Should I Buy or Lease a Car?

When it comes to financing vs. leasing a car, the options can be confusing. DCH Wappingers Falls Toyota has provided the information below so you can decide which option is best for your budget and lifestyle in Wappinger. When you buy a new or used car you pay for the entire cost of the vehicle. When you lease a new or certified pre-owned car, you pay for only a portion of the vehicle’s cost, which is the part you use during the time you are driving it. That’s just the beginning of what you need to know when deciding between buying vs. leasing. DCH Wappingers Falls Toyota has more information to help you make a choice you’ll be happy with for miles to come!

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Financing vs. Leasing a Car: Financing Benefits

WHO OWNS IT

Whether you pay for the car with cash, or finance it and make monthly payments, either way, it’s yours. Of course, if you’re financing it, you’ll have to meet the obligations the lender requires, like a certain down payment amount and timely monthly payments. If you don’t, they have the right to repossess it.

UP-FRONT COSTS

If you’re financing a vehicle near Poughkeepsie, the bank will probably request a down payment. You can also trade in another vehicle and use any equity towards your down payment. The amount of the down payment is usually based on the lender’s requirements and your credit score.

FUTURE VALUE

Your vehicle will be worth whatever you can sell it for in the future and that depends on how well you maintain it. Be smart and protect your investment with regular scheduled maintenance by a factory-authorized facility like the DCH Wappingers Falls Toyota service center!

END OF PAYMENTS

Once you’ve paid off what you owe on your loan, that’s it. Your vehicle is 100 percent yours. The lending institution will send you a Lien Release as proof that the vehicle is completely paid off and all yours.

Financing vs. Leasing a Car: Leasing Benefits

WHO OWNS IT

You do not own the car when you lease. You’re paying for the use of the vehicle, but the finance institution that you leased it through actually owns it. This is usually why you pay less per month in a lease than if you were to buy the car.

UP-FRONT COSTS

Leases often do not require any type of a down payment. All you usually have to pay is the first month’s payment, a security deposit, the acquisition fee, and other fees and taxes. But, as with a purchase, if you want to lower your monthly payments you can always pay more upfront or trade in an old vehicle.

FUTURE VALUE

In most leases, you don’t end up owning the vehicle so you don’t end up selling it from your Fishkill home. That’s the financial institution’s job. Although you may have mileage limits and wear and tear guidelines that, if you exceed them, could cost you extra money when you return the vehicle at the end of the lease.

END OF PAYMENTS

Most people return the vehicle at the end of the lease term. But some like to purchase it during their lease or at the end. Others like to trade it in before their lease is over. Just ask us about these different options before signing any paperwork and we’ll make sure you have your lease set up the way you want it.

BEST CARS TO LEASE

The best cars to lease are those with the best book value after the term of the lease. Since they depreciate less, you pay less. Review the lease ratings to see which cars retain their value.