For many people, buying a car is their first really big purchase. And with any purchase, big or small, you want to make sure your money and your time are going to be well spent.
Not all of us have the cash to buy a car in full upfront, and not all of us want to!
That’s what loans are for.
When you buy a house, you typically take out a mortgage.
The same can be said when purchasing a vehicle. Instead of paying in full upfront, you can take out a loan (with interest) from a financial institution and then pay it back in installments.
That’s essentially what financing a car means. In many cases, it actually makes more sense to finance a car, particularly if interest rates are low.
And Toyota Financial Services offers financing programs to help you get the car of your dreams at an affordable rate.
So, how does financing a car work? And when is financing a vehicle the best option? Well, we’re here to help you understand these differences so you can make the best decision for you and your bank account.
How to Finance a Car
So, you’re interested in financing a car, but you’re not quite sure how it works. We’re here to help!
Financing a Toyota is a great option if you think you’ll put a lot of mileage on your vehicle, want to own the vehicle yourself, or will use your vehicle for commercial purposes.
So, where do you start when it comes to financing a vehicle?
You have to complete a credit application to get your vehicle financed, and then we can work out the details together. You can even apply online to get pre-approved! It’s a 10-minute process that gives Toyota Financial Services all of the information they need to perform a credit check and figure out if you’re eligible.
If you’re approved, we help you develop the specific payment terms of your contract to suit your needs.
With financing periods of up to 84 months available, your monthly payment can be made smaller with longer terms, or you can make sure you are always behind the wheel of a new Toyota with shorter ones. You can also lower your monthly payment by making a down payment or trade-in your existing vehicle.
Once all of your financial obligations have been made during the fixed period on your contract, your vehicle is your vehicle. The biggest difference between purchasing and financing a car is that instead of making a one-time payment in full upfront, you’re simply spreading out your payments over time with a cost of borrowing.
Financing a vehicle gives the buyer more time to secure the funds needed to purchase a large asset, ensuring your time and money will, in fact, be well spent.
The Benefits of Financing a Toyota Vehicle
There are clear advantages to financing a car. For example, you don’t need to come up with all of the capital upfront, giving you an adequate amount of time to pay for your vehicle.
But what are some of the benefits of financing a Toyota vehicle, specifically? At the moment, we’re offering a number of incentives to make financing a vehicle more accessible, which you can read more about on our Special Deals & Promotions page.
Toyota vehicles are world-renowned for their longevity. Financing a new Toyota can be a cost-effective option for anyone looking to drive their vehicle for a long time!
The proof: six Toyota vehicles took home the 2020 Canadian Black Book Awards, which are given to vehicles that best hold their value when it’s time for a trade-in.
Why Finance Instead of Lease?
Leasing is also an excellent option if you’re looking for an economical way to drive a new vehicle. If financing is like buying a house with a mortgage, leasing is like renting except you pay for usage and depreciation.
At the end of your term, when you finance a vehicle, you own the vehicle once you’ve paid out your contract. In comparison, once your lease ends, you can lease or finance a new Toyota vehicle, purchase the vehicle for the Lease End Value indicated in your contract, or return your leased vehicle.
For example, when you lease a car for three years, you’re paying to drive it for that specific portion of the vehicle’s life. People who lease vehicles generally like to drive new cars more often and want to have lower monthly payments.
The obvious benefit of financing a vehicle instead of leasing one is that you get to own the asset once your contract ends. If you’re interested in learning more about Toyota vehicle leases, you can learn how leasing a car works in this article here.
Whether you’re interested in financing a Toyota, leasing one, or buying one upfront, Toyota is committed to helping you choose which payment option best suits your needs – just look at these Toyota financial incentives!
Contact Toyota Financial Services or book an appointment at your local dealership today to find out more.
