No matter the size of your budget or which car you hope to park in your driveway, the first thing every car shopper should do is decide whether to lease or buy!
There are pros and cons to each option, and the choice depends on a number of factors: 
- What you want your monthly payments to be
- How many miles you drive each year
- How attached you get to your cars
- From a purely financial perspective, it's important to consider the cost of each option over the entire lifetime of the vehicle.

Buying a vehicle is the more straightforward transaction. Simply put, you're paying for the cost and sales tax for the entire vehicle. If you finance the purchase with a loan, your monthly payments will be determined by the vehicle price, the interest rate on the loan, and the length of the loan. There may also be various finance charges and fees. When you make the last payment on the loan, you'll own your car and can choose to sell it or continue driving it. 

To get a sense of the monthly payments associated with financing a new Toyota, visit our Payment Calculator.
When you lease a vehicle, you're only paying for the portion of the vehicle you
 use over the course of the lease, which usually lasts two or three years. Because you're not making payments based on the entire value of the car, your monthly payments will be lower. There are very specific stipulations about the number of miles you can drive a leased car, the condition the car must be in when it's returned, and penalties associated with ending a lease early, so it's very important to read a lease agreement carefully. As with buying a car, there may also be various finance charges and fees associated with leasing a car.

Monthly Payments are higher than lease payments because you are paying for the entire price of the vehicle.

 Monthly payments are much lower than your payments when purchasing.

Usually a down payment required to ensure that loan amount does not exceed market value of the vehicle.

 Usually no down payment required. Making a down payment will only lower your lease payment.

When you have paid the full amount of the car loan you own the car.

Newer vehicle more often - your preferences may change over time and a short lease term allows you to drive the vehicle of your choice.

Modify and add accessories to your vehicle with as you see fit.

Guaranteed Future Value - Resale value is not a concern.

There is no restriction on the amount of miles you drive, although higher mileage will reduce the resale value of the vehicle.

Pre-determine that your mileage will not exceed a certain amount per year.

Car loans will often extend beyond the warranty period unless an extended warranty is purchased meaning you are subject to repair costs.

Your Toyota is covered by the manufacturer's warranty for the entire period of your lease.
There are maintenance and upkeep responsibilities and any wear and tear will effect the resale value of your vehicle.
No hidden fees upon lease return or purchase.

Now that you know some of the basics, we recommend that you look at your budget, learn more about the specifics of your credit rating and current interest rates, and think about how each of the options fits your life. If you do the research, you'll ultimately end up with payments you can afford and a car you love.

Toyota of Keene Finance Professionals


Bob Kenney
General Sales Manager
Email Bob
Branko Kovacevic
Finance Manager
Email Branko
Amanda Hill
Finance Manager
Email Amanda