When you’re looking for a new car, you have to main options for how to pay for the vehicle: you can either lease the vehicle for a specified amount of time or you can finance the vehicle until you completely own it. So how do you determine which of these two options would fit your budget and needs the best? That’s what you have us for! Keep reading and we’ll fill you in on everything you need to know!
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Leasing vs financing a new vehicle
There are pros and cons to both leasing and financing a vehicle, so the right option for you really depends on your personal preferences and financial situation. When you finance a vehicle, you are purchasing the vehicle outright from the dealership using a loan from the bank, and once the loan has been paid off, you own the vehicle completely. When you lease a vehicle, you are essentially renting it from the dealership. You don’t own the vehicle and you are essentially only paying the depreciation on the vehicle plus taxes and fees, which mean your monthly payments will generally be lower. At the end of your lease term, you can choose whether you want to return the vehicle to the dealership and lease a different model, or you can decide to purchase the vehicle if you would like. That being said, when you own a vehicle you are free to put as many miles on it as you want and sell it whenever you want. With a lease agreement, you don’t have as much freedom. There will generally be a mileage limit, which will vary based on your lease terms, and you wouldn’t be able to easily terminate a leasing agreement early if you find a different vehicle you want.
Have additional questions about whether you should lease or finance your new vehicle? If so, don’t hesitate to contact our team here at Matt Castrucci Nissan! We’re happy to help answer any questions you may have and set you on the path to finding your next dream car!
