How to Know If You Should Buy or Lease Your Next Car
At Pat Peck Nissan, we’re often asked about the benefits of buying vs. leasing a car. Generally, there’s no wrong answer to this question. Each option has something different to offer, depending on your individual situation.
To help Gulfport, Pascagoula, and Waveland area drivers decide which fits their needs, we broke down the pros and cons of buying vs. leasing into the four categories below…
1. Buy vs Lease: Payments
Whether you buy or lease may be determined by how much of a monthly payment you’re willing to pay, and how much money you’re prepared to put toward the down payment.
Car buyers often have a higher down payment and monthly payment than lessees. One of the reasons for this is because when you buy a car, you pay for the entire cost of the car.
When you lease, on the other hand, you’re only paying for the value of the vehicle’s expected depreciation over the course of the lease. In other words, you’re not paying for the whole car, just a percentage of it. So, your monthly payments, and your down payment, will likely be less.
2. Vehicle Ownership
The main benefit of buying is that, at the end of your loan, you own a car, which is a sizable asset. And, once you’ve paid off the vehicle, you won’t have any more monthly payments to make.
At the end of your lease, however, you won’t have any equity in the car. Your only options will be to start a new lease or buy out your current lease. Either way, your monthly payments will continue.
3. Buy vs Lease: Wear & Tear
Lessees are at a disadvantage if they want more control over how they treat their vehicle. Leases usually come with a mileage limit, so you’ll have to watch how far you drive. All customizations need to be removable, as well. And, if you decide to end your lease early, there will likely be a fee.
Car owners, on the other hand, have the flexibility of choosing what they do with their car. They can hold onto it for as long as they want, sell or trade it at any time, rack up the miles, and customize more freely.
4. Upgrades & Tech
One advantage lessees experience is the ability to drive a new car every couple of years, complete with that year’s newest technology and safety features. The lower monthly and upfront costs also allow for upgrades to a higher trim level, if desired.
Car buyers, however, may find that over time, the technology in their car will begin to feel outdated. They’ll also be responsible for selling or trading in their vehicle should they opt for a newer model later. This is a process that lessees don’t have to worry about.
The Beauty of Buying
When you buy a Nissan, there are a number of advantages you’ll enjoy compared to if you had leased the vehicle. However, there are some downsides as well. Depending on what your needs are, the upside may be much higher than the downside. Here are some of the benefits of buying a Nissan:
- It’s yours: When you buy/finance a car, it is your property and you can do whatever you want to it. Whether you want to change the exterior or interior; such as paint, wheels, modify the body or even put in a custom stereo system – you can, because the car is yours.
- No limits: If you’re a person who loves to drive; whether going on long-distance road trips or driving on some lonely windy roads just for fun, there is no limitation on where or how far you can go. Drive only 10,000 miles in a year or 100,000 miles. There are no limits.
- A committed relationship: Do you love cars? Do you buy a car because it speaks to your heart and you can see yourself in a lasting and loving relationship with your vehicle for years to come? If so, then buying is definitely for you.
As with everything in life, there are also downsides to financing that need to be considered before you make your final (and big) decision and decide if buying is right for you:
- A liability, not an asset: Unless you’re buying a classic Ferrari or some other type of rare car, when you purchase a new vehicle it is almost guaranteed the value of the car will drop as soon as you drive it off the lot. If you ever decide to sell the car, you will most likely get less money for it than what you paid.
- Maintenance: While Group 1 Nissan offer generous warranties on our new cars, if you are going to own the car for the long haul, eventually the warranty will run out and you will have to pay for vehicle maintenance out of your own pocket.
The Beauty of Leasing
Leasing a Nissan has its own pluses and minuses, which, depending upon your needs and your budget, might be a better option compared to financing your next car. Leasing is very much like renting an apartment: you pay a security deposit upfront (down payment) and then make fixed payments for an agreed upon length of time, at which point you return the car. Here are some of the benefits of leasing a Nissan:
- Less money, less problems: When leasing a Nissan, typically your down payment and monthly payments will be lower compared to if you financed the vehicle (depending upon length of the lease and your credit), leaving you with more money in your pocket.
- Peace of mind: Don’t worry about expensive repairs or maintenance since most leases usually come with warranties that last for most of the lease agreement.
- Switch it up: Are you a person who wants the latest and greatest in automotive technology and engineering? If so, leasing may be the perfect option for you because after the end of your lease agreement, you can bring back the car and get a new lease for the newest model that you want.
