If you keep your vehicle longer than 4 years and drive allot of miles, it is better to purchase.
If you trade your vehicle in every 2 to 3 years and drive an average of 15k miles a year, it is better to lease.
〉 Answered on Aug 20th, 2008 by Brenda Ritzman, E-Commerce/BDC Director at Toyota of Chula Vista
You need to look at three things.
1. How long is the term of the loan vs the lease
2. How long do you normally keep your vehicle(do you trade every 3 years or less? If so you should look at leasing, if not look at buying)
3. How many miles do you drive a year, if it is over 15,000 you might what to purchase vs lease.
The payments might be $700 each way, but the purchase might be for 60 months and the lease for 36 months?? There is no way it should be the same amount for the same number of months. Leasing should always be a lower number for the same term.
Simply put the benefits of leasing is that you are only paying for the part of the vehicle you are using, you do not pay payments on the residual (lease end) value, because of this you do not build any equity in the vehicle. Again if you trade frequently, lease, if you keep your vehicle until it is completely worn out, buy.
〉 Answered on Aug 20th, 2008 by Jessie L Thatcher, F&I and Sales Specialist at Reynolds and Reynolds Company (Retired)