Leasing Tips & General Info

[knr]

Hey Guys,

I am looking to lease a vehicle through Toyota. It's my first time leasing and was hoping to get some advice from those who have experience doing it.

My plan was to sell the vehicle prior to the lease ending (after 3-4 years) but seeking for your advice!

My immediate questions are:
1) do you recommend selling the car before the lease is over or just returning it?
2) do you recommend getting the "Toyota wear pass" (assuming I sell the car)
3) knowing that I will be selling the car, should I just opt for the lowest KM's per year to get a better deal?
4) on a 3 year lease, can I sell the car at the 2 year mark if I wanted too? Is this a bad idea and why?
5) any other advice when going into the dealership?

[Aleks]

Hey Guys,

I am looking to lease a vehicle through Toyota. It's my first time leasing and was hoping to get some advice from those who have experience doing it.

My plan was to sell the vehicle prior to the lease ending (after 3-4 years) but seeking for your advice!

My immediate questions are:
1) do you recommend selling the car before the lease is over or just returning it? If it's a Toyota you should have equity, so sell and recoup some money.
2) do you recommend getting the "Toyota wear pass" (assuming I sell the car) I don't get these if I'm planning to sell a lease.
3) knowing that I will be selling the car, should I just opt for the lowest KM's per year to get a better deal? Yes
4) on a 3 year lease, can I sell the car at the 2 year mark if I wanted too? Is this a bad idea and why? Not a bad idea. As long as you can sell it for more than your buyout + $300 + GST at that time
5) any other advice when going into the dealership? Do you research on how much you want to pay. Have a fair profit for dealer, show them you're serious and get a deal done quickly. Negotiate a lease as you would a cash or finance purchase. Everything else is set by Toyota Finance other than purchase price.

[knr]

Awesome! That was very helpful thanks Aleks!

If anyone else has other tips for me, please feel free to leave a comment.

[oilerfan4lyfe]

Thanks Aleks...I had a lot of the same questions.

I'm also going to be a first time leaser and I'm a little confused about what I'm being told at various dealerships.

Some are saying that windshield and paint rock chips aren't covered as basic wear and tear so I'd have to replace a windshield before returning a lease (which leads into their lease protection plan...). Is the lease protection plan worth getting if I'm not planning on selling before the lease ends?

Also, what about brakes and tires? Is it true that you'd have to pay to have those items covered at the end of the lease?

Is it worth it to get XPEL on a leased vehicle?

Any other tips to give to a first time leaser?

Thanks!

[Aleks]

Originally posted by oilerfan4lyfe
Thanks Aleks...I had a lot of the same questions.

I'm also going to be a first time leaser and I'm a little confused about what I'm being told at various dealerships.

Some are saying that windshield and paint rock chips aren't covered as basic wear and tear so I'd have to replace a windshield before returning a lease (which leads into their lease protection plan...). Is the lease protection plan worth getting if I'm not planning on selling before the lease ends?

Also, what about brakes and tires? Is it true that you'd have to pay to have those items covered at the end of the lease?

Is it worth it to get XPEL on a leased vehicle?

Any other tips to give to a first time leaser?

Thanks!

Every lease document outlines the acceptable damage before lease return. It specifies how much tire tread you can return a car with, brake life, dent, scratch sizes etc.

You can ask to see the doc ahead of time and see if you're comfortable with that. If not, maybe lease protection is the way to go if you're getting a vehicle that you know you will have to return. I know Hyundai had good lease packages under $1000. Anything more than that I would pass on.

I just sold my Toyota lease a while ago (2.5 years into it, it was a 5 year lease) and I got $7400 more than my buyout.
So it really varies by make and model.

[Mitsu3000gt]

Originally posted by knr
Hey Guys,

I am looking to lease a vehicle through Toyota. It's my first time leasing and was hoping to get some advice from those who have experience doing it.

My plan was to sell the vehicle prior to the lease ending (after 3-4 years) but seeking for your advice!

My immediate questions are:
1) do you recommend selling the car before the lease is over or just returning it?
2) do you recommend getting the "Toyota wear pass" (assuming I sell the car)
3) knowing that I will be selling the car, should I just opt for the lowest KM's per year to get a better deal?
4) on a 3 year lease, can I sell the car at the 2 year mark if I wanted too? Is this a bad idea and why?
5) any other advice when going into the dealership?

1) If market value is above the buyout (which it almost always is these days), then yes, unless you plan on driving the car into the ground. The dealer might also pay you more to get the car for their used inventory, but it probably won't be much more.

2) I wouldn't buy anything maintenance related on a lease. Do the bare minimum to maintain your agreement, anything more is a waste.

3) Get the KM's you need, overages are a ripoff unless you just go over by a tiny bit. Calculate your commute, look at past driving habits, etc. and it should be super easy to estimate. You can go over in one year if you're under in another, it just has to be under at the end. If your driving is under the lowest KM, then get the lowest KM allowance.

