Vehicles are a big investment, which makes it especially important to consider all of your options. So before you sign a car loan or lease agreement, let’s explore what car leasing and financing entail.
Car Leasing vs. Financing: A Breakdown
There is no right or wrong answer when it comes to car leasing vs. a car loan. Rather, it has to do with what each individual is looking for, what their budget is, and what’s important to them in a vehicle.
Car Leasing
There are a few different reasons why car leasing might be the right option for you. One reason could be budgeting. While you will not own the car outright, car leasing often comes with lower upfront costs and lower monthly payments than a car loan. This will be a good fit for someone who does not have much money to spare already in their budget.
However, it isn’t just about the money. Leasing a vehicle allows you the freedom to try out a variety of cars, once the lease agreements are up. This means you can choose the latest models with up-to-date features and technology. Depending on your specific lease agreement, you could be driving a new car every two to three years.
Plus, you’ll always have peace of mind knowing that a warranty on the car is built right into the lease agreement.
There are some considerations to keep in mind before leasing a car. Since the car is not technically yours, your lease agreement may include restrictions on things like mileage, wear and tear, and customizations. So leasing may not be the right option for you if you drive long distances regularly, are lax on car maintenance and upkeep or are looking to make a vehicle truly your own.
Car Financing
Similar to leasing, the decision to take out a car loan depends on an individual’s needs. Purchasing a cost will come with higher upfront costs and very likely higher monthly payments. But you’re paying for what you get, which is equity in your vehicle once the loan payments are complete. This means that the trade-in or resale value is also yours.
In addition, buying the car means that you’ll likely have many more years to even out the cost of the vehicle overall — and Toyota is known for building long-lasting cars. In addition, you’ll never have to worry about any possible charges for ending a lease term early.
The other benefit of financing your vehicle? Freedom. You can do (almost) anything with this vehicle, including using as much mileage as you want, changing it how you see fit, and more.
Just like with leasing, there are some downsides to car ownership. Since the warranty on the vehicle will eventually run out, future repairs could end up costing much more. You’ll also need to handle selling or trading in your vehicle yourself, instead of upgrading your vehicle at the end of a lease agreement.
Car Finance Options Made Easy at Headquarter Toyota
One thing that both leasing and buying have in common? Headquarter Toyota makes the process simple and easy.
Our finance center will ensure that you leave with a loan or lease agreement that meets your needs and is in your budget. Start exploring our inventory of new Toyota vehicles today, and feel free to reach out with any questions.
