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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.
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.
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.
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.
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.
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.
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 |
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.
