You have probably heard about leasing and how it offers an excellent way to drive a new car for a couple of years with lower monthly installments than you would have to pay through purchasing. There are plenty of good leases and financing deals on Toyota vehicles including trucks, SUVs, and cars like Toyota corolla for only $79. You will frequently see advertisements for Toyota rav4 lease no money down deals, and in some cases, the offers seem too good to be true because you will not be putting down money to drive the car.
Can you possibly lease a RAV4 with $0 money down? How much does it cost? Should you even be pursuing no money down lease deals? These are just a few questions most shoppers ask when they first learn about zero down lease deals, especially for premium models like the Toyota RAV4. To allay your fears, many experts recommend these deals.
$0 down lease deals do exist on plenty of popular automobiles throughout Toyota’s 2019 lineup. But does it mean that you can go to a Toyota dealer with empty pockets and drive away with a new RAV4? Of course not, since you will still have to pay sales tax, fees, and often your payment for the first month. It is for this and other reasons that Toyota RAV4 leases with no money down are not for everyone. Read on to find out why.
Understanding Toyota RAV4 Zero Down Lease Deals
To help you understand how no money down lease programs work, we will begin with a reminder of how leasing is put together. When buying a car, you will pay the whole negotiated cost of the vehicle. If the car is financed, you will be paying interest charges alongside the loan money. For some shoppers, this is a costlier option since they can easily rent a car for a month.
Advantages and Disadvantage of Toyota RAV4 Lease No Money Down Deals
On the other hand, with car leasing, you only pay for the vehicle’s depreciation during the term of your contract. This is in addition to some charges and interest usually called the money factor in the world of leasing. Normally, experts will assess what they think will be the automobile’s worth after you are done with the lease agreement. This evaluation is often based on the car’s expected depreciation, which results in the residual value.
To come up with your monthly payment, you subtract the residual value or the vehicle’s depreciation over a lease term from the negotiated price of the car. The cap cost or capitalized cost is another word that is interchangeably used for the negotiated price. After subtraction, dividing the resulting figure by the number of months in your lease agreement, and adding in the interest or money factor will give the monthly payment.
There are likely to be other costs that could add some dollars to payments for each month. For instance, most states require that you pay sales tax on your down payments, then monthly installments and fees, which typically include Toyota extended warranty costs. This is a big plus over purchasing the car, which involves paying sales tax on the whole buying price.
Advantages of Toyota RAV4 Lease No Money Down Deals
For shoppers who cannot afford to put down money, Toyota rav4 lease no money down deals is an excellent option to drive a new SUV without hassles. These are the main advantages which come with this deal:
- Avoid losing up-front payments
Although you will end up paying more in terms of interest costs, experts keep recommending a $0 down lease as the greatest way to structure your deal. When leasing, the vehicle’s title remains with the leasing company.
In case you total the car or it is stolen over the lease term, insurance payments go to the titleholder, hence terminating the lease. This means that all the thousands of dollars in upfront payments will go down the drain, even if you have the best insurance that guarantees you don’t pay out of pocket during such incidents.
- Slower, more affordable monthly payments
Leasing a car in most states involves paying sales tax on any amount you put down. With a zero-down lease, you will pay the same taxes though at a slower rate. Some deals allow you to roll over all the fees into the lease, with slower payments as well. You are going to pay more in total since you will still have to pay interest on everything, but it gives you more time for financial preparedness.
The Disadvantage of Toyota RAV4 Lease No Money Down
Why is it that some shoppers prefer putting down money when Toyota is offering $0 down leases?
- Increased cap reduction cost
Making a down payment on your lease is known as a cap cost reduction since it lowers the total amount of money you will be financing during the lease terms. Therefore, it also reduces payments for each month.
- Higher monthly payments
Just as a teeter-totter, raising the money down will reduce the monthly payments. By lowering the down payment to $0, it means financing the entire depreciation value of the car. Because you are paying interest on the depreciation, you are likely to incur higher total costs over the lease term.
For instance, you can lease the 2019 RAV4 hybrid for $299 per month over 36 months if you pay $2,799 upfront, while the same model starts at $386 per month for the same duration with zero down payment.
Toyota Rav4 Hybrid Lease
Right now, shoppers in the market for a Toyota rav4 hybrid lease will find plenty of deals. The new 2019 RAV4 hybrid comes redesigned, with a fresh platform and track-inspired exterior design, including an enhanced ground clearance. Its infotainment is more comprehensive than the previous year’s model, though the Toyota Safety Sense 2.0 suite of active features is standard throughout its models.
The rugged-looking 2019 RAV4 Hybrid is available in showrooms across the country starting from $28, 745 inclusive of destination fees. This makes it more expensive than the base 2019 RAV4 model by $2,200. However, lease deals on the Toyota RAV4 hybrid started cold and they remain chilly during this October month. We are expecting a carryover model for the 2020 Toyota RAV4 Hybrid, which should be arriving in November 2019.
