You have 8.48% off MSRP in your calculation. Where did that come from?
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Sorry I didnāt explain well. I think MF will be far higher in a few months and it will stay there for a while. So doesnāt that make leasing now better?
Yes, Cezar, thatās exactly my thought. My used 2020 can get about $24000 from carmax, and a new costs the same. Iāve had zero issues with mine, but in a year or so it will need new tires, brakes, maybe battery. No more free service. Yes can buy a secondary warranty which would help any unexpected hits like a transmission problem.
Anyway if I start adding up all these expenses I find getting new looks better and better.
I backed into it by punching in the given figures, then adjusting the MF (which was not provided) to get the payments to match
Not sure you can get this lease deal. Iāve been looking at a Corolla SE Hatch also (among a few other Toyotas) and MSRP is going to be an issue (although I see softening now) but do those online Toyota offers even exist?
Maybe Cody or Jim can answer this but does a $299/mo lease exist? Iām on Codyās site and there is $3k markup on a Hatch SE so the lease comes out to $461.40/mo for 39/10k/56%res. I put those numbers into the calculator to match up and backed out the $3k mark up and still ended up at $372/mo. Using your lower MSRP and discount, it gets closeā¦ MF is .00195 from the backwards calc (sorryā¦ I still donāt know where to find the MF on Edmunds) but Iām assuming that is close to what TFS is using although yours is higher.
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$299 $0 Due? Nope. $299 Before TTL? Maybe.
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So, your calc has the net cap as the selling price. Thatās what is messing up your numbers. Net cap is after down payment. That then works perfect with the .00155 you found.
Now just gotta account for your local taxes and MVC fees. But I have serious doubts any dealer is discounting a Corolla hatch nearly a thousand bucks, unless there is trunk money??
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Yes, itās 299 before TTL. As advertised anyway, it seems like a fake offer
No sir, thatās $299 PLUS $1999 before TTL
Donāt mix the $1999 into the TTL, That deal is really $356 Plus TTL.
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Brilliant, thank you!
Yes, those numbers are straight from toyota.com but I am thinking it is a fake offer, no dealer is going to go with that discount (unless maybe Toyota corporate or Toyota financial is making up the difference? But I donāt see why they would, everything is selling at msrp+ so why incentivize)
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Ok I am confused, if thatās the case it seems like a bad lease. But the calculator showed it is a bit better than finance, even given the 3.9% APR rate
I can only see āregionalā offers (Iām in SoCal), and I donāt see one for a Corolla hatch lease (only finance).
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Itās there under 88901, just use Incognito and change your zip
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I wonder if Iām thinking correctly. A big plus for leasing is if there is an accident, you are off the hook. Assuming you did 0 DAS you only pay for each month of use. Also at the end if used values plunge, you can walk. Also I like not paying tax on the part Iām not using (and interest on that tax since I would finance 60 months)
Therefore, when you punch the numbers in the calculator, unless buying is clearly cheaper, you should choose the lease.
Which, as far as I can tell, boils down to MF vs APR and the lease fees that buying doesnāt have. The rates are about the same so leasing still makes sense in todayās tougher environment.
Or if you plan to keep the car long term, then buy.
All good points, thank you.
I guess I fixated on the carmax offer, thinking wow great I can trade it for a new at the same price. I also did a basic search on used car rates and it was so high 9-11+ percent for excellent credit that I was turned off.
But looking further into the suggestions of all you helpful people, it seems like a credit union may loan at 5% or even I saw one at 2.49% on a used loan which is hard to believe, what with Toyota at 3.9% APR. So Iām thinking about keeping it again.
Another factor is I think used cars will normalize, so I want to cash in the value of mine and flip it into a new one which, at msrp, is fairly close to normal (I donāt know if the under msrp days will ever return, I read that the makers want to keep things this way)
Maybe I need to see some hypothetical numbers, but arenāt used and new car prices somewhat related? And your new Corolla becomes used the minute you drive it off the lot. So, if used car prices plummet, then what just happened to the actual resale value of your new, leased Corolla?
Again, if you want a new car, go ahead and get one. I just donāt think the mental gymnastics youāre using to justify it from a financial perspective (esp for a Toyota) make much sense, TBH.
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At $24060 MSRP, with a small discount, you can hit that $299/mo+tax number using the .00154 MF, 56% residual and $1999 driveoff.
Depends on your dealer/DMV fees but itās within a 2-3% discount off of MSRP.
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Calc posted already. It needs a $1k discount, or about 4%. That is extremely unlikely right now.
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So I just signed a lease deal last night that came close enough to this number which is ironic because I was the skeptic. Not quite a 4% discount but if you factor in that I did not have to pay for the dealer adds (tint, alarm, paint protection, brake alert (which is a weird add), door edge and handle guard, etc) and was slightly under MSRP on a just arrived 2023 Corolla SE hatchā¦ that could indicate better discounts are coming.
Maybe I just got lucky that one of the brokers here had that dealā¦ Iām just happy I beat the blessings!
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So how much off MSRP was it?
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Care to name the broker or post a redacted contract?
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