Auto Financing: Should I lease or buy my car?

Buying vs. Leasing a New Toyota in Jersey City: Which is Right for You?

When you finally find the perfect Toyota for your Newark or Elizabeth drives, the next step is selecting how you'd like to pay. Besides writing a check for the full amount, there are two options: financing (loan) or leasing. People have different needs and preferences, so what's right for one isn't always suitable for another. Determining what's best for you depends on numerous personal factors, like your budget, how far you drive in a year, and desire for the latest features.

Here's a quick overview of some of the key characteristics of each method.

Leasing a New Toyota near New York City

A lease essentially entails renting a vehicle for a pre-determined period of time, typically three years. There are several benefits to leasing, but it's not right for everyone, and there are certain contract parameters that are important to consider.

  • Because you're paying for the vehicle's use and not towards ownership, lease payments are generally lower than loan installments. You'll also pay less tax because calculations are based on monthly payments, not the total vehicle cost.
  • Leases have yearly mileage limits (typically 10,000 to 15,000 miles) to protect the car's retail value. The contract will specify any overage fees.
  • A leased Toyota is covered under warranty for the duration of the term, which means less worrying about maintenance costs. Plus, major issues are rare within the typical 3-year lease period.
  • The lease contract protects lessees from depreciation costs.
  • Leasing is a great option for drivers who don't want the long term commitment of a loan or want to enjoy the latest automotive features more often.
  • Lease-end options include moving up to the newest model, trying a new model, changing the lease to a loan, or returning the keys and walking away.

Financing a New Toyota near Union City and North Bergen

  • Loans often entail larger monthly payments, but you are paying towards ownership.
  • With a loan, you are free to customize the vehicle as you wish.
  • You can sell it at any time.
  • Financing has no mileage limits.
  • Consistent car loan payments help build credit.

Have questions about financing your next Toyota? Contact Hudson Toyota or come see us at 599 NJ-440 in Jersey City. We'll be happy to assist you.