically high (that's a good thing on a lease)..
I'd lease that car, rather than buy it, assuming your driving habits fit the lease parameters.
#501 of 549 Re: lease or buy 2009 Prius?????? [cagn]
Apr 27, 2009 (9:40 am)
Looks like a good lease. You are paying half a percent in interest.
Residual is too high for the car but that only will affect you if you want to buy the car out at the end of 3 yrs.
If you bought the car you'd probably be looking at payments in the mid to upper $400's depending on term and money down.
#502 of 549 Lease/buy now or wait
Jul 09, 2009 (6:24 am)
I have a 2006 Toyota Rav 4 with 31,000 miles and 2 more years of payments (it was purchased). Because I tend to put minimal miles on the car and like to get a new one every 3-4 years I'm strongly considering a lease. Currently I'm eyeing some incentives for leasing a Subaru Outback. My question is is this something I could do now or should I wait? I owe slightly less than the estimated trade-in value on the Rav 4.
#503 of 549 Re: Lease/buy now or wait [hawkette]
Jul 09, 2009 (7:21 am)
Is there a reason why the RAV4 no longer meets your needs/wants?
#504 of 549 Re: Lease/buy now or wait [qbrozen]
Jul 09, 2009 (9:26 am)
The vehicle is fine and meets my needs ok but I used to own an Outback and really liked the size and handling much more than the Rav 4. The main reason we're looking at the lease option is to reduce monthly payments and possibly begin a leasing cycle for my vehicles.
#505 of 549 Re: Lease/buy now or wait [hawkette]
Jul 09, 2009 (9:56 am)
Well, frankly, I think you hold it longer. You did finance it, after all, and with only 31k miles, your best years are ahead (meaning little to no repairs and depreciation has slowed).
Granted, if going into a lease, its not like you need equity in your current car. But it is a cheaper option right now because, while the payments may be high, you are building equity. Equity you will no longer be building in a new lease. So, for instance, maybe you are burning through $200/mo on your RAV4 right now for the next year or 2 (payment minus equity). But on a lease, it would be twice that.