LEASE VS. BUY

Is a Car Loan or Lease the Right Option for You?

If you're like the majority of car buyers, you're not going to have the cash on hand to outright pay for your next car. After all, buying a car is one of the biggest investments that many of us will make in our life time. That said, there are two financing options when purchasing a car: taking out a loan to pay for the whole car, or signing a lease to pay for a portion of the vehicle's value. Which is right for you? Our financing team is always happy to answer any questions that you may have about paying for your next car, but we also want you to be informed ahead of your visit. That's why we've compiled a quick guide below to outline the differences between taking out an auto loan and signing a lease.

Benefits
 
  • Taxes are more manageable for a lease since they're paid over the life of the lease, and not all at once.
  • With leasing, you're only paying for the depreciated value of the vehicle, which translates into a lower monthly payment.
  • Lease length are typically much shorter than those of a loan, meaning that you have no long-term obligation.
  • You have the option to purchase your vehicle at the end of the lease for an agreed-upon price, but you can also choose to either lease or purchase a new vehicle entirely instead.

  • Repair costs are usually lower with a lease since they typically do not exceed the manufacturer's warranty.

Choosing to lease is the way to go if you're the kind of buyer who wants to upgrade their vehicle periodically and you have a shorter commute. And keep in mind that you can choose to purchase your vehicle if you still love it at the end of the lease.

 

Benefits
 
  • Simplicity: once the term of the loan is up, you own the vehicle.
  • The car is yours to do what you want with: modify it, add accessories, etc.
  • Over time, purchasing a car saves you money, though the up-front payments are typically higher.
  • You can sell your car whenever it's convenient for you.
  • There's no mileage limit, so longer commutes and road trips are nothing to worry about.

An auto loan is the right choice if you're a long-term investor. If you want to outright own your car and know exactly what you want from your next vehicle, a loan is right for you.

 

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Contact

Modern Nissan of Hickory

840 HWY 70 SE
Directions Hickory, NC 28602

  • Sales: (888) 691-8479
  • Service: (888) 692-3598
  • Parts: (877) 757-3150

Hours

  • Monday 9:00AM - 8:00PM
  • Tuesday 9:00AM - 8:00PM
  • Wednesday 9:00AM - 8:00PM
  • Thursday 9:00AM - 8:00PM
  • Friday 9:00AM - 8:00PM
  • Saturday 9:00AM - 6:00PM
  • Sunday Closed