Should I Buy or Lease My Toyota?

When you start looking for a car, there are a lot of questions to keep in mind. One of the major decisions is whether to buy or lease. Good news: you can’t go wrong with either option. Both have their advantages and drawbacks. It’s more about what’s the best fit for you or you and your family. Read on for some information to help you decide on the right Toyota finance or lease options.

The following is meant to assist you in your car buying journey. For more specific questions, reach out to the team at Beaverton Toyota. We have seen it all in our 50 years in business and are confident we can assist you.

What Are the Financial Pros and Cons of Toyota Lease Options?

Pro #1: Flexibility

Flexibility is a huge pro of opting to lease your new vehicle. The most common lease terms are 24 and 36 months. So in three years, you have the option to turn your lease back in and walk away, refinance your lease vehicle, sell it privately, trade it in, or lease another vehicle. A lot can change in three years. Lifestyle changes, such as growing families, graduates, or downsizing, make leasing a great option. And as safety technology is constantly improving, leasing means you’ll always have the latest and greatest safety technology too.

Pro #2: Pay Less

Many, if not all, who choose Toyota lease options will have a lower up-front cost and then lower monthly payments than traditional financing. This is because, with leasing, you aren’t paying any principal on the vehicle. You’re just paying for the time you’re leasing it. Think of it like a pizza: you’re paying for just three slices, not the whole pie.

The way this works is the manufacturer sets the Guaranteed Future Value, or Residual, as a percent of the total Manufacturer Suggested Retail Price, or MSRP. So you know exactly what your vehicle is going to be worth at term (given no major accidents). Leasing can be a great option for those on a tight budget who are looking to rebuild or improve their credit.

Another way leasing can be the more financially sound decision has to do with taxes. This is because leasing can give you more tax write-offs. The IRS allows you to deduct both the depreciation and the financing costs of each monthly payment.

Pro #3: Fewer Repair Costs

With leasing, your replacement or repair expenses are minimal compared to owning a vehicle outright. For example, let’s talk tires. For many drivers, it’s fairly safe to say you won’t have to replace your tires before the conclusion of your lease.

Not only that, but when you lease a Toyota, you are under Toyota’s Comprehensive Warranty—3 years or 36,000 miles—for all or most of your lease. Plus, with Toyota, you get ToyotaCare—2 years or 25,000 miles of no-cost maintenance and roadside assistance.

Con #1: You Don’t Own the Vehicle

With Toyota leasing options, you will always have a payment. This is because you’re only paying for your portion—your three slices. Remember the pizza analogy? This means you never take ownership of the vehicle (unless you refinance at the end of your lease to purchase it outright).

Con #2: Potential Fees at Turn-In

When you turn your Toyota vehicle in at the end of your lease period, you may be charged certain fees, such as for going above the allotted mileage. You will also be charged a certain amount depending on how much wear and tear the car accumulates during your lease period. However, when you first lease the Toyota, you will be given guidelines and restrictions for each. If you stay within those, you likely don’t have to worry about these fees.

What Are the Financial Pros and Cons of Buying?

Pro #1: The Amount You Agree to Pay for the Vehicle Is Finite

If you choose to buy your Toyota, you know that an end to monthly payments is in sight. You also won’t have to worry about mileage fees or fees for any dents or other minor damages.

Con #2: It Costs More Overall

On the other hand, choosing to buy means it will cost you more up-front and in the long run. While you may prefer the longevity that comes with purchasing, you should also keep in mind that you’ll have more repair costs as the years go by.

What About the Future?

When you’re in the process of shopping for a car, you may not think too much about the end. But it can help sway you in the right direction. What happens when you decide to part ways with your vehicle?

Toyota Lease-End Options

When you choose Toyota lease options, you won’t need to worry about reselling the vehicle. Instead, you just return the vehicle to the dealer.

If you fall in love with the Toyota during the lease period, you have the option of buying it once your lease ends. If you opt for this choice, you will then pay the Oregon privilege and corporate authority tax on the depreciated price.

Toyota Resale

If you purchase the Toyota at the start, you cannot overlook the matter of reselling. Plus, the value of the car could severely depreciate over time. Depending on how many years you have it, as well as some other factors, your resale value could end up being pretty low.

However, buying a Toyota is also a smart investment. If you really take care of the Toyota, you could wind up getting a great resale value.

How Do We Help You Decide?

Obviously, this decision does not have a one-size-fits-all solution. Instead, it depends on several factors specific to your situation. At Beaverton Toyota, we want to make sure you walk away with the best financing options for you and your lifestyle. That’s why we offer buyers plenty of resources, including the Personalize My Payment tool within vehicle listings on our website. This tool allows you to figure out what your lease or finance payments would look like for each specific Toyota vehicle.

In addition to this tool, we also have a team of financial advisors that are here to help. Whether this will be your first car or you’ve had several but have specific concerns or questions, don’t hesitate to ask us for expert advice. You can call, text us via our website, or visit our store in person to take a test drive.

If you’re ready to start the process, you can apply for financing right now. Once we have your application, we’ll be able to advise the best Toyota finance or lease options for you.

Tags: Lease Car, New Vehicle, Purchase Car, Toyota Lease
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