Leasing vs. Buying

  Should you lease or buy your next car? It depends. Sure, approximately 80 percent of auto consumers either pay cash or finance their purchase with a loan, but the other one-fifth of intrepid consumers willing to forgo ownership for a new set of wheels and the short-term benefits that leasing provides. Perhaps you're self-employed and can write off your leasing payment as a business expense. Sometimes you're trying to get into a luxury model for less upfront cash. Or maybe you demand the latest safety and technology innovations and don't want to be saddled with a 60-84 month loan term. Maybe you just like driving a new car every couple of years.

  "The question you have to ask yourself is, 'Is there a special reason I need a new car every few years?' " says Art Spinella, president of CNW Marketing Research in Bandon, Ore. "For most consumers, the answer is no. Leasing has dropped in popularity recently. This is due mainly to the low interest rates and incentives offered by the manufacturers.
  Lessees also don't have to worry about owning a depreciating asset or dealing with hefty repair bills. At the end of the lease term — assuming they've kept the car in good condition and stayed within prescribed mileage limits — they can simply turn in the car and walk away. Imagine...no more negative equity! 


  These benefits come with a price as well, namely you will ultimately pay for that convenience insofar as you'll eventually need to purchase or lease another car at the end of your current lease. Perhaps that is still the main reason that the majority (80%) still purchase their vehicles. If you like the latest technology and looks though leasing just might be the ticket for you.

Either way, come into Toyota Scion Bountiful and we will be happy to explain all your options when it comes to the decision as to buy or lease your next new Toyota or Scion.

  Cars.com offers a loan vs. lease calculator. You can see the difference leasing can make on your payments.