Toyota 4Runner Lease
I. Lower Payments: since you are actually only financing a portion of the entire vehicle price, payments on a lease are usually much lower than on a purchase. This allows you to get more vehicle at a shorter term than if you would purchase. Prefer that Camry XLE with navigation over the basic model but just can’t fit it into your monthly budget? With a lease your payments on that XLE might be the same or lower!
II. No Negative Equity: Since the “Residual” (amount the vehicle is estimated to be worth at the end of the term) is calculated in advance, you will never have to worry about current market conditions leaving you with negative equity. Most people get the “itch” to trade out of their current vehicle after about three years; which happens to be the average lease term. On a purchase of 60-72 months, you are usually still “upside down” after three years and would have to roll the negative equity into the new loan. On a lease, you simply turn it in without the worry of negative equity!
III. Latest and Greatest: Vehicles today are similar to cell phones and other technological gadgets. Just when you get latest and greatest version…they come out with a better one. Toyota technology evolves at a rapid pace and you know something new and better is always around the corner. Why not get the most updated features every three years? Instead of having to wait 5-6 years on a purchase contract.
IV. Lower Maintenance Costs: With complimentary “Toyota Care” for the first two years on all new vehicles, people who lease a vehicle are typically only going to have to pay maintenance on their vehicle for one year. The first three years is also when the vehicle is less likely to have expensive maintenance costs like new tires, etc.
V. Warranty Coverage: The Toyota factory comprehensive warranty is 3 yrs/36k miles; this pretty much covers most standard leases, so you won’t ever have to worry about putting money out of pocket. On the contrary, 5-6 year purchases leave you with 2-3 years of possible out of pocket expenses at a time when your vehicle is more likely to incur them.
VI. Flexibility: And for those customers who say “I want to own my car” that option is available. At the end of a Toyota lease, you can either choose to keep the vehicle and finance the remaining balance…or turn it in and choose something else. With the lease scenario, you can still own your car, but it gives you three years to think about it! Circumstances change in life: perhaps that Corolla you bought when you graduated college is not the perfect fit anymore after three years and you want something bigger. Or that Tundra you bought when you worked down the street doesn’t fit your the 60 mile commute to that new job.