The decision to buy or lease a vehicle simply comes down to personal preference. Both have their advantages, but one choice is not necessarily better than the other.
When you lease a new vehicle, you typically have it for three or four years. In terms of performance, these are the best years of a vehicle’s life. It’s rare for vehicles to experience major issues during this time. Granted, leased vehicles are often covered by warranties but there is also the inconvenience factor.
Also, the technology on a leased vehicle—safety, efficiency, in-cabin—is current. You don’t have to put up with obsolete technology in leased vehicles.
The main advantage of buying a vehicle over leasing one has to do with equity. With every payment you make on a vehicle you’ve bought, you are gaining more and more equity in your vehicle. A lease is simply a long-term rental. Buying means acquiring property.
Buying also affords you more freedom. Leased vehicles are protected by wear-and-tear restrictions as well as mileage restrictions. Violate these restrictions and you will pay a penalty. When you buy a vehicle, it’s yours.
Whether you buy or lease, be informed! The key is to know those advantages and to see how they align with your own needs. If you have any questions about buying or leasing, don't hesitate to contact the Gilroy Toyota Finance Department. Our knowledgeable staff can answer any questions you may have.