Have You Considered Leasing Your Next Toyota in Kingsport, TN?

Mar 1, 2018

How Does the Leasing Process Work?

When leasing a vehicle, you’ll be committing to a period of time during which you make payments while also keeping the vehicle’s mileage under a predefined limit each year. During this time you will be paying interest on the payments just as you would with a traditional car loan, except the interest will be accruing on the estimated amount of depreciation your vehicle will go through during the lease period. At the end of the lease term you will either return the vehicle to the dealership or purchase it at its current depreciated value. At the conclusion of your lease, the dealership will check the vehicle for damage and excessive wear and tear, as well as mileage overages. You’ll then be assessed any overages you may owe before completing your lease.

Why Choose Leasing?

There are a lot of factors that can go into determining whether leasing is the best option for your next vehicle.

Your Monthly Payment

If you are limited on what you can afford for your monthly payment, leasing may be a better option. Since you are only paying interest on the portion of the car that will depreciate, you will have a much smaller monthly payment. You will still be responsible for paying sales tax and fees associated with a vehicle purchase but the sales tax will be charged on the amount of the payment, and you will not be responsible for paying sales tax on the whole vehicle unless you end up purchasing it at the end of the lease term.

You Have Less to Put Down on Your Vehicle

When purchasing a new car, you will often be expected to put money down and will be responsible for paying sales tax on the full amount of the vehicle as well as the title and registration fees. While you may have the option of rolling these costs into the loan, it will often cause you to be upside down on the loan in proportion to the current value of the car.

You Like Staying Up-to-Date on the Latest Technology

Sometimes people choose to lease a car because they prefer the latest in new vehicle technology and want to reap the benefits of changes to automotive design on a regular basis. If you plan on changing out your vehicle every three to five years, it may be best to lease instead of buying outright. You will get to stay up-to-date with the latest vehicle trends and enjoy cheaper monthly payments. Avoiding the hassle of selling or trading in a used car every few years may also make leasing a more attractive option.

Check out how leasing may help you get into the Toyota of your dreams by visiting your local Toyota dealer today.