Leasing vs. Buying a Vehicle
There are plenty of questions that can come up when buying or leasing your first vehicle. Cole Nissan is here to help you decide which option is the best fit for you. When you buy a car, you will own it after the loan term is met and the vehicle is paid off, this option is usually more expensive than leasing. Below you will find a list of pros and cons of leasing vs buying to ensure that you make the right decision for you based on your personal preference and lifestyle.
- Leasing offers a lower monthly payment, with very little to nothing down at the time of signing.
- When you lease, you can get a nicer, newer car than if you buy with the same monthly budget.
- Reduced maintenance cost due to the vehicle’s factory warranty.
- You can trade in your lease for a new one every 2 to 3 years, depending on your lease term.
- Trade in with no worry at the end of your lease.
- Less sales tax overall.
- At the end of the lease term, you have to give the car back. There is always an option to buy at that time as well.
- Typical mileage for a lease is 10,000 to 12,000 miles per year. So if you drive a lot, you will pay overage charges at lease end.
- Lease contracts are more complicated that purchase contracts and are filled with unfamiliar terminology.
- Leasing can cost more in the long run as opposed to buying a vehicle because when your lease is up, you need to get another one.
- Depending on how well you take care of the loaner, you could be charged wear and tear charges at the end of the lease.
- It can be expensive to terminate your lease early if your needs change.
- When you buy, there are no mileage limits so you can drive as much as you want!
- If the vehicle is yours, you can modify it with after market parts and accessories.
- Save money in the long term since you will eventually pay the car off.
- You can trade in or sell the vehicle whenever you please.
- There is more upfront cost than a lease.
- Car payments are higher than lease payments.
- Once you are outside of your factory warranty, all maintenance is at the owner’s expense.
- Face possible trade or sale issues when you decide to get your next car.
- Vehicles depreciate in value over time, so as you pay the vehicle with be worth less and less.