When deciding whether to buy or lease your next Toyota car, truck, or SUV in Corpus Christi, it's important to know your options.
I want to purchase!
If you tend to keep your Toyota vehicles for a long time, buying is probably a better option for you than leasing. When you buy a Toyota, you own the car outright when the loan is paid off (although until then, the lender owns the vehicle). Throughout the length of the loan, you gain equity in the car as long as your payments outpace the depreciation of the vehicle. Another huge benefit is the lack of a mileage restriction! If you live in a rural area, or have a significant commute to Corpus Christi, this can be a huge advantage for buying a Toyota over leasing.
When you buy a car in Corpus Christi the traditional way, you're open to fluctuations in its market value when you decide to sell or trade it in. With leasing, the future value is predicted up front! If the car is worth less than that amount at the end, it's not your problem. Another potential drawback of buying is a sizeable down payment. Many lenders require 10 to 20 percent down when taking out a car loan.
I want to lease!
Leasing a Toyota is similar to financing in many ways, but there are some key differences. When you are purchasing a Toyota, the loan value is based on the total cost of the vehicle minus your down payment and trade-in value. However, when leasing, you're only financing the depreciation that occurs during the lease term (most commonly three years), plus fees. Also, at the end of the lease term, you have more options with a lease.
Unless you pay a tremendous amount of money down, or your trade-in had a high value, a monthly lease payment will be lower than a monthly loan payment. If you only have a small down payment saved up, leasing may be a great option for you! Leases are also a great way to have a predictable total cost of ownership. Many leases last about three years, or the length of a new Toyota comprehensive warranty. That means the Toyota car is usually covered under warranty for unexpected repairs during the lease. If you enjoy having the newest high-tech and safety features, leasing could be a better choice for you.
Unless you pay a tremendous amount of money down, or your trade-in had a high value, a monthly lease payment will be lower than a monthly loan payment. If you only have a small down payment saved up, leasing may be a great option for you! Leases are also a great way to have a predictable total cost of ownership. Many leases last about three years, or the length of a new Toyota comprehensive warranty. That means the Toyota car is usually covered under warranty for unexpected repairs during the lease. If you enjoy having the newest high-tech and safety features, leasing could be a better choice for you.
What should I do though?
When it comes to buying and leasing, there's no one-size-fits-all answer. Carefully consider all of the pros, cons, and costs involved, and determine which best fits your lifestyle. Look at your budget, and be honest about your mileage needs, lifestyle, and credit history before you make the leap.
Here's a short video from Toyota Financial Services to help you decide:
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