Lease or Buy a New Vehicle
Should you lease or buy a new car?
There are many factors that go in to deciding whether to buy or lease a new car. Cost aside, it really comes down to your priorities, lifestyle, and what will work for you. Below is a chart to help you determine whether leasing or financing a new car is right for you.


 BuyingLeasing
OwnershipYou own the vehicle and get to keep it as long as you want it.You don't own the vehicle. You get to use it but must return it at the end of the lease unless you decide to buy it.
Up-front costsThey include the cash price or a down payment, taxes, registration and other fees.They typically include the first month's payment, a refundable security deposit, a down payment, taxes, registration and other fees.
Monthly paymentsLoan payments are usually higher than lease payments because you're paying off the entire purchase price of the vehicle, plus interest and other finance charges, taxes, and fees.Lease payments are almost always lower than loan payments because you're paying only for the vehicle's depreciation during the lease term, plus interest charges (called rent charges), taxes, and fees.
Early terminationYou can sell or trade in your vehicle at any time. If necessary, money from the sale can be used to pay off any loan balance.If you end the lease early, early-termination charges can be almost as costly as sticking with the contract.
Vehicle returnYou'll have to deal with selling or trading in your car when you decide you want a different one.You can return the vehicle at lease-end, pay any end-of-lease costs, and walk away.
Future valueThe vehicle will depreciate but its cash value is yours to use as you like.On the plus side, its future value doesn't affect you financially. On the negative side, you don't have any equity in the vehicle.
MileageYou're free to drive as many miles as you want. (But higher mileage lowers the vehicle's trade-in or resale value.)Most leases limit the number of miles you may drive, often 12,000 to 15,000 per year. (You can negotiate a higher mileage limit.) You'll have to pay charges for exceeding your limits.
Excessive wear and tearYou don't have to worry about wear and tear, but it could lower the vehicle's trade-in or resale value.Most leases hold you responsible. You'll have to pay extra charges for exceeding what is considered normal wear and tear.
End of termAt the end of the loan term (typically four to five years), you have no further payments and you have built equity to help pay for your next vehicle.At the end of the lease (typically two to four years), you'll have to finance the purchase of the car or lease or buy another.
CustomizingThe vehicle is yours to modify or customize as you like.Because the lessor wants the vehicle returned in sellable condition, any modifications or custom parts you add will need to be removed before you return the car. If there is any residual damage, you'll have to pay to have it fixed.


If you're still unsure about what would be the best option for you, or if you have any questions regarding leasing or financing, come meet with an 802 Toyota sales manager or staff member and they can assist you making the right decision for you.

Make an Inquiry

Contact

802 Toyota

30 Berlin Mall Road
Directions Berlin, VT 05602

  • Sales: 802-922-9775
  • Service: 802-922-9774
  • Parts: 802-922-9772

Hours

  • Monday 8 AM - 6 PM
  • Tuesday 8 AM - 6 PM
  • Wednesday 8 AM - 6 PM
  • Thursday 8 AM - 6 PM
  • Friday 8 AM - 6 PM
  • Saturday 8 AM - 5 PM
  • Sunday Closed