Just like with buying a Nissan, there are some aspects of leasing that might make this purchase option not the best choice for certain drivers:
- Limited mileage: As part of the lease agreement, you can only drive your leased Nissan for a pre-determined amount of miles (usually between 12,000-15,000 miles a year) a year. If you are just using the car to commute to work and run errands around town, you should be fine. If you’re a driver who likes to take cross country road trips frequently, leasing might not be the best option for you. If you drive more miles per year than the lease agreement states, you can face extra fees for the increased mileage.
- No customization: When you lease a Nissan, you can’t make any changes to the car – period. For most drivers, this is no problem. A lot of people just want a car to get them from point A to point B. But if you’re someone who likes to upgrade the performance of the car or the looks of it, buying is the better option.
As you can see, both purchase options have their merits but which one you ultimately choose depends on what works best for your budget and driving needs. Fortunately, everyone at Group 1 Nissan is here to help you find which option is optimal for you.
Buy vs Lease: Do What’s Right for You
If you’re in the Gulfport, Pascagoula, or Waveland area, and are still unsure whether buying vs. leasing is right for you, visit our finance center at Pat Peck Nissan. Our experienced staff will work with you to find the right financing solution for your individual situation.
Contact our finance center today to learn more.
Besides selecting which Nissan you want to buy, the most important decision you’ll have to make is how you want to purchase your car: buy (financing) or lease (renting).
Each purchase option has its pros and cons, good and bad, ups and downs. When selecting how you want to buy your next car, it will depend on your budget and the amount of “freedom” you want with your car, so to speak. It’s like deciding if you want to mortgage a house or rent it.
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Got an oil change. Waited with my two girls. Amenities keep them preoccupied during the wait. Items of concern were discussed. Decent price for the oil change. Very nice customer service. All was great.
AWESOME. I feel as though they may need more refreshments such as chips, candy, cookies. I understand it's a pandemic or what have you but refreshments ought to be given. Np
Customer: Ms. C
Very helpful i had talked with Arthur in services he was very kind and accommodating my issue with my car was tooken care of in mo time at all. Thank you to Pat Peck Nissan service department wonderful job!!!!
Customer: ELENA LADNER
Excellent service as always and fast didn’t have to wait long. Zach’s been my consultant since I bought my car and he does a great job letting me know what’s wrong with the car and pricing options.
I have been dealing with Pat Peck Nissan for several Years and always get treated with the utmost respect.
Customer: Russell Arnold
You guys are awesome.. Thank you Ms. Kathy for being so understanding during this pandemic. I will definitely use you guys again...Lejon Stewart
Customer: Lejon Stewart
Heather handled my service appointment quickly and professionally, making sure that she credited me for a free multi point inspection and discounted oil change and tire rotation. I didn't even have time to drink my free cup of coffee before they were finished. Very happy with the quality of service received.
Customer: Marc Beddoe
BT was my sales man. He was very helpful and did everything possible to take the stress out of buying a new car. He knows how to connect with his customers both on a professional and personal level by catering to your individual need. The service given to me by B.Thomas was definitely personalized which made me comfortable purchasing my new vehicle with Pat Peck Nissan.
Customer: Kimberly Foster
I had THE best experience at Pat Peck Nissan in Gulfport. I explained to them that I had some credit issues. My salesman name was John Brinkley and he went ABOVE AND BEYOND to make sure I was happy with my purchase. He put me in a BEAUTIFUL car and I have never had that kind of experience with any other car dealership EVER!!.. I tried to shop local but they wasted my time. So I went to Pat Peck Nissan in Gulfport and the approval process was quick and I drove away in a nice car!! The finance manager Shane was great and he explained everything which made the paperwork quick and easy to understand. They made me feel more like family instead of a customer! I highly recommend Pat Peck Nissan in Gulfport, Ms. I will definitely make my next purchase with them!!! THANKS A MILLION!! I’ll also give them “two thumbs up!!
Customer: Tanis Webb
I’ve gone to this dealership for two vehicle purchases and any work each vehicle has needed. I’ve gotten Zach in the service department multiple times throughout the years and always been very happy with the results. I brought my vehicle in this time for an oil change and potentially brakes/tires. I was given information from the inspection and given cost options very fast. Within an hour I had my oil changed, two new tires added, the other two rotated, and an inspection on my brakes completed. Pricing is always competitive and employees are always very friendly. The employees are why I continue to come back here for service.
Customer: Rebecca Lester