When it comes to taking the next step in investing in a new Toyota or quality used vehicle, deciding between buying or leasing can be tricky. What’s the difference between the two? Which is cheaper short term? Which option provides the most freedom? We can help with those questions. Many are familiar with buying, but some aren’t aware of the advantages of leasing. Here at Toyota of Glendora, we think there are pros and cons to both. That’s why we’ve outlined the advantages of both financial avenues below so that you can walk into our dealership (or shop online) with confidence, no matter which path you take. If you want to find out whether you should buy or lease, keep reading:
Why Lease a Vehicle?
Minimal Upfront Cost
Very similar to renting an apartment or house, leasing a vehicle means agreeing to make monthly payments within the agreed lease period with the knowledge that you’ll return the model back to the dealership once your lease ends. With leasing, you’ll (generally) encounter lower down payment requests, meaning your upfront costs are typically lower. If you have limited cash to pay upfront, leasing may be the better option.
Compared to buying, leasing your new Toyota gives you a certain flexibility. Leasing contracts average 2-3 years (24-36 months), which is much shorter than buying. Lessees are given an average of 10,000-12,000 miles per year on their vehicle of choice and the option to purchase more miles (if needed) at signing. When you choose to lease, you’ll get the fun and flexibility of driving a brand-new model every two or three years without the hassle of selling or trading. Did you fall in love with your Toyota? Leasing still grants you the option of buying your model at lease-end.
Warranty & Accident Protection
Many new car warranties will line up with your lease terms, which means you could drive a new Toyota that still qualifies under Toyotacare for the entire length of your lease period. Any damages or repairs that qualify under ToyotaCare won’t be your financial responsibility to fix, and most new cars (especially a Toyota) won’t need extensive repairs anyway. Plus, if you’re leasing a car that has been in an accident and was repaired properly, you will not pay penalties when you give the car back to Toyota.
Why Purchase a Vehicle?
Unlike leasing, you’ll find true freedom when you choose to purchase your new Toyota. After completing your monthly payments to your lender, that car, truck or SUV is yours to keep, sell or trade whenever you want. Paint the car green, switch out the audio system or upgrade the wheels without asking! Independence is yours when you buy.
Because of the larger down payment, buying your new Toyota may be more financially wise in the long term. We will always recommend placing more upfront since it will lower your monthly payments. Plus, you’re allowed more financing options with buying rather than leasing, and once you’ve completed your buying term, the money you’ve invested is secured. You’ll have a better return on your investment since with leasing, all of the monthly payments (and down payment) are lost when you return your Toyota to the dealership.
No Mileage Restrictions
You’re in charge when you decide to buy! Mileage restrictions don’t exist — and neither do the fees if you go over — and while many won’t take their car out of the country normally, you won’t have to ask for permission if you do. Autonomy from the bank, dealer or other lender is yours with ownership.
If you’re ready to be the proud owner or lessee of one of our new models, or are interested in learning more about your lease-end options, feel free to contact us online or visit us at 1949 Auto Centre Dr. Glendora, CA 91740. We look forward to serving customers from Pomona, Azusa, Puente Hills, Covina and Claremont.