QuestionQUESTION: My 2007 RAV4 lease is ending 9/10. I am thinking of buying the car. Right now it only has 15000 miles and did not give my any problems beside the remote control started which broke but was fixed under warranty. I reside in state of New Jersey. My question is (or rather a few questions):
1. do I have to purchase the vehicle from the same dealer?
2. is the buyout price (listed on toyota financial) same as wholesale price and would this be the price I'd be buying the car for or can I make a lesser offer?
3. can I get a 0% financing on this (used) car (my credit score is 747)and how can I get additional warranty. I believe that that is offered on Certified Used cars. If my car "becomes" Certified used will the purchase price increase?
ANSWER: Hello Ivette, I apologize for the delay, No you don't have to buy from that dealer, You should go to edmunds.com put the info for your car under appraisal and see what trade value is and then see what the difference is between trade value and the residual on your contract, this way you can see if it's worth it. You cannot negotiate the residual value on your contract. I don't know if Toyota will let you certify your own car, you would have to call a dealer, at BMW, when you buy your lease you can pay extra to certify the car ($2500-3500) then your entitled to certified rates and such, check with your dealer. With your credit score you should get at the least a 3.9 rate on the open market. You can buy an extended warranty at time of new purchase. The purchase price will change only if you do a certified inspection and add that cost to the car. If they will let you certify the car, you will have to pay for the inspection and perform all work that needs to be done (maintenance, tires, mechanical) to bring it up to Toyotas standards for certified and there is a cost for the actual certificate. Hope this will answer your questions, let me know if you need more
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QUESTION: Danny,
Thank you so much for your answer. So "Certifying" this car will just cost me more money - right? I don't really see a benefit on my part or is there? I was not able to figure out what is the trade value, but Toyota Financial tells me on their web page that the "Purchase Payoff Amount" of the car is $14,406. Can I (or how can I) haggle them to lower it.
Thank you for your time!!!
AnswerHello, Yes it is beneficial if your going to keep the car for a long time, ask yourself when is something more likely to break down, the first half or second half? I would want a certified warranty up to 100k miles on a car if I'm going to keep it for a long time? Unless your someone who keeps alot of money around for emergency repairs. The prices I quoted you to certify a car are with BMW, Toyota may and probably is alot less, call a dealer, ask for the used car mgr and they will tell you an average. Remember you will have to certify the car if you want Toyota's Certified Rates for your loan, you can go straight to toyota.com and see what the certified rates are. I looked up a base model, 4 cyl, automatic in Texas and base wholesale was 14,700 and dealers were selling them for an avg of 16,900, I'm sure in your area a 4 wheel drive vehicle has a greater book value. You can always call Toyota's customer service # and they will get you to the correct person to see if they will offer a better price, I've never heard of anyone getting a better price but it's worth a try. Go to edmunds.com, middle of the page, lower part you will see appraise your car, click and then start filling in the blanks, you will see what it's worth in your zip codes. I think you will find out the price Toyotas giving you is a good
price. Please let me know if you need more, Thanks
