Leasing vs Payments Peter Boulware Toyota

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Leasing vs Payments Peter Boulware Toyota

Many car shoppers never entertain the prospect of leasing a vehicle instead of buying it. Both financing methods have advantages that can benefit you, based on your budget, lifestyle, and long-range plans. A thorough understanding of both alternatives will help you reach the decision that works best for you.

Benefits of Buying

Buying a car is a good idea if you prefer to keep your car for a long time. Quality car makers like Toyota produce durable vehicles that remain on the road for decades, given proper maintenance. Often, parents hand down their Toyota to a child who reaches driving age, because Toyota vehicles are safe, reliable and easy to handle. Buying also makes sense if pay in cash rather than taking out a loan.

Purchasing a vehicle includes these benefits:

  • Availability of a special financing deal with a low APR
  • The ability to sell the car whenever you like
  • Sales contract are often easier to understand than are lease agreements
  • Your trade-in helps pay for your next car
  • Pride of ownership
  • Unlike leases, there are no charges for “excessive” mileage or wear
  • You can continue to drive your car for many years after paying it off, which reduces the average annual cost of ownership.

Benefits of Leasing a Vehicle

Leasing a vehicle is a smart decision if you prefer to drive a new vehicle every three years. Many drivers enjoy having vehicles that feature the latest technology and styling, and a three-year lease lets you drive the latest offerings with minimal hassles. When you lease a vehicle, you shell out smaller monthly payments, because you are financing only about 50 to 60 percent of the car’s value. This makes leasing a budget-friendly alternative. Leasing can also give you tax breaks if you use your vehicle for business.

The benefits of leasing include:

  • Access to the latest vehicles
  • No trade-in hassles — just return the vehicle when the lease term expires
  • If you like, you can purchase the vehicle at lease-end for a pre-specified amount
  • You can afford more expensive vehicles
  • Business tax benefits
  • You save money because you pay sales tax only on the financed amount
  • Smaller monthly payments
  • The new-vehicle warranty usually covers the entire lease period.

Our Finance Department will be happy to explain all the pros and cons of purchasing versus leasing so that you can make a decision that’s right for you. Stop by our Toyota dealership for more information, and while you’re here, check out the latest exciting Toyota models. However financed, we have the vehicles folks want to drive!