How does leasing differ from owning a vehicle?
So you’re ready to upgrade to a new Toyota, but you’re unsure which choice to make between leasing and owning. Don’t worry. We have you covered! Let’s go over the benefits and differences between each so you can make the best decision!
The Benefits of Buying A Car:
Many people prefer to buy rather than lease as they gain full ownership of the vehicle. They view buying a car as an investment because the ability to eventually sell your car down the road allows them to recoup some of their costs. That freedom to do whatever you want after you buy your car is the main perk! W
When you own a car, you are free to decide when to buy, sell, or trade-in for a new one. If you lease a car, you must keep it until the contract is signed, and you have many guidelines and rules to adhere to. When you return a previously leased car, you will almost always be asked to pay the remaining lease payments in full.
Plus, if you want to personalize any aspect of your car, whether it’s new paint, a new stereo system, different headlights, etc., buying is the way to go. Once you buy the car, what you do with it is your choice!
The Drawbacks of Buying A Car:
Buying a car may not be the ideal option for you if you’re someone who gets bored with your car easily and wants to constantly upgrade to the newest cars on the road. It’s simply not cost-effective to buy a new car and try to upgrade within a year or two. You’ll lose way too much money in the process, because a new car depreciates as soon as you take it out of the parking lot. The lower a vehicle’s resale value, the longer you’ll keep it. People who buy cars are more likely to keep them than those who rent them. Plus, you’ll be responsible for all repairs after the warranty has expired, which can get expensive quick.
The Benefits of Leasing a Car:
People who love change and want to see the latest and greatest innovative technologies for the newest cars on the road should consider leasing a vehicle! Manufacturers are constantly improving navigation and assisted driving technology for your comfort and convenience. You can drive the best cars on the market for a few years and then upgrade to a newer model when the lease expires. Plus, you’re not stuck with driving your lease. You can simply return the car and save yourself the hassle of selling it if you don’t want to upgrade.
Another benefit is that many leasing programs include free maintenance for a period of time. When routine maintenance is required, the expert technicians at your service center can ensure that your car is working at its best, all free of charge to you. Even if your leased vehicle does not include a service plan, new vehicles are cheaper to maintain because they have fewer problems with wear and tear. Auto loans and leases usually have lower monthly auto payments.
The Drawbacks of Leasing a Car:
One considerable disadvantage of leasing is that you have to adhere to the rules and regulations in your lease agreement. Major damage to the car, such as severe dents, scratches, or internal damage, could cost you a lot. Plus, if you have a busy travel schedule, a major disadvantage is that you have to limit the number of miles you can travel as leases have mileage restrictions. It’s easy to stay within the allotted miles just driving to work and running errands, but if you want to take road trips or vacations, you could be breaching your mileage agreement, which you will be penalized for financially.
Additionally, after the lease expires, you will no longer own the vehicle. So instead of paying off a loan, you’ll have spent all of your money simply renting a car. For some people, that’s ok, but if you want your money to go towards inevitably owning something, leasing probably isn’t for you.
Conclusion
There’s no right or wrong answer when it comes to leasing versus owning a car. It all depends on your individual needs and preferences. If you want the freedom to make changes to the vehicle and don’t mind the higher monthly payments, buying may be the way to go. If you want lower monthly payments and don’t mind adhering to mileage restrictions, leasing may be a better option. Ultimately, the decision is up to you!
Need help making your decision? Our team is here to help! From personalized financing options to our monthly new Toyota specials, Wyatt Johnson Toyota will help you make the best decision for you.
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