Leasing or Buying: Which Option Is Right for You?

March 24th, 2015 by

buying a hybridWhen you’re in the market for something new to drive, you have two major options. You can buy or lease a vehicle. While leasing is similar to buying a vehicle, there are some major differences. Before you head out to your favorite Toyota dealership, you should have a good idea of which option suits your needs the best. Knowing the pros and cons of both will help you determine which one would best serve your purpose.

Which Is Best: Leasing or Buying

It’s hard to say which option is the best for you when it comes to choosing between leasing and buying a vehicle because it’s different for everyone. The best way to make a decision is to know the pros and cons of both.

Leasing pros:

  • At the end of the lease you can turn in the vehicle and you’re no longer responsible for it
  • You don’t have to worry about depreciation
  • The loan is based on a percentage of the overall price instead of the full price so the interest rate is lower
  • It requires a smaller down payment
  • Most lease agreements are between three and five years so your vehicle is under warranty
  • You get to enjoy all the latest safety features and modern technology

Leasing cons:

  • You never own the vehicle so when your lease agreement ends, you have to return it, make plans to buy it or lease a new Toyota
  • If you don’t maintain the vehicle properly, you may have to pay extra fees at the end of the leasing term
  • You’re mileage is limited and if you go over, you’ll have to pay extra at the end of the agreement
  • You can’t make any alterations to the vehicle
  • Early termination fees do apply

It’s also important to note that you can get a better leasing deal if you have good credit. Therefore, if it’s less than perfect, you may want to improve your credit score before visiting a Toyota dealership in Miami. Although, here at South Dade Toyota you can receive Toyota lease offers and specials that will help you get the most for your money.

Buying a Toyota

Buying a new Toyota is a big step and a huge investment. Consider your options carefully and review your finances to determine your price range. Then decide what type of vehicle you’re interested in and go over the follow pros and cons of buying a new vehicle before going shopping.

Buying pros:

  • Once the loan is paid in full, you own the vehicle
  • You don’t have any mileage restrictions
  • You can make all the alterations you want to
  • Once you acquire ownership, you’re free to sell or trade it
  • You don’t have to worry about excessive wear and tear on the vehicle

Buying cons:

  • The vehicle loses a big portion of its value the minute you drive off the lot
  • You are obligated to pay the loan off even if you decide you don’t like the vehicle or want something different after a couple of years
  • Buying requires a larger down payment
  • Monthly payments are usually more than you would pay if leasing
  • When the warranty runs out, you are responsible for all maintenance and repair bills

Going over the pros and cons of both leasing and buying will help you determine which option is best for you based on your personal situation.

Posted in Toyota Leasing