Buying vs Leasing

Couple signing purchase paperwork.

Your Priorities are Our Priorities

It’s personal. All of us have different personal styles, objectives, and priorities – in cars, in life, and in finances. So lease-versus-buy decisions must be made with your own lifestyle and priorities in mind. What’s right for one person can be totally wrong for another.

Leasing may be for you if you:

  • Enjoy driving a new car every 2-3 years
  • Want lower monthly payments
  • Like having a car that has the latest safety features and is always under warranty
  • Don’t like trading and selling used cars
  • Don’t care about building ownership equity
  • Have a stable predictable lifestyle
  • Drive an average number of miles
  • Properly maintain your cars
  • Are willing to pay more over the long haul to get these benefits
  • Understand how leasing works


Buying may be for you if you:

  • Don’t mind higher monthly payments at first
  • Like holding on to your cars
  • Prefer to build up some trade-in or resale value (equity)
  • Enjoy the idea of owning your car outright
  • Like paying off your loan and being payment-free for a while
  • Don’t mind the unexpected cost of repairs after warranty has expired
  • Drive more than average miles
  • Prefer to drive your cars for years to spread out the cost
  • Like to customize your cars after purchase
  • Might have lifestyle or job changes in the near future
  • Don’t like the risk of possible lease-end charges


Get the Facts on Leasing

Costs at signing.

The amount you pay at lease signing may be lower than the amount you pay at the beginning of a finance contract. This amount may include the following:

  • first month’s payment
  • acquisition fee
  • refundable security deposit
  • taxes and fees
  • capitalized cost reduction (similar to a down payment)

Purchase option.

You’ll have the option to purchase your lease vehicle during the lease or at lease-end.

Mileage limits.

To calculate the total allowable mileage disclosed on the lease agreement, divide the number of months in the term by 12 and then multiply this amount by 15,000 (standard lease) or 12,000 (low mileage lease). For example, a standard lease with a 36 month term is calculated as follows: 36 month term divided by 12 = 3 years; 3 years multiplied by 15,000 miles = 45,000 total allowable miles.

Lease-end charges.

You will be charged for any excessive wear and use.

Tax benefits.

If you use your lease vehicle for business, you should consult with your tax advisor regarding potential tax benefits.

To Recap …

With a lease, you may pay less cash up front and enjoy lower monthly payments than you would if you were financing your vehicle. You also have the flexibility of turning in the vehicle at the end of your lease, without having to worry about ever selling your vehicle.

At lease-end, you may purchase the vehicle or return it at the end of your lease. (More details here.) Either way, there’s no need to sell your vehicle — you just return it to a trusted Toyota dealer like us. You may have to pay fees or charges associated with the end of your lease, as described in the lease agreement.

Questions? We’re here to help.

Call us now to speak with one of our product specialists, send us a message online, or apply for financing online right now.