There are several differences between financing and leasing. Your personal situation will help determine what is the best option for you.
The decision to finance or lease a vehicle is often a matter of personal preference. You know that if you finance your vehicle, you own it and can enjoy all the benefits of that ownership. In order to help you decide which is best for you, here are a few pros and cons about Leasing.
- Leasing typically offers you lower monthly payments and lower up-front costs than you would pay on a loan for the same vehicle
- When you lease, you only pay tax on the monthly payment. When you finance, you pay taxes on the full purchase price of the vehicle
- Leasing gives you choices at lease end:
a) You may purchase the vehicle at the Lease End Value indicated on your contract,
b) You may return the vehicle as provided in your lease, or
c) You may lease or finance another Toyota vehicle
- You do not own the vehicle
- You do not build up equity in the vehicle
- Excess kilometres and wear and tear charges may apply
- Lower monthly lease payments may result in higher carrying charges than a loan