What’s the difference between buying a car or leasing a car?

May 23rd, 2022 by

2022 Toyota

Is it better to buy or lease a car in this current market?

Whether choosing between buying or leasing your next vehicle it all comes down to your priorities. Do the dollars make sense? Before you choose, understand what separates the two and how to make that determination.

Lease payments are generally lower than the monthly loan payments for a new vehicle depending on the terms and your credit score. Keep in mind there’s a difference between car credit and a general credit score but we will save that for a different blog.

  • Rent Charge: This fee is shown as a dollar figure rather than a percentage, but it is the equivalent of an interest charge.
  • Length of the Lease: This is the number of months you agree to lease the car.
  • Expected Mileage: The lease sets a maximum number of miles you can drive the car each year. Most leases come with a 12,000-mile annual allotment. The monthly payment will increase slightly if you go for higher yearly mileage. If you exceed the mileage limit in the contract, you’ll owe the dealer cash for every extra mile at the end of the lease
  • Sale Price: This is negotiated with the dealer, as with a vehicle purchase.
  • Taxes and Fees: These are added to the lease and affect the monthly cost.
  • Warranty Protection- It’s always a good idea to see what the options are available because the car is full of digital components that are costly to replace.

Leases also provide less flexibility than buying. The contract discourages any customization. In fact, the finance company may require that you reverse any modifications prior to returning it, which can be both a pain and an extra expense.

ToyotaCare Plus Every eligible new Toyota comes with a maintenance plan that covers the vehicle for 2 years or 25,000 miles, whichever comes first.

 ToyotaCare Plus offers longer protection for up to 4 years or 45,000 miles from the date of first use, whichever comes first. The date of first use is when your vehicle is first put into service. 

The Bottom Line

Your lifestyle, driving needs and financial situation ultimately have the final say in this decision. Yes, it’s nice to upgrade and advance and but know your limits do that match the utility you’ll be receiving from this purchase.

CLIFT NOTES: 

  • BUYING- OWNING OUTRIGHT AND BUILDING EQUITY IN THE VEHICLE
  • LEASING IS BASICALLY RENTING A CAR WITH SPECIFIC TERMS (MILES AND TIME)
  • LEASING OFFERS LOW HASSLE TRADE-IN
  • BUYING-A GOOD CHOICE FOR SOMEONE THAT DRIVES A BIT ON A WEEKLY BASIS AND WANTS TO OWN THE CAR AFTER THE LOAN IS PAID OFF

 

WEBSITE TOOLS:

  1. Find out what your current car is worth |Value your trade…

Instant Estimate

Don’t have one no problem figure out how much you want to put down or if you want to do a $0 down structure. (This is where you want to involve a sales manager or product specialist.)

2. A payment calculator is a tool that we use to determine what payments will be with certain terms. (Use this for ballpark ranges and understanding the budget portion of your purchase)

Payment Calculator

3. Pick out your car!!

Configure your wishlist:

Vehicle Configurator

Shop Pre-owned:

Pre-Owned Vehicles

If you want a personal shopper to be on the phone with you give us a call:

216-267-7000

Need to make a service appointment :

216-267-7001

Posted in Finance