Buying vs Leasing


The Answer? It depends.

Leases and loans are simply two different methods of automobile financing. One finances the use of a vehicle; the other finances the purchase of a vehicle. Each has its own benefits and drawbacks.

It’s not possible to simply say that one is always better than the other because it depends on your own particular situation and preferences.

You must not only look at the financial comparisons but also at your own personal priorities what’s important to you.

Is having a new vehicle every two or three years with no major repair risk more important than long-term cost? Are long term cost savings more important than lower monthly payments? Is ownership more important than low up-front costs and no down payment?

So, making the lease or buy decision is not quite cut and dry. There are some things you need to consider first.

Buying and leasing are different.

When you buy, you pay for the entire cost of a vehicle, regardless of how many miles you drive it. You typically make a down payment, pay sales tax in cash or roll them into your loan, and pay an interest rate determined by your loan company. You make your first payment a month after you sign your contract.

When you lease, you pay for only a portion of the vehicle’s cost, which is the part that you “use up” (depreciation) during the time you’re driving it. You have the option of not making a down payment, you pay sales tax only on your monthly payments (in most states), and pay a money factor that is similar to the interest rate on a loan. With leases, you may also pay extra fees and possibly a security deposit that you don’t pay when you buy. You make your first payment at the time you sign your contract.

Buy vs lease example:

As an example, if you lease a car that costs $20,000, that will have an estimated value of $13,000 after 24 months, you pay for the $7000 difference (depreciation), plus finance charges, plus fees.

When you buy, you pay the entire $20,000, plus finance charges, plus fees.

This is fundamentally why leasing offers significantly lower monthly payments than buying.

Dealer Info

Phone Numbers:
  • Main:(804) 693-2100
  • Sales:(804) 693-2100
  • Service:(804) 693-2100
  • Parts:(804) 693-2100
Sales Hours:
  • Mon - Fri9:00 AM - 8:00 PM
  • Sat9:00 AM - 6:00 PM
  • SunClosed
Service Hours:
  • Mon - Fri7:30 AM - 5:30 PM
  • Sat8:00 AM - 3:00 PM
  • SunClosed
Parts Hours:
  • Mon - Fri7:30 AM - 5:30 PM
  • Sat8:00 AM - 3:00 PM
  • SunClosed
Apply NowValue Your TradePayment Calculator

Gloucester Toyota

6357 George Washington Memorial Highway, Gloucester, Va 23061

Saved
Saved Vehicles ×

SAVED VEHICLES

You don't have any saved vehicles!

Look for this link on your favorites:

Save

Once you've saved some vehicles, you can view them here at any time.

Contact
Contact Us ×

(804) 693-2100

Call Now

6357 George Washington Memorial Highway • Gloucester, VA 23061

Get Directions

Today's Hours:

Sales: Closed

Service: Closed

Parts: Closed

Gloucester Toyota

FB Twitter Google +
6357 George Washington Memorial Highway Gloucester, VA
Phone: (804) 693-2100 http://maps.google.com/?q=6357%20George%20Washington%20Memorial%20Highway%2C%2C%20Va%2C%20Gloucester%2C%20VA%2023061

Parts

Phone: (804) 693-2100

Sales

Phone: (804) 693-2100

Service

Phone: (804) 693-2100

37.3754444 -76.533694
[schema type="organization" orgtype="LocalBusiness" url="www.gloucestertoyota.com" name="Gloucester Toyota" description="" street="6357 George Washington Memorial Highway" city="Gloucester" state="VA" postalcode="23061" country="United States" email="Anne@gloucestertoyota.com" phone="(804) 693-2100" ]
Gloucester Toyota
Gloucester Toyota
6357 George Washington Memorial Highway
Gloucester, VA, 23061 United States
(804) 693-2100
Gloucester Toyota 37.3754444, -76.533694.
AdChoices