How to Decide Between a Purchase and Lease

Posted Thursday, Oct 02, 2014 by nhtwpprod

A woman's happy to buy car from Noho

All drivers have their own idea about how often to trade their vehicles. Some make their choice from the new cars for sale in Los Angeles on a yearly basis, while others may keep and drive the same vehicle for ten years or longer. The longer it is since the last time you got a new vehicle, the more things have probably changed. Many factors make a difference in whether leasing a vehicle or purchasing one outright is the best choice. Most of these factors can change dramatically, over time, including the state of the economy and your personal financial situation.

Do You Like to Get a New Vehicle Every Few Years?

If you do, Toyota has a lease program that is right for you. You still get the benefits associated with leasing a vehicle, but without the hassles that go along with trading in your existing car and paying large payments on a newer model.

How Far Do You Drive?

One of the most important factors in determining whether a lease is a good option for you is the distance that you typically drive. If you have a long commute to work or school, or take frequent trips away from home, you may be better off buying a vehicle, as opposed to leasing one. On the other hand, if your driving distance is limited, a lease could fit into your lifestyle more efficiently than a purchase.

How Much Can You Afford to Pay Each Month?

Often, people will have to settle for a different make and model of car than they really want in order to fit the payments into their budget. One option is to get a certified used Toyota in the same model, but at a more affordable price. Another option is to get the new vehicle you really want to drive by leasing instead of purchasing it. Many times, the payments for a lease are lower for the same car that costs more to purchase. In other words, you get more car, for less money.

How Much Do You Have Saved for a Down Payment?

If you are having difficulty coming up with a significant down payment, a lease could be a better option for you. Since the down payment also determines the amount of your monthly payments, a lease might be the most affordable option. While putting down less money on a lease will also increase your monthly payments, you will still end up paying less each month than if you purchase the vehicle outright.

Are You Unsure About the Type of Vehicle You Need?

Even when people do a great deal of research, it can be difficult to make a decision about which one is the best choice for them. If you like the idea of trying out a certain type of vehicle without committing to it for a lifetime, a lease will give you more flexibility to switch to a different model if it doesn’t pan out. You always have the option to change to a more appropriate vehicle when your taste or your lifestyle changes. To learn more, call North Hollywood Toyota at 800-800-6730.