Buying vs. Leasing A Vehicle
When it comes to manifesting your dream car, we have the greatest selections of new Toyota models as well as terrific pre-owned makes and models. While car shopping in Grand Junction Colorado is exciting, deciding whether to buy or lease is also a determining factor, and the professionals at your local Toyota dealership possess expertise in this topic. Each of these options have unique advantages, and we want to ensure that you have all the facts to make an educated decision that will support your future investment. We’ve provided data regarding the various pros and cons of buying vs. leasing so that you can select which one is most compatible with your financial situation. Learn about the advantages and disadvantages of buying vs leasing a car, truck or SUV model, and whichever option you select, we’ll be there to assist you along the way. Check out the buy vs lease facts we’ve provided.
Leasing Pros and Cons
When you lease a car, you do not actually own the vehicle, and therefore do not have equity in it. You're paying for the use of the vehicle, but the finance institution that you leased it through actually owns it. For this reason, you often pay less per month in a lease than if you were to buy the car. As far as cost upfront, this typically includes the first month's payment, a refundable security deposit, a down payment, taxes, registration, and other variable fees. Lease payments are almost always lower because you're paying only for the vehicle's depreciation during the lease term, plus interest charges (called rent charges), taxes, and fees. At the time of your lease-end, you have three options. You can return the vehicle at lease-end, pay any end-of-lease costs, and walk away, finance or lease a new Toyota, or keep the car you’re leasing by re-financing the remaining value.
Most people return the vehicle at the end of the lease term (typically two to four years), others like to trade it in before their lease is over, although early-termination charges can be almost as costly as sticking with the contract. Just ask your local Toyota dealership about these different options before signing any paperwork and we'll make sure you have your lease set up the way you want it. Although you may not have to worry about resale value, you will have mileage limits and wear and tear guidelines that, if you exceed them, could cost you extra money when you turn your vehicle back in. Most leases limit the number of miles you may drive, often 12,000 to 15,000 per year, though you can negotiate a higher mileage limit. You'll have to pay charges for exceeding your limits. Any modifications or custom parts you add will need to be removed before you return the car, and if there is any residual damage, you'll have to pay to have it fixed. Routine maintenance is typically included with a lease, our team of service experts will keep your new Toyota operating at its optimal level.
Buying Pros and Cons
Whether you pay for your new or pre-owned vehicle with cash or finance it and make monthly payments, you own the vehicle and get to keep it as long as you want. Of course, if you're financing it, you'll have to meet the obligations the lender requires, like a certain down payment amount and timely monthly payments. If you don't, they have the right to repossess it. Initially, your upfront cost will include the cash price or a down payment, taxes, registration and other fees. You can also trade-in another vehicle and use any equity towards your down payment. Car loan monthly payments are usually higher than leases because you're paying off the entire purchase price of the vehicle, plus interest and other finance charges, taxes, and fees. If you decide you want to upgrade your car, truck or SUV, you can sell or trade-in your vehicle at any time. If necessary, money from the sale can be used to pay off any loan balance.
The future value of your vehicle will be worth whatever you can sell it for, and that depends on how well you maintain it. The vehicle is yours to modify or customize as you like. The car may depreciate, so when you decide you want a different one, you'll have to deal with selling or trading in your car for its current value. You're free to drive as many miles as you want, and apply as much wear and tear as you’d like, although higher mileage lowers the vehicle's trade-in or resale value. Once you've paid off what you owe on your contract, the vehicle is 100 percent yours. At the end of the agreed-upon loan term, you have no further payments and you have built equity to help pay for your next vehicle. Be sure to schedule a routine maintenance plan to ensure your valued vehicle stays healthy throughout its lifetime.
Your Grand Junction Colorado Toyota service department is standing by to listen to your needs to keep your vehicle running at peak performance. We encourage you to also consider the amount of time you predict to spend driving, the types of driving conditions you typically encounter, and the amount customizations you are seeking. The knowledgeable finance department at your local Toyota dealership will be glad to help you select the best option for your driving life, and we’ll make sure you get behind the wheel of your dream Toyota at a price that works for your budget. Visit us and learn whether to buying or leasing is best for you!