Should I Buy or Lease a Car?

Finance Paperwork with Glasses
 

Many shoppers in the San Jose ask themselves, “Should I buy or lease a car?” While buying is the most common option, leasing has its own unique set of advantages as well. In this guide, Toyota 101 walks you through the pros and cons of leasing vs. buying. Find out which is the best option for you, and continue your research with our finance department in Redwood City!

 

 

The Benefits of Leasing

Between leasing vs. buying, what are the perks of leasing? Let’s start with the basics. Leasing is a shorter-term investment for those who favor flexibility. Think of it as renting the vehicle over a period of several years. Though you don’t own the car officially, you only pay for the depreciation of the vehicle. That means you pay quite a bit less every month compared to financing, and you also get far more chances to upgrade your vehicle with no strings attached! Here are some of the benefits of leasing:

  • Cost: Leasing is usually the more affordable option for Belmont drivers on a budget because you only pay the depreciation of the vehicle.
  • Duration: Leases last around three years on average. If you like keeping up with the newest technology, you can keep enjoying the latest and greatest features when you upgrade your lease.
  • Flexibility: You can easily return your lease at the end of your contract, but you also have the option to convert your lease to a loan if you fall in love with your model. Learn more about your end-of-lease options.

The Benefits of Financing

Many shoppers who ask “Should you buy or lease a car?” ultimately end up financing. So, why is financing such a popular choice? Financing involves a higher up-front cost, but it’s a good long-term investment. Each payment builds your equity, while also boosting your credit, and you’ll eventually own the vehicle completely. This means you’ll eventually have zero payments! Here are some of the benefits of financing:

  • Investment: Financing builds equity, while leasing does not. After you pay off the loan completely, the vehicle is yours and yours alone. You can even sell the vehicle to recoup your investment.
  • Customization: Because you own the vehicle, you have complete control over customization. Whether you want a window tint or a lift kit, you get to decide what modifications to make to your vehicle.
  • Mileage: Leased vehicles include mileage limitations in the contract, and you’ll need to pay a penalty if you exceed them. Financed vehicles have no such limitations, so you can take as many road trips out of San Carlos as you’d like!

Explore Leasing vs. Buying With Toyota 101

So, should you buy or lease a car? Find out the answer with the finance department at Toyota 101. Our team can help you weigh out the pros and cons of leasing vs. buying, so contact us today with your questions. To continue your research, feel free to browse our other car-buying tips and feel confident when you purchase or lease your next vehicle at our Redwood City dealership.

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