Leasing vs. Buying: Which is Right for You?
If you’re looking for a new Toyota or a used model and you’re wondering if you should buy or lease, there are great reasons for either option. It all depends on which one works best for your budget and lifestyle in Eatonton and Monticello. Plenty of customers ask us, “Should I buy or lease?” so our sales and financing teams are well-versed in the benefits of either option. Join us as we compare leasing vs. buying a new Toyota at Five Star Toyota of Milledgeville.
Leasing vs. Buying a Vehicle
What’s the difference between leasing vs. buying for Gray car-shoppers? In the simplest terms, a lease is essentially a long-term rental agreement, while buying a vehicle means you’ll own it outright once your loan is paid. Neither option is better or worse than the other, but they appeal to different types of buyers. Let’s see the pros and cons of leasing vs. buying a Toyota:
Pros and Cons of Leasing a Car
Pros:
- Lower Monthly Payments: Leasing a car generally means your monthly payments and down payment will be lower than if you choose to buy.
- Worry-Free Maintenance: Most leased vehicles will have warranty coverage for the duration of the lease, which means most repairs will be covered. Some dealers and brands offer complimentary maintenance in that time frame. For Toyota vehicles, you get two years or 25,000 miles of complimentary ToyotaCare.
- No Worries About Resale: You don’t have to trade or sell your leased vehicle. Just return it to us at the end of the lease term, settle any outstanding fees, and you’re free to acquire your next vehicle however you like.
- Get a New Car Every Few Years: Most lease terms are three years, meaning you can lease a new Toyota every three years if you’d like.
Cons:
- Mileage Requirements: If you exceed the agreed-upon mileage, you’ll owe some fees.
- Constant Monthly Payments: You will have to maintain those monthly payments to keep your car and that’s going to be a constant during the time of the lease.
Pros and Cons of Buying a Car
Pros:
- Ownership: Since you own the vehicle, you can do whatever you like with it, including keeping it for as long as you’d like. You can sell or trade at any time and recoup some of your investment.
- Customize Your Vehicles: Leases have rules regarding what can be done with your Toyota vehicle. When you own the car, you won’t be restricted in adding accessories or performing modifications.
- No Restrictions: You won’t be limited in how many miles you put on a vehicle you buy, and you don’t have to worry about someone else’s wear and tear standards.
Cons:
- Higher Monthly Payments: While buying a car means higher monthly and down payments, buying can be more cost-effective if you plan to keep your car for many years.
- Rapid Depreciation: New cars can lose between 15 and 50 percent of their total value in the first five years.
- Larger Down Payment: If you’re trying to get approved for a loan, you’ll have to consider making a larger down payment to do so. Leasing your vehicle will mean less chance of this occurring.
Buy or Lease Your Next Toyota with Five Star Toyota of Milledgeville
No matter whether you choose leasing vs. buying, you can save money when you get your next vehicle at Five Star Toyota of Milledgeville. Apply for financing with us, no matter which option you choose, and we’ll do the work to get a great loan rate for you.
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