Buying vs. Leasing: Which Should You Choose for Your Toyota?

When you go get a new Toyota, you have two main options: you can buy it outright and finance it, or you can lease it for a certain period of time with the ability to return or purchase it at the end of the lease period. So, which of these options is right for you? Well, we can’t tell you that without knowing the specifics of your particular situation. But we can tell you about how each process works so you can make an informed decision between buying and leasing your Toyota when the time comes.

Here's what you need to know about the leasing and buying processes.

Leasing vs. Financing Differences

Financing/Purchasing

When you purchase your new vehicle, you finance it through a car loan, which you pay off over time through monthly payments. Going through this process means that the car is yours once you drive it off the car lot or have it delivered to your house. It also means that you can keep the car in any condition you want. After all, you won’t have to worry about returning it to the dealership like you would when you lease a car (more on that below).

While all of those things are great, purchasing a car has some slight disadvantages, too. The main one to consider is that when you purchase a car, once the warranty expires, you’re responsible for any and all repairs and maintenance tasks that the vehicle needs over the course of its lifespan.

Leasing

When you lease a new car, you only get it for a certain length of time, often about two or three years. That means you can drive the car when it’s fresh and hasn’t developed any major problems yet. It will also have the latest technology and safety features. Similarly, leased vehicles are almost always covered by the manufacturer’s (in this case, Toyota’s) new car warranty, which can cover any problems if they arise. Additionally, you pay for a leased vehicle in monthly payments, but these monthly payments are usually lower than the monthly payments for paying off a car loan.

The only real drawback is the lack of ownership. You must keep the car in good condition so the dealership will take the vehicle back at the end of the lease’s term. If you don’t maintain its good condition, you’ll have to pay extra fees to the dealership for the damage. On top of that, you will have to care for things like tires, which are considered “expendable items.”

How Can You Tell Whether Leasing or Financing a Toyota is the Right Option for You?

When you decide between leasing and financing your next Toyota, it’s good to ask yourself these questions:

Can I keep my car in good enough condition to return to the dealership? Or do I want to be able to keep my car in any condition that I choose?
Do I want to pay as little as possible in the short term? If so, leasing may be the right call
Do I want to pay a bit more now so I can spend less later? Financing may be the correct option
Can I afford regular car maintenance?
Could I afford extra fees if I lease a car and its condition deteriorates?

The answers you give to these questions will help you determine which option is right for you. Then you can move forward with either the leasing or the financing process.

Lease or Finance Your Toyota in Santa Barbara

No matter which of these options you choose, we’ll be here for you. You can contact us online or at (805) 979-5011 to talk to our staff and determine whether you used finance or lease your next Toyota vehicle from us. While you’re at it, don’t forget to check out our Toyota financing specials and lease deals.