No matter what the size of your budget is or which new car you would like to drive home the first thing you need to do is lease or buy. Every car buyer is different and there really is no right or wrong answer and the choice depends on a number of factors: What you want your monthly payments to be, how many miles you drive each year, and how attached you get to your cars to just to name a few. Browse through this page to help you decide what might work best for you. To learn more and get some help making the right decision fill out the form below to talk to one of our professional sales and leasing consultants.

A really quick and simple way to differentiate between the two finance options are: When leasing a vehicle you are financing the use of that vehicle while your other option finances the purchase of that vehicle.

Our goal at Fenton Family Dealerships is to help you find the perfect car for you at the perfect price for you. On this page our aim is to educate you on the two vehicle financing options, show you the difference between purchasing and leasing, give you some questions to ask yourself to help make the right decision and explain the benefits and negatives of each option. Remember that everyone's preferences and driving habits are different so what works for someone else that you know isn't always the best decision for you -- it's all about what is important to you.

Buy vs Lease example
Let's use a $20,000 vehicle for example with a residual value of 50% or $10,000 after 36 months. When leasing you only pay for the $10,000 difference (the depreciation), plus finance charges and any applicable fees. For our customers that live in Vermont or Massachusetts you only pay taxes on the part you use, not the entire amount of the vehicle.

When you purchase the vehicle you pay the entire $20,000, plus finance charges and any applicable fees and the sales tax.

This is generally why leasing a vehicle offers a much lower payment option. To summarize, leasing typically does not build ownership equity, while buying does. The reason that a buyer has equity at the end of his loan is that he purchases that equity by making higher monthly payments. Part of each payment funds the equity. Leasing = lower payments, no equity. Buying = higher payments, partial (and declining) equity.

Purchase
Leasing

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.

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Contact

Fenton Family Dealerships

591 Monadnock Hwy Rt 12
Directions East Swanzey, NH 03446

  • Sales: 888-278-0447

Hours

  • Monday Closed
  • Tuesday 8AM - 7PM
  • Wednesday 8AM - 7PM
  • Thursday 8AM - 7PM
  • Friday 8AM - 7PM
  • Saturday 8AM - 5PM
  • Sunday Closed
Some questions to consider...
Do you like to drive a new car every 2-3 years and not worry about costly repair costs of older cars?
The average driver trades their car in every 36-42 months. Think about that for a minute. The typical car loan is a 60 month term. What this means is that the average driver is never without a car payment because they trade their vehicle in for a new one before that 60 month term is up. If you are "the average" driver leasing may make a lot of sense for you. Why not make lower car payments while you can!

Do you have rather predictable driving habits?
Of course it would be a little crazy to assume that you can predict exactly how many miles you will drive each year, but you may be able to make a pretty good estimate. For example, if the majority of your driving is to work and back and you live relatively close to work it would be a safe assumption that you would fall under the mileage parameters that you have when leasing. If you know you drive a lot more because you have a longer commute to work or go away every weekend and take your car than a lease probably isn't the right choice for you. It is also important to remember that at the Fenton Family Dealerships we can customize a lease to fit most drivers needs.

Why does mileage matter?
One of the most important factors in deciding whether to lease or purchase is how many miles you drive. The average driver drives 10,000 - 12,000 miles a year. At The Fenton Family Dealerships our standard leasing options come with either 12,000 or 15,000 miles per year but can be further customized to fit your needs. If you can get a reasonably accurate estimate of how much you drive and it falls within these mileage limits leasing is a great option for you. Just be sure to continue reading to learn more. If you know you will drive a lot more than these mileage limits leasing is probably not the right option for you.

So what should I do?

LEASE if driving a new car every two or three years is what you typically do or want to do. Lease if you want lower monthly payments and like having a car that has the latest safety features, newest technology, best MPG, is always under warranty, don't like trading and selling used cars, don't care about building ownership equity, have a stable predictable lifestyle, drive an average number of miles and properly maintain your cars.

BUY if higher monthly payments don't bother you, you prefer to possibly build up some trade-in or resale value (equity), like the idea of having ownership of your car, prefer paying off your loan and being payment-free for a while, don't mind the unexpected cost of repairs after warranty has expired, drive more than average miles, prefer to drive your cars for years to spread out the cost, like to customize your cars or expect lifestyle changes in the near future.