Can lease still be better than purchase?

Thanks to this amazing community, I got a free Toyota corolla a couple years ago. I have about four months to figure out what is next.

I spent the last couple months getting up to speed on the car scene and here. It seems everyone is saying don’t lease. I like leasing because I only pay for what I use, only taxed on use not full value, and having the option to buy or walk. Obviously this time the option is great to cash in, but maybe next time it will make sense to walk.

Anyway, here is a deal that I think still makes sense to lease, am I missing anything?

I believe the residual is low but used the same value for the purchase Calc.

I punched in all the numbers based on the below. In order to get the payment to match I had to use MF .0024 but edmunds has .00155 for top credit which I have. If I punch that in the payment drops to 270/month which is even clearer pro lease.

I like my car, it has maybe $8000 of equity, is it better to buy it vs selling to carmax etc and getting a new copy? I think about needing new tires, brakes, etc and would rather get a new warranty, free service, etc. And if I can buy at msrp, it is essentially the same price as carmax will pay for my used one.

If anyone has a broker to recommend, I will register in NV but spend lots of time between LA and San Diego. Would pick up in Utah Arizona or bay area for right deal.

Thanks everyone!

**Toyota lease details: (**hatch, I have a sedan but am fine with the change)

Qualified lessees can lease a new 2022 Corolla Hatchback Corolla Hatchback SE 2.0L 4-Cylinder (CVT) Model 6272 for $299 per month for 36 months with $1,999 Due At Signing. Based on 12,000 miles/yr. Security Deposit waived. Lease excludes tax, title, license, registration fees, and dealer options and charges.

MSRP of $23,609, net capitalized cost of $21,608, and a lease end purchase amount of $12,749. $1,999 Due At Signing includes $1,050 customer down payment, first month’s payment of $299 of the 36 month lease offer, and $650 Acquisition Fee

Also I don’t need 12000. Actual use has been 7000. I’d be fine with 10000 as I might drive more in the future. I wonder if they would adjust the lease and drop the payment even more

Did you include the thousands of dollars of stuff left off when you were trying to match the offer numbers?

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I did the best I could. Also aren’t those the same whether lease or buy? Other than tax which is on payments for lease or on full amount on buy

Taxes are different, fees are different, dealers may add different mark ups, etc.

The moral of the story, however, is that if youre going to try to compare lease values, you need to compare against an actual real lease, not the manufacturer advertised one leaving out tons of fees, dealer contributions, etc.


You want a Toyota in so cal? @Jeff_BeachCitiesAuto is your guy

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Ok thanks. I will head down to a couple dealers who claim they sell at msrp to get real details.

The calculator has due at signing $2,719

1st Month Payment: $329
Down Payment: $1,000
Upfront Fees: $1,216
Upfront Taxes: $174

(As instructed here, I would prefer no down payment, would try to get that rolled into the payments)

Thanks, I will message him!

and @Cody_Carter

Cody has a website with pricing


Cody won’t sell at msrp nor let him register it out of state


Thank you all for your help!

Oh I didn’t notice that part, I saw the SoCal thing.

Yes Cody’s policy is no OOS.


Out of state purchase works. Just not lease.

The msrp part is a problem :smiling_face_with_tear:


Why drive there, rather than deal by e-mail first?

To me, if your current car is in good shape and you don’t drive a ton, then I don’t really understand why you wouldn’t buy it out, personally.


Ok I’ll try email. But usually when I call, they tell me I need to come in for the actual prices.

Yes, I am considering buying it out. But I look at its current value and if I can get one at msrp for the same price I feel I should. New warranty, free service, slightly updated features, not paying tax on $16000 to purchase (assuming I find a lease that makes sense. Otherwise yes I’d rather pay tax on 16k than $25000)

Another thought I’ve had, if rates are going to keep going up isn’t it better to buy right away?

And also, although MF is horrible now compared to a year ago, won’t MF actually look quite good in a year or so? Does that make leasing today a better option (because lease and purchase will both be more expensive in a few months) or am I thinking wrong?

Buyout your current car with a CU and get the warranty the CU offers
Probably a better fit than buying a new car


The point of leasing is to underpay for what you use, or at most pay fair value. Not to overpay for what you use, which is mostly what’s been happening lately.


Does that matter that much on a car that’s probably reliable and cheap to maintain? A new car depreciates faster than does an older one (and a new car will certainly depreciates much faster than a car that was free).

I don’t understand why you think a lower MF a yr from now would make leasing a better option today.

At any rate, you need to make a decision in 4 mos, right? And the lease lasts 3 yrs, at a minimum, no? No one knows what the MF will look like a yr from now, whatever the MF will be 1 yr from now doesn’t seem like it’s relevant to the conversation, and I don’t think Toyota ever giving away $ the way other brands did.

To me, I think you are trying to justify getting yourself a new car. If you want a new car, by all means, get one. But if you literally got a free Corolla a few yrs ago (and I’ll assume it was relatively new) and if that car has not been troublesome, I cannot imagine why, from a financial perspective, you would want to give that car up.

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If he has a good amount of equity if he keeps the car he is effectively buying an overpriced used car vs getting close to fair value new car

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