Factory rebate on a lease?

I was talking to a dealer about the price on a Platinum and they told me that the factory rebates (currently $1250 on the Platinum) only apply to purchases and not leases. Is that standard practice or are they full of it?

 

Truth

 

It is true. Also, you might think about twice leasing a vehicle. We done it one time and it just didn't work well for us with the limited miles they allow. The other thing I didn't like was that at the end you have to turn it in vs. owning it and having equity. I guess the lower payments are enticing though.

 

I guess it really depends if you plan on buying it or not or just renting a car for your needs. I'm thinking of leasing a camry to offset truck miles and gas prices and use it for work during the week.

 

A lease would probably OK if you can keep the miles under 12000/year.

 

You typically get a lower monthly payment with a lease, but more often than not you have to put several thousand dollars down and you always have to pay the full sales tax...if you are in a state with sales tax that is....

 

Currently leasing the Tundra I have now. If I keep till lease end I can purchase for the residual of $24,000. or turn it in and use the equity in to lease or purchase another.

Not sure what I am going to do, actually thinking next summer of trading it in early and doing a purchase on a 2018.

 

How do you get equity in a lease?

 

My last few trucks have been leases, my dealer buys the vehicle from Toyota, we agree on a price, that's more than the buy out of the lease, take that equity and roll it over into another lease. The dealership now owns the truck.

 

With some cars/trucks it’s possible to gain equity even with a lease. Especially Tundras and Tacomas because they hold their value so well. The residuals on those trucks are higher than other trucks but unless you really trash it, it will probably still be worth more than the residual when the 3 years is up.

For instance, residuals on Tundras are about 63-64% MSRP. That puts the Platinum at ~$33,500. A 3-year old Platinum with 36k miles on it will likely sell for closer to $38k or $39k (at least here in Colorado).

 

Well, I hope it works out for you that way. The only vehicle we ever leases was a new Toyota RAV 4 in 1998, we kept it for 48 month and then turned it in. I have to say that I never really checked the value of it prior to turning it in and wasn't aware that selling it would be an option. My mistake.