If you want to drive newer, safer, more reliable cars or trucks, prefer not to make a sizeable down payment every few years, and also don’t travel an excessive amount of miles every year, then a new car lease should be best for you. Leasing is designed for those who prefer to bypass the hassle of selling and buying each time they want to drive a new car, truck, or SUV.
Conversely, if you prefer long term relationships with a higher sense of commitment and ownership, then buying might be what’s best for you. Car-buying is typically best for drivers who will not mind driving the same vehicle for over five years or even until the vehicle is no longer suitable for the road.
Being aware of the pros, cons, and overall benefits of leasing vs buying a car or truck is important. Be sure to examine factors like vehicle ownership, monthly payments, repair costs, and potential savings when weighing the pros and cons of the best new vehicle financing type for you.
When weighing the value of vehicle financing, new vehicle ownership surely comes with many advantages, most associated with complete ownership of the car. You may not realize, but, there are also a few great benefits of leasing, as well. It’s important to consider all financial aspects including term length, down payment, monthly payments, buyout payments, interest rate, depreciation, and maintenance & repair costs, before making a decision. A close observation of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the perfect choice between leasing and buying a new car.
Vehicle lease payments are often less expensive than auto loan and car financing payments as the typical lease format is more-or-less renting with the option to purchase near the final payment of your lease term. Just consider when leasing that you will need a healthy credit score, and will be asked to carry comprehensive and collision insurance, though the same can be said for the lowest rate auto loans. Though it can likely add to your monthly payments, it’s also smart to get a model with the features you need or want, as personal satisfaction is often priceless.
Auto leasing often includes regular vehicle maintenance & repair. It is important to keep this in mind when calculating monthly costs of leasing vs ownership. No matter what make and model you buy, mechanic bills are an unpredictable cost that can rapidly add up. And for those of us who aren’t certified mechanics with a full toolset and hydraulic jack in the garage, leasing might be the best option for peace of mind.
Generally speaking, a new vehicle lease saves money in the short term with lower monthly payments, while buying earns you a long term investment, meaning full ownership of the value of the car or truck at the time it is traded, sold, or paid-off. For best savings on a lease, avoid lease return fees for terminating the vehicle lease early, going over mileage, or putting on excessive wear and tear. For maximizing investment on a financed/purchased vehicle, you can pay it off in a shorter term and also avoid excessive wear and mileage.
|Ownership||No Ownership||Pride of Ownership|
|Down Payment||Smaller Down Payment||Larger Down Payment|
|Monthly Payment||Smaller Monthly Payments||Larger Monthly Payments|
|Maintenance & Repair Costs||Typically Included||Not Included|
|Savings/Investment||Short Term Savings||Long Term Investment|
|Finance Term||Approx. 2-4 Years||Approx. 3-6 Years|
|Pre-Owned Vehicles||Not Available||Available|
|Vehicle Customization||Not Available||Available|
|Poor Credit Financing||Not Available||Available|
Miller Toyota of Anaheim knows that choosing the right Toyota car and financing option is never easy. Our team of experienced Toyota lease and finance specialists are on hand to help you make the right choice. Visit us online, by phone, or in-person at our dealership location in Orange County, CA. We look forward to serving you.
Great service as always! Michael R. is knowledgeable, professional, and friendly. Every staff there follows the safety guidelines wearing the mask, distancing.
My service contact, Isaiah Plummer was terrific. I just was in for a service on my vehicle. My car was ready at a decent time and he kept me informed. He didn't try to sell me on work that didn't need to be done.
Martin Miller has been my service advisor for several years and I will not get my car repaired by anyone else. Quality work and honest.
Service associate was great and really appreciated the strength of knowledge demonstrated.
Quick repair of my wheel well. Took less time then estimated. Thanks so much!