Leasing a Car in Tokyo Japan

What is leasing?

There are two basic forms of a lease available in Tokyo.


1. Closed End type and


2. Open End type.

A closed end type lease essentially means that you must return the car back to the lease company at the end of the lease contract. Subject to the condition of the car you may be asked to pay for needed repair work on the car. Generally speaking closed end leases are usually a bit more expensive per month than that of open end lease type contracts.

The open end type enables you to buy the car at the end of the contract at a predetermined residual figure plus any fees and taxes payable to transfer the car into your name once the lease has finished.....for information on these costs contact me at cars@micklay.com


Re-Lease
Subject to your relationship with the lease company you may be able to arrange a re-lease of the car for an extended time after the end of the lease contract.

Lease Buyouts
Lease buyouts......be aware that the residual is not the payout figure for the ed of a lease. Subject to the contract a lease company can still reserve the right to charge the client an increased amount over and above the residual figure. E.g. If the residual is 500,000 yen and the lease company feels that the value of the vehicle in the market is 900,000 yen then they reserve the right to charge this higher amount. There is a way to avoid this with leasing in Tokyo. Contact myself Mick Lay to consult on your next lease.





Breaking a Lease in Tokyo
Payouts/Early Exit from a lease contract - how is this calculated? The calculation can differ from lease company to lease company. If you have a lease and are looking to exit it before the contract due date contact myself Mick Lay to discuss this issue and how to possibly best reduce your downside.


What is in a Lease?
A lease will always include the yearly road tax (unless other wise arranged). Insurance, maintenance, registration extensions etc are extra and can be calculated into the lease either all together or just one or two of these items E.g....insurance can be included but maintenance can be left out. In this case the lessee pays for any maintenance requirements apart from and on top of the monthly lease cost.


To Finance or Lease?


Subject to your circumstance leasing or finance may be best for you. Consult with your accountant for tax related issues and which form of funding best suits you.

• Leasing includes the yearly road tax (with financing road tax is paid separately from the monthly payments).



• With finance you are generally required to pay the initial registration fees and taxes where as in leasing these costs are built into the lease and no upfront cash payment is required to pay for these costs. (Note; subject to application you may be required to pay a deposit or up front cash figure in order to receive lease approval).



• At the end of the lease contract (open end type) you have a choice - you can buy the car, re-lease it or give it back. With finance you have no choice. You must payout the final figure and own the car.



• Leasing is tax deductible where finance uses depreciation schedules. Talk with your accountant to which type of contract best suits you and or your company.

In my personal opinion they are both similar as you pay a monthly figure and a residual figure plus costs at the end to own the car. Leasing in my opinion gives the best flexibility.

Warning! A cheap monthly lease figure means nothing if the lease company can charge what they feel is appropriate at the end f the lease. Be sure that the residual is guaranteed! Note the residual will not be the payout figure. The payout figure will be the residual plus costs and taxes due in order to change the lease into your name. I can guarantee the residual on your lease. Talk to Mick lay about your next lease or current lease extension/lease buy back etc.

Residual Price - make sure the residual is guaranteed! Note though the residual is not the final price you will pay. On top of the residual there will be transfer of ownership fees, (may include acquisition tax), remaining road tax value, recycle certificate cost, consumption tax, fees particular to the lease company providing the lease.

Company Leases - Fleet Leasing

We do company fleet leases as well. Contact us to discuss how we can save you money of your next company car leasing program or programs.

Questions on leases.....if you have any questions call myself Mick Lay on

tel: 090-3805-7141.