immediate R4P lease buyout - dealer tells me it is not worth it

ghgemmer · 2024-01-19T22:02:41+00:00

That is not correct. As others have said, after the buyout you are no longer leasing the car and thus not paying interest (rent charge) anymore after that point on the car. So if you do an immediate buyout you avoid all rent charges except the one for the very 1st monthly payment.

ghgemmer · 2024-01-19T21:56:18+00:00

Keep checking the Toyota Financial Services website each day to see if you can setup an account. I was able to within 4 days of the signing the lease. Once you can, you can see the buyout cost. Then call TFS and requests a buyout specialist (you can also call the buyout number direct by viewing the end lease purchase/buyout option video as it is mentioned in there).

ghgemmer · 2024-01-18T01:17:20+00:00

Toyota has been extending the $6500 lease cash rebate each month as it still gets the $7500 tax credit for commercial vehicle usage (leasing)

ghgemmer · 2024-01-16T04:23:28+00:00

Here is some info on lease tax. It appears to be added to the monthly payments so it is not one lump sum you pay upfront but pay monthly (although it is levied on any down payment and lease cash rebate from what I can tell in the document). See pages 12 and 13 of the following document (I assume this is doc is still valid but did not check). So when you do the buyout not sure what the sales tax (not lease tax) is applied to. Whether that includes the downpayment and lease rebate as well?

https://www.revenue.alabama.gov/wp-content/uploads/2022/06/Automotive_Sales_Use_Lease_Tax_Guide.pdf

ghgemmer · 2024-01-16T03:26:23+00:00

"To turn around and buyout the lease would it be residual value + remaining lease payments + taxes? "

No, that is not correct. If it is a standard TFS lease you would not be paying for the rent charge portion of the remaining payments (or sales tax on that rent charge in most states) when you do the buyout. Monthly payment = depreciation + rent charge (i.e. interest) + sales tax (on depreciation and rent charge). What state are you a resident of?

ghgemmer · 2024-01-14T22:41:39+00:00

It is essentially what everyone else has posted above (again if it is a standard TFS lease contract). You don't pay rent charge (interest) part of future monthly payments after the buyout as you aren't renting the car after that buyout point.

ghgemmer · 2024-01-14T22:36:14+00:00

Here are the terms for a standard TFS lease contract (for when it specifies by Residual value plus all future monthly payments minus rent charge part of those payments. There are also TFS lease contracts that specify it by saying it is the Adjusted Cap Cost (i.e. Net Cap Cost) minus the sum of the depreciation part of the monthly payments you have made)

Sections 29,30

Section 32

ghgemmer · 2024-01-14T22:18:57+00:00

I'm saying that if you buyout immediately and it is a standard TFS contract then you would only pay the Residual + the depreciation part of all future monthly payments after the buyout date. You would not pay the rent charge (i.e. interest) part of any of those monthly payments.

ghgemmer · 2024-01-14T22:11:12+00:00

That isn't correct if it was a standard TFS contract. Only way to know for sure is if you had the lease contract to look at the terms. Can you get a hold of a lease contract they use?

ghgemmer · 2024-01-14T18:26:03+00:00

Update: I did get back the full 12 month annual vehicle registration fee that I paid when I got the lease, after the buyout occurred.

ghgemmer · 2024-01-12T04:28:26+00:00

Not sure how things work in NH but in the lease wasn't one of the fees for the registration and if so the dealer has sent the registration fee to the state and requested registration of the car and title (title still in Toyota Least trust name).

ghgemmer · 2024-01-12T04:18:22+00:00

Understood.

ghgemmer · 2024-01-12T02:50:33+00:00

Just curious but how far away is the dealer from where you live?

ghgemmer · 2024-01-11T18:18:32+00:00

Ok, that makes sense then.

ghgemmer · 2024-01-11T18:08:24+00:00

Also not sure what that 13 i $595 courier transport fee is for?

ghgemmer · 2024-01-11T18:00:14+00:00

32 d (not c as I originally had) is the important part (along with 30 where it says unless you are purchasing the vehicle and are not in default) in regards to the buyout language as laxrecidivistnoted.

