Toyota Now Offers RAV4 EV From $299/month, plus Unlimited Mileage Option

4 years ago by Jay Cole 31

Toyota Gets A Little More Creative With Leasing In Order To Sell More RAV4 EVs

Toyota Gets A Little More Creative With Leasing In Order To Sell More RAV4 EVs

Toyota has announced a new leasing deal on the RAV4 EV in order to move the sales needle a little faster in California.  To date, Toyota has sold 709 RAV4 EVs, and would like to move 2,600 by the end of next year for compliance reasons.

Ye Olde Fine Print

Ye Olde Fine Print

Starting this month, eligible buyers can lease a RAV4 EV from $299 per month with $3,999 due as a “drive off.”

Sure the down payment is a little steep in relation to other EVs on the road, but considering the all electric, 103 mile (EPA rated) SUV has a starting MSRP of $49,800 – that is a heck of a deal.

Toyota gets to the magic number of $299  by offering $15,400 worth of “lease cash” in the deal, and by finally including the full $7,500 federal rebate into the lease deal – previously it could only be fully realized by purchasing the RAV4 EV directly.

According to Carly Schaffner, a Toyota spokeswoman, the offer will only be a short one – running through September 3rd.

“The use of our incentives is tactical, reinforcing our value and focus on keeping our products competitive in the market.  We’re still evaluating the market demand for EVs.”

While the $299 deal does sound rather appealing, what caught our eye was that there now appears to be an option to also lease the RAV4 EV with unlimited mileage (normal allowance is 36,000 miles over 36 months) for about $30 more a month.  A concept that Honda has had great success with renewing interest in the Fit EV.

Looking at the broader picture, and after more than a few lucrative deals in the past on the RAV4 EV that failed to move the sales needle, how will Toyota respond if they continue to come up short each month on their goal of selling 2,600 electric SUVs?    Is cancelling the RAV4 EV prematurely a viable option?  It might be.

BuyAToyota.com

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31 responses to "Toyota Now Offers RAV4 EV From $299/month, plus Unlimited Mileage Option"

  1. GeorgeS says:

    I like the Rav4 EV. It has better range than all except the S and good 0-60 time to boot. I don’t understand why they can’t move them. Hopefully this will help.

    Hey Jay how much is a 2 year lease compared to a 3 year…..in general are they more?

    1. Jay Cole says:

      AFAIK this offer only applies to a 36 month lease arrangement. Your going to run into issues under 36 months when dealing with ARB credits/rebates.

      1. GeorgeS says:

        Does the Feds 7500$ come into play on a 2 year lease. I don’t live in Ca.

        1. Aaron says:

          It does, but the manufacturer gets the $7500, not the leaser.

    2. Spec says:

      I think the $50K list price is why they can’t move them. I know they’ve been cutting that price to move them but a lot of people don’t know that.

  2. scott moore says:

    It makes no sense to have lease mileage limits on an EV in any case, since that is something that if a user manages, the car maker should put in press releases, not punish.

  3. ryan says:

    Would love it if the RAV4 EV was available in michigan. Or any kind of plug-in SUV. Guess I’ll have to wait for the Outlander PHEV.

  4. David Murray says:

    I’m surprised this vehicle isn’t selling better than it is. Everybody always complains that there are no CUV or SUV options for electric vehicles. Well, here you go. Plus it has great range and great acceleration! Is it the fact that it is a compliance car the problem? Is it the limited sales area? Or does it turn out that SUV buyers really don’t care much about fuel efficiency?

    1. ItsNotAboutTheMoney says:

      Until now the lease deals sucked: the big incentives were on purchases.
      It’s only available at CA dealers and Toyota has a “we might not service it elsewhere” clause.
      Many people who could afford it would have bought a Model S instead.
      Plenty of compliance options in CA.

    2. ItsNotAboutTheMoney says:

      Oh and it suits people who need the extra range but don’t not so much that they’d want a PHEV.

    3. ItsNotAboutTheMoney says:

      And finally: Toyota don’t seem to care about PEVs, so why would a PEV enthusiastic care about Toyota?

  5. Spec says:

    Build your own EV, Toyota. We know you can build a great one. Don’t fall behind in this important growing market of the future.

  6. Acevolt says:

    Just picked up mine over the weekend to complement my Volt. I drove 87 miles from the dealer with 39 miles of range left. This included going 2500ft up in altitude. The EPA estimate is an average of the 80% charge and extended charge mode. With a full charge the range indicator stated 150 miles of range. Pretty nice vehicle.
    My lease was $488 with no money down and unlimited miles.

