Automotive

Looking to lease 2017 Corolla iM. Is this a good deal?

  • Last Updated:
  • Aug 25th, 2017 10:45 am
[OP]
Newbie
Aug 23, 2017
3 posts

Looking to lease 2017 Corolla iM. Is this a good deal?

$245 monthly lease for 60 months @ 0% interest (loyalty program, one car already leasing with dealership)

Originally MSRP $23,375 (no add ons, 24,000 km allowance), minus $1000 cash incentive, plus $1700 fees and freight, total to around $24000.
Monthly payment was $257.81.

Is this a good deal? It's my first car, so I want to do some research. What's the deal you got?
Last edited by rrrrae on Aug 24th, 2017 9:24 am, edited 2 times in total.
14 replies
Deal Fanatic
User avatar
Jul 12, 2003
9758 posts
2195 upvotes
Markham
We can't tell you if the price is good if we don't know if you add on any options or pkg on it and the km allowance.
But 0% is very good of course.

The only thing I won't do I leasing a car for 60 months, warranty on major components of the car is 36 or 48 months? Then you will be responsible for any repairs IF anything goes wrong. (I know it is a never die Corolla, but you never know).
At 60 months, a lot of wear and tear stuff will need to be replaced, tires, brakes, etc...why spending your money to replace parts for the car that is not yours, end the lease at 36, 39 or 48 months and lease another new car after that.
Last edited by MP3_SKY on Aug 24th, 2017 10:22 am, edited 2 times in total.
Retired Forum Moderator February 2009 - June 2015
Deal Expert
User avatar
Jul 30, 2007
22998 posts
8006 upvotes
Toronto
For warranty purpose, consider the 36 months lease instead.

Same car
36 months lease
54% residual
20,000km per year
$0 down
$5.5% off MSRP of $23,375. Leaves dealer margin with around $360, unofficial
$1000 factory credit
$1742.50 fees rolled into payment
0% interest rate

Projected monthly - $283.60 + taxes - OTR
Due on delivery - first + security (if required) + PPSA + license
Deal Fanatic
Oct 1, 2004
5589 posts
432 upvotes
Toronto
booblehead wrote:
Aug 24th, 2017 10:36 am
For warranty purpose, consider the 36 months lease instead.

Same car
36 months lease
54% residual
20,000km per year
$0 down
$5.5% off MSRP of $23,375. Leaves dealer margin with around $360, unofficial
$1000 factory credit
$1742.50 fees rolled into payment
0% interest rate

Projected monthly - $283.60 + taxes - OTR
Due on delivery - first + security (if required) + PPSA + license
How much do you think I can get the 2017 Corolla LE for? Website is quoting $257 all in for 60momth 16km. Dealer said best price is $245 if I lock in before end of the month, considering sept incentives might change and stock is getting low.
[OP]
Newbie
Aug 23, 2017
3 posts
Your deal is pretty good, if the profit margin is $360. I did my own calculation, putting in 3% profit margin which is $651.
But then again, there are other factors in place.
Deal Expert
User avatar
Jul 30, 2007
22998 posts
8006 upvotes
Toronto
$245 ... i am assuming that's before taxes and all fees rolled into payment. If this is the case, then dealer is offering you $420 or 2% off MSRP. No factory credit for this car in August as based on Toyota.ca.

Again, not sure why you would opt for a 60 month lease and it would be charged at 2.49% interest and the out of warranty issue. Based on the dealer quoted figure, your interest paid on this 60 months lease would amount to $2,250 (13% taxes included).

If you want to counter and use 5.5% discount, then you would be looking at $231 + taxes = $261 OTR per month for 60 months
Last edited by booblehead on Aug 24th, 2017 11:10 am, edited 1 time in total.
Deal Expert
User avatar
Jul 30, 2007
22998 posts
8006 upvotes
Toronto
That's not my deal. I am just calculating what could be a favorable deal for you, if you can be aggressively pursuing it.
rrrrae wrote:
Aug 24th, 2017 10:59 am
Your deal is pretty good, if the profit margin is $360. I did my own calculation, putting in 3% profit margin which is $651.
But then again, there are other factors in place.
[OP]
Newbie
Aug 23, 2017
3 posts
$245 monthly payment (fees included but before tax). So you are correct. But 60 months lease, with loyalty program, has 0% interest. $1000 incentive is still available for 2017 corolla iM model.

