Many Peruzzi Toyota customers enjoy the advantages of leasing a new Toyota from us versus buying one. Monthly payments can be lower, and you get to drive the newest models. But it’s a different experience than purchasing a car; if you’re new to leasing, the friendly experts at Peruzzi Toyota in Hatfield, PA are happy to explain the most common terms you’ll encounter in the process.
TERM: This is how long you plan to lease the vehicle. Typical lease terms are 24, 36, 48 or 60 months. Rule of thumb: the longer the term you choose, the lower your monthly payments will be.
MONEY FACTOR: This is similar to an interest rate, but it’s calculated a bit differently. Start with a number like .0025, then to make it more “familiar” to an interest rate, multiply it by 2,400.
RESIDUAL: The amount your vehicle will be worth at the end of the lease. That value will be calculated for you before you sign the paperwork.
DEPRECIATION: Every car loses value over time and that includes a leased vehicle. The amount you’re paying for this loss in value is considered the “depreciation.”
CAPITALIZED COST: When it comes time to sell the car back, the capitalized cost (sometimes known as “cap cost”) means the negotiated selling price plus any additional costs included in the monthly payment.
Leasing remains a popular option for anyone who wants a snazzy new ride but doesn’t want to put as much money into the process. Of course, if any of this is still a little fuzzy, the friendly finance department experts at Peruzzi Toyota are happy to answer any and every question you might have about leasing. We’re all about making the process of leasing a new Toyota as clear and pleasant as possible – and keeping you informed at every step!
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