Why Lease A New Toyota At Mark Jacobson Toyota?
If you're like many of our North Carolina customers in the Raleigh Durham Apex area, you may wonder whether it is better to purchase or lease your new Toyota. The simple truth is - it depends, since each method of financing a vehicle has benefits. Ultimately, you must look at the financial comparisons, and your own preferences to determine which is better for you. That said, Mark Jacobson Toyota is pleased to provide the following leasing information courtesy of Toyota and LeaseGuide.com
to better assess whether a purchase or lease is better for you.Click Here To See Your Payments On A New Toyota Lease
When you buy, you pay for the entire cost of a vehicle, regardless of how many miles you drive it or how long you keep it. Monthly payments are higher than for leasing. You typically make a down payment, pay full sales taxes in cash or roll them into your loan, and pay an interest rate determined by your loan company based on your credit score. You make your first payment a month after you sign your contract. Later, you may decide to sell or trade the vehicle for its depreciated resale or trade value, which may be considerably less than the vehicle's original cost When you lease, you pay only a portion of a vehicle's cost, which is the part that you "use up" during the time you're driving it.
Lease-vs-Buy | Example Shows Why Payments Are Lower
If you LEASE a $20,000 car that will have, say, an estimated resale value of $13,000 after 24 months, you only pay for the $7000 difference (the depreciation), plus finance charges. You can return the car at lease-end, or buy it for the remaining $13,000 that you haven't already paid.
When you BUY with a loan, you pay the entire $20,000, plus finance charges. You own the car at the end of your loan, although its value is less than the $20,000 you initially paid - $7000 less. This difference - financing $7000 versus $20,000 - is why leasing offers significantly lower monthly payments than buying. Why Leasing A New Toyota Has Become So PopularThe SHORT-TERM monthly cost of leasing is ALWAYS SIGNIFICANTLY LESS
than the cost of buying. For the same car, same price, same term, and same down payment, monthly lease payments will always be 30%-60% lower than loan payments. This is still true even when compared to 0% or low-interest loans
Lease a better vehicle or pocket the difference:
Because your payments will be less, you can lease a vehicle you otherwise might have viewed as too expensive. But many people just use the lower monthly payments to save money for other things. Leasing contracts are usually shorter than auto loans:
Car loans are typically 5 or 6 years in length. But if you lease a new vehicle at Mark Jacobson Toyota, the contract runs only 24 to 39 months.Pay less for maintenance:
Most leases are 36 months or less, but your new Toyota warranty provides comprehensive coverage for 3 years or 36,000 miles (whichever comes first), power train coverage for 5 years or 60,000 miles (whichever comes first), and 2 years or 25,000 miles of NO COST scheduled maintenance
(whichever comes first) thanks to ToyotaCare. 2 years of Roadside Assistance for 2 years or 25000 miles is also included
first with purchase or lease of a new Toyota. ToyotaCare covers
factory scheduled service and roadside assistance for flat tires,
lockouts, jump starts, emergency fuel delivery, and towing up to $100
per occurrence. The new vehicle cannot be part of a rental or commercial
or a livery/taxi vehicle. See participating Toyota dealer for plan
details. Valid only in the continental U.S. and Alaska. Roadside
Assistance does not include parts and fluids.At Mark Jacobson Toyota, every new Toyota and Scion we lease or sell includes a Lifetime Limited Non-Factory Warranty good at participating dealers.
warranty is good for unlimited time, and unlimited miles. Best of all,
you do not have to come back to our dealership for service just to
maintain your lifetime warranty. You can do that anywhere in the United
States or Canada -- and this makes it a great, no-hassle, no fine-print
value. In fact, everything covered in the factory powertrain warranty is
covered in your Lifetime Warranty!Extra mileage actually costs less when you lease
: If you trade in a high mileage car you can expect to lose 25-35 cents per mile if you exceed 15,000 miles per year. High mileage trades are worth less. But when you lease, excess mileage is charged only 20 cents per mile - an amount covered in the contract.
There is no negative equity at the end of a lease:
After 24 or 36 months into a car loan, you probably still owe money to the bank. In many cases, the amount owed exceeds what the car is worth -- and this makes it difficult to trade out of the car. But at the end of a car lease, assuming you have not driven extra mileage or damaged the car, you can simply turn it back in and get another new vehicle! Drive a new car more often:
As with the above example, you won't have to wait years to drive a new car, and you won't compound previous loans and be burdened with ever-increasing debt when you do!You have the option to buy your vehicle at the end of your lease:
If you really love the Toyota you leased, you can always buy the vehicle at the end of your lease. And because the lease end value will be known from Day 1, there won't be any surprises when it comes to the price. Now that's flexibility!GAP protection is included with a Mark Jacobson Toyota lease:
If you get into an accident GAP protection ensures that in the event your vehicle is stolen or totaled, you will receive the difference between your actual payoff, and the amount provided by your insurance settlement. With a car loan, you have to pay extra to get this type of coverage.You get a guaranteed end value for your leased vehicle:
It won't matter what your trade is worth, because a leased vehicle comes with a residual value written into the contract and guaranteed by the bank. Unless there is abnormal wear and tear or excess mileage, you can turn in your vehicle and choose something different. This is why people interested in trucks will often choose a lease. An unforeseen increase in gas prices won't affect them when they come in for something new to drive.