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javaski t1_ja5uw13 wrote

Reply to comment by Jeom049 in Is this a Good Car Lease deal? Toyota Corolla LE 2023 by Jeom049

This answer helps clear up the concern about being under water on the financing in 3 years. Do you really think the market is going to tank so greatly that in 3 years a used Corolla similar to the one you have will be worth half what they currently are?

Listen, I’ve leased many a car (generally only where it was an insane deal and the buyout price was good) but what people are telling you is sound. Just finance the car and sell/trade in when you’re ready. Financing also gives you the flexibility to do it 2 or 4 years as well.

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Jeom049 OP t1_ja5webs wrote

the same corolla I bought for 15k 19 SE with 21k miles, was worth 18,500 and had 34k miles when I sold it a year ago. they are still at those numbers and some even have higher mileage. You think the prices are gonna hold for the next 3 years? I honestly doubt it, and we seem to be approaching a huge crash in the next year or so. That's what im speculating on. If the market tanks and I decide to finance the corolla, I would be owing around 14-15k at the end of the 3rd year, I'm worried I won't be given my payoff amount for the car at the least...thats what is making me consider leasing.

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javaski t1_ja78fba wrote

The other poster did the math on it and you wouldn’t owe more than $10k on it via financing. Also, if you use a local credit union financing, you might be able to get 6-8%.

A big crash of the used market would still make it worth $12-14k used (instead of $20k).

There is almost no scenario where leasing makes more sense for this specific set of circumstances.

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Jeom049 OP t1_ja7emnn wrote

How about changing the interest rate once the contract is initiated. What if rates drop by the 3rd or 2nd year, how can I get a lower rate on my current loan

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javaski t1_ja7fjra wrote

Most credit unions consider "new" vehicles as anything within a certain number of model years - for example through December last year my CU that I have for my auto loan considered a new vehicle to be 2021 and newer - even when 2023 was coming out. Actually, even looking at older car loans, they have held interest rates across them at the same rate.

Definitely do NOT use dealer financing unless it's an amazing deal. Go to local credit union and get preapproved for an auto loan. Don't say anything about the financing while looking at a vehicle, just sort of say thinking about financing, etc.. Then negotiate the price of the vehicle and say you'd like to use your own financing.

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