Leasing vs. Buying Car: What You Need to Know
Leasing is often a lifestyle or business choice; ask yourself a couple questions:
- Do I prefer to drive a new or late model car and keep up with the latest trends, technology, and safety enhancements?
- What can I afford for my monthly cash outlay, and how does that equate to the type of car I would like to be driving?
The Difference Between Buying and LeasingWhen you Buy a new Toyota
- You pay for the entire cost of the new vehicle, regardless of how much you drive it or how long you keep it.
- Your monthly payment will be higher than leasing
- You typically make a down payment, and pay sales tax
- Your determined interest rate which is based on your credit score
- You make your first payment a month after you sign your contract
- If you decide later to sell or trade in the vehicle, the depreciated, or trade-in, value may be considerably less than the original cost.
When you Lease a new Toyota
- You pay a portion of the vehicle's cost,which is the part that you "use up" during the time you are driving it.
- Leasing is a form of financing and is not the same as renting
- You may have a choice of not making a down payment
- You pay sales tax only on your monthly payments (in most states)
- You pay a financial rate, called money factor, that is similar to the interest on a loan.
- You may also be required to pay fees and possibly a security deposit that you don't have to pay when you buy a new car
- You make your first payment at the time you sign your contract--for the month ahead.
- At lease-end, you may either return the vehicle, or purchase it for it's depreciated resale value
- You may be charged a lease-end disposition fee, and for any excessive mileage wear-and-tear.
Leasing a new car from Boulder Toyota generally allows you to get more car for your money, and you may have the option of no money down. In addition, not only will you only be concerned with routine maintenance, but you will never have to sell your car.
Every new Toyota is supported by 36-month/ 60,000-mile powertrain warranty (engine, transmission/trans-axle, front-wheel drive system, rear-wheel drive, seatbelts and airbags).
The benefit to a business owner is leasing payments are written off as a business expense on your tax return, as well as lease obligations do not show up as a debt on a credit report.
Lease or Buy? Whether to lease or buy your decision will be based on your own lifestyle and with your own priorities in mind.
Make an appointment today with one of our leasing specialists, at Larry H. Miller Boulder Toyota to find out more about leasing a new car through Toyota Financial Services. We serve Boulder, Louisville, Superior, Lafayette, Longmont, Erie, and Broomfield; we offer the most competitive rates with 24-60 month lease terms on a new Toyota car, truck, or SUV.