Daytona Toyota Blog

Although not for every prospective buyer, vehicle leasing can offer certain advantages and be an very attractive alternative to a traditional purchase. You must consider a few important factors and make sure a lease would be beneficial to you.

What are the advantages?

Lower Monthly Payments

Because you only pay for the portion of the car or truck that you actually use, (the “depreciation”), your monthly payments are 30%-60% lower than for a purchase loan for the same car and same term.

Less Maintenance Hassles

Lower Upfront Cash Outlay

Leases generally require little to no down payment, which can make buying a new vehicle more affordable and free up your available cash for more savings and investing. However, you can choose to make a down payment, or trade in your old vehicle, to lower your monthly payment amount even further.

Lower Tax Obligations

In most states of the U.S. and in Canada, you don’t pay sales tax on the entire value of a leased vehicle as you would if you purchased. You’re only taxed on the portion of the value that you use, (that “depreciation” again). The small potion of tax you do pay is spread out and paid along with your monthly lease payment instead of being paid all at once.

Even with all of the above benefits, vehicle leasing is not the right choice in every situation. Therefore, you’ll want to examine your requirements to determine if you are a good leasing candidate. At Daytona Toyota, we employ sales & leasing consultants who can help you pick a purchase plan that best suites you.

This entry was posted on Sunday, May 9th, 2010 at 8:26 pm and is filed under Specials. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.