Lease vs. Buy a Toyota: What Montgomery Shoppers Should Know
Convenient & Affordable Financing Options at Toyota of Montgomery
Thanks to innovative, stylish, fuel-efficient vehicles like the Toyota Crown, Toyota Pathfinder, and Toyota Corolla, buying a new Toyota is an exciting endeavor. At Toyota of Montgomery near Pike Road and Wetumpka, our friendly team works hard to make the entire shopping process enjoyable, which is why we share information about leasing vs. buying.
We understand that informed shoppers make better decisions about leases and auto loans so they can enjoy their Toyota ownership for many years to come.
Pros & Cons of Leasing a New Toyota
Shoppers often look to leasing because leases have low monthly payments, but there's more to leasing than the monthly payment. Leases are essentially long-term rentals, as drivers keep the car for a set term, usually 24 to 36 months. At the close of the term, drivers return the vehicle or purchase it for a predetermined price.
Because lease terms last for two to three years, new Toyota vehicles have their full factory warranty, which reduces out-of-pocket expenses for repairs and maintenance. Leases also have lower sales tax as drivers aren't paying the vehicle's full price.
While leases have several benefits, they also have restrictions. Lease terms include mileage limits, and if you exceed them, you'll pay a fee at the end of the lease. Because leases are long-term rentals, you cannot customize your vehicle with after-market parts. You also do not build equity while making payments.
Pros & Cons of Toyota Auto Loans
Another affordable way to buy a new Toyota is with an auto loan. When the loan is complete, you'll own the vehicle outright. There are several benefits to financing compared to leasing. With an auto loan, you can keep the car for as long as you want, or you can sell it or trade it. Auto loans do not have mileage limits, and you have free reign to customize your vehicle to suit your needs. When the loan is paid off, you have an asset.
Auto loans aren't perfect. They tend to have higher monthly payments than leases because loans are for the vehicle's full price. Unlike a lease, when you purchase a car, you'll experience vehicle depreciation, and when the warranty expires, you'll have to pay for repairs and maintenance.
What's the Best Finance Choice for You?
Choosing a loan or lease is a personal financial decision, and it's wise to make the choice that fits your lifestyle and budget. Before you make a choice, we invite you to visit our website to see our latest financing and lease specials. We also have an online finance application to speed up the buying process.
Leases are good choices if you drive a limited number of miles each year. It's also a good choice if you want lower monthly payments, minimal maintenance costs, and a new car every two or three years. Your credit score can affect your ability to qualify for a lease.
Auto loans are a good choice for drivers who prefer to keep vehicles for longer than three years. If you drive more than 15,000 miles annually, auto loans are a better choice. They are also good choices for drivers who like to build equity and enjoy customizing their vehicles.
Finance Your Toyota at Toyota of Montgomery in Montgomery, AL
We invite you to explore your financing and leasing options at Toyota of Montgomery in Montgomery, AL. For your convenience, we offer a pre-qualification application with no impact to your credit score. Our finance team is ready to help you choose the best option for your driving needs and budget.