When it comes to buying or leasing a car the options can be confusing. To help you make an informed decision we have provided the information below. We hope you find it informative and useful. When you buy the new or used car you pay for the entire cost of the vehicle. When you lease the new or used car, you pay for only a portion of the vehicle's cost, which is the part you use during the time you are driving it.
Should You Buy Or Lease a Car

Contact Us

DCH Freehold Toyota

4268 Route 9 South
Directions Freehold, NJ 07728

  • Sales: 732-410-7780

Sales Hours

  • Monday - Friday 9:00am - 8:00pm
  • Saturday 9:00am - 6:00pm
  • Sunday Closed
BUYING
WHO OWNS IT

Whether you pay for the car with cash, or finance it and make monthly payments, either way it's yours. Of course, if you're financing it, you'll have to meet the obligations the lender requires, like a certain down payment amount and timely monthly payments. If you don't, they have the right to repossess it.

UP-FRONT COSTS

If you're financing it, the bank will probably request a down payment. You can also trade-in another vehicle and use any equity towards your down payment on a new Toyota. The amount of the down payment is usually based on the lender's requirements and your credit score.

FUTURE VALUE

Your vehicle will be worth whatever you can sell it for in the future and that depends on how well you maintain it. (Be smart and protect your investment with regular scheduled maintenance by a factory-authorized facility!)



END OF PAYMENTS

Once you've paid off what you owe on your contract, that's it. Your vehicle is 100% yours. The lending institution will send you a Lien Release as proof that the vehicle is completely paid off and all yours.

LEASING
WHO OWNS IT

You do not own the car when you lease. You're paying for the use of the vehicle, but the finance institution that you leased it through actually owns it. This is usually why you pay less per month in a lease than if you were to buy the car.


UP-FRONT COSTS

Leases often do not require any type of a down payment. All you usually have to pay is the first month's payment, a security deposit, the acquisition fee and other fees and taxes. But, as with a purchase, if you want to lower your monthly payments you can always pay more upfront.

FUTURE VALUE

In most leases you don't end up owning it so you don't end up selling it. That's the financial institution's job. Although you may have mileage limits and wear and tear guidelines that, if you exceed them, could cost you extra money when you turn your vehicle back in.


END OF PAYMENTS

Most people return the vehicle at the end of the lease term. But some like to purchase it during their lease or at the end. Others like to trade it in before their lease is over. Just ask us about these different options before signing any paperwork and we'll make sure you have your lease set up the way you want it.

BEST CARS TO LEASE

The best cars to lease are those with the best book value after the term of the lease. Since they depreciate less, you pay less. Review the lease ratings to see which cars retain their value.

LEASE OR BUY - WHICH ONE IS RIGHT FOR YOU?

Lease vs. Buy: Should I lease or buy that new automobile? It sounds like a tough decision, but it doesn't have to be that complicated. Following is an overview of some benefits of each choice.

LEASING

In a lease, you do not purchase an automobile. You contract to use it for the first, and best, period of its life. If preferred you could choose to lease one of our used vehicles. Following are some additional benefits to leasing a Toyota.

Less Cash Up Front - When comparing a "lease vs buy", one of the biggest advantages of a lease is that it does not usually require a substantial down payment. In many states, you can even pay the sales taxes as part of your monthly lease payment, rather than in a lump sum.

Lower Monthly Payment - If the finance period is the same, your monthly payments will be lower when leasing (vs. traditional financing) because your payments will be based on the vehicle's estimated depreciation. (You are contracting to use a portion of the car's value, rather than buying the entire car).

A New Car More Often - Your taste and preference may change, and a short-term lease makes it easy to drive a new car more frequently. Additionally, you may have needs for a larger or smaller car in a few years, and a lease makes it easy to plan for such changes.

Guaranteed Future Value - You don't have to worry about resale value. If your car depreciates more than the estimated residual value in your lease contract at full term, you can turn it in at the end of your lease term. But if it's worth more, you can buy it and keep it or resell it. A lease gives you an option.

Tax Advantage for Business Use - People who use a lease car for business may find larger tax deductions with leasing than with buying a vehicle. Check with your tax advisor.

BUYING

When deciding whether to buy or lease, a key thing to consider is how long you plan to keep the vehicle. If you typically keep your vehicle for five to ten years, then traditional financing may be your best option. Toyota Financial Services may be your best choice in financing your new vehicle, with competitive rates and terms designed to meet your needs.

Pride of Ownership - Ownership can instill a sense of pride. It can also build equity. Payment by payment, an owner's equity may increase.

No Restrictions on Mileage - This is important to consider if you drive more than 12,000 to 15,000 miles per year.

Make Changes to Car's Appearance - You can alter the interior or exterior to suit your taste (though your choices may affect the resale value).