Will Toyota Crush the RAV4 EVs After Lease Return?

Toyota has switched to a lease incentive. Seems to me they would offer both lease cash or a purchase rebate unless they plan to crush the cars off lease.

For purchased cars, manufacturers are required to keep parts around for 10 years. With crushed lease-returns, that means less Tesla parts and other customized parts to keep around.

By my estimation, all new sales are leases. Prior to this incentive, I bet no more than half were leases. Maybe only 300 or so of these cars were purchased.

It will be much easier to deal with parts for 300 than ten times that amount. With the antagonism experienced toward their regulatory hassle of making compliance cars, I think Toyota may crush these to avoid further losses.

Has anyone tried to buy out their lease successfully?

They cant do that. The leases have the option to purchase on them. In three years there will probably be something better anyways!

crxpilot said:

They cant do that. The leases have the option to purchase on them. In three years there will probably be something better anyways!

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That's what got Toyota in trouble with the first generation Rav4 EV; they had intended for them to all be closed end leases, a la Honda Fit EV today, but somebody screwed up and let some be leased with open end contracts. Otherwise, Toyota intended for them to all be taken off the highways (but probably leaving electric utilities and other fleet leases intact).

Anyhoo, Toyota certainly can crush them as they are turned in, but I bet they don't. I say that only because they offered them for sale from day one. Also, contrary to popular belief, there is no federal law to keep parts for 10 years.

Are the leases open or closed ended? Has anyone read their contract?

Consumer leases are closed-end leases for the most part. Toyota's lease came with the option to buy.

TonyWilliams said:

Also, contrary to popular belief, there is no federal law to keep parts for 10 years.

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There is a California law for parts and service, 7-years from stop-sale (discontinuation). So if the last Rav4 EV is sold in 2014, Toyota is supposed to keep parts until 2021.

saintyohann said:

TonyWilliams said:

Also, contrary to popular belief, there is no federal law to keep parts for 10 years.

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There is a California law for parts and service, 7-years from stop-sale (discontinuation). So if the last Rav4 EV is sold in 2014, Toyota is supposed to keep parts until 2021.

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Do you have a link?

saintyohann said:

TonyWilliams said:

Also, contrary to popular belief, there is no federal law to keep parts for 10 years.

Click to expand...

There is a California law for parts and service, 7-years from stop-sale (discontinuation). So if the last Rav4 EV is sold in 2014, Toyota is supposed to keep parts until 2021.

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I have yet to see this in writing on a state or federal level. Where did you get this information?

I work for a large company in California and we have to follow that law, in other states we only have to for 5 years.

This is what we have in California:
"Every manufacturer making an express warranty with respect to a product described in subdivision (h), (i), (j), or (k) of Section 9801 of the Business and Professions Code, with a wholesale price to the retailer of one hundred dollars ($100) or more, shall make available to service and repair facilities sufficient service literature and functional parts to effect the repair of a product for at least seven years after the date a product model or type was manufactured, regardless of whether the seven-year period exceeds the warranty period for the product."

i LEASED to get the cash incentive and unless there's another RAV4EV with a better range. I will definitely buy THIS.
Considering that the 2014 RAV4EVs will be exactly the same, i doubt it that we''ll see something NEW ( Electric) by 2015/2016.

We will probably see some FCEVs ( Hydrogen Fuel Cell Electric Vehicles). Toyota announced releasing thousands by 2020.

mark_rivers19 said:

Toyota announced releasing thousands by 2020.

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The question is: Who is going to buy it? I certainly won't buy a hydrogen powered vehicle until the hydrogen is produced sustainably and cost effectively and is as convenient as a battery electric car. I don't think it's going to happen in my lifetime (40-50 years).

miimura said:

mark_rivers19 said:

Toyota announced releasing thousands by 2020.

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The question is: Who is going to buy it? I certainly won't buy a hydrogen powered vehicle until the hydrogen is produced sustainably and cost effectively and is as convenient as a battery electric car. I don't think it's going to happen in my lifetime (40-50 years).

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Oh, they aren't planning for 40-50 years. They are planning on making their CARB-ZEV credits in the next dozen years:

2012 : 0.79%
2015 : ?? %
2018 : 2.00% (both hydrogen w/300 miles & 100 mile cars @ 3 credits each car)
2019 : 4.00%
2020 : 6.00%
2021 : 8.00%
2022 : 10.0%
2023 : 12.0%
2024 : 14.0%
2025 : 16.0%

You're right, the next dozen years are really steep for ZEVs. I was being even more pessimistic by mentioning my lifetime.

I am willing to bet that Toyota will be unable to meet the current schedule of ZEV obligations with only Hydrogen Fuel Cell Vehicles. I think the financial picture will develop such that they will back-track and also offer battery electric vehicles at some point, probably around 2020. The reason that I say this is that other manufacturers will continue to offer increasingly improved battery electrics and fast charge infrastructure for them. In comparison, the hydrogen vehicles and ecosystem will not be appealing to consumers.