Leasing vs. Buying
Decisions, decisions. If you’re trying to decide between leasing vs. buying your next vehicle, you’ll quickly find out that there are pros and cons to each.
Why People Like Leasing
There are two big reasons people choose leasing: Monthly payments are really low, and you can drive a more expensive, luxury vehicle for less per month than if you were purchasing it. It’s so cheap because you’re only financing the cost of deprecation during the lease term, not its total value. People also like leasing because since maintenance is covered, you probably won’t be hit with unexpected repair costs, and it’s a great way to have the most cutting-edge engineering and technology in your car.
Why People Dislike Leasing
The biggest downside of leasing is you’re essentially renting your car. When you turn it in at the end of the lease, you have zero equity, nothing to show for the money you’ve paid in. You’re also subject to hefty fees if you go over the mileage restrictions or if you don’t return the vehicle in original condition, less normal wear and tear. So, although leasing a car is inexpensive on a monthly basis, it can actually be quite costly in the long run.
Why People Like Buying
The #1 reason people like buying cars is that you own it free and clear when the loan is paid off. It belongs to you. No extra fees, no mileage restrictions, you’re responsible only for the cost of owning and maintaining the vehicle.
Why People Dislike Buying
When you buy a new car, you’re paying full or close to market value, and you need a substantial down payment for affordable monthly payments. Depreciation begins when you drive away from the dealership, and you could potentially end up needing to sell the car and discovering it’s worth less than the loan balance.
Lease or Buy at Jeffrey Nissan
Leasing vs. buying? Both are good options, and one will be right for your situation. Our expert sales and financing teams at Jeffrey Nissan are happy to explore both scenarios with you and answer all your questions. You can even learn how you can lease a car with bad credit. Contact us today to find out more!