Buying vs. Leasing is one of the toughest decisions you can make at a dealership, besides what car to get of course, because there are pros and cons to both sides. You may also be wondering what leasing is and what the difference is between the two. At Vann York Toyota we want you to come in with the best idea of which one will benefit you more.
WHAT ARE THEY?
Leasing – leasing a vehicle is essentially renting one for an extended period of time. You do not own it.
Buying – buying a vehicle means that once you are finished paying it off, whether that is immediately or over a period of time with a loan, the car is yours. You own it.
Leasing – with leasing, cost is normally not as much for a down payment, likely to be roughly $2000 whereas with a purchase of a new car, you are looking at 10-20% down.
Buying – loans help you to pay for your new car. A five-year loan will help to make monthly payments lower because it is stretched out over five years.
Leasing – when you lease a car you typically get a three-year/36-month lease agreement. In those three years the vehicle is under warranty so you can have it serviced for no extra charge (as long as the warranty states so)
Buying – you have a warranty for the same amount of years, but after it expires, the general maintenance on your vehicle comes out of your pocket.
Leasing – you only get a certain amount of mileage you are allowed to use. So if you plan on taking a long road trip, you may face extra fees.
Buying – the car is yours, so you are free to put as many miles on it as you see fit!
Leasing – with leasing you can typically make minor alterations as long as they are switched back before the end of your lease.
Buying – any alterations you wish to make can happen. Just make sure they do not depreciate the value of your vehicle.
Leasing – since you are just leasing the car you do not have to worry about the depreciation value for it. At the end of your term you give it back and don’t have to worry about selling it to someone at a lost cost.
Buying – over time the vehicle will lose value because of wear, dings, mileage, etc. Once you sell it, it will not be worth as much as you paid for it, in almost all cases.
Now that you know a lot of the differences between buying vs. leasing a car, come on down to Vann York Toyota serving High Point, Greensboro, and Winston Salem where we can help you with whatever side you may choose.