$17,500 off by 1 Dec 2014, Production Ended August 2014

[eRav4]

@ miimura: but to get the full benefit of the $7500 tax credit for only being in possession of the car for 3 years in a lease is still more than generous. I was not in a market for another EV, and the way I look at this is to stack it up vs. the alternative "deals" out there, e.g. Volt and Leaf, etc. For basically an extra $100/mo., I get more range and space. And I know since I just leased a Volt and was shopping for Leaf as well...

 

[miimura]

@ miimura: but to get the full benefit of the $7500 tax credit for only being in possession of the car for 3 years in a lease is still more than generous. I was not in a market for another EV, and the way I look at this is to stack it up vs. the alternative "deals" out there, e.g. Volt and Leaf, etc. For basically an extra $100/mo., I get more range and space. And I know since I just leased a Volt and was shopping for Leaf as well...

I agree with you. The Rav4 EV has a unique position in the market. However, I think that some people may see the headline number of $15,400 and will think that it is 50% better than the previous best offer of $10,000 Subvention Cash for purchase. It's not.

Personally, I think this offer is good, but they should have a straight $7,500 rebate (or higher) as an alternative option for people who want to finance a purchase or pay cash. Given the terms, everybody should lease and nobody should purchase this month and only people who could not get the full value of the tax credit or are paranoid about batteries or resale value should have leased last month.

 

[eRav4]

I think manufacturers are getting smart--or should I say are realizing the path to least resistance in terms of how they can maximize sales numbers and the reduce inventory. And that is by offering really good lease deals. Look at the Fit and Leaf recently, now Rav4Ev. There is a subset of the population out there (I include myself in that group) who view EV as still in the development phase and 3 years from now--with new technology--there will be better range and more options as other manufacturers roll out their EV lines. Hence for me it was always going to be a lease and not a purchase. So from this perspective I didn't care about the MSRP, only the negotiated price and monthly payment amount (after rebates/credits, etc.) compared to a similar ICE, accounting for savings on gas. Of course, I'm also one of those people who have a <50 mile commute so lifestyle-wise it make perfect sense. The comparable monthly savings on the payments + gas savings + CA tax rebate made it a no brainer for us.

I agree with you, if only the mainstream public "did the math" and not be scared away by MSRP prices, then EV adoption would gain a lot more momentum. But I do think things are getting better: in my neighborhood several other folks are already considering EV after hearing about my situation...

 

[cwerdna]

One big problem with big battery hybrids and EVs with range extenders is that all that electric + gas motor / battery / gas tank / etc. stuff takes up a lot of space. The Plug-in Prius and Ford C-Max Ehergi hybrids give up a LOT of cargo space for batteries compared to their hybrid only counterparts, and the Chevy Volt gives up space for a 5th person in the back seat.

While your statements about the C-Max Energi and Volt are true, it's not for the PiP.

The PiP only loses the storage under the rear shelf/cargo floor. Non-PiPs get some storage under there via a black tray and the spare tire is underneath. PiP has neither that storage nor a spare.

 

[Dianne]

One note? That $299 payment isn't actually $299.
Remember, CA residents pay sales tax on the cap reduction. In some counties for residence, it's as much as 9 - 10%.
Once you deduct the bank fee and doc and tire fee and first payment and such, your cap reduction's about $14.200 (used for example) and then when you add your own $3999, you get taxed on the 18200#... so you do not really only need 4K, you need closer to 6K to make the lease work "their way". The ad does say you're responsible for your "state fees" and taxes ... so you're closer to that payment out of state than in-state. But, some states also tax the cap reductions as well.

Frankly, I usually advise everyone who reaches out to me to keep their own money. My selling price is way lower than the national ad pricing anyway. The lease rates are SO low, why add cap red?

Anyway, if they were worried about volume and sales, they need not after this crazy month! They are flying out the doors rapidly for me. Let's hope this $15,400 keeps going!!! This plan makes the best sense.

 

[user 340]

One note? That $299 payment isn't actually $299.
...
Frankly, I usually advise everyone who reaches out to me to keep their own money. My selling price is way lower than the national ad pricing anyway. The lease rates are SO low, why add cap red?

I wish that I understood what this means.... Ar you saying that we (CA residents) need to pay taxes on the full MSRP amortized over the lease? Not a big surprise, but good to spell out.

How should we "keep (our) own money?"

 

[elmoll]

Hey there,

I believe the reference to "keep (our) own money?" means that you do not have to put any money down on the lease. Instead of putting down $3k or $4k, you just use the Toyota money as your cap. reduction money. In effect it can work as a zero down lease.

