Financing at Alberni Toyota

What Does it Mean to Finance a Vehicle?

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 car loans are for. When you buy a house, you typically take out a mortgage. The same can be said when buying a vehicle.

Financing a car means that instead of paying in full upfront, you can take out a car loan (with interest) from a financial institution and then pay it back in installments. 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. APPLY FOR FINANCING TODAY

What Do You Need to Finance a Car?

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 the information we 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. CREDIT APPLICATON

Is it Better to Lease or Finance a Vehicle? 

Leasing a car 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.

The difference between leasing and financing a car is that at the end of your term.  When you finance a vehicle, you own the vehicle once you’ve paid out your contract. With leasing, 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. LEASING OPTIONS AWAIT