The decision to finance or lease a vehicle is often a matter of personal preference. You know that if you finance your vehicle, you own it and can enjoy all the benefits of ownership, but what about leasing? In order to help you decide which is best for you, here are a few things that you should know about leasing.
Leasing advantages:
- Leasing typically provides for lower monthly payments and lower up-front costs than you would pay on a loan for the same vehicle
- When you lease, you only pay tax on the monthly payment. When you finance, you pay taxes on the full purchase price of the vehicle
- Leasing gives you choices at lease end:
- You may purchase the vehicle at the Lease End Value indicated on your contract
- You may return the vehicle as provided in your lease
- You may lease or finance another Toyota vehicle
- Toyota Financial Services offers convenient financing and great rates should you choose to purchase the vehicle at the end of your lease.
Leasing disadvantages:
- You do not own the vehicle
- You do not build up equity in the vehicle
- Excess kilometre and wear and tear charges may apply
- Lower monthly lease payments may result in higher carrying charges than a loan
Click here for lease vs. finance comparison.
Finance your Toyota
When you park your Toyota in the driveway, you want the satisfaction of owning it and the confidence of knowing that it was made possible through the quality financial services that we provide.
Financing from Toyota Financial Services will make it happen with:
- Competitive rates
- Flexible terms of up to 72 months
- Easy-to-read contracts that fully disclose all the details you need to know
- Consumer-friendly, simple interest financing
- Full or partial early repayments at any time without penalty
- Convenient, automatic monthly payments through our Direct Payment Plan
Lease your Toyota
Leasing is a great way to get into the Toyota of your choice. Toyota Financial Services (TFS) remains committed to helping you to do just that. Here are just a few of the benefits and advantages that leasing with TFS delivers:
Lower Rates, Lower Taxes
With a lease, you only pay for the portion of the vehicle that you actually use - so monthly payments are lower than for a loan for the same car and term. In addition, leasing rarely requires a down payment. And, you don't pay an upfront tax on the entire value of the vehicle - just on the monthly payment.
More Car, More Often
A lower monthly payment often means that you can get 'more car' for your money. In fact, many customers find they can lease a new vehicle for less than the finance payment on a used vehicle! And TFS can structure the lease to suit your trade cycle - so that you can drive 'new' more often.
Less Maintenance, More Protection
If you lease for a term that coincides with the length of the manufacturer's warranty, repairs will always be covered. In addition, leases automatically include Gap Protection - where, if your vehicle is damaged beyond repair, TFS will cover the difference between what you owe on the lease and the amount of your insurance settlement.
More Kilometres, Fewer Hassles
24,000 kilometres per year are included in your lease; and, you can buy additional kilometres up-front at a reduced rate. In addition, the trouble and expense of selling a used vehicle are eliminated. TFS assumes responsibility if you choose not to buy - and there are no acquisition or disposal fees if you return the vehicle within the lease terms.
Options not Obligations
At the end of your lease, you have the option to purchase the vehicle at the Lease End Value indicated in your contract; return the vehicle as provided in the lease; or lease or finance another Toyota vehicle. It's your choice.
Competitive Rates, Flexible Terms
TFS offers competitive rates and flexible terms - all set out in plain language in a closed-end lease that discloses all details and guarantees the lease-end value of your chosen vehicle. TFS also offers convenient financing and great rates should you choose to purchase the vehicle at the end of your lease.
Frequently Asked Questions
Finance
What is Simple Interest?
Simple Interest financing is the consumer-friendly way to calculate interest. Like the name implies, the concept is simple. If you pay a day early, you are credited for a day's interest. If you pay a day late, you pay a day's interest.
Lease
How many kilometres does Toyota Financial Service' standard lease provide?
24,000 kilometres per year.
What if I drive more than 24,000km per year?
You have the option of purchasing extra kilometres at a reduced rate up front. If you are not sure, you can buy extra kilometres at lease end at our standard rate. If you drive significantly more than the standard allowance, financing may be a better option for you.
What is Guaranteed Asset Protection or GAP protection?
GAP protection is automatically included in all Toyota Care Leases. If your vehicle is declared a total loss, GAP will cover the difference (the gap), after you pay the deductible, between what you owe on the remainder of your lease and the amount of your insurance settlement. You are only responsible for excess kilometre charges and any pre-existing damage to the vehicle.
What is a Closed-End Lease?
All Toyota Care Leases are closed-end leases. This means you make a set number of payments over the term of your lease and the leasing company guarantees the "price" or lease-end value of your vehicle at the end of the term. Factors such as economic conditions, vehicle popularity, colour and equipment can all affect the value of a used vehicle and can result in the market value being lower than the lease-end value at the end of your term. By guaranteeing the lease-end value, Toyota Financial Services assumes the risk of any loss on the used vehicle. So, if your car is worth less than the lease-end value, you can simply return the vehicle to us. You are only responsible for charges at lease end that may result from excess wear and tear or exceeding the kilometre limit set out in your lease contract.
What is Wear and Tear?
The customer is responsible for the vehicle's overall condition as detailed on the lease agreement (appearance, mechanical condition, etc.). Charges will apply to kilometres that exceed the provisions in the lease.