4) You can sell it anytime you want. Around the 2 year mark is usually when you're in a positive equity situation, so you can sell, or swap the car for a new lease either for free or with a little cash in your pocket. After 2 years you're almost always in a positive equity situation and market value should be higher than the buyout. You can check this at any time yourself very easily and make your decision.

5) Get the dealer to show you their cost, or a Car Cost Canada report. Anyone can get this info themselves for $30, so if they won't show it to you just to make you go pay $30, find a new salesperson or dealership. Always negotiate from the bottom up. I don't know what car you're getting but Cost + $500 + throw-ins like winter mats is a good starting point. Absolutely do not pay any sort of "administration" fee or any fee disguised as one (etching, "safety and security package", etc.). The only things on your bill of sale should be:

- Dealer car cost (which you will know) + The negotiated dealer profit (say, $500 or 2% or whatever)
- Freight and PDI
- Tire, AMVIC, and A/C Taxes (works out to $126 or something like that)
- Any throw-ins you negotiated, such as winter mats, block heater, free oil changes, etc.

Nothing else. You pay GST on the lease payments, so you don't pay it on the car cost. If you see anything else on their offer it's probably a money-grab so get them to remove it.

If you do a bi-weekly lease it will be a bit cheaper. Also make sure to ask if they have any rate promotions, loyalty promotions, rebates, etc.

Don't buy any protection packages, protection films, etc. A huge perk of leasing is you only have to do the bare minimum and if you're giving it back in 2-4 years you hardly have to worry about anything. Check the agreement and make sure nothing stands out, but I've never seen a lease agreement that didn't allow small rock chips. Aside from any significant damage, the only things you will probably have to worry about are worn tires or a cracked windshield. I doubt you'll need a brake job or anything like that within 2-4 years. Swirl marks/destroyed clear coat are OK, minor scratches are probably OK, tiny door dings are probably OK, but again, make sure you check first. Anything excessive is likely going to be a charge. That said, if you plan to sell it privately before the lease is up, the condition of your car will obviously matter more, so take that into account.

And the best part - if you get into a catastrophic accident or hail damage, where your car is basically worthless after repair (or possibly even unsafe) because insurance didn't write it off, you are completely protected and Toyota will take the car back when the lease is up.

I'm all aboard the lease train now, I doubt I will ever get a vehicle any other way.

[oilerfan4lyfe]

Thanks for the replies, guys! Much appreciated.

[Aleks]

Originally posted by Mitsu3000gt


If you do a bi-weekly lease it will be a bit cheaper.

Because car loans are simple interest there is virtually no difference in biweekly vs monthly payments when you sum up the total paid over lease term.

[Mitsu3000gt]

Originally posted by Aleks


Because car loans are simple interest there is virtually no difference in biweekly vs monthly payments when you sum up the total paid over lease term.

Yes I know that, I just meant cash flow-wise - sorry for the confusion. I thought it went without saying that bi-weekly means you pay 26 times. Two Bi-weekly payments are lower than a monthly payment, but you pay two extra times over the course of the year so it eventually evens out. It's really just a choice of how you like to pay. Most people get paid every two weeks so it's convenient to sync it up with a payment so you barely even notice.

[Xtrema]

Originally posted by Mitsu3000gt


Yes I know that, I just meant cash flow-wise - sorry for the confusion. I thought it went without saying that bi-weekly means you pay 26 times. Two Bi-weekly payments are lower than a monthly payment, but you pay two extra times over the course of the year so it eventually evens out. It's really just a choice of how you like to pay. Most people get paid every two weeks so it's convenient to sync it up with a payment so you barely even notice.

If bi-weekly vs monthly causes cash flow issue, you leased too much car. Downgrade.

[Mitsu3000gt]

Originally posted by Xtrema


If bi-weekly vs monthly causes cash flow issue, you leased too much car. Downgrade.

It's the same every year though, so it doesn't really matter. It's more for preference of when the payments come out of your account. Most people seem to like them synced up with their pay cheques which is why bi-weekly is attractive. The payment itself is also less, but ends up being the same after the two extra pay periods.

[Xtrema]

Originally posted by Mitsu3000gt


It's the same every year though, so it doesn't really matter. It's more for preference of when the payments come out of your account. Most people seem to like them synced up with their pay cheques which is why bi-weekly is attractive. The payment itself is also less, but ends up being the same after the two extra pay periods.

Call me old school but I still prefer monthly due the fact most salary never paid out 26 times a year, only 24.

Bi-weekly numbers are usually used by dealers to put the lowest possible number on ads to attract people.

[Mitsu3000gt]

Originally posted by Xtrema


Call me old school but I still prefer monthly due the fact most salary never paid out 26 times a year, only 24.

Bi-weekly numbers are usually used by dealers to put the lowest possible number on ads to attract people.

My favorite is the "$79/week" signs or whatever haha. I have even seen Ford so desperate they were advertising a per day cost of $8 or something.