Should You Lease or Finance a Car?
There are a number of things to consider when you are deciding if you should lease or finance a car or truck. A Toyota lease gives you a number of advantages including lower monthly payments over financing for a comparable vehicle, while financing gives you the benefits of owning a vehicle for yourself. What is the difference between financing & leasing?
If you want to lease a car in Edmonton, St. Albert, Stony Plain, Spruce Grove, or Sherwood Park, then get pre-approved for a low percent car lease with Mayfield Toyota Scion's online car credit application.
Advantages to Leasing a Car
- A car lease will generally give you lower monthly payments and less up-front costs than financing the same model. Even low-percent financing may have higher payments than a comparable car lease.
- You can upgrade to the newest model every few years, often without having to pay significantly larger payments.
- When you lease a truck or car, you will typically pay less tax on a lease, as you only pay tax on the monthly payment as opposed to the full purchase price of a vehicle.
- A number of options are available at your lease end:
- 1. You can buy your vehicle for its purchase price
- 2. You can return your vehicle
- 3. You can lease or finance another Toyota vehicle
If you choose to purchase your vehicle at lease-end, there are a number of financing options available at Mayfield Toyota Scion.
Advantages to Financing
- When you finance a vehicle, you have the freedom of unlimited kilometers and all the other benefits associated with owning you vehicle, including the ability to equip it with your desired aftermarket accessories.
- You gain vehicle equity.
- There are no penalties for excess wear and tear and you are free to drive an unlimited number of kilometers each year.
- Financing has a lower carrying cost than leasing, as with a lease you are not repaying the entire value of the vehicle.
Financing vs. Leasing Comparison Chart
|Term||48 Months||48 Months|
|Lease End Value||$9,000.00||N/A|
|Taxes on Payment||$13.86||N/A|