Leasing vs. Buying – What’s the Difference?

When looking for a vehicle, it is beneficial to understand the difference between leasing and buying a vehicle. Leasing and buying each serve different purposes for vehicle owners. In this article, we will cover the primary features of each option. 

Leasing

Leasing is when a person uses a product or service for a set amount of time in return for a recurring payment. It is essentially renting for an extended period.

Leasing a vehicle comes without the inconvenience and expense of buying one. Many leases have a span from 23 up to 60 months. Depending on the period that leasees are contracted to, prices will vary. However, a majority of leasing payments are small and affordable. The pricing is based on the residual value of the vehicle you are leasing based on what the financial institution believes. Historically, and currently, Nissan vehicles have some of the best residual values in the automotive industry. As a result, you can expect Nissan Lease offers to be some of the best offers you can find! 

Although Nissan vehicle values are above industry standard, McGavock Nissan includes GAP insurance on all lease agreements. This ensures you are protected from paying out of pocket in the event of an accident that totals the vehicle. In these cases, insurance companies can value the vehicle at a lower price than what is currently owed on the vehicle. In a rare case that this happens, GAP insurance will kick in and cover the difference!

When it’s time to return the vehicle, leasees simply drive the vehicle to the dealership without any fuss about the resale value pending all lease agreement requirements are met, including the mileage. If you happen to exceed the agreed-upon miles of the term, the lessee will pay a small fee for every mile over the limit as agreed upon in the lease agreement. Keep in mind, that this only happens if you return the vehicle. You do not have to pay back any mileage fees if you choose to trade or sell the vehicle.

Buying

Buying a vehicle is more of a commitment compared to leasing. Monthly payments are higher, and you are paying for the entire amount of the vehicle instead of the residual value of the lease term.

Buying a vehicle is great for potential buyers who are looking for something more consistent. Additionally, when it comes time for the owner to look for a new vehicle, they can sell or trade their older vehicle at any time. 

Regardless of financing plan makes the best sense for you, our sales & leasing professionals are prepared to serve you. We have a wide variety of options that will accommodate your every need.