Buying vs Leasing

The Changing Landscape

A number of converging trends have changed the leasing landscape for the average consumer. For decades now, a large proportion of luxury cars have been leased. But that has changed, with more compact cars, mainstream sedans, and small SUVs entering the new-car lease market, as well. Attractive finance rates have made some leases pretty good deals.

Automakers benefit by leasing a big portion of a car's production. Leases help keep used-car supplies steady, which in turn boosts resale values. A high resale value means a vehicle is slower to depreciate, which translates into cheaper leases for that model. That benefits consumers.

The low interest rates that have prevailed elsewhere for the past few years have carried over into lease contracts, which also helps moderate their cost. Interest rates are a critical part of the economics of leasing, because at the end of the day a lease is just another way to finance a car.

Another tactic for boosting a car's resale value is reflected in the low mileage allowance in some new leases: 10,000 miles per year instead of the customary 12,000 to 15,000 miles. That may be fine for people who don't drive much, but the average driver will exceed that figure each year.

We also see a growing number of leases with terms of less than 36 months, which is a mixed blessing. Sure, it looks good to someone who doesn't want to be locked into a long contract. But a car's first two years usually make up the steepest part of the depreciation curve, making for an expensive lease period.

However, it's becoming common in the car-loan market for people to stretch out the loan for seven or eight years, simply to keep the monthly payment under control. Some of those people may be better off leasing.

How Loans and Leases Differ

Below are some of the major differences between buying and leasing.  


OwnershipYou own the vehicle and get to keep it as long as you want it.You don't own the vehicle. You get to use it but must return it at the end of the lease unless you decide to buy it.

Monthly PaymentsLoan payments are usually higher than lease payments because you're paying off the entire purchase price of the vehicle, plus interest and other finance charges, taxes, and feesLease payments are almost always lower than loan payments because you're paying only for the vehicle's depreciation during the lease term, plus interest charges (called rent charges), taxes, and fees.

Early TerminationYou can sell or trade in your vehicle at any time. If necessary, money from the sale can be used to pay off any loan balance.If you end the lease early, charges can be as costly as sticking with the contract. On occasion a dealer may buy the car from the leasing company as a trade-in, letting you off the hook.

Vehicle ReturnYou'll have to deal with selling or trading in your car when you decide you want a different one. You return the vehicle at lease-end, pay any end-of-lease costs, and walk away.

Future ValueThe vehicle will depreciate, but its cash value is yours to use as you like.On the plus side, its future value doesn't affect you financially. On the negative side, you don't have any equity in the vehicle.
MileageYou're free to drive as many miles as you want. But keep in mind that higher mileage lowers the vehicle's trade-in or resale value.Most leases limit the number of miles you may drive, often 12,000 to 15,000 per year. (You can negotiate a higher mileage limit.) You'll have to pay charges for exceeding your limits.

Excessive Wear and TearYou don't have to worry about wear and tear, but it could lower the vehicle's trade-in or resale value.Most leases hold you responsible. You'll have to pay extra charges for exceeding what is considered normal wear and tear.

End of TermAt the end of the loan term, you have no further payments and you have built equity to help pay for your next vehicle.At the end of the lease (usually two to three years), you can finance the purchase of the car, or lease or buy another
CustomizingThe vehicle is yours to modify or customize as you like, although doing so may void your warranty.Because you must return the vehicle in salable condition, any modifications or custom parts you add have to be removed. If there is any residual damage, you'll have to pay to have it fixed or you'll need to file an insurance claim and pay a deductible.

Discover the Performance and Dependability of a New Toyota at Kerry Toyota in Florence, KY 

It's no coincidence that you see so many new Toyota cars, trucks, SUVs, and minivans on the roads of Florence, KY. Toyota has long had a reputation for being a brand that provides our Florence, KY customers with vehicles that surpass expectations of performance, comfort, and dependability. If you are in the market for a new vehicle and find yourself intrigued by the Toyota lineup, come to Kerry Toyota, located at 6050 Hopeful Church Road in Florence, KY, and find the right fit for you. Check out our new Toyota inventory to see what is currently at the dealership for you to explore. We are proud to be a Toyota dealership serving the Covington, KY area. 

New Cars for Sale in Florence, KY 

Welcome to Kerry Toyota, where we look forward to putting you in the driver seat of one of our beautiful new automobiles. Our inventory of new cars for sale is huge, with an option or two that suits the needs of every driver in the area. Browse our inventory and you'll find the perfect car, truck, or SUV to meet your needs. There's a car for everyone in the area, whether you want a fuel-efficient automobile, a truck, an SUV, or even a hybrid vehicle. You'll likely find several vehicles that make your heart flutter just a little bit. Now the only difficult task is choosing between those models.

Shop for a New Toyota Car 

Drivers near Cincinnati, OH looking for a new car will not be disappointed by the selection of Toyota sedans and coupes at our dealership. We have the iconic Toyota Camry, with its spacious interior and agile handling. If you want a compact car with great fuel economy and an exceptionally comfy ride, you might want to consider the Toyota Corolla. The dealership has the Toyota Prius for environmentally-conscious customers and the Toyota 86 for those looking for a sporty ride. If you need a larger sedan with a quiet cabin, the Toyota Avalon might appeal to you. 

Impressive Toyota SUVs 

Whether you are interested in a crossover, like the Toyota C-HR, or a third-row option, like the Toyota Sequoia, we have got you covered. Many drivers have been loyal Toyota RAV4 customers because of the cavernous amount of cargo and passenger room it affords. Off-road enthusiasts near Erlanger, KY will love the Toyota 4Runner. Families near Covington, KY that want an SUV with some power might want to explore the Toyota Highlander.

Discover Toyota Trucks and Minivan 

This fan-favorite provides the power truck drivers want. If you would prefer a midsize truck, we also have the Toyota Tacoma in stock. Drivers who want a minivan with a large amount of cargo room and the capability of being all-wheel drive will be intrigued by the Toyota Sienna. 

Benefits of Buying New Cars

Buying a new car is a sign of success and a true reward for all of your hard work. You deserve to ride around town in a brand new vehicle of your choice. That new car smell is one that is incomparable to anything else in this world and worth buying a new car to enjoy. But, there's still a plethora of additional benefits offered to new car buyers. Do you want to impress your friends and turn heads as you drive about town? When you're behind the wheel of a new automobile, it is easy to get the bragging rights we all enjoy every now and again.

Quality New Cars Near Cincinnati, OH

Our customers deserve the very best and we always provide them with a new car buying experience worth remembering. Our professionals will answer your questions, help you complete a finance application, or schedule a test drive if you give us a call or complete our contact form. Rest assured that when you purchase a vehicle from us, you're getting a vehicle that is inspected and tested before it is put out on our lot. It is just another way we ensure our customers get the very best when it is time to buy a new car.

Providing You with Auto Financing Options 

The finance center at Kerry Toyota, serving Florence, KY, can explore which of the current financing and leasing promotions apply to you. Contact a finance professional today, as many of specials expire monthly, and start the process on getting the right auto loan or lease for your new Toyota.

*Some dealer installed options may be added to certain vehicles which may affect the pricing. Please see or call dealer for details.

Kerry Toyota

All offers are Plus tax, license, title, insurance, and $399 dealer Documentation. Upon approved Credit. Offers available to those who qualify.


Kerry Toyota

6050 Hopeful Church Road
Directions Florence, KY 41042

  • Sales: (859) 371-3939
  • Service: (859) 371-1518
  • Parts: (859) 371-1407

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