If you’re in the market for new Toyotas for sale near Lakewood, NJ, one of the things you may be thinking about is financing your new Toyota. A popular financing option for car buyers is leasing a vehicle. So today, we’re going to focus on the benefits, and some of the drawbacks, of leasing a new 2016 Toyota from our Toyota new car dealership in Lakewood, NJ.
But before we jump into this topic, let’s briefly touch on the primary differences between buying and leasing. The most noticeable difference is that when you lease a car, you are basically “renting” it. But when you buy a car outright, that car is yours when you pay off the loan. We’ll touch on some of the other differences between buying and leasing a bit later.
The Benefits Of Leasing
A major benefit of leasing a new Toyota is that you may be able to afford more car for the money. How is that possible? When you buy a car, you agree to pay a certain amount for it. A lending institution finances the loan amount, you make payments until it’s paid off and that’s it. Pretty cut-and-dried stuff.
But leasing a car is a bit different. Instead of financing the full amount of the vehicle as you do with a purchase, when you lease a new Toyota, you’re actually financing what’s called the “residual value.”
Let’s do a little math. For example, you may want to lease a new 2016 Toyota Corolla from our dealership. We’ll say that the Corolla costs $25,000. But that’s not what you would be financing. Instead, the residual value at the end of the lease calculates to 50% of its original value. Half of $25,000 is $12,500. With us so far? Good.
What this means is that your payments will be based on the $12,500. This could lower your monthly payments compared to a purchase. And it could mean that you, therefore, afford a more expensive car since you are financing less than the full purchase price. Additionally, you may also have to put down less cash upfront; although the more money you put down, the lower your monthly payments. Definitely, something to think about.
Another benefit of leasing is choice. At the end of the lease term, you can return your Toyota to our Toyota dealership near Lakehurst, NJ, hand us the keys and walk away. Or you can decide to either lease or purchase a new Toyota. But let’s say you really like your car and want to keep it. No problem. Our Toyota World of Lakewood Finance Department will help you convert your lease into a purchase. The choice is up to you.
With leasing, you can avoid the hassle of either trading in your car or selling it on your own to a private party. And we all know that selling a used car yourself can sometimes get a bit messy.
Warranties are another plus of leasing. Most new car warranties cover a vehicle for 3 years/36,000 miles. Since typical leases are also 3 years, that means your new leased Toyota will be covered by the factory warranty throughout the lease term. And that’s a good thing. Of course, you are still responsible for all routine scheduled maintenance items, such as oil changes, as spelled out in your Toyota service manual.
By the way, you can also lease certain select Toyota Certified Vehicles which meet Toyota’s rigid standards for “like-new” quality. Just another way you can save more when you shop Toyota World of Lakewood.
The Downside Of Leasing
Now let’s look at some of the downsides to leasing. First off, there’s the mileage cap. With a standard Toyota lease, you are permitted to drive your Toyota for up to 15,000 miles per year without accruing any mileage penalties. If you don’t plan on driving your Toyota that much, you may want to choose our Toyota Low Mileage Lease Program that could help lower your monthly payments. If you do, you’ll be limited to driving 12,000 miles each year before a per-mile, over-limit penalty kicks in.
Something else to consider is vehicle wear and tear. We realize that normal wear and tear is inevitable. But if there is excessive damage to your Toyota, you may be on the hook for significant costs to bring the vehicle back to Toyota’s quality standards. Fortunately, you can avoid this possibility by taking advantage of our special Toyota Excessive Wear & Use Protection Program.
This exclusive program covers your leased Toyota for such common issues as torn seats, bent rims, damaged bumpers, and other issues. You’ll be pleased to know that there are no deductibles, claim forms, or reimbursement requests. However, please take note that you can only sign up for this program when you first lease your Toyota from Toyota Financial Services (TFS) at our dealership.
Exclusive Toyota Lease Programs
Now that we’ve covered the basic pros and cons of leasing a Toyota. We’d like to take a moment to tell you about a couple of additional lease programs that are available to you here at Toyota World of Lakewood.
The Toyota 1 Pay Lease Program allows you to prepay all of your monthly lease payments upfront when you sign the lease contract. If you like paying cash and don’t want to be burdened with making monthly payments, this may be an attractive option.
Our unique Toyota Multiple Security Deposit Program offers a similar opportunity to make up to 9 additional security deposits when you sign the lease. By taking advantage of this option, you may be able to reduce your monthly payments significantly.
We hope to make you a lifelong Toyota World of Lakewood customer. To reward your loyalty, we offer our exclusive Toyota Disposition Fee Loyalty Waiver. We will waive the usual lease-return disposition fee if you lease or finance a new or Certified Used Toyota from our dealership through TFS within 30 days before or after the contract ends.
Our Toyota Lease Return Center accepts all Toyota, Lexus, and Scion lease returns, regardless of where you originally leased the vehicle. It’s quick, convenient, and easy!
Enjoy Exceptional Lease Savings At Toyota World of Lakewood
Here at Toyota World of Lakewood, we strive to give you some of the best lease deals on new Toyotas. So we invite you to check out some of our special Toyota lease offers that will help put you into a new Toyota for less.
Be sure and stop by our New Jersey Toyota dealership in Lakewood Township, NJ, serving the nearby communities of Toms River, Point Pleasant Beach, NJ, and our friends at Fort Dix. We’re located at 1118 Ocean Avenue, Lakewood, NJ 08701. Call us today at 888-890-7729. To reach our Service Department, please call 877-957-3072.