Benefits of Leasing
For many customers, leasing can be more appealing than buying. Your monthly lease payments are typically much lower. Then, after enjoying the most trouble-free two or three years of the vehicle's life, you bring it back to the dealership and either lease another new one or simply walk away. No muss, no fuss, right? With a lease, that new-car smell need never fades away.
Things change. Toyota's leasing programs give you the freedom to change your vehicle when you need, while also meeting your budget needs.
What's Important to You? What Are Your Priorities? It's personal. All of us have different personal styles, objectives, and priorities- in cars, life, and in finances. Car lease-versus-buy decisions must be made with your own lifestyle and priorities in mind. What's right for one person can be totally wrong for another.
Benefits of Leasing Your Toyota
- Lease could be right if you…
- Enjoy driving a new car every 2-3 years
- Want lower monthly payments
- Like having a car that has the latest safety features and is always under warranty
- Don't like trading and selling used cars
- Don't care about building ownership equity
- Have a stable predictable lifestyle
- Drive an average number of miles
- Properly maintain your cars
Leasing lets consumers always have a new or late-model car in the driveway. This has some obvious benefits, including the ability to keep up with the industry's hottest cars and trends. For many consumers, leasing is often a lifestyle or business choice, rather than a financial one.
These same drivers benefit from having the latest safety technology. Plus, newer cars have the latest creature comforts; technology advances faster than the length of a typical car-loan term.
Another benefit of driving a late-model car is fewer repair bills. You're always driving a late-model vehicle that's usually covered by the manufacturer's warranty. If you're leasing to avoid future haggling with your mechanic, make sure the lease term is shorter than or equal to the car's bumper-to-bumper warranty.
Leases are attractive to many car buyers because they can get more car for a lower monthly payment. You can drive a higher-priced, better-equipped vehicle than you might otherwise be able to afford to buy. How is that possible? Lessees only pay for the depreciation on the car, not the entire vehicle. In effect, you're renting the car for the length of the lease.
Leasing can reduce your initial cash outlay. There's often no (or low) down payment required when leasing. This allows for a more intelligent use of cash rather than putting it toward the questionable investment of car ownership since cars are depreciating assets.
There are other financial advantages in leasing. If you use your car for your job, leasing payments can be written off as a business expense on your tax returns. Additionally, lease obligations don't show up as debt on a credit report, which may be important to companies that buy multiple cars for business use.
Automakers offer incentives on leasing as well as big cash-back offers to those who buy. Such leasing incentives are called lease subvention.
Subvention is when an automaker subsidizes a consumer in an effort to move slow-selling cars. Automakers offer subvention deals because they're in the business of putting cars on the street. That philosophy of "move units now, pay later" is directly working to the consumer's benefit, experts say.
Drive the Toyota of Your Dreams - For Less!
Toyota Leasing Frequently Asked Questions:
The amount you pay at lease signing may be lower than the amount you pay at the beginning of a finance contract.
- first month's payment
- acquisition fee
- refundable security deposit
- taxes and fees
- capitalized cost reduction (similar to a down payment)
The total allowable mileage disclosed on the lease agreement is calculated by dividing the number of months in the term by 12 and multiplying this amount by 15,000 (standard lease) or 12,000 (low mileage lease). For example, a standard lease with a 36 month term is calculated as follows: 36 month term divided by 12 = 3 years; 3 years multiplied by 15,000 miles = 45,000 total allowable miles.
If you use your lease vehicle for business, you should consult with your tax advisor regarding potential tax benefits.
- COLLEGE GRADUATES
If you received your degree within the last two years, you could qualify for a $500 rebate on the lease through your Toyota dealer and Toyota Financial Services (TFS) on select new Toyota vehicles.
- MILITARY REBATE PROGRAM
You serve us. We'd like to return the favor. In appreciation of all that you do, Toyota is offering a special $500 rebate to eligible inactive and active duty personnel.
- BUSINESS SOLUTIONS PROGRAM DETAILS
Selecting the right financing is as important as choosing the right vehicle. Whether you own a home-based business, are a general contractor or run a large corporation, our flexible programs can help you obtain the Toyota vehicle you need with the right leasing options for your business.
- WHAT IS IFINANCE?
Limited credit? No worries. Through a participating dealership, our iFinance Program can help you into a new Matrix or Yaris without a co-lessee.
If you drive 12,000 miles or less each year, you could have lower payments. All new Toyotas are eligible.
Qualified repeat TFS customers enjoy special benefits with the Encore Program.
WHAT ABOUT END-OF-TERM CHOICES?
You have important options at the end of your lease.