All vehicles depreciate over time. A lease recognizes this fact upfront. Monthly installments are calculated on the difference between the vehicle’s original value and its expected value at the end of the lease term. It’s like actually knowing your trade-in value up-front. One of the major benefits of the leasing approach is a lower monthly payment based directly on your driving needs. With no major cash outlay and lower monthly payments you now have more money available to put towards another day to day living needs.
Reasons Why You Should Consider Leasing
- Lower monthly payments;
- Drive a more generously equipped or expensive vehicle than otherwise available with other financing alternatives;
- You now have the opportunity to address lifestyle needs/changes without having to depend on the market value of your car or truck;
- Kilometre options to match your driving requirements;
- Should you decide to purchase your leased vehicle at the end of your term, you have a guaranteed future vehicle value regardless of economic conditions;
- No upfront taxes;
- Drive your car when maintenance costs are at their lowest;
- Insurance loss protection (GAP); and
- Similar payments compared to long-term financing.
Risk of Ownership vs. Leasing
Over time, a loan or cash customers are subject to out of control factors that cause their vehicle to decline in value. Mileage, condition of vehicle, economic conditions, vehicle popularity, discounted models, price of gas, and collision damages, all contribute to the buyer’s risk on resale. When you lease, your only concern is mileage and vehicle condition. And these concerns can be mitigated through various Toyota programs such as our “Wear Pass” package designed to control excess wear and damages to the vehicle and our “Extra Care Protection” package that provides comprehensive warranty coverage for the entire term of your lease plus many more. In the end, customer responsibilities are considerably reduced when leasing as compared to financing a vehicle.