If you like to drive newer, safer, more reliable vehicles, not commit to a sizable down payment every 3-4 years, and also do not travel an excessive amount annually, then a new car lease may be right for you. Leasing is intended for those who prefer to avert the annoyance of selling and buying each time they want to get into a new car or truck.
Contrarily, if you want long term automotive relationships with a larger sense of ownership and commitment, then buying could be what’s better for you. Car-buying is typically best for shoppers who do not mind driving the same car or truck for more than five years or even until the vehicle is no longer suitable for the freeway.
Being aware of the pros, cons, and overall benefits of leasing vs buying a car is important. Be sure to consider potential savings, vehicle ownership, monthly payments, and repair costs when weighing the pros and cons of the best new car financing type for you.
When weighing the value of vehicle financing, new car, truck, or SUV ownership absolutely comes with many advantages, most associated with outright ownership of the vehicle. You may not be aware, but, there are also a few nice benefits of leasing, as well. It’s essential to consider all financial aspects including term length, down payment, monthly payments, buyout payments, interest rate, depreciation, and maintenance & repair costs, before making a decision. A meticulous audit of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the best choice between leasing and buying a new car, truck, or SUV.
Car or truck lease payments are often times less expensive when compared to auto loan and car financing payments as the normal lease layout is pretty much renting with the option to purchase at the final payment of your lease term. Keep in mind when leasing that you’ll need a good credit score, and will be asked to carry comprehensive and collision insurance, though the same can be said for the better rate auto loans. Though it may increase your monthly payments, it’s also wise to get a model with the features you want or need, as personal satisfaction is often priceless.
Auto leasing often includes regular vehicle maintenance & repair. It’s important to remember this when calculating monthly costs of leasing vs ownership. Regardless of which make and model you select, mechanic bills are an unknown cost that can rapidly add up. And for those who are not certified auto mechanics with a hydraulic jack and full toolset in the garage, leasing is likely the best option for peace of mind.
In general, a new car, truck, or SUV lease saves money in the short term with more affordable monthly payments, while buying earns you a long term investment, meaning absolute ownership of the value of the car or truck at the time it is traded, sold, or paid-off. For best savings on a lease, avoid lease return fees for terminating the vehicle lease early, going over mileage, or putting on excessive wear and tear. For maximizing investment on a financed/purchased vehicle, you can pay it off quickly and also avoid excessive wear and mileage.
|Pride of Ownership
|Smaller Down Payment
|Larger Down Payment
|Smaller Monthly Payments
|Larger Monthly Payments
|Maintenance & Repair Costs
|Short Term Savings
|Long Term Investment
|Approx. 2-4 Years
|Approx. 3-6 Years
|Poor Credit Financing
Bob Howard Toyota knows that choosing the right Toyota car and financing option is never easy. Our team of experienced Toyota lease and finance specialists are on hand to help you make the right choice. Visit us online, by phone, or in-person at our dealership location in Oklahoma City, OK. We look forward to serving you.