You’ve done your research, looked through the dealership’s inventory, and taken the test drive. Now, you’re ready to drive home in your dream Toyota. But, should you lease or buy?
To help answer this question, we created this lease vs buy guide. This informative article is for our customers in the Nashville, Gallatin, and Madison areas, so they can decide which is best for their budget and lifestyle. Here, we’ll explain the differences between leasing vs buying, so you can get started on the purchasing process as soon as possible at your local Toyota dealership, Ron Hibbard Toyota.
Leasing: All the Perks Without the Long-Term Commitment
The great thing about leasing a brand-new Toyota is that you have the opportunity to get all the higher-level features that you want without paying more for the vehicle outright.
When you lease a vehicle, you’re simply paying for the depreciation that occurs within a lease term, which is typically about three years. That, plus taxes and fees, means that you’re generally paying a lower monthly amount than if you were paying off a car loan.
While lease payments are generally lower, you do have to be mindful of maintenance and mileage. Before signing a lease contract, you’ll need to determine about how many miles you’ll be driving per year. Most leases have a 9,000- to 15,000-mileage restriction, with 12,000 miles being the most common. If you go over the number of miles allotted in your lease agreement, it could result in overage fees.
When you lease a vehicle, you can either return it to the dealership after the term ends, or you can choose to buy it. If you plan on returning it the dealer, it needs to be in the same condition as it was when you first drove it home. This means you shouldn’t add any major accessories or new paint colors to the vehicle. Otherwise, you could be paying a fee.
You should also be sure to keep up with the vehicle’s maintenance. The good thing about leasing a new car for a few years is that you likely won’t need any major repairs done to it. But, you’ll still need to get routine oil changes and tire rotations to maintain the terms of the lease agreement.
Leasing is best for: Those wanting the latest features without the long-term dedication.
Buying: Have the Freedom to Do What You Want, Whenever You Want
If you’ve found the ultimate Toyota vehicle and plan on keeping it around for as long as possible, buying may be the best option for you. Buying a vehicle lends you the freedom to do whatever you want to, including:
- Add a brand-new stereo system to hear your favorite tunes in crystal-clear sound.
- Reupholster your interior to go from standard cloth to luxury leather.
- Even paint it three different colors (if that’s your prerogative), and show it off to all your friends.
You also won’t be tied down to any kind of mileage restriction, so feel free to take that cross-country road trip that you always wanted to go on.
But when it comes to buying a vehicle, unless you have the cash to pay for it completely up front, you’ll need to take out a car loan. When you take out a car loan, you can put down a down payment, which will help lower your monthly costs. The more you put down initially, the less you’ll have to pay each month.
However, loan payments are still generally more per month than lease payments. Here, you’re paying off the entire purchase of the vehicle, plus interest and other finance charges, taxes, and fees. And unlike a lease, the vehicle’s value will depreciate, which is something to keep in mind if you ever want to sell the car in the future.
But once you pay off the car loan, you completely own the vehicle and will only need to focus on paying for gas, insurance, repairs, etc., instead of worrying about monthly car payments.
Buying is best for: Those wanting a car for its lifetime with mileage and cosmetic freedom.
Contact Us Today!
If you have any questions on leasing vs buying, or are ready to take home a brand-new Toyota, contact the Finance Department at Ron Hibbard Toyota. We’re proud to serve the Nashville, Gallatin, and Madison TN areas, and we look forward to working with you.