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Is It Better to Lease or Buy? Lethbridge Toyota Fills You In on the Details

Is It Better to Lease or Buy? Lethbridge Toyota Fills You In on the Details

Lethbridge Toyota tries to offer local drivers some excellent financing and leasing options. But even with these choices, drivers may find themselves asking: is it better to lease a car or to buy it? Well, let us explain some of the perks and drawbacks of both processes. Read on for a detailed explanation of when it’s best to buy and when it’s best to lease.

Perks of Leasing

When you lease a car, it’s as if you’re renting it for a specific time period. You simply pay a monthly “rent” on the car, and the rent is is determined by the “residual,” which is a prediction of the vehicle’s value at some fixed point in the future. A likely lower rate of depreciation results in a higher projected resale value and thus a higher residual (and higher rent), while a higher rate of depreciation results in a lowered projected resale vale and thus a lower residual (and lower rent).

Leasing has a few obvious perks. First, instead of a down payment (required when you buy a new car), leasing requires a lot less money up front, and the monthly payment is usually much smaller than is required when you buy a new car. Second, there’s usually no trouble getting rid of the car when you want to give it up. Just like an apartment, you can just move on to another when your lease is up, rather than being forced to find another buyer. On the other hand, you do have to make sure that you return the car in more or less the same condition as you originally received it in, and you’ll usually have a number of allotted miles. If you go over this number, you’ll also have to pay extra.

Perks of Buying

The biggest perk of buying is obvious: when you’re done paying off what you owe, the car is yours to do whatever you want with: keep it, sell it, use the equity for a trade-in, and so on. You also don’t necessarily have to worry so much about keeping the vehicle in perfect condition or not exceeding the number of allowable miles. On the other hand, you will be required to pay a higher down payment, and you’ll probably also have higher monthly payments due. Moreover, once a purchased car is no longer under warranty, you’ll have to cover maintenance costs yourself.

Test Drive Any of the Cars in Our Inventory at Lethbridge Toyota

Whatever you decide, Lethbridge Toyota has your back. Should you decide to lease or buy from us, Toyota vehicles hold their value extremely well. If you prefer to upgrade your vehicle every three years, leasing is a great option to save some money. Not to mention you can access equity at the end of your term and often upgrade early without incurring significant costs. If you’d prefer to be a proud owner of a Toyota model, we have plenty of excellent finance options and Toyota models to offer. So don’t delay: contact Lethbridge Toyota today!

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