I Lease a 2021 Toyota Corolla Hybrid. Here's How Much It Costs per Month

The Toyota Corolla is one of the best-selling cars ever. It's affordable, safe, and gas-efficient. The hybrid is even more efficient, clocking around 600 miles for a full tank (last time I checked, a full tank cost me $50 -- way less than my old Ford F-150).

My total monthly costs come out to about $409.40. That includes lease payments, insurance, maintenance, and fuel. I'm more than happy with that number. Here's a mini summary of my plan:

• 36-month lease term
• 10,000 miles per year covered

Thinking about leasing a popular, affordable, gas-efficient car? Good on you -- interest rates are up, so if there's ever a time to save, it's now. Here's a quick in-depth breakdown of how much it costs me to own a 2021 Toyota Corolla Hybrid.

Monthly lease payments: $203.47

Monthly lease payments are low, at $203 per month. I've set up automatic payments through the Toyota Owners portal, which deducts the money from my checking account. I've forgotten to pay the monthly fee before, so I'm glad I set this up.

When I started leasing my Corolla, the average monthly lease payment for drivers with around a 700 credit score was $590, according to Experian data. Even including insurance, I pay over $200 less -- a perk of driving a low-MSRP vehicle.

Another thing: It's typically cheaper to lease than finance using a short-term loan. A Ford F-150 costs $986 to finance but only $634 to lease monthly. That's a good deal if you plan on upgrading to a new car every three years or so.

Insurance: $155.93

Monthly insurance payments are low, totaling $156 per month. I'm insured through Geico and bundle coverage with my brother to save us money. I don't bundle multiple insurance types, but doing so would lower my monthly payments further.

Toyota doesn't require me to pay for expensive insurance. You can scrape by with the bare legal minimum, but I spend a little extra to ensure I'm covered in an emergency. The best car insurers keep payments reasonable. 

Maintenance: $0

The Toyota Corolla Hybrid came with a standard maintenance plan, which Toyota offers to all new vehicle owners. It's called ToyotaCare and covers all the usual stuff (oil changes, tire rotations, and a general inspection). It's free, and you get called every six months.

Annoyingly, most lease plans expire after ToyotaCare. So once you've driven two years or 25,000 miles, you've got to start paying for maintenance. (I've been putting this off -- oops.)

Fuel: $50

The Hybrid is a gas-powered vehicle, so you refuel it at the Chevron or Arco like everyone else. It comes with a battery that charges when you brake, extending your mileage. I drive around 600 miles per month, which is how much I get on a full tank.

No, I'm not a Costco member -- but if I had a Costco membership, I'd save a bit on refuels. Costco gas is typically $0.05 to $0.20 cheaper per gallon than the competition. Members who pay with the Costco Anywhere Visa® Card by Citi get another 4% back on top.

Other fees

Other fees include the annual registration fee required of all active drivers, sales taxes, and down payments. You'll want to keep these in mind when shopping around. They can make a sizable impact on your annual budget -- I paid $306 to renew my registration this year.

How to lower your monthly payments

You can lower your monthly payments by paying a higher upfront deposit. You can often bundle car insurance with a family member if you share the same insurer. And you can bundle car insurance with home insurance to save 10% or more on both.

Owners with a credit score above 700 typically get better deals on leases and loans. It's one of many perks offered to those with good credit. You can raise your score by making timely credit card payments and keeping your balance low.

Shop around before making a purchase. Sometimes, you can find deals through local dealers. Mine offered a $500 discount to recent college grads, which influenced my decision. 

My takeaways: The most significant monthly expense for the Toyota Corolla Hybrid is the lease, followed by insurance. Bundling lowers the cost of insurance. And leasing a hybrid can save you big on gas.