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09-05-19

Leasing vs. Financing

Leasing vs Financing: Everything to Consider

Leasing versus financing a vehicle is not always an easy choice to make. Both options have advantages and disadvantages, which will be discussed below. In the meantime, M’Lady Nissan has a great Finance Center and Sales Team who can assist you in making the best decisions for your vehicle needs and financial circumstances. Hundreds of options are available for a new car and the process of buying or leasing a new or preowned vehicle can be incredibly overwhelming.

It is always good to do some research on your next auto investment in your life. Many dealerships recommend completing finance applications before shopping for a car. You should be aware of your credit score and how much you can afford to pay each month for your car before heading into a dealership. Review all the terms and conditions of each option to verify if leasing or financing would be the right fit.

Leasing

Leasing a vehicle can be a bit confusing, but if you do not drive a lot of miles, like to have the latest tech and safety features and appreciate warranty coverage then this option could make sense for you. We made a list of some of the potential advantages and disadvantages of leasing a vehicle.

Pros:

  • Lower Monthly Payments
  • Latest Technology
  • Warranty Coverage and Maintenance
  • Ease of Trade-In
  • Sales Tax is Lower*
  • Smaller Down Payment
 

Cons:

  • No Ownership
  • Limited Mileage
  • You Cannot Customize
  • No Cash for Your Next Car
  • Lease-End Costs Could be High*
  • Restriction on Use
  • You Need to Have Excellent Credit*
  • You Have to Buy Gap Insurance*

*May not be applicable in all circumstances.

Financing 

When it comes to buying a new or used car financing is often the simplest route to take. You do not have restrictions on use, monthly payments are made but you eventually will fully own the car and you can sell the car anytime you want. We made a list of pros and cons of financing.

 

 

Pros:

  • Ownership
  • Unlimited Mileage
  • Cash for Your Next Car
  • You Can Customize
  • No More Payments When Your Loan is Paid Off
  • You can sell your Car Whenever You Want
  • Easier to Finance than to Lease*
  • You Can Refinance Your Loan
Cons:

  • More Expensive Short Term
  • Pay Interest on Entire Loan Balance
  • More Sales Tax*
  • Usually Requires Down Payment
  • Warranty Will Run Out

*May not be applicable in all circumstances.

The option you choose for your next vehicle will depend on a few factors your personal financial picture, how you use your car, and how long you plan to keep your vehicle. A one-size-fits-all answer doesn’t necessarily exist in this situation, however assessing what you want and need from your car, plus what makes the best financial sense will lead you to the proper choice. Regardless we recommend you do some research and stop into M’Lady Nissan to view our inventory and test drive some cars to see which one is right for you before you lease or buy a car. Contact M’Lady Nissan with any questions about the leasing or financing process!

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