Buying vs. Leasing Guide
Buying vs. Leasing Guide
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| Buying | Leasing | |
|---|---|---|
| Ownership | Your vehicle is yours, and you can keep it as long as you want it. | Your vehicle belongs to the lessor. You get to use it but must return it at the end of the lease unless you decide to buy it. |
| Upfront Costs | At signing, they include the cash price (or a significant down payment), taxes, registration and other fees. | Depending on the lessor, these can include the first month's payment, a refundable security deposit, and (usually optional) down payment, along with taxes and other fees. |
| Monthly Payments | Loan payments are almost always higher than lease payments because you're paying off the entire purchase price of the vehicle, plus interest and other charges. | Lease 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, not the total value at the time of signing. |
| Early Termination | You can sell or trade in your vehicle at any time. If you still have money left on your loan balance, you can use money from the sale to pay it off. | Early-termination charges are often very high, and can sometimes be almost as costly as sticking with the contract. |
| Vehicle Return | If you decide you want a new car, you'll have to deal with selling or trading in your current vehicle. | You can return your leased car at the end of your lease and walk away. |
| Future Value | The vehicle will depreciate, but since you own it, the cash value is yours to use how you see fit. | For the most part, any value loss for the model you lease won't affect you financially. However, you won't gain any equity of our your lease. |
Buying vs Leasing Guide at Neil Huffman Nissan of Frankfort
When debating whether buying or leasing a new Nissan vehicle is right for you, there are many factors to consider. Your financial situation, long term plans, personal preferences, and risk tolerance are all important components of the decision to buy or lease. At Neil Huffman Nissan of Frankfort, we're here to help. Not only do we offer flexible financing, but we also have our signature 7 day Like it or Exchange It program. Contact one of our finance specialists today and let us help find the best option for you.