When it comes to buying or leasing a car the options can be confusing. To help you make an informed decision we have provided the information below. We hope you find it informative and useful. When you buy the new or used car you pay for the entire cost of the vehicle. When you lease the new or used car, you pay for only a portion of the vehicle's cost, which is the part you use during the time you are driving it.
While many of our customers prefer to take advantage of our famous Zero Down Lease Specials, we understand some drivers prefer to purchase their next vehicle. Your needs, budget and circumstances are the best indicators, but let us help you make an informed choice.
Lease: At the end of your lease term, you can choose to return the vehicle and walk away after paying any end-of-lease charges, or work with Carousel Nissan to lease a new vehicle.
Finance: You have the option to sell or trade in the vehicle whenever you want, should you decide you want to buy another one.
Lease: If you want to end the lease early, you'll pay early termination fees, which can cost as much as staying with your lease until the end.
Finance: You can sell or trade in the vehicle whenever you want, and the money you make selling it can be used towards paying off the loan.
Lease: Most of the time, your dealer will want the car to be in optimal condition to resell, in case you choose not to buy it yourself once the lease is up. As a result, if you've made any modifications or customizations, those will have to be removed and you may have to pay for any damages or permanent alterations that were caused.
Finance: You own the car, so you can do whatever you want to it, knowing that your changes will affect the resale value.
Lease: Most leases will have an annual limit on how much you can drive the car, and you will incur extra charges if you go over that limit, which will be stated in your lease. This limit can sometimes be negotiated.
Finance: You can drive as often and as far as you want, knowing of course that more miles lowers any resale value.
Lease: If your car ends up with excessive wear and tear, most leases will require you to pay for it. Talk to your dealer for specifics.
Finance: The only worry for someone with a car loan is how any wear and tear will affect the resale value.
Lease: The future value of the car does not affect you when you lease, but you also do not get any equity from the car.
Finance: The vehicle will depreciate in value, but the equity is yours to use as you want.
Lease: You don’t own the car; you pay to use it for a fixed period of time. At the end of the term, you either return it for a new vehicle or buy it from the dealership.
Finance: You own the vehicle and get to keep it, use it how you want, for as long as you want, and add any customizations or modifications that you want.
Lease: The vast majority of the time, lease payments will be lower than the loan payment when you finance because you only pay for the depreciation of the vehicle for the duration of the lease, plus interest, rent charges, taxes, and fees.
Finance: Loan payments are usually higher than leasing, because you’re paying for the entire value of the car.
Lease: Depending on your area, this usually includes the first month’s payment, a refundable security deposit, down payment, taxes, registration fees, and possibly other fees. If you're taking advantage of one of our Carousel Nissan Zero Down Lease Offers, you might be able to drive off with no money down.
Finance: Financing usually include the cash price or a down payment, taxes, registration fees, possibly some other fees, depending on current manufacturer's offers.
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 advisor). 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 skip 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 the end, whether or not you want to lease or finance your car depends on your preferences and finances, as well as your long-term intentions. If you’re the type of person that likes to have new cars with the latest features every few years, then leasing makes much more sense financially.
However, if you intend to buy a car and drive it until it dies, or pass it onto a family member, then taking out a loan is your better option. In the end, it all depends on the level of financial commitment and ownership you would like to have with your vehicle. Whether you choose to lease or finance, Carousel Nissan can take care of all your needs.