You may be anxious to get into a new Toyota at Tom Wood Toyota Indianapolis. You're not alone if you’re wondering why lease payments are starting to climb. Since we’re committed to transparency, let’s address this increasingly common question.
How Market Conditions Impact Your Toyota Lease
As we mentioned, a lease’s cost largely depends on the vehicle’s current market value. If you’ve been watching the market for new and used cars, you’ve already noticed that market conditions aren’t ideal right now, with high demand meeting limited supplies of vehicles.
As this happens, manufacturers can’t keep up. They’re less likely to release competitive manufacturer incentives, and lease offers since they are already pressed. This is one of the main reasons it can cost more to lease new Toyota vehicles.
How are Lease Costs Calculated?
A lease’s cost is determined by weighing the vehicle’s current market value against its value at the end of your lease. The difference between these two values is the basis for your lease cost.
This determines not only your month-to-month cost, but also any fees you pay at the lease end. If you don’t preserve its value, you’ll have to make up the difference when the lease expires. We suggest taking extra care not to cause undue wear or put excessive mileage on your leased car.
Why Lease a Vehicle?
Even with payments higher, there are still so many perks to leasing. Since you’re only responsible for a portion of the vehicle’s value, you can seriously save when leasing a car. Plus, you’re consistently upgrading to a newer vehicle with new features and technology.
Remember that leases save money in other ways, including the lower maintenance and repair costs that come with a new model. Between ToyotaCare® maintenance and your warranty, you may spend very little on upkeep!
Times may be challenging, but leasing a new Toyota vehicle shouldn’t be. Visit Tom Wood Toyota today to pre-qualify and to get answers to any remaining lease questions you may have.
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