Leasing can offer some of the best deals in the world – the vehicle which you want, at a monthly payment which becomes more affordable than buying. Toyota Financial Services has made leasing programs help make it happen.
With a lease, you have to pay less cash upfront and can enjoy lower monthly payments than you would if you were financing your own vehicle. You can then turn the vehicle in at the end of your lease, without having to worry about the selling your vehicle till the end of the lease.
Costs at lease signing. The amount which you pay at the signing of lease might be lower than the amount you pay in the beginning of a finance contract. This amount may includes the following:
First month's payment
Acquisition fee
Refundable security deposit
Taxes and fees
Capitalized cost reduction (similar to a down payment)
Purchase option. You will have the option to purchase the lease vehicle during the lease or at the end of lease.
Mileage limits. The total allowable mileage that is disclosed on the lease agreement can be calculated by dividing the number of months by 12 and then multiplying this amount by 15,000 (standard lease) or 12,000 (low mileage lease). For example, a standard lease of 36 month term can be calculated as follows :36 month term is divided by 12 = 3 years; then 3 years is multiplied by 15,000 miles = 45,000 total hat is allowable miles.
Excessive wear and use. Damages exceeding the normal wear and use can be charged at lease end.
Disposition fee. A disposition fee will then be applied at lease end (on lease contracts that is signed after January 3, 2011) to help in covering the costs to dispose of or sell the vehicle.
The fee will then be waived on the existing lease for qualifying the customers who return to lease or finance next eligible vehicle with TFS which is through the Toyota dealer.
Early termination charge. If you terminate your lease early, you will then be required to pay an early termination charge. This amount may then be substantial.
Tax benefits. If you are using your lease vehicle for business, you should then consult with your tax advisor for the potential tax benefits.
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