The Japanese automaker continues availing of the hybrid LE model starting at $329 every month, for 36 months, and $1,999 upon signing for 12,000 miles per year. For a $385 effective monthly cost, it is still a poor offer relative to its manufacturer’s selling recommended price of $29,214. However, be sure to keep an eye on this space because the lease rates could drop as time passes on the new-look model.
With a leasing incentive of a $1,000 rebate in loyalty bonus cash, it lowers the cash due at signing to $999. However, you will be checking with your local dealerships for eligibility requirements. Generally, qualifying customers will get a Loyalty Program Certificate offer, which excludes shoppers who have signed for bankruptcy within the course of their existing lease.
Toyota Rav4 Specials Offers
If you are in the market for 2019 Toyota rav4 specials, the RAV4 Hybrid SUV starting at $28,970 has 5 cash offers and 2 lease offers. The manufacturer cash offers include:
|Type of Offer||Car Type||Validity|
|$900 TSF cash offer||select RAV4 hybrid models||till 4th November 2019|
|$500 military cash offer||select Toyota models||till 6th January 2020|
|$500 college grad offer||select Toyota models||till 6th January 2020|
|$500 loyalty offer||select Toyota models||till 6th January 2020|
|$500 affiliate offer||select Toyota models||till 6th January 2020|
If you are leasing, the Toyota RAV4 Hybrid LE starts from $299 every month over 36 months, with $2,799 when signing. This special offer is valid until 4th November 2019. However, under the Toyota rav4 lease no money down offers, the same model is available for a 36-month lease at $386 per month, with $0 due at signing. Validity remains on the 4th of November, 2019.
Toyota Rav4 Lease No Money Down NJ
Toyota lease line-ups are regional, with the 2019 RAV4 LE AWD lease starting at $229 every month for a 36-month duration and $2,999 upon signing in New Jersey. Its hybrid LE AWD version starts at $279 each month over a 36-month duration with $2,999 when signing, in the same region. However, for Toyota rav4 lease no money down NJ deals, the calculations include New Jersey titling and registration fees.
Therefore, to get $0-down leases on Toyota RAV4 in New Jersey, payments carry fees and taxes, which often vary based on a shopper’s respective county’s sales tax, including registration and titling fees. Just as other Toyota special offers, zero down lease deals depend on an individual shopper’s qualification. Most dealers will not reveal to you about no money down offers. For that reason, we recommend asking your local dealership for case-based incentives and specials. It is essential to note that qualifying for a zero-down lease is based on a Tier 1+ credit rating.
The vehicle’s price is the most critical negotiable component of a lease deal. You should avoid telling the dealer that you want to lease the car until the purchase price is agreed upon in writing. Since leases can be confusing, it often works to the dealer’s advantage. Therefore, keeping your cards close to the chest will help score a better lease agreement.
Toyota Rav4 Lease No Money Down NY
While car dealers are not going to tell you about it, most components in a car lease are negotiable. The residual value is the only fixed component, which the leasing company sets. Therefore, when a dealer avails substantial down payment for a lease deal, do not hesitate to ask for another option with $0 down.
You will be surprised that nearly all dealerships have Toyota rav4 lease no money down NY deals for the taking. For instance, the 2019 RAV4 LE AWD lease carries 36-monthly costs of $229 each and $2,999 upon signing. Nonetheless, a capitalized cost of $23,740 depends on a lessee’s down payment as well as dealer participation, which varies from one dealership to the next. It means the cap cost could go lower or higher depending on how much you put down. If you intend to put down $0, it could raise the monthly payments.
Toyota’s lease deals for October 2019 look so chilly with very specials and cash incentives across their lineup, including the RAV4 SUV. However, you will want to keep in mind that you can negotiate on most aspects of your lease, save for the residual value. In as much as Toyota dealerships will be reluctant to open up about the negotiable aspects of the deal, there is plenty of Toyota rav4 lease no money down deals in 2019.
Therefore, substantial down payments should never be a turn-down for you if you are in the market for a new RAV4 lease. Always ask for an option that carries no money down. Keep in mind that this deal will attract higher monthly payments, though at a slower pace.
Frequently Asked Questions (FAQ)
How much is it to lease a 2018 RAV4?
The 2018 Toyota RAV4 lease starts at $209 every month, over a 24-month duration with $3,740 upon signing. However, most dealerships no longer have this model in stock. With the automaker set to release the 2020 Toyota RAV4 in November 2019, you are likely to find used car deals for the 2018 RAV4.
Can I lease a car with nothing down?
Yes, you can lease a car without putting anything down. Most car leases, including those that are marketed with a down payment, are also available on lease with zero dollars down. Without a down payment, nonetheless, you will be paying higher monthly charges for the lease since you are not prepaying the cost cap reduction at the start of the lease. Additionally, eligibility usually depends on credit requirements.
Does Toyota ever offer 0 financing?
Toyota dealerships across the country are offering 0% financing on the latest cars, trucks, and SUVs. However, the dealerships require a Tier 1 and Tier 1+ credit rating, to qualify for the offer. Based on the FICO score, the latter is 720 and above, while the former is between 690 and 719.