    1. JP says:

      AceVolt,
      I am a fellow Volt owner. Kudos to your deal. Doing the math, your deal is just as good or better than the new deal. For those wondering how, if you divide the $3999 down payment by 36 months then add the $30 for unlimited mileage; you get about $440 per month. Then add the interest he saved by not financing the down payment, you get about $480 to $500 per month.

  7. Bloggin says:

    An SUV EV is not a good fit. Most consumers lease an EV as their commuter car, dumping their current small commuter car, and may have a larger ICE/Hybrid vehicle to handle longer trips.

    But Toyota is asking consumers to ditch the SUV they already have for longer trips, for a 103 EV mile, electric inefficient EV SUV that will cost $554/mo(including lease/down payment/taxes). The RAV4 EV also costs $200 more per year in electric power than the Focus Electric or Leaf. So it does not make the best commuter EV.

    It sounds like there won’t be a 2014 RAV4 EV after Toyota clears these out.

    1. Spec says:

      Yeah, that is probably a good point. Tesla’s CUV may work because of the long miles but the SUV is probably the gas car for 2-car families with an EV. But a SUV PHEV would work.

      1. Josh says:

        The big thing Model X adds is SuperCharging. I think if RAV4 EV came with CHAdeMO it would be even more valuable. Selling them outside of California would help even more.

        1. VoltOwner says:

          Exactly, Toyo need to add DCQC before It would work for me. I need to drive my truck 90 miles sometimes, and stay maybe 3-4 hours before heading back. No public chargers anymore either, the old ones went away in 2009 and were not replaced. If the Rav4 had a range extender option ala BMW, it would also work for me.

          I spent an hour with the EV specialist at my local dealer, who kept saying that a Prius would be able to handle that distance… I had to mention my 24 foot ladder more than once, it really does not seem like Toyota is serious about EV’s yet.

  8. miimura says:

    The thing to note is that the residual is about $1,000 less on unlimited miles. The additional payments for unlimited miles are only $1,080. So, if you are planning to buy out the car at the end, the “insurance” of signing up for the unlimited miles has very little cost to it.

    1. Jesse Gurr says:

      True, this was offered in July as well. I look at it every so often to shop around for EVs with good range.

      1. miimura says:

        Looks like you saw my original comment about this offer starting around July 8. Somebody edited and removed it. This lease deal is likely why the sales went from 44 in June to 109 in July. If Toyota would reinstate an equivalent purchase rebate (less the tax credit, which the buyer would get on their own taxes) then people who prefer purchase would have a viable option. As it is today, you would have to be stupid or have bad credit to purchase over leasing with this deal.

        1. Airton says:

          Bingo, you are spot on. I for one would love to purchase this EV @ an affordable price before the end of the year just in time to claim the tax credit.

          1. acevolt says:

            The lease gives you the option to purchase for $20K in three years.

  9. pjwood says:

    Toyota: “We’re still evaluating the market demand for EVs.”

    I wonder if they’ll try roll-up windows?

    1. Spec says:

      They have a hard lock on the hybrid market these days. And if they really start putting out decent EVs that will be an admission that there is something more advanced available . . . and they’ll make a much lower profit (if any) on EVs. So they are going to ride their hybrid advantage for as long as they can I guess.

  10. MrEnergyCzar says:

    I wish is was 4WD and sold nationwide…

    MrEnergyCzar

  11. manitou820 says:

    I would buy one tomorrow if they offered it for sale in Colorado. I need an EV with the extra room.

    1. Mike I. says:

      There are at least a couple RAV4 EV’s running around Colorado already. They purchased in California and had it shipped to their door for about $700. If you arrange it properly with the CA dealer you don’t pay California Sales Tax (~9%) and you get $6,000 off your Colorado taxes.

    2. Dr. Kenneth Noisewater says:

      If I could figure out a way to get a lease deal structured that would get me the post-CA-subsidy pricing, I’d def consider moving one to Texas.. Maybe some kind of straw-buyer LLC or something..

      1. miimura says:

        The CA sales tax is 1.7X more than the $2,500 state rebate. By “exporting” one to Texas you’re already ahead of the game if you can avoid paying Texas state sales and use tax. The lease will have no sales tax included since you would be out-of-state. CA DMV collects sales tax on used car transfer at the time of registration, so you may run into something equivalent when you try to get your Texas plates.

  12. G2 says:

    I live in Dallas Tx. I am struggling to understand why this vehicle is not available in Texas. I suspect there is large market if there is a way to sell it nationally. Please make this vehicle available in Dallas Texas.