Choosing between leasing or financing your new Toyota depends on your personal driving habits and long term requirements for a vehicle. To help you make the best choice regarding leasing or financing your new vehicle, read some more info and frequently asked questions on what makes each option unique.
- Leasing normally offers lower monthly payments, and lower upfront costs compared to financing on the same or similar vehicle.
- When leasing a vehicle, you are only taxed on the monthly payment for the vehicle, not the full purchase value of the vehicle.
- You have options at the end of a lease period including:
- Purchasing the vehicle at the lease end value indicated on your contract
- Return the vehicle you were provided in your lease agreement
- You can choose to lease or finance a new Toyota vehicle.
- You do not own the vehicle.
- Excess kilometers and wear and tear charges may apply if you exceeded what was in your agreement and do not have a coverage plan such as the Toyota Wear Pass which may help waive some or all wear and tear charges. See video below for more information on the Wear Pass.
- Lower monthly lease payments can potentially result in higher carrying charges than a loan.
Thinking of Leasing a New Toyota Vehicle? Watch This Video and See If Toyota's Wear Pass Is a Good Idea For You!
Frequently asked questions about leasing:
If I lease a new vehicle with Toyota Financial Services, how many kilometres and I allowed to drive per year in my agreement?
A standard lease with Toyota Financial Services allows for 24,000 kilometres per year.
What happens if I drive over/exceed my kilometres for my lease?
When leasing your vehicle, you have the option up front of purchasing additional kilometres at a reduced rate if you are aware you will likely go over the 24,000 kilometres. If you have exceeded the kilometres at the end of the lease agreement and you have not purchased additional kilometres, you must pay per kilometre at the standard rate. If based on your driving habits you are aware that you normally go over the kilometres by a significant amount, financing your vehicle may be a better option.
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 for any reason, GAP will cover the difference (the gap), after you pay off the deductible, between what you owe on the remainder of your lease and the amount received in your insurance settlement. You are only responsible for excess kilometre charges and any pre-existing damage to the vehicle.
What is Wear and Tear?
You are responsible for the vehicle's overall condition as detailed in your lease agreement (appearance, mechanical condition etc.). Charges will apply to kilometres that exceed the provisions in the lease, or any changes in the condition of the vehicle beyond what is accounted for in your agreement.
What is the difference in payment between a lease and a finance loan?
The MSRP or Selling Price and rates used in this example are approximate and used only as an example to showcase the potential difference in payments. Please contact us for current available finance and lease rates. *Taxes (GST & PST) are 13% in this example.