The Difference Between Buying and Leasing
You hear a lot about the best route to take when it comes to bringing home a new vehicle. Lease or buy? There are people on both sides so we want to share with you the breakdown of each."When you buy a new Nissan, you pay for the entire cost of the new vehicle, regardless of how much you drive it or how long you keep it. Your monthly payment will be higher than leasing, and you typically make a down payment, pay sales tax, and your determined interest rate which is based on your credit score. You make your first payment a month after you sign your contract. If you decide later to sell or trade in the vehicle, the depreciated, or trade-in, value may be considerably less than the original cost.
When you lease a new Nissan, you pay a portion of the vehicle's cost, which is the part that you "use up" during the time you are driving it. Leasing is a form of financing and is not the same as renting. You may have a choice of not making a down payment, you pay sales tax only on your monthly payments (in most states), and you pay a financial rate, called money factor, that is similar to the interest on a loan. You may also be required to pay fees and possibly a security deposit that you don't have to pay when you buy a new car. You make your first payment at the time you sign your contract--for the month ahead. At lease-end, you may either return the vehicle, or purchase it for it's depreciated resale value. You may be charged a lease-end disposition fee, and for any excessive mileage wear-and-tear."
So which one do I choose?
What's Important to You? What Are Your Priorities? We all have different needs and styles when it comes to our vehicle and financial choice. Whether you lease or buy, it should be based on your priorities and long term needs.To find out more click here
