One of the rules of the government’s CARS rebate, better known as the cash for clunkers program, is that if consumers want to trade-in their clunker and lease a new vehicle, the lease period has to be for at least five years.
For a vehicle lease, this is a long time. Most leases are between two and four years. And although five-year leases were common in the past, they have become almost obsolete during our current economic recession.
But if automakers want to attract consumers who want to lease, they have to follow the government rules for the CARS rebate program.
Toyota is one of the automakers offering five-year leases to car shoppers who want to trade-in their clunker for a new vehicle. Consumers can apply their CARS rebate toward special 60-month leases on Yaris, Corolla, Camry (non-hybrid), RAV4 SUV and Tacoma pickup. Car shoppers can visit www.buyatoyota.com to see the lease rates in their area, since the rates vary by region.
If you’re considering whether to buy or lease under the cash for clunkers rebate program, run all the numbers before you go to the dealership. Depending on the vehicle, it may cost less to buy than to lease. Remember too that it is pretty hard to get out of a lease, especially if you lose your job or need a different vehicle. A five-year lease is a long time in the leasing world.
The Toyota Yaris is one of the models consumers can lease with Toyota’s 60-month lease program for the CARS rebate.