Getting a new car is an exciting yet potentially stressful time for most people, and often the pressure starts before you even enter a dealership. Deciding whether leasing or buying your new vehicle is the best option for you can sometimes be difficult to determine.

What are the pros and cons of leasing? The monthly payments on a leased car are usually less than on a loan, which allows you to get more vehicle than you could if you purchased. The down payment usually works out to be less than what you would pay for a bought car as well. Most repairs on a leased vehicle will be covered under the factory warranty, as the typical lease term is 2-3 years. Sales tax is cheaper too, as you only pay it on the financed portion.

However, while lease payments are often reasonable, you never gain equity in the car. If you were to buy it at the end of your contract, it would cost you a lot more than if you had just bought it in the first place. Also, leases can be restrictive. If you exceed the mileage limit agreed upon in your contract, you will be assessed an extra charge that is usually around $.25 per mile over what you are allowed. You must take good care of the car as well, as any dents, scratches, or blemishes will be considered "wear and tear" and can cost you when you turn your vehicle in.

What are the pros and cons of buying? When you buy a car, it's yours outright. You can customize it and drive it as hard and far as you want, penalty-free. Buying means you will eventually pay the car off, instead of having a perpetual car payment. If you choose to sell or trade in your vehicle, you can do so at any time.

However, down payments can be substantial when purchasing a vehicle, and monthly payments are usually higher than with a leased car. You will also be responsible for all maintenance and repair costs when your warranty expires.

Still not sure whether buying or leasing is the right way to go? Toyota has made it simple to figure out which option is best for you. Visit the Toyota Financial Services Planning Center and take the ‘Buy or Lease?’ quiz to figure out which way you should go. Once you get there, visit Tom Wood Toyota in Indianapolis and let our helpful staff get you on the road today!
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