Buying Versus Leasing
Buy vs. Lease: What’s the Best Option for me?
Are you wondering if you should buy or lease your next Toyota model? Don’t worry; you are not the only one. At Metro Toyota, we know this is a big decision but we’re here to help you discover the advantages of purchasing or leasing your vehicle.
Benefits of Purchasing a New Toyota
There are many benefits to purchasing a new Toyota. Once you have completed paying off the vehicle, you can sell it whenever you would like to. Another advantage of purchasing a Toyota model is that there are no mileage penalties, so you won’t have to worry about any additional mileage fees. When you buy a new vehicle, you can customize it to your liking.
Benefits of Leasing a New Toyota
Leasing a new Toyota also has its benefits. You will have lower monthly payments and can put down a more down down payment. You won’t have to worry about vehicle depreciation since you are only driving the car for a short period. If you have less-than-perfect credit, many lenders throughout the area will work with you.
Buying
| Who Owns It | Whether you pay for the car with cash, or finance it and make monthly payments, either way it’s yours. Of course, if you’re financing it, you’ll have to meet the obligations the lender requires, like a certain down payment amount and timely monthly payments. If you don’t, they have the right to repossess it. |
| Up-front Costs | If you’re financing it, the bank will probably request a down payment. You can also trade-in another vehicle and use any equity towards your down payment. The amount of the down payment is usually based on the lender’s requirements and your credit score. |
| Future Value | Your vehicle will be worth whatever you can sell it for in the future and that depends on how well you maintain it. (Be smart and protect your investment with regular scheduled maintenance by a factory-authorized facility!) |
| End of Payments | Once you’ve paid off what you owe on your contract, that’s it. Your vehicle is 100% yours. The lending institution will send you a Lien Release as proof that the vehicle is completely paid off and all yours. |
Leasing
| Who Owns It | You do not own the car when you lease. You’re paying for the use of the vehicle, but the finance institution that you leased it through actually owns it. This is usually why you pay less per month in a lease than if you were to buy the car. |
| Up-front Costs | Leases often do not require any type of a down payment. All you usually have to pay is the first month’s payment, a security deposit, the acquisition fee, and other fees and taxes. But, as with a purchase, if you want to lower your monthly payments, you can always pay more upfront. |
| Future Value | In most leases, you don’t end up owning it so you don’t end up selling it. That’s the financial institution’s job. Although you may have mileage limits and wear and tear guidelines that, if you exceed them, could cost you extra money when you turn your vehicle back in |
| End of Payments | Most people return the vehicle at the end of the lease term. But some like to purchase it during their lease or at the end. Others like to trade it in before their lease is over. Just ask us about these different options before signing any paperwork and we’ll make sure you have your lease set up the way you want it. |
| Best Cars to Lease | The best cars to lease are those with the best book value after the term of the lease. Since they depreciate less, you pay less. Review the lease ratings to see which cars retain their value. |