In the market for a new Toyota Corolla? Now is the time. Your friendly Toyota dealer will lease you a well-equipped Toyota Corolla for just $189 a month for three years. With a little shopping around, your monthly payments can be below $150. This may be a great deal for you. “For Toyota, the deal could be a financial disaster,” reports an aghast Freep. “To keep customers coming to its showrooms amid a series of embarrassing recalls, Toyota has been offering some of its best leasing terms in years.”
To make matters even more disastrous, CNW Research noted in a report that one Toyota program requires a credit score of “only 660 to qualify.”
Not that it will be your problem, but Toyota is betting that the vehicles will have superior resale value when they are returned. Experts say they are wrong. Automotive Lease Group estimates that that well-equipped 2010 Corolla leased in a typical 36-month deal that allows it to be driven 12,000 miles a year will be worth about 53 percent of its sale price when its lease term is up. Toyota pegs that at 63 percent. A $1,800 difference in the resale value. The thinking at Toyota most likely is that it’s better to offer a smashing lease than piling cash on the hood. Sell now, pay later.
Anyway. Not your problem. Now is YOUR chance to take Toyota to the cleaners. No law degree or acting skills necessary.