Financing vs. Leasing a Vehicle
1. How much are you going to drive your car?
If you are a high mileage driver, maybe a lease is not in your best interest. Normal lease options give you up to 24,000 kilometers per year with the option to extend your yearly kilometer limit. In this case, a finance purchase could be your best option.
2. Do you like owning your own car?
If you like to perform modifications to your car and keep it for a long time, financing that purchase is your best option. Lease contracts prohibit non-manufacturer-approved alterations, therefore the leased vehicle must be returned with original or Toyota approved parts and accessories.
3. What is your monthly payment budget?
Leasing payments tend to be smaller than financing a new vehicle because paying for the entire value of the vehicle isn’t on your shoulders. However, keep in mind that in the long term, paying off a new car and keeping it is less expensive than renewing your lease on a new model every 36-48 months.
4. Is it important to you to drive a new car?
The greatest advantage to leasing is that you get to have a brand new car every few years for less. Furthermore, the extensive warranty coverage on new Toyota models means that you won’t be on the hook for substantial maintenance repairs, aside from the occasional oil change, etc.
5. Do you want to continually lease a new car or buy out your lease at the end of the term?
Here’s another option to consider: Buy out your lease at the end of the contract period. If you really connected with your lease, it can be yours simply by paying off the remaining value. Financing a lease buy-back is an option, too. But if you’d like to try for another new lease model, that’s your prerogative.