If you want to lease, the Toyota Prius Prime plug-in hybrid may possibly cost substantially much less to travel than the Prius hybrid. This, of course, is dependent on where you live and which incentives Toyota could be incorporating into the leasing offer.

According to the partner website CarsDirect, the lease cost for the Toyota Prius Prime SE is only $435 per month, with an additional payment of $435 due at the time of signing. This is for a lease that is for a term of 36 weeks and 30 days, allowing for a total of 12,000 miles a year.

The Prius Prime SE has a starting price of $33,445, which includes a location charge of $1,095 and is mostly based on the city of Los Angeles. The total cost of ownership of a Prius XLE hybrid is $31,990, which includes location fees. However, the exact out-of-pocket cost of $435 will result in a monthly lease payment of $509 for the property.

2023 Toyota Prius

Green Car Stories conducted a review of the 2023 Prius not too long ago and finding a lot to like about it. Some of the things that stood out to them were the head-turning styling, excellent fuel, functionality, cost, and usable back seat. The list of advantages and disadvantages was quite evenly distributed, with the exception of the unimpressive entrance seats, the disorderly interface, and the cabin acoustics. A first drive of the 2023 Prius Prime revealed that it is a stealth electric vehicle that lives up to some of the green-car credentials of the preceding Chevrolet Volt. The Prius Key SE has an all-electric driving range of 44 miles in addition to a combined mileage rating of 51 mpg while operating in hybrid mode once the battery charge has been drained.

Environmentally Friendly Auto Studies has not spent as much time with the Prius Prime as it has with the Prius hybrid. Despite this, the Prime offers a number of benefits that the hybrid does not, including quicker acceleration.

Why Prius Prime lease deals are among the best available today

According to Toyota, this leasing incongruity is made possible with the assistance of federal resources, as reported by Environmentally Friendly Car Research.

“Less than the provisions of the Inflation Reduction Act of 2022, as a leasing company, Toyota Lease Rely on can assert tax credits for leasing battery electrical cars (BEVs) and plug-in hybrid electric motor vehicles (PHEVs) to customers,” it stated. “Less than the provisions of the Inflation Reduction Act of 2022.” “In order to maximise the benefits that customers receive from persons tax credits, we have formed partnerships with Toyota, Lexus, and our private label customer. Leasing will become less expensive as a result of this, and there will be less obstructions on the roads as a result.

It is not required for Toyota to state on customer-going through web pages whether or not it is incorporating the Industrial Vehicle Credit (IRS 45W) into the lease; yet, this element accounts for a major difference in the amount that may be afforded by these two models. According to Toyota, a reduction in the Hire Demand Aspect (RCF) is applied to leases on relevant vehicles based on the customer’s credit score.

2023 Toyota Prius Prime

According to Section 45W, a carmaker may claim a credit rating of up to $7,500 if it is able to provide a motor vehicle for lease and has a captive or related financing firm. The automaker may then pass this credit rating along to the customer in the form of a lower lease payment. In contrast to the Clean Auto Credit (30D), which is only available for the purchase of electric cars, vehicles with a stated value of less than 45W are not required to be manufactured or produced in the United States, and they are also exempt from the value ceiling requirements of $55,000 for vehicles and $80,000 for SUVs, pickups, and vans.

Senator Manchin made an effort to postpone the application of these Inflation Reduction Act (IRA) credits so that leased cars would be required to adhere to the exact same severe U.S. assembly and sourcing criteria. However, he was mostly booed off the stage when he sought to do so.

Some persons who support the leasing loophole argue that this will help level the playing field for individuals who want to participate in the business, which will, in essence, make leased electric vehicles (EVs) as accessible as they are for individuals who purchase EVs with a sizeable down payment. However, keep in mind that Toyota’s cheap Prius Prime lease offer on this vehicle made in Japan is only for those with a “excellent” credit rating. As a result, even people who lease may be up against the same institutional restrictions as those who buy.