I know 60 months is long but i want to pay the lowest possible monthly payment.

Thanks for your detailed breakdown by the way!
Deal Expert
User avatar
Jul 30, 2007
22998 posts
8006 upvotes
Toronto
^ then you should consider buying it ... no point of having to pay out any out of warranty items, new tires, brakes, etc. and give the dealer back the car with those being done. just saying.
Deal Fanatic
User avatar
Jul 12, 2003
9758 posts
2195 upvotes
Markham
booblehead wrote:
Aug 24th, 2017 11:27 am
^ then you should consider buying it ... no point of having to pay out any out of warranty items, new tires, brakes, etc. and give the dealer back the car with those being done. just saying.
Exactly.

But some only look at short term cost. By leasing it longer, it may save you $20-$25 a month?
What if after 4 years, you need new tires and new brakes. Those are easily $1500 in total (plus anything unexpected outside of warranty period). Putting it all together, you are not really saving money but more trouble and time spent to get it maintain..
Retired Forum Moderator February 2009 - June 2015
Deal Guru
User avatar
Mar 1, 2008
12576 posts
2088 upvotes
Toronto, Ontario
I would finance the car at 0% for 84 months instead. It's an open loan so you can pay it back at any time and if after 5 years you decide you don't want to keep the vehicle anymore, at the very least you still have some equity to work with in 2022. As other said, with a 5 year lease, you are most likely going to need new tires and brakes. Since it's a lease, you would have to use OEM parts too, not crappy aftermarket parts. There is also the fact that your vehicle will probably have some rock chips and slight damage where you need to pay a penalty to return the vehicle. Sure you can get the lease guard, but I don't buy lease guards and you didn't mention it in your posts either. Plus, since it's a Toyota, I would estimate the vehicle to be worth at least $10k in 5 years time. I'd be surprised if the car is worth only $8k in 5 years. Yes it's a hatchback so the residual and market value may be lower but it shouldn't be too bad.
Deal Fanatic
Feb 9, 2006
9992 posts
4077 upvotes
Brampton
I have to ask did you try another car than the iM? Eg the Civic Hatch?

Personally speaking the car is really anaemic when it comes to get up and go and handling is very meh. Very similar to the old Matrix it replaced, but at least that made up for it in utility.

I only say these things because it's your first car, and people have a tendency to "outgrow" their first car quickly when they start to discover the car's short comings.
Deal Expert
User avatar
Jul 22, 2006
21495 posts
2288 upvotes
I had to get a second car ASAP and ended up leasing a Corolla IM 6 speed around May 2017 :). YOU MUST GET MT because the cvt is just HORRIBLE, you will either enjoy or hate the short gears they put into this car...

Leased for 48 months, 0% interest, 80k max for $23,884.00 (fees taxes etc all included). I'm paying ~$312 per month OTR which was the cheaper than the Honda or Mazda3.

The IM has around 12k now and I think it is a perfectly fine first car.... It's under $24k and you get a decently optioned Toyota which will be mechanically sound for the leased term...

PS - these cars are the Toyota Auris in Europe and dates back to 2012!
Last edited by george__ on Aug 25th, 2017 2:17 am, edited 3 times in total.
Deal Addict
Apr 5, 2016
3095 posts
1791 upvotes
Calgary/Vancouver
Oh man, buying based on monthly payments is such a bad financial decision. Need to look at overall costs. This is how people get caught with bad loans.
Current Fido customer.
Ex Koodo customer.
Deal Addict
Jan 8, 2007
2228 posts
728 upvotes
Calgary
I leased a Tundra for 5 years and it's no different than financing it for 84 months. You can pay it out any time you want. In fact I sold it after 2.5 years since it had crazy equity and I wanted something different. Not sure what the residual is after 5 years on an iM, but the OP certainly doesn't have to turn it back in at lease end.

Top