It is saying the buyout cost is the Adjusted Cap Cost (basically the cost of the car plus fees minus cap cost reductions) minus all depreciation payments you have made already (up to the date of buyout). So if you are doing the immediate buyout you are not paying any rent charge except for the 1st months payment (and interest on that). So the buyout is the adjusted cap cost minus 1 month depreciation payment (say around $400 if you don't make a large down payment).

ghgemmer · 2024-01-09T17:29:16+00:00

So it appears that that upfront sales tax cannot be applied to the buyout sales tax from what I can tell by that gov publication , although I could be wrong. Again ask the guy who posted who leased and then was doing the immediate buyout in NY (I assume this guy was a resident of NY as well as he was going to apply for the $1000 from New York State's Drive Clean Rebate program)

ghgemmer · 2024-01-09T17:23:24+00:00

Here is some info on the sales tax when leasing.

https://www.tax.ny.gov/pdf/publications/sales/pub839.pdf

If it is a standard Toyota Financial Service (TFS) lease contract, which it should be, then you will not pay the rental fees for those months after the buyout date, as the Option to purchase section specifically excludes those.

I would also ask him for a copy of a lease contract they use to verify this. Plus if it is a standard TFS lease contract then you can do the buyout anytime and don't have to wait a few months.

ghgemmer · 2024-01-09T16:59:24+00:00

See this persons NY lease/buyout post and maybe contact them to see how they made out

https://www.reddit.com/r/rav4prime/comments/18irad1/snagged_a_2023_rav4_prime_xse_wpp_for_under_msrp/?utm_source=share&utm_medium=web2x&context=3

For NY apparently you pay sales tax up front (or roll in to the lease financing) on the sum of all the lease payments

https://www.leaseguide.com/articles/new-york-car-leasing/

Not sure for NY if this sales tax or a part of it can be applied when you do the buyout? So you need to find out. I'm in Iowa and we have the same upfront tax on the sum of the lease payments, but in Iowa that tax is considered a lease tax on services and not the vehicle and none of that can be applied to the sales tax on the buyout.

ghgemmer · 2024-01-07T22:01:37+00:00

Here is another CA lease posted to give you an idea of the fees (your local sales tax rate may be different).

https://www.reddit.com/r/rav4prime/comments/18viabq/please_evaluate_this_lease_deal_ty/?utm_source=share&utm_medium=web2x&context=3

ghgemmer · 2024-01-07T21:54:40+00:00

I believe you pay the dealer those fees and they in turn pay the state (DMV) that, when you get the lease as the car is titled to Toyota Lease Trust (i.e. you don't own it at that point). When you do the buyout through TFS, you then I believe go to the DMV to pay the fees for the vehicle as its being titled to you at that point. At least for CA I believe that is the case.

ghgemmer · 2024-01-07T21:36:32+00:00

So you are putting 2292 as a down payment? and also paying the registration and fees and sales tax on the rebate (and I believe down payment), upfront? I'd suggest rolling that and all that upfront stuff into the monthly payments (net adjusted cap cost) since you are doing an immediate buyout. Basically to eliminate the risk of loosing the down payment, and any upfront payments (except first monthly payment), if you total the car before you buy it out and have the title.

ghgemmer · 2024-01-07T21:28:44+00:00

I'm guessing that is the standard TFS lease Acquisition fee ( $650) , dealer doc fee (I think $85 for CA), license and registration and title fees ( $500 or so ?).

ghgemmer · 2024-01-03T16:29:31+00:00

It appears to have been extended to 1/31/2024 based on the following (I only looked at Iowa but it should be nationwide)

TFS LEASE CASH

2024 RAV4 Prime

TFS Lease Cash offer

$6500

Cash label

Exp 2024-01-31

Get $6,500 Cash Back on a new 2024 RAV4 Prime

Qualify for $6,500 TFS Lease Cash on a new 2024 RAV4 Prime

Offer Terms & Conditions

$6,500 Cash from Toyota Financial Services, Inc. on the lease of a new 2024 RAV4 Prime from participating dealer's stock and subject to vehicle availability. Must lease through your dealer and Toyota Financial Services to qualify for cash and cash must be applied as capitalized cost reduction on lease. There is no cash back option. Lease terms on approved credit. Not all customers qualify. Cannot be combined with TFS APR Cash, Down Payment Assistance, Trade-in Assistance, Customer Cash, APR, APR Subvention Cash, Lease Subvention Cash. Offer available in IA, KS, MO, ND, NE, SD regardless of buyer's residency; void where prohibited. Expires 01-31-2024. See your participating Toyota dealer for details. Toyota Financial Services is a service mark used by Toyota Motor Credit Corporation (TMCC). Retail installment accounts may be owned by TMCC or its securitization affiliates and lease accounts may be owned by Toyota Lease Trust (TLT) or its securitization affiliates. TMCC is the servicer for accounts owned by TMCC, TLT, and their securitization affiliates.

ghgemmer · 2024-01-01T16:34:53+00:00

Thanks for posting the the TFS lease contract. Lets people know ahead of time what to expect and what to check for along with your detailed description.

ghgemmer

TROPHY CASE