Buy vs. Lease

Buy vs Lease: Which Is Right for You?

At Naples Nissan, our mission is to personalize the car-buying experience to fit the specific needs of our customers. One decision you will need to contemplate is whether to buy or a lease a new Nissan vehicle. There are advantages to both methods and depending on your budget and needs, leasing or buying may be the better option for you. To help you learn more about the benefits to each option, we've compiled this handy guide. If you have additional questions, contact the Financing Department at Naples Nissan today.

Why Is Leasing Advantageous?

Leasing a car is similar to buying, but there are some distinct differences. For starters, leasing enables drivers to finance the use of a new vehicle for a set length of time. At the end of the lease, the vehicle is returned to dealership and a new lease can be started. Naples Nissan offers a number of options for returning leases, helping them to re-sign a new lease with reduced down payments. Often, leasing is a cheaper alternative than buying, as the down payment and monthly payments are generally more affordable than they are with buying. Typically, leases last three to five years.

All leases are structured differently, but drivers should understand the requirements. Failing to adhere to the lease requirements can result in stiff penalties at the end of the least. Lease terms may include a mileage limit, which is a yearly restriction to the number of miles the vehicle can be driven. If the mileage limit is surpassed during the lease, a per-mile fee may be assessed.

The biggest benefit of leasing is the affordability. The reduced monthly payments and lower down payment amount can help customers drive new vehicles when they may not be able to afford purchasing outright. Plus, with leasing, customers can drive a new vehicle every three years. The drawbacks include mileage limits and having no equity in the vehicle.

Why Is Buying Advantageous?

Buying a new vehicle enables a customer to purchase the vehicle outright. Typically, with new vehicles, buying requires a down payment to be made, which can include the value of a trade-in vehicle, as well as an auto loan to cover the balance. Customers make monthly payments over 3 to 5 years to pay off the balance of the vehicle. With buying, the advantages are ownership. There are no mileage restrictions, and you have equity in the vehicle and can sell it whenever you like.

Compared to leasing, though, buying can be somewhat less affordable. The down payment is often slightly more than it is when leasing, and since you're paying for the entire vehicle, the monthly payment amounts tend to be higher than they are with leasing. Yet, once you have fully paid off the vehicle, it is yours. You can sell it, gift it, or drive it however you see fit. One drawback in ownership is that vehicles lose value over time, but with proper maintenance, you can protect the resale value of your vehicle.

The most significant benefit of buying a car is that, once you've paid it off, it is yours and you can use it however you'd like. Plus, you have equity in the vehicle, and can sell it or trade it in when you're ready to purchase a new car. The only drawback is the cost, which can include a larger down payment and steeper monthly payments.

Which Is Right For You?

When it comes to buying or leasing a new vehicle, ultimately the decision is based on your budget and needs. Some prefer to lease vehicles, so that every three years, they can drive the latest models. While others find that buying is more advantageous financially. Aren't sure what to do? The sales team at Naples Nissan is here to offer you honest advice and friendly service to help make the decision easier. Visit us today!