Pros for Leasing
The most significant advantage to a lease is affordability. These agreements allow drivers to get into newer, nicer cars for less money. It’s a lot like renting your vehicle for an extended period — with a small down payment and reasonable monthly installments, you’ll be able to drive a new Toyota model for a couple of years until the term is up. The down payment and monthly payments are usually lower than those of a loan because you’re only covering the cost of depreciation, rather than paying for the total value of the vehicle. Leasing a vehicle also means you’ll be able to upgrade to a newer model in a couple of years without the hassle of trade-in negotiations. Plus, leased models have warranty coverage for the duration of the lease term.
Cons for Leasing
The affordability of a lease can be attractive, but there are also a few factors to keep in mind before committing. First and foremost, you won’t own your leased vehicle. You’ll simply borrow it under the conditions in the agreement. That also means you’ll typically have a yearly mileage limit for your vehicle and you won’t be able to make alterations. At the end of your term, excess wear and mileage can result in extra fees.
Pros for Buying
Buying a car is the best choice for drivers who prefer full ownership of their vehicles. With an auto loan, you’ll be able to buy your car outright while still splitting up the cost over time. When you are ready to buy a car, you can find a lender to provide the money to purchase the vehicle from the dealership. Then, you’ll pay back the lender with an established interest rate and monthly payments. Buying a car outright means you’ll be able to take advantage of its value later down the road if you choose to trade it in. You’ll also be able to put on as many miles as you see fit and modify your car to your heart’s desire.
Cons for Buying
There are some potential concerns associated with buying a car. Most prominently, you’ll have more of your money tied up in it. Higher down payments and monthly payments mean you’ll pay more to drive a new car. You may also end up being tied into a longer agreement than a lease, with many loans extending to six or seven-year terms. If you choose to get a different vehicle, you could find obstacles with selling or trading in your current one. Plus, you’ll have to handle repair costs after the warranty expires.
There are three options for owners when their Toyota lease is up; Replace, Return, or Purchase. It is important to think about what route you want to take a few months before your lease is up, so that you won’t be without a car for a period of time.
Upgrade and either purchase or lease a new Toyota. Get the latest model-year or get a larger vehicle for more space.
Turn in your keys and walk away from your Toyota. No more monthly payments, but also, no more vehicle to drive.
For those that fell in love with their Toyota. Choose to purchase your current vehicle and set-up a payment plan.