Buying vs Leasing


When it comes to buying or leasing a car, the options can be confusing. To help you make an informed decision we have provided buying and leasing information below, we hope you find it informative and useful!


When you buy a new or used car you pay for the entire cost of the vehicle. When you lease a new or used car, you pay for only a portion of the vehicle's cost - the part you use while you're driving it.


 

Buying


Who Owns It?

Whether you pay for your car in cash, or finance it by making monthly payments, you are the owner of the car. Of course if you're financing it, you'll have to meet the obligations that the lender requires, a certain amount in a down payment and timely monthly payments. If you don't pay on time, they could repossess your car.


Upfront Costs

If you're financing your vehicle, the bank will most likely request a down payment. You can also trade in another vehicle and use any equity toward your next car. The amount of the down payment is usually based on the lender's requirements and your own credit score.


Future Value and End of Payments

Your vehicle will be worth whatever you can sell it for in the future and this depends on how well you maintain it. Scheduled maintenance and careful driving will help protect your investment. Once you've paid off your contract, the vehicle is 100% yours. The lending institution will send you a Lien Release as proof that the vehicle is entirely paid off.


 


Leasing


Who Owns It?

You do not own your vehicle when you lease. You're paying for the temporary use of the vehicle, but the dealership or institution that you leased from owns the car. This is why your monthly payment is generally less if you lease a car compared to buying one.


Upfront Costs

Leases often don't require any type of down payment. Usually, all you pay is the first month's payment upfront, as well as a security deposit, acquisition fee and any other fees and taxes. You can lower your monthly payments by offering more upfront.


Future Value and End of Payments

With most leases, you don't end up owning the car, and therefore can't sell it. That is up to the dealership. Generally, you will have mileage limits, wear and tear guidelines and restrictions that could cost you extra if you exceed them before returning the vehicle. Depending on your lease, you may have the option to buy out the vehicle at the end of your lease. No matter what you'd like to do with your leased vehicle, we at Kenny Ross Nissan can help!


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