You may have heard the common misconception if you’re planning on keeping the car, finance it because it’s cheaper. This is not always true. For those of you that are shopping for a lease, there are a few benefits that you may not be aware of. With Toyota, multiple security deposits allow customers to save money in more than one way.

How Does It Work?

Multiple Security Deposit (MSD) is a payment paid in advance to protect the leasing company against damage to the car or nonpayment to the lease. MSD aims to lower your monthly payments by lowering your interest rate. Toyota allows customers to give up to 10 security deposits. For every extra security deposit given, 0.15% is taken off the annual interest rate in return, reducing your monthly payment. You will receive your deposit back at the end of your lease term.

Example

In the case of a 48-Month lease on a 2016 Rav4 AWD XLE:

Original Rate                                                2.49%

Deposits/$ Total                                          10/$5,500

Rate Reduction                                            1.5%

New Rate                                                      0.99%

Payment with $0 Down                              $481.97/Month

Payment with 10 Deposits                         $447.39/Month

SAVINGS (over term)                                $1,659.84

Security Deposit to be returned at lease end = $5,500

 

Lease  from Ken Shaw Toyota

Lease from Ken Shaw Toyota

* Efforts have been made to ensure the accuracy of the information presented above, though pricing, equipment, or other details may change at any time without notice. For more information refer to Toyota Canada's website, or consult the vehicle's owner's manual.