Lease VS Buy
Why Should You Lease a New Car?
If you prefer to drive newer, safer, more reliable cars, but not commit to a sizeable down payment every few years, and also don’t travel an excessive amount annually, then a new car lease may be right for you. Leasing is designed for people who would prefer to avert the hassle of buying and selling each time they want to drive a new car, truck, or SUV.
Why Buy a New Car?
On the other hand, if you like long term relationships with a higher sense of commitment and ownership, then buying may be what’s better for you. Car-buying is typically best for consumers who will not mind driving the same vehicle for over five years or even until the vehicle is no longer fit for the highway.
Lease vs Buy: Which One Is Right for You?
Being aware of the pros, cons, and overall benefits of leasing vs buying a vehicle is imperative. Be sure to acknowledge factors such as vehicle ownership, monthly payments, repair costs, and potential savings when considering the best new car or truck financing type for you.
Buying: Ownership vs Leasing
When weighing the value of vehicle financing, new car ownership absolutely comes along with many advantages, most associated with outright ownership of the car, truck or SUV. You may not realize, however, there are also a few nice benefits of leasing, as well. It’s essential to consider all financial aspects including term length, down payment, monthly payments, buyout payments, interest rate, depreciation, and maintenance & repair costs, before making a decision. A close checkup of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the best choice between leasing and buying a new car, truck, or SUV.
Monthly Payments
Vehicle lease payments are often less expensive in comparison to car financing and loan payments as the typical lease layout is pretty much renting with the option to buy out at the final payment of your lease term. Remember when leasing that you’re going to need a nice credit score, and will be required to carry collision and comprehensive insurance, though the same can be said for the lowest rate auto loans. Although it may increase monthly payments, it is also best to get a model with the features you need or want, as personal satisfaction is often priceless.
Maintenance & Repair
Auto leasing often includes regular vehicle maintenance & repair. It’s important to keep this in mind when projecting monthly costs of ownership vs leasing. No matter what make and model you buy, mechanic bills are an unknown cost that can rapidly add up. And for those of us who are not certified mechanics with a hydraulic jack and full toolset in the garage, leasing may be the best option for peace of mind.
Savings vs Investment
Generally speaking, a new car or truck lease saves money in the short term with more affordable monthly payments, while buying earns you a long term investment, meaning full ownership of the value of the car, truck, or SUV at the time it is traded, sold, or paid-off. For best value on a lease, avoid lease return fees for terminating the vehicle lease early, going over mileage, or putting on excessive wear and tear. For maximum investment on a purchased/financed vehicle, you can pay it off quickly and also avoid excessive wear and mileage.
| Lease | Buy | |
|---|---|---|
| New Vehicles | Available | Available |
| Pre-Owned Vehicles | Not Available | Available |
| Vehicle Customization | Not Available | Available |
| Poor Credit Financing | Not Available | Available |
| APR % | Credit-Based | Credit-Based |
| Ownership | No Ownership | Pride of Ownership |
| Down Payment | Smaller Down Payment | Larger Down Payment |
| Monthly Payment | Smaller Monthly Payments | Larger Monthly Payments |
| Savings/Investment | Short Term Savings | Long Term Investment |
| Finance Term | Approx. 2-4 Years | Approx. 3-6 Years |
| Maintenance & Repair Costs | Typically Included | Not Included |
Nissan Lease and Finance Offers Near Austin, TX
Round Rock Nissan knows that choosing the right Nissan car and financing option is never easy. Our team of experienced Nissan lease and finance specialists are on hand to help you make the right choice. Visit us online, by phone, or in-person at our dealership location near Austin, TX. We look forward to serving you.