Leasing FAQ
What are my lease-end options?
Can my lease be terminated early?
What is the difference between leasing and financing?
What are some common leasing terms?
How do I return my leased vehicle?
What is Toyota’s college graduate program?
Are there any military rebates?
Will a lease help my credit?
The simple answer: yes. The more difficult answer is: well, yes and no. Leasing can help increase your credit score. If you sign a lease and pay every monthly payment on time, it will have a positive impact on your credit score. However, just like any loan, if you lease a vehicle and start missing payments or making payments late, your credit score could take a major hit.
What are my lease-end options?
There are three options once your lease comes to an end. The first option is to turn your vehicle in and either lease or buy a new Toyota. The second option is to purchase the vehicle you have been leasing. To determine your payoff amount, view the payoff information on your account, or call 1-877-9040. Finally, the third option is to sell your vehicle back to the dealership. Just review your lease terms, determine if your vehicle has any lease equity. If your vehicle does have lease equity, you can use this money as a down payment on a new lease, or pocket the cash and walk away. Learn more about lease-end options here.
Can my lease be terminated early?
Turning your vehicle in before your lease maturity date is an option; however you may be charged early termination fees. Check your lease agreement for information on terminating your lease before the maturity date, or call 1-800-286-0652 for more information.
What is the difference between leasing and financing?
There are many differences between leasing and financing a vehicle. While they both require monthly payments, finance payments are generally higher than lease payments due to added costs such as interest and additional taxes. Another key difference is when you finance a vehicle; it is yours at the end of the finance period. With a lease, you are only paying for the depreciation of the vehicle while it is in your possession, rather than paying for the entire cost of the vehicle. You also have the option to “walk away” after paying your end-of lease costs, while when it comes to financing; you are in charge of selling/trading in your vehicle at the end of your financing period. Learn more about the differences between buying and leasing here.
Why should I lease a car?
While leasing may not be the best option for everyone, it does have many added conveniences. If you are someone who enjoys driving a new car every few years, leasing will be a more low-cost option for you, since you only pay for the depreciation of the vehicle. Repair costs are also generally lower for leased vehicles because the vehicle you are driving usually stays within warranty during the course of your lease. Once three years is up, you can simply wash your hands of your previous car and hop into a new Toyota without paying the full cost of your original vehicle.
What are some common lease terms?
What does residual value mean? What is a disposition fee? To help make understanding lease terms a bit easier, we put together a list of common lease terms. Check out our common lease terms post.
How do I return my leased vehicle?
It is recommended that you make an appointment with your originating dealership close to 30 days before the lease maturity date. Once the time comes to return your vehicle, make sure you clean it inside and out before driving to the dealership. You should bring with you all of the keys to the vehicle, any owner’s manuals, tool kits and spare tire, your odometer disclosure statement and any original equipment you were given by the dealer at the beginning of the lease. Additional charges may be added to your end-of-lease costs if you do not return the original equipment that you received at the beginning of your lease. Once you arrive at the dealer, you may discuss your lease end options and decide which route would be best for you. After you return your vehicle, make sure to cancel any electronic payments.
What is a 1 pay lease?
The 1 Pay lease program is essentially a prepaid lease option that allows you to pay all lease payments in a single payment at the beginning of your lease. This option is perfect for people who like the benefits of leasing, but would prefer to pay in cash. This option allows you to save money while still being able to drive a new car every few years.
What is Toyota’s college graduate program?
Toyota offers a college graduate program for college grads who have received their degree within the last two years, or who will graduate within the next 6 months. This program rewards college gradutes by offering a $750 rebate as well as competitive APRs and lease terms. This program runs from January 3 to April 2, so don’t waste any time getting started! Learn more about the college graduate program and see if you qualify here.
Are there any military rebates?
Yes! To thank you for your service, Toyota provides a $500 rebate to eligible military personnel. The military rebate offer is available to US military personnel, household members of eligible US military personnel, US military retirees (within 1 year of retirement) and US military veterans (within 1 year of discharge). In order to qualify for this rebate, you must provide either your leave/earning statement, military ID card or DD form 214, receive a qualifying salary and receive credit approval by Toyota Financial Service.