When financing a vehicle, your options come down to financing or leasing. Both options are very common at O’Brien Nissan of Bloomington. Our helpful staff is happy to help you explore both financing and leasing options for you next vehicle. Be sure to check out Nissan’s special financing and leasing options. When considering these, you may find yourself wondering what their differences are. Keep reading to help make your decisions and help answer your questions about buying vs leasing your next vehicle.
- Is Leasing or Buying Better?
Buying vs. Leasing: Cost
When deciding whether to buy or lease, the deciding factor boils down to the numbers. When purchasing, more money is required for a downpayment and monthly payments. While leasing, on the other hand, boasts lower monthly payments and requires less money down (your first monthly payment is due at signing). Another difference with leasing vs. buying is the deal structure. Interest rates commonly look like 1.9%, while money factors (used to calculate a lease’s monthly payment) look like 0.00125. A residual is a number that determines a lease’s value at the end of the lease and does not change (that is what you can trade the vehicle in for or purchase the vehicle for at the end of the lease). When you own the car trade-in value is not so easily determined because of length of ownership, miles, or other customizations.
Buying vs Leasing: Ownership
Other things to keep in mind when deciding whether to lease or buy is the type of ownership. When you are leasing a car there are more restrictions. The first being the miles that you drive. There are monetary penalties for exceeding your lease’s milage allowance. When you own a car you do not have any mileage limitations, you are also free to customize your vehicle as you like. When you lease, you do not own the vehicle so most customizations come with penalties. With that said, when you follow a leasing cycle, you are almost guaranteed a new vehicle every three years.
Which is better?
So which is better– Leasing or buying? As previously mentioned, both have their pros and cons. Ultimately it boils down to your preference and lifestyle. Lucky for you, O’Brien Nissan of Bloomington’s Business Manager and Sales Professionals to help guide your decision. Whether you decide to buy or lease, one thing is for sure, you are driving home in a new vehicle that you will love.