When Does it Make Sense to Lease?

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Everyone has an opinion on car financing, but the right decision for you boils down to a variety of factors. While many people swear by the stability of a traditional car loan, many modern drivers prefer the flexibility of a short-term leases instead. When does it make sense to lease - and is this choice right for you? Let's go over your options at Elgin Toyota.

Leasing vs. Buying

First, what's the difference between leasing vs. buying? Buying a car is a long-term process that involves a car loan. As you pay off your monthly fees, you slowly build equity. When your loan is paid in full, the car is yours. If you have enough saved up, this can be a more stable option. However, leasing is much more flexible. A lease lasts for typically two to three years, and costs are generally much more affordable. Many dealerships offer great incentives including lower down payments and reduced rates, so it's worth a little research if you're on a budget!

Is Leasing Right for You?

So, when should you consider a lease instead of a loan?
  • Work: If you own a business, leasing is better from an accounting standpoint because the expense is easier to manage. Plus, there's no depreciation to worry about.
  • Temporary Use: If you are taking a job in a new location or going to college in a new state, the convenience of a short-term car lease might be worth your while.
  • Budget: If you find a car you like, crunch some numbers before you make a decision. Sometimes leasing the car can be dramatically less expensive - perfect for budget-minded drivers. This is especially true for luxury models.
  • Variety:  Do you like the latest technology and designs? You can upgrade to a new car every few years if you opt for a lease instead of a loan.

Learn More About Car Financing at Elgin Toyota

Ready to find your perfect vehicle? Head to Elgin Toyota, near Schaumburg and Streamwood, and take a test drive with our experts. We can find your dream car along with affordable auto financing, whether you choose buying vs. leasing. And while you're here, why not find out what to do after buying a car?