Leasing vs Buying a Toyota in Ontario, OR
Buying a Toyota from us here at Hometown Toyota Scion means you're making a fairly big investment, which for many of us means the second most expensive thing we'll ever buy, after a home. If you're in a position where you have the money you can obviously buy your new ride outright, but more and more people are now leasing a Toyota. So, here we're going to look at leasing vs buying a Toyota in Ontario OR, the benefits of leasing, the benefits of buying, as well as some of the downsides.
Differences of leasing vs buying
When we refer to buying a vehicle we mean owning it outright, while leasing is basically a long-term rental agreement. Buying could mean purchasing outright with a lump sum of cash, but it could also mean buying on finance when you take ownership of the vehicle once all the payments have been made. Some leases offer the chance to buy the vehicle at the end of the term, but we'll put that aside for the time being.
Benefits of buying
When you buy outright you own the vehicle, so there are no monthly payments, no restrictions on usage, and no one else has any sort of hold over it. The vehicle remains yours for as long as you want, and you're free to sell whenever you want without concerns about penalties.
Benefits of leasing
A big benefit of leasing is you don’t have to find a large sum of money in one go, and it's generally less expensive than buying if you only keep vehicles for a relatively short length of time. That's not all though, as payments are fixed so you can accurately budget, and if the lease term is shorter than the warranty term big repair bills won’t be an issue either. A huge deposit isn’t required as they are generally set at the equivalent of a few monthly payments in advance, and no deposit is required at all with some deals. Worries about selling your vehicle in the future and how much you'll get are also things of the past as the vehicle can just be handed back to the lease company at the end of the agreement.
Downsides of buying
Buying isn't cheap. It means handing over a lot of money in one go and as soon as you leave the lot it's costing you money in depreciation, which is the difference between what the vehicle eventually sells for compared to what it originally cost to buy. Once it's eventually time to change your vehicle, another big lump of cash needs to be found if you’re going to buy outright again.
Downsides of leasing
A leased vehicle belongs to the leasing company, and some people feel uncomfortable about that. Leasing isn’t as flexible as buying outright as the miles you can do and the length of time you have the vehicle for is limited. The condition is has to be returned in is set down in the terms and conditions of the agreement, so if you hand back having done too many miles or in unacceptable condition, there will be financial penalties.
Leasing probably isn’t right for everybody, although if you keep the vehicle for just a few years it's considerably more cost-effective than buying outright is. Also, not everyone has the money upfront required to buy outright, and that's probably the majority of people if we're honest. To get a fabulous new Toyota to drive for a few years until you swap it inexpensively for another, leasing really is a great way to go. To find out more about leasing vs buying your new Toyota, don’t hesitate to get in touch with us here at Hometown Toyota today.