Financing vs. Leasing a Toyota: What Are the Pros and Cons?

You always have a few options in terms of how you want to procure a vehicle for yourself. For instance, you might finance it, or you can lease it as well.

Maybe you have an eye on a Toyota for yourself. The brand makes several reliable and stylish options that attract many consumers.

Karl Malone Toyota is where you can go if you live in the area and want to snag a great deal on the Toyota model of your choice. Should you lease it or finance it, though? Let us talk about some of the pros and cons associated with both options.

The Financing Option

If you finance a vehicle, that essentially means you are taking out a loan to pay for it, usually from a lending entity like a credit union or bank. You will presumably put cash down when you buy the car, and you will need to pay back the lending entity, usually with interest accompanying each payment.

If you finance a car, it is good in the sense that you are going to own that vehicle. That appeals to some people. At some point, they will own the car free and clear. 

The potential downside is that by the time you own the car, it will probably be several years later. You will own it entirely, but the machinery and gadgets that come with it will be a few years out of date.  

The Leasing Option

If you lease a car, that means you are paying a set price per month. You might get a lease that lasts for a couple of years or longer. In most instances, you will be required to put at least a little bit of money down when you sign the paperwork. 

Leasing usually means you can drive a brand-new car around for a couple of years. It will presumably have all the latest bells and whistles.

However, you are not usually leasing a car with the eventual goal of owning it. When the agreed-upon lease time expires, you will give the vehicle back to the dealership. At that point, you will have to secure another car for yourself. 

Which is the Superior Option for Your Particular Situation?

If you are someone who wants to own a car free and clear eventually, then financing a car probably makes the most sense. When you have paid it off, then it’s yours, and all you have to keep paying for are gas, insurance, and maintenance.

If you lease a car, then you can drive a newer vehicle around for a couple of years, but again, you will likely give it back to the dealership at the end of that time.  

You will need to think about which option works better for you. It might interest you to know, though, that these two choices aren’t necessarily mutually exclusive.

That’s because some car dealerships will offer you a price to buy the vehicle that you leased at the time when the lease runs out.