Automotive

Toyota 2018 RAV4 Lease Deal

  • Last Updated:
  • Oct 22nd, 2018 4:24 pm
[OP]
Newbie
Feb 8, 2011
28 posts
8 upvotes

Toyota 2018 RAV4 Lease Deal

I have a friend who was already leasing a Toyota RAV4 and got called by the dealer for a new lease to replace the existing lease.

The new lease deal is for a RAV4 LE 2WD:
$375 tax included for 39 months at 0% and $14000 residual value.
My calculations is that this would come up to a total of 375*39 + 14000*1.15(QC tax) = $30725 if you would buy back the car at the end of the lease.

I checked the invoice price of the RAV4 LE 2WD is $27750. I think the markup from invoice price is usually 7.5%, so if I do some calculations and let's say the dealer sells at invoice price:
27750 -7% = 25669
dealer fee 399 +
delivery 1815 +
ac 100 +
tire 15 +
custom rebate -500 = 27498
+ tax 15% = $31622.7

So, my friend gets the car for 30725$ with a lease, while the best deal I could get by financing is 31622.70$

Anybody can explain why???
3 replies
Deal Expert
User avatar
Jul 30, 2007
27569 posts
12625 upvotes
Toronto
1) toyota.ca website does not show option to lease for 39 months. 40 months is what I see.

based on toyota website. 40 months residual is at 54% = $14,985. (based on 18,000km per year). Therefore, if you are saying 39 months residual is at $14,000, then the mileage allowance must be like 24,000km per year ? You will need to clarify and check. $14,000 is not a perfect % number by residual calc. base. that is, it should be a whole number with no decimal.

2) toyota rebate is $500 after taxes. Therefore, $65 difference in your calc.

3) for leasing, there is also a buyout fee to factor that $300 + taxes (for apple to apple comparision)
[OP]
Newbie
Feb 8, 2011
28 posts
8 upvotes
I can't confirm any number. Like I said, this is what my friend told me he got as a deal.

I guess my question should be more like this:

Can an existing customer already with a lease get a better deal to break out of his existing lease to sign a new lease then a new customer looking to finance a car?
Deal Expert
User avatar
Jul 30, 2007
27569 posts
12625 upvotes
Toronto
No. if the interest rate is 0. $0 down.

Just get the exact residual # and exact monthly payment # ... and your query will be solved.

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