Leasing vs. Buying Options | Sanford NC

 LEASING

 BUYING

Although you don't own the vehicle while you lease, leasing enables you to always have a new car in your driveway while benefiting from the latest safety technology.

You own the vehicle & keep it as long as you want it (however, with the average conventional loan length of 5 years 6 months, the banks hold your title).

Typically includes 1st month's payment, refundable security deposit (if applicable), down payment, taxes, registration & other fees

Includes cash price or a down payment, taxes, registration & other fees

Lease payments are typically lower than loan payments. You can get more car for a lower monthly payment!

They are usually higher than lease payments because you're paying off the entirety of the purchase price plus interest as well as other finance charges, taxes & fees

If you end your lease early, early-termination charges may apply

You can sell or trade-in your vehicle at any time & if necessary, money from the sale can be utilized to pay off any loan balance

At the end of your lease, you can return the vehicle, pay any end-of-lease costs & walk away (Toyota will begin to incentivize the customer up to 6 months in advance of your term ending).

You can sell or trade-in your vehicle when you decide you want an alternate unit

Future value of your vehicle doesn't affect you financially

Your vehicle will depreciate but its cash value is yours to use

Most leases limit the number of annual miles (typically 12,000-15,000 miles per year). You can always negotiate a higher mileage limit but our team recommends setting it up on the use of the vehicle & not solely the payment of the unit

You're free to drive as many miles as you desire. Just remember the higher mileage on your vehicle lowers the unit's trade-in or resale value

Customers normally lease for a term that coincides with the manufacturer's warranty coverage so that if something does go wrong, the repairs are covered.

You don't have to worry about wear & tear, but it could lower the vehicle's trade-in or resale value

At the end of your lease term (typically 2-4 years), you can finance the purchase of your vehicle and/or lease or buy another unit. Many automakers offer subvention cash to customers that choose to purchase their leased vehicle.

At the end of your loan term (typically four to five years), you have no further payments & you have built equity to help pay for your next vehicle