What is the Difference between Leasing and Financing?
Have you ever wondered what the difference is between leasing and financing a new vehicle? It’s important to understand both options when considering a new vehicle so you can decide which options work best for your needs and budget.
Leasing
There are many benefits to leasing a new vehicle! For those of you who tend to only keep your vehicle for a few years before wanting something different, a lease is a perfect solution. When leasing a new vehicle you have the option to lease it for 2 or 3 years. That means every few years you can upgrade to the latest model and technology! During a 3 year 36,000 mile lease you are fully covered by Toyota’s Platinum warranty so you do not have to worry if something fails or pay any extra for warranty coverage.
Toyota offers closed-ended residuals on all of their leases meaning the amount you can purchase at the end of your lease will NEVER change. By knowing the value of your vehicle, you are protected from any financial depreciation if the used market value decreases. It doesn’t matter how much you drive because you can choose the number of miles you drive a year upfront! With this option, you can relieve any stress of paying over mileage fees at the end of your lease. If you do happen to go over your mileage at the end, Toyota charges .15 cents per additional mile.
Financing
Financing is a great option if you are planning to keep your vehicle for many years to come. Toyota often offers many great APR financing incentives for multiple financing terms. Check Toyota’s official website to see local incentives in your area. If you drive an excessive amount of miles a year it probably makes more sense to finance your vehicle. Typically anything over 20,000 miles a year would be considered excessive. With Kalispell Toyota’s Smartpath tool you can see the difference in your monthly payment. This allows you to select the miles you drive and what the payment would be on a lease or finance option.
2 comment(s) so far on What is the Difference between Leasing and Financing?
I’m looking to lease a vehicle. I’m not seeing a section on this webpage of available vehicles to lease. Is there a way you can email availability so I can see my options. THank you!
Hi Kim, leases are available on new inventory. Here is a link to our new vehicles. https://www.kalispelltoyota.com/new-vehicles/ We’d love to have you give us a call at 406-755-6060 to talk more about lease opportunities available.