When shopping for a new vehicle, there is one decision every driver has to make: whether to lease or buy. Before heading to the dealership, it’s important to understand the unique benefits of both options. Neither one is better or worse than the other. Rather, it’s a matter of what works best for your specific situation and lifestyle, and understanding both options will make this choice much easier when the time comes.
Unless you buy a new car outright in cash, you’ll typically be making monthly payments toward the total price. One of the major differences between leasing and buying is that leasing a new car usually comes with lower monthly payments. Because of this, leasing is often a great option for drivers who want to pay less per month for a vehicle.
Another big difference between leasing and buying is the fact that car lease agreements usually include certain restrictions that are completely absent when you buy a car. For example, most leases stipulate a mileage limit and can also include extra fees for excessive wear at the end of the lease term. When you buy a car, on the other hand, you own it and can drive it as much as you’d like without any consideration of future fees.
When you lease a car, you can count on being behind the wheel of a newer, more advanced model every few years. In a market where new vehicle technologies are developed all the time, this is a big selling point for many drivers who prefer to lease.
Of course, the main difference between leasing and buying concerns vehicle ownership. When you buy a car, it is yours for life, and once you have made all of your payments according to a financing agreement, you don’t have to worry about monthly payments any more. When you lease, on the other hand, you never own the vehicle, and so monthly payment costs are indefinite.
If you need help figuring out if buying or leasing is right for you, come talk to the finance team at Nissan of Gilroy.