At The End of My Toyota Lease
All Toyota Canada leases are closed end. That means you have the option to purchase your Toyota at the end of the lease. When you signed your lease, the end value of your Toyota was locked in. The end value (also known as the residual value) is what you will pay to purchase your Toyota, plus any applicable taxes. If you choose to purchase your Toyota at the end of the lease, our financial services department would be happy to help you finance it.
The advantages of purchasing your Toyota at the end of the lease.
- You know the service history of your Toyota. Toyota quality means you can expect many more years of service after the lease is finished.
- Your Toyota has a higher market value than the book value at the end of the lease. That is a real advantage for most customers.
- A locked in value means no surprises at the end of your lease, should you decide to buy your Toyota.
Replacing your leased Toyota with a newer model. The newer model will have up-to-date technology and safety features. Plus, there is nothing like that feel of a new car. You have the option to wind up your lease and begin a new one with a new model. Our financial services department will provide guidance on any loyalty offers available to you at that time.
The advantages of returning your leased Toyota and getting a new one.
- This gets you in a new Toyota with the latest technology and safety equipment.
- Most Toyota models will be worth more than the residual value at the end of the lease. It means you may have some equity that can be used for your new lease. Use it to reduce the payment or to set up a shorter lease term.
The final option is to simply return your Toyota and walk away. You will only be responsible for any excess wear and tear or damage to your Toyota. If you chose extra wear protection at the beginning of your lease, those scuffs and dings are covered under the program.
Most customers do not do this. Often there is still equity left in their Toyota that could be used for a new lease or purchase.
Frequently Asked Questions
Can I transfer my lease to someone else?
Yes, you can. The new person on the lease must qualify financially for the lease. There is also an administration charge to do the transfer.
What happens at the dealership when I bring my Toyota back?
- One of our Sales Managers will do a thorough inspection of your vehicle. They will look for excess wear-and-tear plus they will confirm the kilometers on it.
- You are responsible for any additional wear-and-tear, damage, and excess kilometers, beyond what it says in the lease agreement unless you purchased extended wear-and-tear coverage for your vehicle.
What is a closed-end lease?
A closed-end lease means you are under no obligation to purchase your Toyota based on the MSRP value at the end of the lease.
The end-value of your Toyota is locked-in at the beginning of your lease. That end value, known as the residual, is what you still owe at the end of the lease.
At the end of most Toyota leases, the vehicle is usually worth more than the residual. It means you might have additional equity to be used for the new lease to reduce your payment or shorten your term.
Can I end my lease early?
Yes, you can. However, in most cases there are early termination fees. You may want to investigate having someone else take over your lease to avoid additional fees.
I have moved, do I have to return my Toyota to the original dealer?
You can return your Toyota lease to any Toyota Canada dealer.