Everything You Need To Know About Leasing and Financing a Toyota

By: Castlegar Toyota   |   07 Oct 2016
Handing over keys

Every new vehicle shopper struggles over the decision to lease or finance. While there’s no right or wrong answer, how you choose to pay for your vehicle really depends on several key factors, including your financial situation, your personal lifestyle and overall driving habits. If you intend to use your vehicle solely for driving to and from work or running errands, a leasing agreement would suffice. But, if you’ll be taking your vehicle on long trips, lease agreements are less likely to work given the restrictions imposed on the mileage of a leased vehicle. In the end, leasing or financing isn’t simply about which one gets you smaller monthly payments. Both options come with their own benefits and flaws, and it’s important to know the differences before you sign an agreement. Here is everything you need to know about leasing a car and financing a car.

What is Vehicle Financing?

Vehicle financing refers to a particular loan between yourself and your dealership or major financial institution. When you enter into this agreement you agree to pay a set amount of money over a definite period of time. Most contracts run about 3 years, during which you will pay incremental amounts, using your loan, which will eventually pay off your car. Unlike leasing, if you decide to finance your vehicle, you do so with the intent to declare ownership. After financing, you can walk away knowing there will be no more fees, and your agreement with the dealership and the bank is complete.


  • Zero mileage restrictions; drive as long and as far as you please!
  • Allows for customization/upgrading/accessorizing!
  • Can trade in/sell!


  • May require more money up front.
  • Higher down payment and higher monthly payments.
  • Loss in value due to depreciation.

What is Vehicle Leasing?

Vehicle leasing is essentially the act of borrowing a vehicle with the intent to return it or trade it in once your contract with the dealership has come to an end. When you lease a vehicle, you agree to pay an agreed amount of money over a fixed period of time, usually up to three years. Once your lease has ended, you must return the vehicle to the dealership. Lease payments are generally lower than they would be if you decide to finance, and taxes are substantially less. Leasing has been applauded by many drivers as a means of having the freedom to upgrade your vehicle every few years without worrying about the hassle of selling, but it comes with a price.


  • Lower down payments/monthly installations!
  • Repairs/maintenance covered under warranty!
  • Can upgrade after contract!


  • Restricted mileage.
  • Zero vehicle ownership.
  • More expensive in the long run.

At the end of the day, you must decide which method works best for you. At Castlegar Toyota, we have programs in place for both options, and the experts in our Finance Department can help you discuss the options available regarding leasing and financing. Our low-interest car loans are the perfect choice for those looking to buy outright, while our online credit application has proven to be successful for those looking to lease. Contact us today at 1-(877) 969-1929 and remember to browse our new Toyota and pre-owned Toyota inventory using our handy CarFinder tool to get started!

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