Automobile leasing is based entirely on the concept that you pay for the amount by which a vehicle's value depreciates during the time you're driving it. Depreciation is the difference between a vehicle's original value and its value at lease-end (residual value), and is the primary factor that determines the cost of leasing.  Basically you pay for the part of the car value that you use up during the lease term.  There are other costs that may be included in the lease fee.  These include insurance, registration fees and the addition of other options such as GPS Navigation systems.

As you only pay for the portion of the car that you actually use, your monthly payments will be 30%-60% lower than for a purchase loan of the same term.

LeaseJapan requires no down payment, which makes getting into a new car more affordable and frees up your cash for other things.  We usually ask for the first and last months lease payment in the first month.  The means that in your last month of the lease (and probably the last month of being in Japan), you will not need to worry about making sure you still have your bank account open and still have the money to pay the last payment. You can worry about more important last minute things whilst still driving your car till the very last day.

Since your monthly payments are lower, you get more car for the same money and drive a brand new vehicle every two to four years, depending on the length of your leases.

Most people like to lease for a term that coincides with the length, in months, of the manufacturer's warranty coverage so that if something goes wrong with their car, it's always covered.  LeaseJapan offers a free 1/6/18/24 month maintenance checks on all new cars.  We will collect the car from your place of work or residence at a time that suits you, take the car to have its maintenance check and return the car the same day.

With leasing, the headaches of selling a used car are eliminated. When your lease ends, you simply return it back to the leasing company and walk away.

If you lease a car with LeaseJapan, we will supply you with an ETC card without the need for applying for a credit card.  In order to receive an ETC card from any major finance company, you must first apply for a credit card.  This application process may take any where from a week to a month to be approved.  There is also no guarantee that you will receive this credit card and hence the ETC card.  When you return the lease car, you must also cancel your credit card and ETC card 2 months prior.  With LeaseJapan, we will provide you with an ETC card in the first week of your lease, and you will be able to use the ETC card until the day before you return the car.  All of this is provided for a small processing fee and an initial deposit (this deposit will be used to pay the last ETC payment and any remaining amount returned when you return your lease car.).

Closed-end leases are based on the concept that the number of miles you drive annually is fairly predictable (12,000 miles per year is typical), that the vehicle will not be driven in rough or abusive conditions, and that its value at the end of the lease (the residual) is therefore somewhat predictable.

Open-end leases are used primarily for commercial business leasing. In this case the lessee, not the leasing company, takes all the financial risks, which is not so much a problem for a business, since the cost can be expensed. Annual mileage on a business lease is usually much greater and less predictable than the average 12,000 miles-per-year of a non-business lease.

In open-end leases, you are responsible for paying any difference between the estimated lease-end value (the residual) and the actual market value at the end of the lease. This could amount to a significant sum of money if the market value of your vehicle has dropped or you drive many more miles than expected. Often, the residual for an open-end lease is set much lower than for a non-business closed-end lease, which reduces your lease-end risk, but increases your monthly payment amount.