Lease FAQs and Finance Information You Won't Want to Miss Out On

Purchasing a new vehicle can be both overwhelming and exciting. A new car signifies a new start in life, but what about a new payment, as well? Have you considered how you might pay for a new vehicle? If not, don't worry. We can help you figure out the logistics and buying and paying for a new vehicle. Take a look at the FAQs below to help you understand more about the options we offer at our Toyota dealership near Buffalo and Tonawanda.

  • What's the Difference Between a New Car Lease and Loan?

Making the decision between leasing or buying a new car ultimately depends on the intentions a buyer has and their expectations of car ownership. While taking out a loan for a new car purchase can lead to eventual ownership, leasing a new car allows you to change out vehicles quickly and stay up-to-date with the latest features and technology.

  • How Do New Car Leases Work?

A lease option for a new car allows you to drive a new car without having to put a large lump sum of money down or obtaining a loan. A small down payment, typically around 20 percent of the car's value is made, which is followed by regular monthly payments. Payments end once the lease term is reached. When the term expires, you simply return the vehicle.

  • How are Leases Calculated?

Typically, car dealerships advertise attractive lease options, but how do they come up with these figures? To figure a lease amount, take the MSRP of the vehicle and determine the interest rate that will be applied. Set a lease term, and obtain the residual value of the car you are interested in. This can be provided by a dealership. Fees and rebates should also be considered.

  • What Are My Options When the Lease Ends?

When your car lease ends, you have many more options than you might think. You can simply return the car and walk away, or you can consider keeping it under different terms. Oftentimes, a car can be purchased at a buyout cost, the lease can be extended, the vehicle can be released or you can trade it in for a new vehicle.

  • What is Lease Equity?

Lease equity occurs when a car is worth more at the end of the lease term than estimated. This is usually due to putting fewer miles on the vehicle than was foreseen.

  • What are Lease Termination Charges?

When you terminate a lease, the car may be worth an amount that is more or less than what was estimated. Fees incurred by terminating a lease early can be expected.

  • What are Lease Mileage Charges?

Upon signing a lease, a mileage limit is set to sustain the vehicle's value. Lease mileage charges occur when an individual drives a vehicle more than the allowed distance.

  • Do I Need to Turn My Lease in at the Store I Leased it Through?

The simple answer is "yes." However, some individuals prefer to hire help from a leasing company, especially if they need released early from a lease contract.

  • How is Mileage Calculated on a Lease?

Mileage is calculated on a per-day basis. Apps are available to help you stay under your daily limit. Additional fees may be incurred if you exceed the allowed limit.

  • Do I Need Replace Tires Before Turning the Lease In?

Changing the tires on a leased vehicle before you turn it in is expected. Tires with less than 1/8-inch tread left will need new tires prior to release.

  • Where Does My Leased Car Go After I Return It?

Typically, a leased car is then sold after the lease term ends. Cars may not even be owned by the dealer and may be a possession of a finance company. Wholesale auctions are a good market for these types of vehicles.

  • What is My Lease Buy Out?

A lease buy out can help you purchase your leased vehicle in lieu of returning it. The leasing agent can help walk you through this process.

  • Where Do I Turn in My Lease?

This depends on the lease contract. There a many options for a lease turn in, depending on your intentions after the lease agreement ends.

  • Can I Extend My Lease?

Typically a lease can be extended, but it is best to check your contract first. Additional details and fees may come into play.

  • How to Get Out of a Lease Early?

You can likely get out of a lease early, but it will cost you. To determine how to end your lease contract and the associated fees contact your lessee.

  • How to Refinance a Lease?

Often associated with a lease buyout, a lease may be refinanced with a loan if you aim to keep the vehicle you have come to love. Check with local lenders to obtain their rates for these types of loans.

Visit Northtown Toyota Today

We encourage you to make the trip out from Niagara Falls or North Tonawanda to tour our vast new model inventory and explore our competitive leasing specials. Contact us as soon as you can!