Matt Shone of Toyota Marin discusses the differences between leasing and buying a vehicle.

Matt Shone is General Sales Manager of Toyota Marin. To reach Matt Shone call (888) 594-4173.
Video: Buying vs. Leasing a Vehicle
Complete Video Transcription:

SAN RAFAEL – Host, Sarah Rutan: If you’re considering getting a new vehicle, you’ll first want to understand the differences between leasing and buying. Today we’re in San Rafael with Diamond Certified Expert Contributor Matt Shone of Toyota Marin to learn more.

Diamond Certified Expert Contributor, Matt Shone: One of the most common questions we get here at Toyota Marin is: What are some of the benefits of leasing a new vehicle versus purchasing a new vehicle? And there are a great many benefits to leasing the car.

One of the first ones is that you can save a lot of money on sales tax. A lot of people only keep their cars for a couple of years. But if you purchase a vehicle, you’re going to pay all of the sales tax upfront, regardless of how long you keep it. On a lease, you pay sales tax on a monthly basis. So, if you only use 30 or 40 percent of the car, you’re only going to pay sales tax on 30 or 40 percent of the vehicle.

The next benefit is that the bank takes most of the risk or almost all of the risk in terms of the future depreciation of that vehicle. They set up a residual value at the beginning of the term, and at the end of the term, you can either turn it back in to the bank if you owe, or if the value is less than that residual. If the value is more, you can sell the vehicle. Or you decide you love the car, you keep it.

Another benefit is that leases are very easy to write off for businesses because, basically, all you’re paying for on a lease is the depreciation, the interest, and the sales tax. So, a lot of businesses like to lease. They’re very easy to write off.

You’re also always able to stay within a warranty period since leases are usually three years long, and warranties are always three years or longer. And you also can stay on top of the technology curve; you always have the newest technology. And car manufacturers are updating technology at a very rapid pace right now. So, this way you can be sure to always have the newest, safest vehicle.

And the last reason is just money. It’s less expensive to lease a car. You can get more car for the same payment if you lease a vehicle. These are just some of the benefits of leasing. And these are some things you should consider the next time you’re shopping for a new vehicle.

Host, Sarah Rutan: To learn more from local top-rated companies, visit our Diamond Certified Expert Reports at experts.diamondcertified.org

Matt Shone is General Sales Manager of Toyota Marin, a Diamond Certified company. He can be reached at (888) 594-4173 or by email.

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