Leasing vs Buying a New Car

New Car Lease vs Buy

Why Lease a New Car?

If you prefer to drive newer, safer, more reliable cars, but not pay a sizeable down payment every few years, and also do not drive an exorbitant amount of miles annually, then a new car lease could be the right choice for you. Leasing is best for people who would prefer to avoid the hassle of selling and buying each time they want to drive a new car, truck, or SUV.

Why Should You Buy a New Car?

Contrarily, if you prefer long term relationships with a larger sense of ownership and commitment, then buying might be what’s best for you. Car-buying is typically best for shoppers who won’t mind driving the same car or truck for over five years or even until it is no longer suitable for the road.

Buying vs Leasing: Which One Is Right for You?

Being aware of the pros, cons, and overall benefits of buying vs leasing a vehicle is important. Be sure to consider monthly payments, vehicle ownership, repair costs, and potential savings when considering the best new car or truck financing type for you.

Leasing vs Buying: Ownership

When it comes to vehicle financing, new car, truck, or SUV ownership certainly comes with many well-known advantages, most associated with complete ownership of the car or truck. You may not be aware, however, there are also some nice benefits of leasing, as well. It’s important to consider all financial aspects including buyout payments, down payment, monthly payments, term length, 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 optimal choice between leasing and buying a new car, truck, or SUV.

Monthly Payments

Car lease payments are often times less expensive in comparison to auto loan and car financing payments as the standard lease contract is more-or-less renting with the option to buy out near the end of your lease term. Consider when leasing that you’ll need a healthy credit score, and will be required to carry comprehensive and collision insurance, although the same can be said for the best rate auto loans. Though it could add to your monthly payments, it’s also wise to get a model with the features you want or need, as personal satisfaction is often priceless.

Maintenance & Repair

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 uncertain cost that can rapidly add up. And for those of us who are not certified mechanics with a hydraulic jack and full toolset in the garage, leasing might be the best option for peace of mind.

Investment vs Savings

In general, a new vehicle lease saves money in the short term with lower monthly payments, while buying earns you a long term investment, meaning outright ownership of the value of the car, truck, or SUV at the time it is traded, sold, or paid-off. For best savings on a lease, avoid lease return fees for going over mileage, terminating the vehicle lease early, or putting on excessive wear and tear. For your best investment on a financed/purchased vehicle, you can pay it off quickly and also avoid excessive wear and mileage.

	Lease	Buy
Maintenance & Repair Costs	Typically Included	Not Included
Down Payment	Smaller Down Payment	Larger Down Payment
Monthly Payment	Smaller Monthly Payments	Larger Monthly Payments
Ownership	No Ownership	Pride of Ownership
APR %	Credit-Based	Credit-Based
Finance Term	Approx. 2-4 Years	Approx. 3-6 Years
Savings/Investment	Short Term Savings	Long Term Investment
Vehicle Customization	Not Available	Available
Pre-Owned Vehicles	Not Available	Available
Poor Credit Financing	Not Available	Available
New Vehicles	Available	Available

Toyota Lease and Finance Offers In Lubbock TX

Gene Messer Toyota knows that choosing the right Toyota car and financing option is never easy. Our team of experienced Toyota lease and finance specialist are on hand to help you make the right choice. Visit us online, by phone, or in-person at our dealership location in Lubbock, TX. We look forward to serving you.