What is it?
Multiple Security Deposits is a payment made in advance to lower the interest rate on a lease therefore lowering your monthly payments. The deposit is fully refundable. Toyota allows guests to make up to 10 security deposits. You will receive your deposit back at the end of your lease terms. In most leasing contracts, the security deposit is equal to one month’s payment.
Multiple security deposits can yield significant savings, especially on higher MSRP vehicles.
Example of a Multiple Security Deposit:
In the case of a 48-Month lease 24,000km on a 2019 Corolla LE Base
Original Rate = 3.49%
Standard Security Deposit = $300 for maximum of 10
Deposits/$ Total = 10 deposits of $300= $3000
Rate Reduction = 1.5%
New Rate =1.99%
Payment with $0 Down = $374.37/Month
Payment with 10 Deposits = $351.50/Month
SAVINGS (over term) = $1,097.76
Security Deposit to be returned at lease end = $3000