Total cost to buy the car after 3 years is $23500.
Total cost for a 3 year $21k loan at 6% is $23000,
for a P&I of $639.  Better rates (such as 5% are
available, and other terms, such as 5 year).
If you lose the $2000 tax deduction at 28% tax level
is $560.  So the lease program will on the surface
cost you approximately $1k more for the same car,
but allow you to get out of the car easily after 3 years
if better technology comes along, etc.

----- Original Message ----- 

> NTEAA members and friends,
> If you have been interested in the Prius but could not stand
> the steep price, this may be a deal for you. Check out page
> 8A of the Dallas Morning News October 10th. Toyota is
> leasing the Prius for 269/month 36 month lease.
> 
> They want $1968 at signing. Purchase option after the lease
> is $11,847.  This car normally sells for around $21,000
> (depending on options).
> 
> Warning: If you lease the car I'm not sure you'll be able to
> claim the $2,000 tax deduction. Check before you lease.
> 
> Regards,
> Paul Schaffer
> [ http://geocities.com/nteaa/ ]

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