Buy or Leaseat Northtown Toyota

The Pros and Cons of Auto Financing Versus Leasing with Northtown Toyota

Taking home a new vehicle is always exciting. From the fresh smell of the interior to the shiny new paint, it's a great experience, to say the least. Most of our customers at our Toyota dealership just outside Buffalo and Niagara Falls have questions regarding new vehicle leasing and auto loans. We've helped to simplify the process by creating a simple list of pros and cons that you can use to help you make the best decision for your needs and budget. With our online tools, you'll save time at the dealership, so you can focus on finding the perfect new vehicle for your lifestyle.

Pros of Leasing

  • A lower monthly payment and down payment requirement in most cases
  • Only pay for the portion of the time that the vehicle is leased for
  • Return the vehicle to upgrade to a new model or purchase the vehicle
  • The purchase price is predetermined
  • Can add accessories to the vehicle at the time of inception
  • Mileage options may be available according to your needs
  • Maintenance costs are minimal
  • Tax benefits may exist for some lessees

Cons of Leasing

  • Mileage restrictions and wear and tear specifications must be adhered to
  • Incidental charges may be due at the end of the lease
  • Vehicle must be serviced at the dealership according to the contract's terms
  • The vehicle must be returned or purchased at the end of the lease
  • Leasing is for those with very good to excellent credit
  • Repairs must be completed in a timely manner and according to the contract's terms

Pros of Buying

  • The vehicle is owned free and clear once the payments are completed
  • Many financing options exist for all levels of credit
  • Extended terms may offer lower monthly payment options
  • Well-qualified buyers will often receive favorable financing rates and terms
  • Vehicle can be customized to your liking at any point
  • Servicing can be competed at any shop you choose or at the dealership

Cons of Buying

  • Declines in value at the beginning of the term due to depreciation are common
  • Vehicle value predictions are solely based on historical data and aren't guaranteed
  • Optional GAP insurance may be more costly and may be required to purchase at inception
  • Overall maintenance costs are higher than with leasing
  • Lack of acceptable repair or maintenance history can impact reports that are available upon resale
  • Value can decline sharply depending on the vehicle's resale condition evaluation
  • Extended-term loans can result in significant interest costs
  • Leasing Versus Buying With Northtown Toyota in Summation

    Leasing is typically a good choice for customers that prefer to upgrade their vehicles every two to three years. It's also a great way to pay less every month, and you may only be required to put a minimal amount down at lease signing.

    Buying a vehicle is more practical for those who use their vehicle for traveling, such as with road trips or long commutes. Buying is also a good choice for those who intend on keeping their vehicles for a longer period. Those with fair to poor credit should consider buying a vehicle rather than leasing.

    Savings exist for both auto loans and leases, and Northtown Toyota will work to provide you with the best deal possible. Making use of our tools can save you time, and you'll be able to come in with a pre-approval in hand. Scheduling your test drive is the first step in finding your new car, so be sure to get in touch with our Toyota dealership near North Tonawanda and Tonawanda, and we'll find the perfect auto loan or lease for your needs today.