Leasing Vs. Financing
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.
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.
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.
General
What are the details for Toyota Financial Services' Grad Program?
Graduate Eligibility
- Must be graduating within 4 months, and the benefit of this plan can be taken advantage of up to 4 years after graduation
- A 3 or 4 year Bachelor degree from a Canadian University (Post graduate degrees are not eligible)
- A 2 year degree from an accredited college
- A 3 year degree from CEGEP
Credit Criteria
- Verifiable proof of full-time employment or an offer of full-time employment that begins within 120 days of the lease or loan approval
- Sufficient salary to cover living expenses, vehicle payments and vehicle insurance
- The vehicle must be licensed in the graduate's name
- Applies to first vehicle financed only
- No credit experience is required, however, if credit has been established the applicant must not have any derogatory credit.
Eligible Vehicles
- Click here for eligible vehicles
- All Toyota Certified Used Vehicles
- You may also be eligible for Toyota's Graduate Rebate Program. Click here for more information.
What's the difference in payment between a lease and a finance loan?
Here is an example that shows the difference in your monthly payment depending on whether you lease or finance your vehicle.
| Lease | Loan |
|---|
| Term | 48 Months | 48 Months |
| Interest Rate | 7.95% | 6.95% |
| Selling Price | $ 18,000.00 | $ 18,000.00 |
| Taxes* | N/A | $ 2,340.00 |
| Selling Price | $ 18,000.00 | $ 20,340.00 |
| Lease End Value | $ 9,000.00 | N/A |
| Base Payment | $ 277.29 | N/A |
| Taxes on Payment* | $ 36.05 | N/A |
| Total Payment | $ 313.34 | $ 486.59 |
The MSRP and rates used above are approximate and used only as an example.
Please see your Regency Toyota Scion for current finance and lease rates.
*Taxes (GST & PST) are 13% in this example.