The global pandemic has had lasting impacts on just about everyone across the planet, including spurring new financial and lifestyle considerations for many people. What we used to think of as relatively easy decisions, like booking a plane ticket to see family over the holidays or buying a new car every few years, now require a lot more thought and planning.
We’ve had many folks visit us here at Vernon Toyota asking about whether it’s best to lease or finance their next Toyota vehicle (we offer both options here at our dealership). In this article, we’ll go over a brief summary of leasing versus financing and discuss the benefits of each, in the hopes that we can equip our customers with the information they need to make an informed car-buying decision.
Leasing a vehicle is a bit like paying a monthly fee to borrow a car. You’re not on the hook for maintenance and repairs, but you also ultimately don’t own the car (unless you buy the car out at the end of your lease). When you lease a car, you agree to pay a specified monthly amount for a certain length of time, usually 36, 48, or 60 months. You’ll need to treat the car well since it goes back to the dealership at the end of your lease, but leasing is a relatively flexible, carefree, and cost-effective way to drive a brand-new car.
Leasing usually yields the lowest monthly payments possible for a brand-new car
Repairs, maintenance, and sometimes even oil changes are typically covered by the dealership
You can get the latest tech, safety, style, and more by leasing a new car every few years
There are tax advantages of leasing for business owners
Don’t worry about depreciation or having to sell your car down the road - when your lease is up, simply drop the car off at the dealership
If you end up wanting to keep the car, you have options
Financing is a lot more like buying a home, for example. It’s essentially a loan, and once you’ve paid it off, you own your vehicle. Simple! You’ll work with our finance team to secure excellent interest rates, and make monthly payments until the car is paid off.
When you finance, you’ll own your vehicle at the end of your term
You can use your car as a down payment for something new, or simply sell it if you’re not looking to get another vehicle right away and use the money for something else
Since you own the car, you can customize and drive it as you see fit. You can’t make modifications on a leased vehicle and may need to pay for external damages before returning it to the dealer
Monthly payments might be slightly higher, but they are an investment in something you’ll own and can resell at a later date
Since the Vernon Toyota Finance Department is skilled at finding the right car for your budget, deciding between leasing or financing often comes down to long-term intention. If you’re the type of person who likes to drive a new car every few years and isn’t looking for the responsibility of owning something, then leasing might be the right choice for you. If you’d like to use your monthly payments as an investment towards something you’ll own and can potentially make money from in the future, then financing can be a great option.
Whichever route you choose, here at Vernon Toyota we offer excellent leasing and financing rates on all of our Toyota vehicles. We have both in-house deals and national incentives that you can take advantage of, particularly during monthly sales events like Toyota Red Tag Days and It’s Time to Toyota. Give us a call today, and your Vernon Toyota sales rep will be happy to explain all of the best ways to lease or finance a new vehicle that’s in line with your budget and lifestyle.
Want to explore payment options from the comfort of your own home? Check out our handy vehicle finance tools, like our Car Payment Calculator, Trade-In Calculator, and simple online Vehicle Leasing and Financing Pre-Approval Application. Still don’t know where to start? Simply contact us here at Vernon Toyota today!