Investing in a New Toyota is a huge decision, so you want to make sure you are well-informed of your options. When comparing financing to leasing, neither is superior. Rather, one may fit an individuals lifestyle and financial choices better than the other. We have created this page as a tool to help you navigate the pros and cons of each route. Click the dropdown below to learn more!
Ownership
Up-Front Costs
Vehicle Payments
Early Termination
Vehicle Return
Future Value
Mileage
Wear & Tear
End of Term
Customization
Financing:Â The process of purchasing a New Toyota or Pre-owned Vehicle is fairly straightforward. With the guidance of our finance department you will apply for a vehicle loan from a bank or credit union of your preference. You will either be denied or approved for the loan for a fixed period of time with a set interest rate. For each monthly payment made on the loan a portion of the payment applies to the interest, and another portion applies to the principal. While you are actively paying towards the principal of your vehicle, equity is building up until the end of the loan. Once you complete your loan payments, the vehicle is yours to do with whatever you wish. When purchasing, we recommend considering our optional Vehicle Protection Packages to protect yourself from any unexpected costs on your vehicle.
Leasing:Â The process of leasing a New Toyota can be slightly more complex, but may be a better option for various reasons. Leasing takes out the unpredictability of purchasing a Pre-owned Vehicle. Since you are driving it at the prime of it’s condition, any unexpected repair costs are taken out of the equation. Even your regular maintenance costs will be covered for the majority of your lease term thanks to ToyotaCare’s complimentary 2-year/25,000-mile coverage. One of the most significant benefits of a lease is your ability to walk away without taking a loss on the vehicle. The payments you are making account for the depreciation over the duration of your term (plus interest). This means if the trade-in value drops, you are not responsible for that loss and you can simply walk away at the end of the lease term.
Conclusion: While there are benefits with both financing and leasing, there are negatives as well. We have broken down some of those points for you to decipher which option better fits your lifestyle. If you are still unsure, our finance department is here as a resource. We want you to feel confident in the decision you are making, so we are here to help in any way we can. If you have questions, don’t hesitate to reach out!