If you're in the market for your next vehicle, you'll have a couple of routes to consider. On one hand, you could purchase your vehicle with cash or an auto loan. On the other, you could sign a new Toyota lease agreement. Both options have their advantages and disadvantages.
Buying is the preferred route for drivers near Phoenix who want to fully own their vehicles. Most choose to either pay cash up front or finance the purchase with an auto loan. Either way, there are a few factors to consider before buying a car.
Pros: The primary benefit of buying a car is full ownership. Since you own the vehicle, you'll be able to drive the car as far as you want and modify it however you like. You can also hold onto your vehicle as long as you want and use its trade-in value the next time you purchase a vehicle.
Cons: Buying a car often has higher upfront costs than a lease. If you plan to finance your purchase, you'll have to put up a substantial down payment to prevent going upside down on the loan. You'll also likely have higher monthly payment amounts than those often seen with a lease. That's because you're paying for the total value of the vehicle, rather than just the cost of depreciation.
A lease does not give you ownership of your vehicle. Instead, you get to borrow a new model from the dealership. These agreements usually last two to three years and include required monthly payments.
Pros: Drivers often flock to lease agreements because they offer lower monthly payment options than an auto loan. This is possible because leases aim only to cover the cost of depreciation during the term. That means a lower down payment and more affordable monthly payments. The result? A lease can open up more options than you may not be able to afford otherwise. You can get a newer, nicer car for less. Plus, leased vehicles are covered by a Toyota factory warranty. You may also like a lease if you prefer to upgrade to a newer vehicle every couple of years.
Cons: Because you don't own your leased vehicle, you will have to adhere to a few restrictions. For starters, leased vehicles come with yearly mileage limits. If your driving habits require more than 12,000-13,000 miles per year, a lease may not be a good choice. Likewise, you won't be able to modify your leased vehicle. If your leased car gets excess wear and tear, you could face extra charges at the end of the term.
Avondale Toyota has an in-house finance center dedicated to helping shoppers near Tempe and Glendale, AZ explore lease and loan options. Stop in to chat with us and we can help you choose between buying or leasing your next vehicle. We can also walk you through the application process for either a lease or a loan.
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10005 West Papago Fwy
Avondale, AZ 85323