Eric

 

[mhkp]

I'm confused as well. If you put less money down can you still get the $299 rate?

 

[TonyWilliams]

I'm confused as well. If you put less money down can you still get the $299 rate?

Of course not.

 

[miimura]

I'm confused as well. If you put less money down can you still get the $299 rate?

The TFS sample $299 payment assumes MSRP selling price by the dealer. She is saying that there are also a lot of taxes, but her selling price is significantly below MSRP. If you go no money down, it will probably be more than $299/month but maybe not as much as you think.

The Cap Reduction is the money that either Toyota or you are putting into the lease at the beginning.

 

[elmoll]

The advertised lease rates are always low. They do not include taxes and fees. It will be up to you, do you want to pay in the mid $300's with $3k or $4k down or pay in the mid to low $400's with zero down?

 

[mhkp]

I'm confused as well. If you put less money down can you still get the $299 rate?

The TFS sample $299 payment assumes MSRP selling price by the dealer. She is saying that there are also a lot of taxes, but her selling price is significantly below MSRP. If you go no money down, it will probably be more than $299/month but maybe not as much as you think.

The Cap Reduction is the money that either Toyota or you are putting into the lease at the beginning.

Right. The problem with all that is that once you start going off script with the advertised deal, the dealership manager gets creative with the numbers. And its usually not creativity that benefits the buyer.

 

[miimura]

The problem with all that is that once you start going off script with the advertised deal, the dealership manager gets creative with the numbers. And its usually not creativity that benefits the buyer.

I've seen a Lease offer sheet on a RAV4 EV. If you've never done a lease before, it is confusing. However, you need to just wade through each number and have them explain what each number is. The dealer selling price and the amount that Toyota is kicking in ($15,400) should be clearly shown. There are some taxes added to the top line number and to the monthly payment. If you are considering keeping the car after the lease, I would also have them prepare a sample of what the total buyout would be.

 

[mhkp]

I leased my Prius 3 years ago, now its up.

Last time I did the ad deal also. $249/mo, nothing down. amazing! I was in and out of the dealership in less than 2 hours, a record for me when buying/leasing a car.

The guys at Simi Toyota seem to be fine. They tack on the usual bs like $798 special door handles and etched windows, but I know everything is negotiable. If I do get this car I also know that I can go to a number of nearby dealers and get it at the lease rate I want. Competition is still much alive in soCal.

I'm shooting for a total expense of about $13,000 over 3 years, after $2,500 rebate.

 

[qatnip]

OH NO...the 10K cash back through Toyota financing is gone :shock:
grr....just when i was getting ready to get one...

 

[mhkp]

I think the lease deal in the subject line is great, at least for my needs.

I got the exact deal as stated except I paid the $350 for the white color. Could have probably negotiated that away BUT I felt I got what I wanted and the dealer was great to work with.

3 years from now I hope to be in a Tesla or an amazing Nissan. I would say something about Toyota, but it doesn't seem like their focus is on EV.

 

[waidy]

I will be displaying my Rav at an event this week. Please verify the following calculation as it will be used as my selling tool:

36 months Lease program which expires Aug 5, 2013
Total of 36 months lease (without tax) = $299*36 = $10,764
Down Payment for this lease program = $3,999
Toyota Cash back = $15,400
Unlimited miles per year (It used to have unlimited miles but I don't see it at buyatoyota website, please confirm).

Therefore, total cost of ownership excluding tax and electrons is $15,400-$3,999-$10,764=$637

Is it right that one will pay only $637 to drive a Rav4EV for 3 years? Please confirm.

 

[mhkp]

Waidy, I really wish your math was right, then I'd be a much richer man.

The cost is $299 x 36= $10,764 (for white color you could add another $10 per month or $360)

Your down payment is $3,999

You also have license, doc fees, etc. Mine totaled $448. Tax on lease varies but mine was something like another $24 per month.

To get the $299 per month lease deal you use the $15,400 (+ down payment) from Toyota to lower the cost of the vehicle (capitalized cost). You do not see any of this money.

Your total cost to drive a Rav4ev over 3 years is $15,211 (before tax ~$864)

You can subtract the CA rebate of $2,500 and then your 3 year cost is $12,711 (before tax)

 

[miimura]

$299 lease deal includes a clause for $0.15/mi over 36,000mi at the end of the 3 year term. Unlimited miles was mentioned here as $30/mo more. The buyout is about $1,000 less, so if you continue with the car after the lease, the $30/mo mostly went to the lower the amount you buy it for at the end.

 

[TonyWilliams]

Don't forget California "use tax" added to the monthly payment.