Is it Cheaper to Lease a Car or Finance?

There are lots of questions when it comes to getting a new vehicle. Am I choosing the right vehicle? How much is too much to spend? Is it cheaper to lease a car or finance? Casey Toyota is sharing our insights and answers.

The Cost of a Car

There are so many different factors when it comes to the cost of a car, so you can’t necessarily say one is cheaper than the other. In one instance, a vehicle with a lower monthly payment is considered more affordable to some buyers. On the other hand, others look at the loan’s duration, and factors like fuel and maintenance, to figure out the vehicle’s TCO, or Total Cost of Ownership.

Comparing Monthly Payments

When you’re comparing similar vehicles, a monthly lease payment will almost always be lower than a loan. With a lease, you’re essentially renting or borrowing a car or SUV, typically for only two or three years. Lenders will estimate the vehicle’s loss in value during your lease, and you’ll make low monthly payments to cover it. Of course, a large down payment could lower your expenses when financing.

Looking at Costs Overall

Since you’re only covering the depreciation, the overall cost of a lease is typically much lower. However, it’s important to consider your long-term plans for the vehicle. If you finance a car, pay it off, and keep it for years and years, you could end up spending less than someone who repeatedly leases new vehicles. Plus, you’ll have equity to apply to your next purchase, which can also help you save.

Lease or Finance a Toyota Vehicle in Williamsburg, VA

There are clear advantages to financing and leasing. It just depends on your specific needs. Visit Casey Toyota to meet with our financial experts and determine the right option for you!