Should You Buy or Lease Your Next Toyota Model?
Well you’ve done it. You’ve conducted a thorough online search, found a model you were interested in, test drove it at the dealership, and now you’re ready for next step: financing. The first step before diving in to all the loan and lease lingo is to figure out whether the best route is buying or leasing this vehicle. So, before you set up your meeting with a finance expert at Toyota of Merrillville, here’s how buying and leasing apply to the future you see with your new car, truck or SUV.
Vehicle Ownership: Do you want to own this vehicle someday? Can you see yourself driving this vehicle for years to come? If you answered yes to both questions, then buying is a route you should consider. Once you’ve paid off your vehicle, it’s yours to do what you want with. If you answered no to one or both questions, then you might want to investigate leasing since that’s only temporary before your lease ends.
Monthly Payments: If you decide to lease a vehicle, your monthly payments will be less because you’re only paying the portion of the vehicle’s total value that you drive during the selected leasing period. Buying a vehicle, on the other hand, has higher monthly payments, but will be more cost effective in the long run if you keep it for several years.
Restrictions: Leasing a vehicle typically comes with restrictions on yearly mileage, personal modifications and any kind of wear-and-tear that occurs. Since you’re only leasing this vehicle for a duration of time, there will be conditions in your lease agreement. With buying there are no restrictions. You can modify it, drive it as much as you want, and even sell it or use it as a trade-in for the next vehicle you want down the road.
Here’s the bottom line, if you want the freedom to switch up vehicles again in the next year or two, then explore leasing options. If you want to have this vehicle around for a while and save money in the long run, then buying may be right for you. If you’re still unsure, our finance experts would be happy to speak with you more about which route suits your lifestyle better.