Should You Buy or Lease Your Next Toyota?

When it comes time to get your next vehicle, you have two main options — you can either buy or lease it. Each has pros and cons, and it all comes down to what's right for your situation. Below, we'll explain what you need to know about vehicle leases compared to financing your purchase, including all the benefits of leasing, to help you decide if this is the best option for you.

Understanding Vehicle Leases

A vehicle lease is an agreement between you and a dealership in which you drive one of their new cars for a set period of time. Instead of grappling with an auto loan to buy outright, you commit to monthly payments that are equivalent to its depreciation. As vehicles naturally lose value over time, a lease involves making payments that cover this depreciation rather than paying the entire cost. For instance, a vehicle might lose $5,000 in value over three years (the typical lease length), so with a lease, you'll make monthly payments toward that $5,000.

Throughout the lease period, the dealership retains ownership. When the term concludes, you can decide to purchase the vehicle you've been driving, take on a new lease with a different model, or even purchase something else entirely. This means you can buy the car you've grown accustomed to at a lower price than when you initially chose it, or you can secure another auto lease so you can drive one of the latest models.

The Benefits of Leasing a Vehicle

Leasing is incredibly popular due to its numerous advantages over traditional financing for a purchase. Let's look at some of these benefits.

You Get Lower Monthly Payments

The most significant advantage of leasing is that you get lower monthly payments. By paying for just the depreciation rather than toward the total value of the car, the financial burden is a lot less compared to financing the entire cost. Lower monthly payments mean you can enjoy better financial flexibility, so you could choose a more luxurious model that might be out of reach if you were relying on conventional financing.

If one of the reasons you've put off getting a new car or truck is because of the monthly costs, a lease may be right for you. With favorable terms and dealership specials, it's often easier to afford a new model than you might have guessed.

You Can Always Drive the Latest Vehicle

Leasing a new model means you're always driving something with the latest innovations. Technology changes every year, and it isn't long before those new releases are out-of-date. Since leases are only available on new vehicles and only last a few years, you're guaranteed to be driving one of the latest models on the road. When your lease term ends, you can select another new car, ensuring you're always getting the best driving experience with the most up-to-date amenities and safety technologies.

You Can Avoid Certain Maintenance and Repairs

Maintenance and repairs are some of the more annoying aspects of owning a car. If it's yours outright, you're responsible for dealing with any expensive repairs and keeping on top of its maintenance schedule. And no one likes this hassle. If needing less maintenance and repairs sounds appealing to you, leases are the way to go.

Leased vehicles not only boast cutting-edge safety and comfort innovations, but they also need less maintenance and repairs. Because all components are new, they experience minimal wear and tear in their initial years, which leads to hassle-free driving for the majority of the lease term. Also, many leases come with complimentary services for common tasks, meaning you can save even more.

You Don't Need To Worry About Resale Value

Finally, the resale value can be a major concern for car owners. This is because they want to get as high a price as possible for their vehicle when it comes time to sell. However, if you choose to lease instead, you can avoid this worry. That's because the value of the returned car is predetermined at the start of the lease.

With a lease, you don't need to adjust your driving habits in order to preserve your car's value. As long as you stick to the agreed-upon terms in the lease, you'll already know your vehicle's value when it comes time to return it. Armed with this information right from the start, you can make an informed decision on whether to buy out the remainder of your leased model or try out something new.

Buying vs. Leasing — Your Choice

Determining whether leasing is the right choice depends on various factors. The main one is your financial situation, since leases typically offer more affordable monthly payments, especially when factoring in ongoing maintenance and repair costs. However, ownership may be an enticing prospect when you consider the long-term financial picture. That's because once you've paid off the loan for the purchase, no further payments are required.

The decision also comes down to your own preferences and priorities. If you like to stay at the forefront of automotive technology and have the latest features, leasing allows you to always drive the latest model, changing to a new one every few years. 

Is Leasing a Vehicle Right for You?

When deciding on your next new vehicle, leasing could be a better option for you than buying. It offers financial flexibility, access to the latest technological advancements, and less hassle and expenditure from maintenance needs. When making your decision, consider the pros and cons to determine whether leasing suits your financial situation and what you want out of your driving experience.

Explore Your Toyota Lease Options at Longo Toyota

To learn more about leasing a new Toyota in the El Monte, California, area, visit Longo Toyota. The team in our finance center would be happy to discuss your options with you and answer any questions you may have. We can also tell you about the lease return process so that you know what to expect at the end of your lease. Get started today by browsing through our latest Toyota models online or contacting us to schedule a visit to our dealership. Thank you for choosing Longo Toyota, and we look forward to hearing from you.