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  • avatar frankpenkala 12/22/10 11:59 am PST

    What is the cash price? What is the lease term? What is the residual value / buyout at the end of the lease term?


    Need these items to be able to assess.

Answers

  • frankpenkala 12/22/10 11:59 am PST

    What is the cash price? What is the lease term? What is the residual value / buyout at the end of the lease term?


    Need these items to be able to assess.

  • salsaman2 12/22/10 12:31 pm PST

    Haven't yet gone for the deal. It's a 36 month lease with a cash price of $31,000, and a residual value % of 62%, open ended lease. Out-Of-Pocket amount is based on the Motor Vehicle fees and 1st months payment.

  • frankpenkala 12/22/10 1:02 pm PST

    Based on the cash price and 62% residual, the effective rate comes in at 1.79% -- so heavily subsidized financing by Toyota. Tough to beat unless the cash price is flexible. You would need a cash price of about $28,000 for a 3rd party lease to be competitive (at ~6.25% market rates).

    You need to get *really* clear on whether it is an 'open' or a 'closed' lease.

    An open lease obligates you to cover off the residual value at the end of the lease term, regardless of the market value. Kind of important to know.

    A closed lease lets you hand back the car, but you'll pay for every scratch and knick and stain; also over-mileage charges.

    Get all promises and clarifications in writing.

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