Leasing vs Buying

New Car Lease vs Buy

Why Should You Lease a New Car?

If you prefer to drive newer, safer, more reliable cars, not commit to a big down payment every few years, and also do not drive an exorbitant amount of miles every year, then a new car lease may be better for you. Leasing is best for those who prefer to avoid the annoyance of buying and selling each time they want to drive a new car.

Why Should You Buy a New Car?

On the other hand, if you prefer long term automotive relationships with a greater sense of commitment and ownership, then buying should be what’s best for you. Car-buying is typically best for consumers who will not mind driving the same vehicle for over five years or even until it is no longer suited for the highway.

Leasing vs Buying: Which One Is Right for You?

Knowing the pros, cons, and overall benefits of leasing vs buying a car is imperative. Be sure to contemplate potential savings, vehicle ownership, monthly payments, and repair costs when weighing the pros and cons of the best new car, truck or SUV financing type for you.

Leasing vs Buying: Ownership

When considering vehicle financing, new car or truck ownership certainly comes along with many well-known advantages, most associated with outright ownership of the car, truck or SUV. You may not be aware, however, there are also a few nice benefits of leasing, as well. It’s important to consider all financial aspects including term length, down payment, monthly payments, buyout payments, interest rate, depreciation, and maintenance & repair costs, before making a decision. A careful observation of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the optimal choice between leasing and buying a new car or truck.

pros and cons of leasing vs buying a new car

Monthly Payments

Car or truck lease payments are often less expensive compared to car financing and loan payments as the normal lease format is pretty much renting with the option to purchase near the final payment of your lease term. Consider when leasing that you’ll need a nice credit score, and will be asked to carry comprehensive and collision insurance, though the same can be said for the lowest rate auto loans. Although it might likely increase your monthly payments, it’s also wise to get a model with the features you want or need, as personal satisfaction is often priceless.

should i lease or finance a car

Maintenance & Repair

Auto leases often include regular vehicle maintenance & repair. It is important to remember this when calculating monthly costs of leasing vs ownership. No matter which make and model you buy, mechanic bills are an unpredictable cost that can quickly add up. And for those who aren’t certified mechanics with a full toolset and hydraulic jack in the garage, leasing could be the best option for peace of mind.

lease vs finance car analysis

Savings vs Investment

Generally speaking, a new car or truck lease saves money in the short term with more affordable monthly payments, while buying earns you a long term investment, meaning absolute ownership of the value of the car at the time it is traded, sold, or paid-off. For best value on a lease, avoid lease return fees for terminating the vehicle lease early, going over mileage, or putting on excessive wear and tear. For the best investment on a purchased/financed vehicle, you can pay it off quickly and also avoid excessive wear and mileage.


Lease Buy
Ownership No Ownership Pride of Ownership
Down Payment Smaller Down Payment Larger Down Payment
Monthly Payment Smaller Monthly Payments Larger Monthly Payments
Maintenance & Repair Costs Typically Included Not Included
Savings/Investment Short Term Savings Long Term Investment
Finance Term Approx. 2-4 Years Approx. 3-6 Years
APR % Credit-Based Credit-Based
New Vehicles Available Available
Pre-Owned Vehicles Not Available Available
Vehicle Customization Not Available Available
Poor Credit Financing Not Available Available

Toyota Lease and Finance Offers Near Sacramento CA

Folsom Lake Toyota knows that choosing the right Toyota car and financing option is never easy. Our team of experienced Toyota lease and finance specialist are on hand to help you make the right choice. Visit us online, by phone, or in-person at our dealership location near Sacramento, CA. We look forward to serving you.


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DealerRater Mar 16, 2021

John Key was amazing. He made buying our new car seamless and was extremely helpful in explaining all the features of our new car. My husband isn't a fan of the car buying experience and he was extremely happy working with John. Looking forward to working with Folsom Lake Toyota and John in the future. Thanks again for everything!

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DealerRater Mar 1, 2021

John was very helpful, pleasant and responded very quickly to my questions! He made the purchase of my new Toyota a very good experience. I intend on relying on him for any future purchases!

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DealerRater Feb 23, 2021

John was the most knowledgeable and friendly salesman I’ve met in 50 years! He made our purchase so easy and stress free! A+++ thanks!!

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DealerRater Feb 15, 2021

I took one of my mom’s vehicles in for service, as she had passed away relatively recently. When I called Jim directly to ask about servicing the vehicles—he was in my mother’s address book—he said he knew my mother, thought highly of her, and expressed his condolences—all of which I very much appreciated. We then set a service appointment for the following Monday—solely because I wanted to deal directly with Jim, and he doesn’t work weekends—as it was Friday afternoon when I called. Our interaction was exceptional, as was Jim’s customer ...

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DealerRater Feb 3, 2021

John was incredibly helpful, knowledgeable, and was able to get me into the car of my dreams. I am so excited to wake up and drive my new car every day and it's all thanks to him! The finance manager I worked with was also very easy to work with. All around great experience.

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DealerRater Feb 3, 2021

This is the 4th car I’ve bought from John and Folsom Lake Toyota. I love getting my cars from them. Friendly. Professional. Knowledgeable. Fast

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12747 Folsom Blvd • Folsom, CA 95630

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Folsom Lake Toyota 38.637308, -121.201238.