2895 North Naglee Road
Directions Tracy, CA 95304

  • Sales: (209) 834-1111
  • Service: (209) 834-1111
  • Parts: (209) 834-1111

Lease or Buy?

Should you lease or buy when you're looking for a new car or truck? 

Your lifestyle and preferences will help determine which is right for you.

Certain lifestyles work better with leasing vehicle than others. For example, if your job required you to entertain business clients, leasing will allow you to drive a luxury vehicle for less money than it would cost to purchase, plus there may be positive tax impacts for some professions. With regard to preferences, some people just like to drive a brand-new car every two or three years. In that case leasing is a good option to consider as well. In this case, think about your personal priorities in addition to budget impact before you make your decision.

In contrast, some people look primarily on impact to the bottom line.If you're one of those people, or would like to see how leasing a car stacks up against buying, try an Auto Loan/Auto Lease calculator like the ones found on After selecting a car, you can see an estimated leasing payment, an estimated loan payment and which financing method is recommended. You can also see how your payment will change if, for example, the length of the loan is extended or the down payment is increased.

Note: These calculators are only a rough estimation process and don't take into account Toyota or Scion price or leasing incentives, Tracy Toyota Dealer Discounts and other factors that may affect final lease or purchase payments differently. Your best bet is to come in and speak with one of our experienced Tracy Toyota Sales or Finance team. It costs you nothing to find out what your net payments would be.

  • Lower monthly payments.*
  • Lower down payment.* 
  • You can drive a better car for less money each month. 
  • Lower repair costs because most of your repairs are covered by warranty or ToyotaCare complimentary "no-cost" maintenance plan. 
  • No trade-in hassles or need to sell your  vehicle at the end of the lease.
  • You pay sales tax only on the portion of the car you finance.
  • Some professions allow you to take tax write-offs for leased vehicles (check with your accountant or tax professional).

  • You don't own your car at the end of the lease term
  • Your mileage is limited to a set amount (typically 12,000 miles a year) with a fee due at lease termination for excess mileage 
  • If you are looking at keeping your vehicle for an extended period of time, leasing is more expensive when compared to purchasing and driving your vehicle over an extended number of years.
  • If your driving habits or the roads where you live are rough, wear-and-tear charges (that are also due at lease end) could be costly.
  • If you must terminate your lease early because your driving needs change, it can also be costly.
  * Although this statement is generally true, some deals and special offers may prove differently.

  • You own the vehicle and therefore can n modify/customize it as much as you wish.
  • You will save in the long run unless you regularly buy and trade-in your vehicles every 2 or 3 years.
  • You will have no penalty costs for excess mileage regardless of how many miles you drive in a year.
  • "Hard driving" may reduce the resale or trade-in value of your vehicle, but you won't experience an out-of-pocket excess wear and tear charge when you're ready to get rid of the vehicle.
  • You get increased flexibility and can sell your vehicle whenever you wish.
  • Higher down payments are generally required unless you have a premium credit rating.*
  • Higher monthly payments.
  • Higher maintenance costs since you're responsible for post-warranty maintenance costs and must keep the vehicle longer to get the long term savings advantage.
  • Some of your investment capital is tied up in your vehicle, which depreciates rather than appreciates.
  • You need to deal with trading-in or selling your vehicle when you're ready for a new vehicle.
  * Although this statement is generally true, some deals and special offers may prove differently.

In Summary

Leasing makes it easier to get a newer, more feature-rich car or truck for your dollar because you are essentially paying for just a portion of that vehicle. This makes leasing a good option in the short run - if you don't log a heavy number of miles each year. But if you manage your budget for a longer term and prefer to keep your vehicle for more years, leasing becomes more expensive. It is more costly because once you begin leasing, you wind up leasing again. From a business point of view, leasing makes your vehicle an expense and purchasing makes your vehicle a depreciating asset.

Also, if you prefer to keep your vehicle for several years, the vehicle eventually becomes yours outright without any more payments.  Your vehicle may not have much value on the open market at that time, but, it becomes nearly free transportation at that point.

The decision is up to you, but the staff at Tracy Toyota is ready to "run the numbers for you" and help you find out what is best for you. 

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2895 North Naglee Road
Directions Tracy, CA 95304

  • Sales: (888) 378-6856
  • Service: (888) 378-6905
  • Parts: (888) 641-0030


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