What Does Lease to Own Mean?
If you’ve been searching for the right path to vehicle ownership, there’s a good chance that you’ve asked yourself, what does lease to own mean? The answer is straightforward: a lease to own agreement is a contract wherein the would-be purchaser makes low leasing payments for around two years and then purchases the vehicle at the end of the term. Speak to a representative at our finance department to find out if it’s the right choice for you.
Why Lease to Own?
Why would drivers choose this type of agreement, rather than simply purchasing or leasing their vehicle outright? Total ownership provides many tangible benefits, but it’s often out of reach to drivers with less-than-ideal credit. This sort of agreement allows you to prove yourself to the dealer by making regular payments for two years. They’ll hold on to the vehicle title until the end of the term, but if you’re on time with your payments, it’ll be all yours when the contract’s up and you complete your purchase.
Since you’ll make payments for around two years before you’re offered the chance to purchase your vehicle, this agreement could end up costing you more than a straightforward vehicle purchase in the long run. However, since you won’t pay property taxes or other fees on your leasing payments for those first two years, it still may be a smart short-term option.
What Is a Lease Buyout?
Drivers should make sure to distinguish between a lease to own agreement and a lease buyout, which differs in some respects from the agreement defined above. In the first place, it’s important to note that a lease to own agreement is a full contract that you’ve set up ahead of time. A buyout, on the other hand, is an option which may or may not appear in the standard contract that you’ve signed with your dealer.
- A lease-end buyout gives you the option to purchase the vehicle outright at the end of the term. Even if you didn’t plan on purchasing the vehicle initially, this may be a good option if you’re happy with the car, satisfied with its performance, and confident that it’ll maintain its value. You’ll pay what the vehicle is worth at the end of the period.
- Some contracts give you the option to perform an early lease buyout. Most drivers will only consider this option if they’re at risk of accruing unpayable fees at the end of their leasing term. Going over your mileage limits or damaging the vehicle might force you to consider an early buyout.
Reasons to Lease or Purchase a Toyota
- Toyota is well-known as one of the most dependable brands on the road. Although leasing might be the most affordable option in the short term, drivers who purchase their Toyota vehicles will enjoy great performance, and exceptionally high resale values, for years to come.
- Jordan Toyota near South Bend offers a wide variety of rotating Toyota lease deals to local drivers. When you come to us, it’s easy to get a great deal on a model that’s sure to satisfy.
Visit Jordan Toyota for the Lease Deals in Mishawaka
Many of our leasing agreements have 36-month terms, but we’re happy to accommodate drivers with unique or particular needs, even if you have poor credit! Want to explore your options and find the path to ownership that satisfies all of your needs? Contact our team today to get started.
Think you may want to skip the leasing period and proceed directly with a low-cost purchase? Compare used vs. certified pre-owned vehicles with Jordan Toyota before checking out our pre-owned vehicle inventory. Don’t miss our models priced under $10K!
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