Is it better to lease a vehicle or buy outright?

Do you need a vehicle? If so, you have likely heard of the two different ways in which you can acquire one: leasing and buying. A big debate between these two methods is regarding which is better. Ideally, buying is the most popular method; however, both leasing and buying have their pros and cons. Some leasing services, such as Toyota financing, provide incredible benefits, while outright buying a vehicle affords you a lot of freedom. To describe the benefits and drawbacks associated with buying a vehicle compared to leasing programs, such as Toyota’s financial services, we at Toyota Direct have provided a helpful list below.

Leasing:

When you lease a vehicle, you pay for the right to drive it for a fixed period of time, which typically ranges between three and four years. An excellent example of a leasing program is Toyota’s financial service. Below, you can find the pros and cons of leasing a vehicle.

Pros:

1. Lower Monthly Payments

If you compare the monthly cost of leasing a car against the monthly loan payments of buying a vehicle, you will notice that it is much cheaper to lease. Toyota lease specials also allow you to save even more when deciding to lease. Additionally, you won’t have to put much money down at all when you go to lease a vehicle. 

2. A New Car Every Few Years

In addition to lower monthly payments, one of the most significant perks of leasing a vehicle with Toyota financing, or any other leasing service, is the fact that you can trade it in every few years for a new one. If you would like to learn more about the benefits of leasing with Toyota’s financial services, you can talk with our experts at Toyota Direct or any Toyota dealership near you.

Cons:

1. Higher Long-Term Costs

Suppose you wish to lease vehicles for a long period of time. In this case, you will end up paying much more than if you were to outright purchase a vehicle since monthly payments are continuous while leasing a vehicle. 

2. No Ownership Unless You Decide To Buy

Unless you choose to buy a vehicle after leasing it through Toyota financing or any other leasing service, you will not have the advantages that come with owning a vehicle. For example, you won’t be able to customize a leased vehicle. You may also have specific guidelines that you need to follow during a vehicle lease.

Buying:

The most common method to acquire a car with a dealership in Columbus, Ohio, or anywhere else is to buy one. When buying a vehicle, people typically use loans through a financial institution or in-house lending with a dealership.

Pros:

1. Cheaper Long-Term Cost

Overall, buying a vehicle is much cheaper in the long term than leasing one. The biggest factor you should concern yourself with when financing a car is the interest rate and term of a loan, as that will determine how much you will end up paying for a car.

2. Total Control And Ownership

One of the most significant benefits of buying a vehicle is the fact that you have total control and ownership of the vehicle. Thus, you can customize it to your heart’s content. You will also have the ability to trade or sell a vehicle you’ve purchased, allowing you to get a return on your investment.

Cons:

1. Costs More Up Front With Higher Monthly Payments

When it comes to upfront costs, buying a vehicle will typically cost you more than leasing one. Buying a vehicle typically requires initial fees and a down payment, which can prove costly depending on the price of the vehicle you desire.

2. Depreciation Of Value

Another disadvantage of buying a car is that it will depreciate in value over time. In fact, new vehicles will lose up to 60% of their value on average after five years. This cost depreciation is not typically an issue with used vehicles, however, since they’ve lost most of their value within the first five years of ownership.

Tags: toyota vehicles, used vehicles delaware oh
Posted in Toyota Direct Service | No Comments »