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Buying vs Leasing
- Finance
- Lease vs. Buying
Leasing vs. Buying a Car in Hodgkins, IL
Looking to lease or buy a Toyota? Continental Toyota in Hodgkins, IL, has a wide selection of sedans, trucks, and SUVs available for your consideration. Below, we have listed some pros and cons of buying versus leasing to give you an idea of which is the right fit for your lifestyle. If you have any questions about leasing or buying, please feel free to contact us by phone at (708) 716-4497 or through our online form.
Car Leasing
One popular option is leasing a vehicle. What is leasing? Leasing is when you have a vehicle for a fixed period of time at an agreed-upon price. Keep reading to learn more about the pros and cons of leasing.
Pros of Leasing a Car
Affordability
When you lease, your monthly payments will be lower than they would be if you were financing. In addition, leasing means falling behind on loan payments won’t be a problem.
Always in a New Vehicle
Lease contracts typically run for 12 to 36 months, meaning that you can expect to slide into a new vehicle at regular intervals. So if you’re someone who prefers the latest and greatest parked in your driveway, you’ll find leasing an amenable proposition.
Fewer Repair Costs
When leasing, repair costs shouldn’t be as extensive as when you finance because you won’t drive the Toyota for as long as you would if you financed it. In other words, your leased Toyota will not age with you.
Ease of Trade-In
Trading in a leased vehicle is simple and straightforward at Continental Toyota. You simply bring your vehicle back and you can select a new lease from our available inventory. Since you don’t own your leased vehicle, selling it before getting your next vehicle is not a concern.
Cons of Leasing a Car
Mileage Restrictions
With a lease, you do have to adhere to mileage restrictions. Any overage on your lease contract’s mileage stipulation will be charged.
Wear & Tear Costs
You may need to cover additional expenses related to wear and tear if your vehicle’s wear and tear damage is excessive.
You Do Not Own the Vehicle
Leasing is not the same as ownership. So when your lease contract is up, you are expected to return your vehicle — unless, of course, you choose to buy your leased vehicle.
Car Buying
The other option is to buy a car. When you buy, you pay the cost of the car over time until you own it. The pros and cons of buying a car are listed below.
Pros of Buying a Car
Equity
Loan payments go towards the equity on your financed vehicle. So, ownership is less expensive in the long term.
No Mileage Restrictions
When you own your vehicle, road trips will be a breeze knowing that you have zero mileage restrictions.
No Appearance Restrictions
Is your dream paint color a bit “out there”? Are there aftermarket parts or accessories you find appealing? You can customize your Toyota any way you choose when you own your vehicle.
Vehicle Trade-In Value
If you decide you’re ready for a new vehicle, you’ll be able to trade in your current vehicle for money after you finish paying it off.
Cons of Buying a Car
Depreciation
Buying a new vehicle leads to up to 20 percent of lost value over the first 12 months.
Higher Payments
While paying off your vehicle, you will have to pay a higher down payment and monthly payments than you would if you were leasing.
Length of Time to Financially Benefit
If selling becomes more viable than keeping your vehicle, but you haven’t finished paying off your vehicle, you may find yourself owing money on the loan that you took out.
Added Repair Costs
The longer you own your vehicle, the more the repairs will add up.
Which Option Is Right for Me?
Which will work better for you, leasing or buying? If you buy, you can keep the vehicle as long as you want, which may work better if you have a growing family that needs a consistent mode of transportation. Leasing may be the right choice for you if you don’t have your heart set on one specific model and want to try out different options.
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Ready to check out our online inventory? After you’ve found a Toyota you love, be sure to fill out our finance application to get started on the process of getting behind the wheel. If you have questions, please reach out to our Toyota dealership in Hodgkins, IL, by phone at (708) 716-4497 or through our online form.
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