Leasing vs Buying a Toyota Corolla Cross – What it costs

Toyota South Africa recently launched a new car lease programme in partnership with Kinto, allowing motorists to take home one of the brand’s vehicles for an extended period of time without dealing with the hassles of ownership.

The Corolla Cross, one of South Africa’s best-selling vehicles, is available on the Kinto service with monthly payments starting at R6,915 for a 60-month contract with a maximum prescribed mileage of 1,000km per month.

The contract includes warranty, service, and maintenance costs, and comes with 24-hour roadside assistance and stolen vehicle recovery.

No deposit is required, either, and Kinto insurance can be negotiated on select contracts.

For comparison, TopAuto used the following formula to calculate what it would cost to purchase the same Corolla Cross on a finance plan.

• Car price – R360,400
• Payment term – 60 terms (5 years)
• Interest – 10%
• Balloon – No balloon payment
• Extras – No optional extras

Assuming you are able to put down a 10% deposit when purchasing the vehicle, it will cost R6,986 per month to take home the Corolla Cross on a payment plan.

With no deposit, this will increase to R7,752 p/m.

Pros and cons of renting

There are several pros and cons to consider when deciding whether to purchase a vehicle outright or rent it for an extended period of time.

The immediate benefit of renting, as shown above, is that it will in many cases result in lower payments than purchasing a car on a finance plan, even before factoring in other possible costs such as insurance and maintenance.

It can also allow for faster vehicle turnover, as a new contract can be opened with a new car as soon as the old contract is over and the old model turned in.

The obvious downside of renting, on the other hand, is that you don’t get to keep the car at the end of the cycle, meaning you lose out on the possibility of selling it and using the proceeds towards a deposit on a new model.

There are also limitations on what you can do with a rented model, ranging from modifications to repairs, and even the distance you are permitted to drive each month.