Buying Vs. Leasing
You own the vehicle. When you buy a car it becomes yours once your payments are finished. Then, you don’t have to make any more payments on it.
Change whatever you like at your own will. As long as it is legal, the vehicle can be changed or modified however you please without worry about returning it to the original state.
Save money in other ways. Generally speaking, insurance rates tend to be lower when you purchase a car over leasing one. That is one important aspect to keep in mind. You can avoid fees that come with leasing because it is your car and if you spill something, it will be something only you have to deal with.
Costs are lower in some aspects. Typically, down payments will be less for a lease than for the purchase of a new car. There will also be a lot of deals with dealerships that allow for zero down on a lease. Also, monthly payments are usually lower compared to buying a new car.
Depreciation doesn’t matter. Since you don’t own the vehicle you don’t have to worry about reselling it with a depreciated value. You get to just trade it in for another model.
Lease prices can be used as business expensive if you own your own business. As long as you only use the vehicle for business purposes, then you can write it off in your taxes.
After your warranty expires you will have to pay for every maintenance out of pocket.
Dealers will often require a pretty big down payment for the new vehicle because of its high price and value.
Depreciation will affect your new car a lot. After just three years your vehicle can lose almost half of its value, and then another 25 percent of value the next three years.
Upon returning the vehicle there may be fines due to overuse (too much mileage), more wear and tear than normal, and any interior stains, rips, or faults. You can also not change anything about the vehicle while in your possession.
Car payments will never end. Unlike buying a car, you will never be without a car payment because you are not trying to reach a goal of paying the car off.
Higher insurance premiums often come with the leasing of a new vehicle.
Make sure you check out each one of these facts when considering your next vehicle and whether or not you want to purchase or lease it. If you have any questions, our financial staff at Bates Nissan would be glad to assist you. When you are ready with a decision stop by our dealership and let’s go for a test drive!