Compare Lease vs. Buy
Should I Buy or Lease a New Nissan in Orange County, CA?
Getting a new car, truck or SUV can be one of the most enjoyable experiences. When looking to get a new car, one of the most important things to consider is how you are going to purchase it. You need to decide whether you are going to buy the car or lease it. While both options allow you to get a new car, it will be important to know the differences.
Advantages & Disadvantages of Buying a New Nissan
The most common way of getting a car, truck or SUV in California is to buy it. When buying a vehicle, you will put some money down and then finance the rest with a loan. During the course of the loan period, you will need to make monthly payments. Buying has its advantages, such as possessing an asset of value and also having full autonomy in terms of how much you can drive it. These two advantages make it very appealing to many consumers who are looking to get a car. While buying a car in California has its advantages, there are also disadvantages as well.
One of the disadvantages of buying a car is that it will more costly. When paying off a car loan, you will usually make a payment on the car that is higher than a lease payment. Another disadvantage of buying a car is that if you are unable to make the payments, you will have it repossessed. When repossessed, you will be liable for the remaining balance of the loan, which can be very costly. You will also be fully responsible for the maintenance costs when and if you decide to keep the car after the loan is paid off.
Advantages & Disadvantages of Leasing a New Nissan
Nissan buyers who are looking to get a new car, truck or SUV will have the opportunity to lease one. Leasing a vehicle in California entails driving it for two to three years and making payments on it during this time. When leasing, you will be able to get a new car every few years and always be driving the latest model of a particular vehicle. Leasing a car also allows you to avoid the hassles of ownership as you will have all service and repair costs covered under the warranty. The lease payment will also be less than the amount you pay when buying a vehicle.
Like buying a car, leasing has its disadvantages. First, you may not have autonomy on how much you can drive it. Most Nissan dealers will allow you to drive the vehicle for a certain amount of miles each year. If you go over the limit, you may need to pay for the additional miles driven, although some dealers will cut you a break if your next lease is obtained through the same dealership. You also may need to have a good credit score to take advantage of certain lease offers. But some Nissan dealers can help buyers with average to below average credit find a suitable leasing option that's still cheaper than buying.
Questions to Ask When Deciding to Buy, Finance or Lease a New Nissan
How much do you drive?
Do you drive a lot? Over 10,000 to 15,000 miles, depending on the lease agreement? You'll probably have to pay extra for each mile. If you plan on trading in your current vehicle, you may be penalized for above-average mileage too.
How hard are you on the car?
If you're prone to getting scratches on your car or have a high risk of damage to it from kids or other hazards, a lease may not be for you. Be aware of the wear-and-tear fees in your lease agreement.
How long you plan on keeping the car?
This is a big point of consideration. If you plan to only drive the car for a few years, then maybe leasing a new car is your best option. However, fees will incur if you try to get out of the lease before the term is up can be costly. You'll need to be sure you can stick with the terms of your lease.
How much is the down payment?
There may be little or no down payment required, and no up-front sales tax payment, depending on where you live. If so, leasing can be a low-cost way of driving a Nissan. You only pay for the portion of the vehicle you use, and your monthly payment is generally less than if you finance your car.
Do you drive your car for business?
When you lease, a portion of the car's depreciation and financing costs can be deducted on your taxes and where you live. On the other hand, interest on loans to buy a car isn't deductible (please consult your tax adviser). A lower payment means more disposable income for other investments.
Do you know how many miles you'll need?
You can tailor your lease to fit your driving habits and miles driven per year.
Do you want to forego the hassle of selling the vehicle?
Leasing means there is no hassle when it comes time to trade or sell your vehicle. The Nissan dealer will carry the risk of resale value at the end of the lease and provide you with a set purchase option. You can just hand the keys over to the dealer and get a new lease.
In Summary - The Benefits of Leasing
- Lower down payment
- You get a new car every few years
- You can drive a better car for less money
- No long-term commitment
Here at Nissan of Costa Mesa, we sell and lease cars to the drivers of Irvine, Santa Ana & Newport Beach, and all around California. We think our lease program is a low-cost way of driving a new Nissan car, truck or SUV.