A new car, truck, or SUV is typically one of the more expensive purchases you’ll ever have to make in your lifetime. In order to minimize this cost, many people choose to finance or lease their next vehicle. But which one works best for you? Today Mayfield Toyota will cover the differences between leasing and financing so you can make an informed decision.
Financing a vehicle is somewhat like mortgaging a new house – your intention is to own it, however, you don’t have the funds to purchase it all at once. Similar to a mortgage, our Financing Specialists will work with various credit institutions to secure you a low-interest loan which fits your budget. The loan typically lasts 3 years or 36 months. This can be changed to better fit your needs.
Financing also comes with certain perks, like no mileage restrictions and the freedom to customize your vehicle however you like. Compared to leasing, financing is typically a little more expensive, however at the end of the financing period the vehicle is yours to keep!
Leasing is a little like renting a vehicle for an extended period of time. You don’t intend to own the vehicle, instead you are merely borrowing it. Also, leasing tends to be cheaper than financing, because you only pay depreciation on the vehicle. Leasing also typically comes with bonuses like longer-lasting warranties, and you get to drive the newest cars, trucks, and SUVs for less than buying or financing.
However, there are some downsides to leasing. Since you don’t intend to own the vehicle, you must keep it in good condition – or else you will incur extra fees. Typically there are also mileage restrictions to minimize wear-and-tear on the vehicle (although Mayfield Toyota’s are quite generous). Finally, as you don’t technically own the vehicle, you are restricted from adding certain parts or accessories such as body kits or performance parts.
Choosing between financing and leasing your next Toyota car, truck, or SUV comes down to a simple question: Do you intend to own the vehicle? Or just drive it for an extended period? If you intend to own your new vehicle, then financing is the better choice. If you want to drive the latest Toyota’s for a couple years before upgrading again, then leasing is your best choice.
Either way, the financial experts at Mayfield Toyota are here to help you pick the best plan for your needs. So contact us today to find out how we can get you behind the wheel of a brand-new Toyota for far less than you’d expect!