USA $6,500 lease cash ends today. Does Toyota have a fee or penalty to pay off the lease early? Wonder if this is a way to get a discount since it's obviously related to the government $7,500 given to the lease company for selling a phev.
Lease and then quickly buy it out?
parrotfeather
1 - 20 of 26 Posts
Joined
·
10 Posts
USA $6,500 lease cash ends today. Does Toyota have a fee or penalty to pay off the lease early? Wonder if this is a way to get a discount since it's obviously related to the government $7,500 given to the lease company for selling a phev.
Joined
·
10 Posts
Sticker price $52,156 gulf South States
Joined
·
10 Posts
I am in the buying or lease process. I was only presented with lease numbers and not the agreement terms. Yes, I did ask for them, but the manager was no longer interested once he discovered that I might pay it offthe next week. I'm guessing that the rav4 Prime 6,500 incentive somehow would get a charge back to the dealer when the customer pays off the lease and/or thereis a penalty or big fee for buying out the leae early? What says you?
Joined
·
10 Posts
And yes the call was placed to Toyota finance, but Monday must be a bad day to call. Call dropped after ten minutes of hold time
Joined
·
41 Posts
Keep on it. I’m interested to see how it turns out for ya.
Joined
·
10 Posts
The silver Rav4 Prime sold today as I hear it. Test drive in it was at ten miles on the clock. Only went one mile total. Now engaged with another Dealership. Seems several units were dropped in the Gulf States region USA. Only one per eligible dealer a far as I know. Out the door pricing is 56,126 including tax which may differ for you. XSE model. Maybe I shOuldve bought one a few years back when the MSRP was near 40k. The Lease cash should work like a rebate accordingly to my source, but I hope to read the lease agreement soon for verification. Not sure of any negative that arrives from this two step except that it makes you the second owner behind the lease company. Not without consequences when you dance with the devil. On one hand I would believe Toyota will see value in meeting requirements for the $7,500 instant tax incentive. On the other why bother when demand gives most units only a few days on the ground before getting an owner!?
I bought my RAV4 Prime in Feb (Virginia dealer) and got the $6500 lease cash, and also a $750 military incentive (also paid $650 lease acquisition fee - no way to avoid it). I did not mention my plan to buyout early.
Lease money factor was really bad, even with excellent credit - equivalent to 8%.
Made one payment, sold my other car, and then asked TFS for the buyout package. Paid it off with a bank check and got the title. No additional surprise fees. No termination or disposition fees.
FYI - in Virginia there is no sales tax credit for your trade-in, so no savings if you trade in.
Lease money factor was really bad, even with excellent credit - equivalent to 8%.
Made one payment, sold my other car, and then asked TFS for the buyout package. Paid it off with a bank check and got the title. No additional surprise fees. No termination or disposition fees.
FYI - in Virginia there is no sales tax credit for your trade-in, so no savings if you trade in.
I also thought $6500 lease credit was expiring- Toyota has renewed it 5-6 times since I leased/bought out my 24 XSE w/PP. They will mst likely renew again. Your dealer is playing games- toyota has no penaty for early buy out- Sounds like you should lease and then deal directly with TFS- (Toyota financial Services)- less BS and quicker responses.
Joined
·
13 Posts
I made three lease payments and then transferred the lease to a loan. I did this at the suggestion of the salesperson to take advantage of the $6500. It worked for me. So you’re not paying off the lease you are “transferring it to a loan”. That means you avoid paying the “Rent” and other lease related costs. You will have to pay to have the vehicle retitled though.
Joined
·
2 Posts
Well, yes. I bought a car two weeks ago using this scheme (leasing). The dealer suggested to pay in full not the next month, but wait 2-3 months and then pay it off.
Most likely the dealer does not get their commission for the lease contract until the lease is in place for 60-90 days.
Joined
·
245 Posts
I paid mine off 2 weeks after start. There is no reason to tell the dealer what you are planning to do, it's none of his business.
Joined
·
10 Posts
6,500 lease cash was extended. Reviewing the lease agreement for gotchas on the promo and if any pre payment penalty
Joined
·
10 Posts
Has anyone scored a $2,000 off MSRP discount on the rav4 prime. Or is that unheard of on a rare find on most dealer lots?
Joined
·
10 Posts
I've been out of the military too long. I think recent or twelve months inside of purchase or lease. The thing that seems bad is if you tip off the sales manager to early pay off. Ie: asking about prepayment penalties. There must be some finance charge back to the sales department when we pay it off. Or else there is something that goes against the manager or dealer because they will not earn a credit for the " bonus vacation" cruise etc for a lease that runs away from the quota they need.
Joined
·
10 Posts
The downside to this "two step" to ownership is that you will on paper and in the records listed as the second owner. Even when you do the transfer( from the lease) to a loan in the first month of the lease. Kinda silly when the title ink is still wet.
2020 RAV4 XSE Hybrid AWD, two Camrys, Prius, ZO6, Acura RL, Tahoe 4x4, E-Tron, several Miatas...
Joined
·
76 Posts
I have seen many times a car listed for sale that explains "This is a one owner, leased new then bought afterward by the same person". Or leased by a company then bought by the person that drove it. I never saw it as some kind of negative or hit to the value.
Not any longer. The car is made in Japan and has to be made in North America to qualify for the $7500. In addition, there are rules about battery sourcing even for cars made in North America to qualify. The rules for the $7500 credit changed with the signing of the Inflation Reduction Act in August 2022.
1 - 20 of 26 Posts
-
?
-
?
-
?
-
?
-
?
-
?
-
?
-
?
-
?
-
?
-
?
-
?
-
?
-
?
-
?
-
?
-
?
-
?
-
?
-
?
