Should I Buy or Lease?
Once you know you want to drive a Nissan vehicle, you have to decide whether or not you want to buy or lease. Both have their benefits and differences, but depending on your situation in Santa Ana, one or the other will be right for you. “Should I buy or lease?” is one of the most common questions drivers ask the finance team at Garden Grove Nissan, so we’ve decided to lay out the basics for you. Keep reading to learn more.
Leasing vs. Buying: The Long-Term vs. Short-Term Costs
There are different long-term vs short-term costs when comparing leasing vs. buying. Consider these costs to help you answer “Should I buy or lease?” for yourself:
- Leasing has lower monthly payments, but those payments never stop. You also spend less on taxes and down payments. However, in the long-term, you may start a new lease every few years. This means you’ll never stop having payments, though you won’t have to worry about escalating repair costs.
- With financing, you can eventually eliminate your monthly payment. Buying used is often more affordable than leasing a new vehicle. Though you’ll have to put down a down payment, Anaheim drivers who pay off their financed vehicle will spend less in the long-term compared to a driver who continues to lease. Keep in mind, repair costs tend to grow as a vehicle ages.
The Bottom Line: Many drivers only keep their vehicles for an average of three years. Then, they spring for the next model and the latest features. Constantly buying and selling isn’t that different from leasing, so if this sounds like you, leasing may be preferable. If you’re set on full ownership, our finance team can help you explore your options.
Leasing vs. Buying: Your Restrictions and Mileage
- Those who finance with the intent to pursue full ownership will not have to worry about mileage limits or restrictions.
- Those who lease their vehicles will have to stay within certain strict boundaries or pay a fee when their lease term comes to a close.
The Bottom Line: If you only have a short commute or don’t drive much in general, it will be easy to stay within the mileage limits of a lease. However, if you like weekend holidays or road trips, financing will be a better fit.
Leasing vs. Buying: Ownership and Available Customization
- When you own a vehicle, you can customize it however you like. Custom parts, upgrades, or paint jobs are all available to you, though take care not to accidentally void your warranty.
- When you lease a vehicle, it still belongs to the dealership and as such, you’ll need to keep the vehicle as close to factory condition as possible. This is because the dealership may need to resell the vehicle once you’re done with it.
The Bottom Line: Leasing often isn’t the right option for Orange County drivers interested in off-roading or performance driving that requires customization.
Leasing vs. Buying: Flexibility and Convenience
- Financing is flexible. When you finance, you’ve signed a contract, but if the vehicle is worth more than you owe, you can sell or trade in the vehicle whenever you like. You could even refinance it at a lower rate down the line. Also, the vehicle is yours to keep for as long as you like.
- Leasing is convenient. All you need to do is take good care of the vehicle while it’s in your possession, then drive it back to the lease return center at the end of your term. Once you do that you get to go home in a new vehicle. You sometimes also have the option of buying out the lease, which will allow you to bring your leased vehicle home for good.
The Bottom Line: Leasing is simple and convenient, which is a major draw. Leasing on the other hand can involve a lot of financial paperwork, and selling and buying can be quite a hassle. However, if you’re comfortable maintaining and reselling a vehicle, the money you get for trading in a purchased vehicle can help offset the costs of a new vehicle.
Check the Leasing and Financing Options at Garden Grove Nissan
Explore the current leasing and financing specials at our GARDEN GROVE dealership, and if you have any questions feel free to contact us! Looking for more car buying tips such as how to get financing with a bad credit score? We’ve got you covered. Stop by today for more information like how to take over a car lease.