Advantages of Leasing a Car
Today, more car buyers find leasing a new vehicle provides them with significant savings versus buying with cash or financing. This trend isn’t new, but is more the result of the impressive lease deals that give car shoppers flexible agreements with short-term commitments you won’t see with traditional car loans. However, as more and more car buyers switch to leasing, it’s important you know the pros and cons of leasing compared to other options like financing a car.
The decision to lease or buy depends upon your particular needs, credit, budget, and lifestyle. To help you make an informed decision about leasing a vehicle, we’ve compiled some of the major pros and cons of leasing. We’ve used a real-life Toyota Camry currently available at Performance Toyota as an example. After reading, you’ll understand the advantages leasing provides. If you still have questions, give us a call at (513) 874-8797.
2022 Toyota Camry SE AWD
Every Toyota Camry offers bold, sporty styling, turning heads all along the boulevard. It features an aggressive front fascia and an athletic profile. The 2022 Toyota Camry SE AWD model has a 2.5-liter inline four-cylinder engine that puts out 203 horsepower and 184 lb-ft of torque. This powertrain blends performance and efficiency to perfection.
Toyota offers many comfort and convenience features that will elevate your Fairfield commutes, such as leather seats with heating and ventilation and the latest driver-assist technologies designed to keep you safe wherever you travel. This Camry includes a multi-zone climate control system, cruise control steering assist, Bluetooth connectivity, adaptive cruise control, a leather-wrapped steering wheel, Wi-Fi mobile hotspot, touchscreen technology, and Toyota’s full suite of driver-assist and safety systems.
The MSRP of the 2022 Toyota Camry SE AWD is $33,971. In addition, we’ll assume you negotiated a great deal and come in around $31,500 instead. Now, we’ll also work under the assumption that you have $5,000 to put down but no vehicle to trade in before we compare financing this Camry against leasing it.
Financing Cost Breakdown
We’ll assume you have top-notch credit and qualify for a low rate of around 4% over 60 months. After adding in 7.5% sales tax and taking off your deposit, you’ll end up with a monthly payment of approximately $550. If you drive your Camry 12,000 miles a year and keep it in excellent condition in three years, you can trade it in.
At this point, you’ve spent $19,800 in monthly payments and still have over $13,000 in payments left to make before you owned the vehicle outright.
Leasing Cost Breakdown
With Performance Toyota, you can take advantage of one of our great leasing deals. Depending on your credit, you might qualify for zero money down and a low monthly payment as low as $299. In addition, you don’t have to keep paying at the end of the lease term. Instead, you can trade in your Camry for a newer model.
What You Save
You’ll save up to $250 every month when leasing. That’s $9,000 over three years. In addition, if you qualify for zero down, you’ll save that money too. You aren’t responsible for another two years of car payments with a lease. You can turn your Camry in and lease another vehicle or buy the Camry if you fall in love with it.
Pros of Leasing
There are many advantages of leasing a vehicle. Most proponents of leasing love the ability to upgrade their rides every few years. On average, people keep their cars for six years. You can lease two or three vehicles during that span, each the latest model with all the new technology and convenience features. Let’s face it. The auto industry consistently presents new features and benefits that elevate their vehicles. You can take advantage of our vast inventory of Toyota’s latest and greatest cars, trucks, and SUVs if you choose to lease.
Leasing allows you to save money on your monthly payment and lowers your risk as an owner. Also, you won’t have to pay your loan balance if you decide to trade in early. Sometimes, you could end up owing more than the car is worth, making it extremely difficult or even impossible to get a new car.
Cons of Leasing
Savvy buyers choose leasing for a reason, but even with all the potential savings, you should keep in mind several key points before committing to a lease. First, be sure you project your mileage correctly. Most leases allow you up to 12,000 miles every year. If you exceed those miles, you’ll pay the penalty for every mile over. The spontaneous road-tripper will add miles quickly, so if you like jumping in your car and heading nowhere for days, buying a car might be the better option.
You can’t modify your leased vehicle either. You can’t even change the oil. For most drivers, this won’t be an issue. However, if you want to outfit your new Camry with cool wheels or other modifications, you can’t. Also, you won’t build any equity with a lease as the car was never yours, to begin with. As a result, you can’t sell your leased vehicle and realize any profit.
Lease or Buy a Vehicle from Performance Toyota
As with all big decisions, your decision to lease a vehicle depends on your circumstances and needs. If you want to learn more about leasing a new Toyota vehicle, we invite you to contact one of our finance managers today. At Performance Toyota, our finance department will review your credit, budget, and needs and find you the best lease deal so you can save money and enjoy the benefits of leasing.
We have one of the largest inventories of new Toyota cars, trucks, and SUVs to choose from in the region. That makes Performance Toyota the logical place to find your dream vehicle. And, should purchasing a new car better suit your financial situation, we can get you pre-qualified for a loan right away. In either case, you’ll leave our Toyota dealership knowing you found the right car and made the right financial decision.
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