Buying vs. Leasing a Toyota Car / SUV
No matter if you’re a first-time buyer or you’ve got decades of experience, one of the most frequent dilemmas that car buyers tend to face is deciding whether or not to buy or lease their vehicle. While you’re probably heard the terms financing and leasing used interchangeably, each offers its own unique set of benefits and advantages that are worth taking into consideration. To help you shop for your next vehicle like a pro, our team at Ken Ganley Toyota Akron has created this helpful buying vs leasing guide. You’ll discover all the key differences between buying and leasing, giving you the confidence to make the right choice for your lifestyle and financial goals.
Should I Finance My New Vehicle?
Freedom & Flexibility
Financing your vehicle lets you experience both freedom and flexibility. What exactly do we mean? Drivers who enjoy adding a custom touch to their vehicle in the form of aftermarket parts or accessories have the ability to do so! You’re also not restricted to a certain mileage limit. Mileage restrictions and modifications are prohibited in the vast majority of lease contracts.
Affordable Monthly Payments
Depending on the length of your finance contract, buying your vehicle is often the best way to find a low monthly payment. Compared to a lease contract, finance contracts typically offer the lowest payments since you can choose term lengths ranging from 24 to 48, 60, 72, or even 84-month terms. You’re encouraged to explore our monthly payment calculator to see just how affordable your payments can be!
Attractive APRs
Low APRs and exclusive finance rates are two other perks that eligible buyers may be able to enjoy when shopping for their next new vehicle. Considering just how low these rates often are, financing a new vehicle can be more financially advantageous compared to a lease. That’s even if you were weighing the idea of paying cash for the entire purchase price!
Ownership Equity
Once a lease contract ends, most lessees walk away with zero equity after returning their leased vehicle. When you finance, that’s not the case! After making your final payment, you become the owner of your vehicle. You can drive it payment-free for many years to come or you can take advantage of your equity in the form of a down payment when the time comes to purchase your next car. The decision is entirely yours.
Should I Lease My New Vehicle?
Low Lease Payments
A different way to understand how a lease works involves considering the fact that you’re basically paying for the percentage of a given vehicle’s lifespan that’s actually being used during your lease contract. For example, let’s pretend that a normal lifespan for a new car is effectively 10 years. Due to the fact that you’re only leasing the vehicle for the first 2 or 3 years of that 10-year period, you’re saving money in the long run compared to purchasing the vehicle outright.
Minimal Maintenance Expenses
By leasing a vehicle, you’re typically covered by factory warranty protection for the entire length of your lease contract. This means that in the extremely uncommon event that a problem arises, you won’t have to pay out of pocket for repairs. Similarly, select Toyota models include complimentary scheduled maintenance that can further enhance your ownership experience.
Greater Flexibility
There’s no telling what kind of surprises or changes life can throw at you. Major adjustments to your lifestyle can sometimes play a role in your individual driving needs. When you lease, you can enjoy the flexibility that allows you to change to a different model after a certain period of time (as specified by your lease term). This makes it easy to upgrade to a larger model if you’re adding a new member to your family. Conversely, a new job or a move to a different city could require a smaller or more fuel-efficient model. Making the switch is much more seamless and straightforward when you lease.
No Impact on Trade-In
It’s always an unpleasant surprise to learn that your vehicle has depreciated in value significantly over time. However, leasing a vehicle allows you to shield yourself from this uncertainty. After your lease has reached its conclusion, all that’s left to do is return the vehicle and choose your next lease. No need to worry about resale value or depreciation at all!
Leasing vs Financing - Frequently Asked Questions
Am I able to buy my leased vehicle once the contract expires?
Absolutely! Plenty of Toyota lessees aren’t quite ready to say goodbye at the conclusion of their lease contract. Fortunately, each lease contract typically contains a clause that allows you to purchase the vehicle at a predetermined price. We can even help streamline the purchase process and secure financing if necessary.
When is the best time to lease a Toyota?
Ken Ganley Toyota Akron is proud to be your top destination for the most competitive Toyota lease offers in Northeast Ohio. While you can always expect to get a great deal on a Toyota lease at our dealership, certain times of year can be more advantageous than others. For example, waiting until shortly after a new model year has debuted can be beneficial. This is due to the fact that you minimize your potential exposure to depreciation.
I’ve saved up a large amount of money for a down payment on my next vehicle. Should I buy or lease?
Kudos to you for saving up for a down payment! Sizable down payments are an excellent way to keep your monthly payments as low as possible, allowing you to pay off your vehicle faster. For this reason, we recommend financing your vehicle and taking advantage of your hard work.