Compare Buying vs. Leasing Options What’s Right for You?
If you’ve suddenly found yourself in the market for a new car, truck, SUV, or crossover, one of the most important decisions you’ll need to make is whether you want to buy a new or used vehicle, or lease a new vehicle. At Milford Nissan we know that buying or leasing a vehicle is a big investment, so we want to help you make the right decision for your driving style and budget. Even if you’ve already got your heart set on one of the two options, it might be a good idea to review the facts, pros, and cons of each to ensure you’re making the right decision. We want to make sure that you have been provided all the information you need to make that decision confidently.
If you haven’t decided whether you’ll be buying or leasing a car, don’t worry! We’ve got you covered at Milford Nissan. We’ll go over all the basics of buying vs. leasing by comparing the options side by side listing the facts, pros, and cons. Before we get started, here a few things you might want to consider that will help guide your decision:
- The Type of vehicle you want
- Your daily commute distance
- Maintenance cost
- You driving habits
- Your monthly budget
While we can’t make the decision for you, the options below highlight the factors of buying and leasing and can help you decide what’s right for your lifestyle. While leasing might be right for you, it may not be for the next person. Each person has their own driving style, habits, and vehicle needs and it’s up to you to decide which option fits you the best. If you have any questions about leasing or buying, give us a call at . Our team of knowledgeable auto experts is happy to help with anything you need at Milford Nissan in Milford, MA.
Car Lease Pros & Cons
Leasing your new Nissan can be a great choice. The biggest difference between a car lease and a car loan is the duration of time you have the vehicle. When a lease ends, the dealership gets the car back. Depending on your specific terms, you have the possibility of buying the car outright or choosing a completely different car. The main benefit of having a Nissan lease is the lower monthly payments. The payments are lower because you are simply paying for the depreciation of the vehicle. When you lease a car, you are essentially renting it for a specified amount of time.
So, what’s the down side? You are usually restricted by a mileage limit as well as the set amount of time. This can be troublesome for drivers who tend to drive a lot or drive longer distances. Another downside is that you don’t actually own the car, despite making monthly payments. With that being said, if the payment is low enough and you won’t reach the mileage limit quickly, leasing your new Nissan could be a great option for you.
Car Loan Pros & Cons
Once you have your dream car, there is a good chance that you won’t want to give it up after a specified amount of time. If this is the case, financing your car could be the best option for you. By getting a car loan, you are deciding to purchase the vehicle. After you pay off the full price, it will be yours to do whatever you please. You won’t experience the same restrictions as a car lease, such as mileage or a set amount of time you will have the vehicle. Additionally, if you finance, your insurance payments could potentially be lower than if you lease.
The downside to financing your car can include higher monthly payments. Your monthly payments are determined by your down payment and your credit score. If you have a great score and a decent amount to put down, chances are your payments won’t be too high. Don’t worry if you have a less than great score. The finance professionals at Milford Nissan are prepared to work to find the loan terms and interest rate that fits best for you.
You drive only 1 vehicle for 60+ months
No limit on mileage
Buyer pays for the full cost of the vehicle
You can trade-in or sell your vehicle anytime
Maintenance must be covered by owner or warranty
Monthly payments vary depending on down payment and APR
Buying builds the buyers' equity
Pros to Buying
The vehicle is completely yours after loan is paid off making it more cost effective for some in the long run
No limit on mileage
No monthly car payments once the loan is paid off
Buyer has the ability to customize or modify vehicle
Cons to Buying
Monthly payments are typically higher
Down payment may be more expensive
Potential hassle to sell the vehicle later on
Vehicle value depreciates quickly
Maintenance costs are your responsibility
You can drive up to 2.5 vehicles over a 60-month period
Lease periods can last 24-72 months
Certain mileage amount allowed per year
Minimal maintenance is required
Monthly payments vary
Lease price is based on percentage of vehicle cost & length of lease depending on down payment
Pros to Leasing
You can drive a new car about every 2-3 years
You’ll always have the latest features and a new vehicle
Lower up-front costs
Possibility of lower monthly payments
Cons to Leasing
Restriction on miles you can put on the car
You’re responsible for damages, wear, and tear
Early lease termination can be expensive
You don’t own the vehicle
You cannot customize the vehicle
Q: What are the benefits of leasing versus buying a new Nissan?
A: You’ll drive more car for your money when leasing a new Nissan from Milford Nissan, because you’re only paying for the amount of the car that you use. Plus, when leasing you’re always driving a Nissan which is 3 years or newer, covered by a factory Nissan warranty during your lease term.
Q: What is required to lease from Milford Nissan?
A: At Milford Nissan we don’t have specific standards that you need to meet for leasing. We’ll work with your credit score and budget to help determine the best leasing option for you.
Q: Will I need to make a down payment? If so, how much do you require?
A: One of the best things about leasing a new car at Milford Nissan is that all of our Nissan Leases are fully customizable! You can choose a down payment that works best for your budget – However, keep in mind that the amount you put down will directly affect your monthly payments.
Q: I drive a lot and may exceed the miles of a lease. What do you suggest? Are there any fees if I exceed the mileage allowed?
A: There is a charge of $0.15 a mile if you go over the allotted amount of miles on your lease. If you feel like you may go over this, we offer more mileage options up front at a discounted price.
Q: Can I buy the car once my lease is up?
A: Yes! At the end of your lease you can purchase your Nissan car, truck or SUV for the residual amount. Plus, at Milford Nissan we make it clear what it will cost you to purchase right from the very beginning so there’s no surprises later on.
Q: Are there any current Nissan lease specials at Milford Nissan?
A: There’s always a great deal to be had at Milford Nissan. Check out our Lease Specials updated monthly.