Nissan Leasing vs. Buying Comparison

Nissan Leasing VS Purchasing with a Loan

If you're like most of our customers from Cuyahoga Falls, Akron, Hudson, New Franklin, and Kent, OH, then you've probably asked yourself some version of this question when it comes to looking for a new Nissan model, "Should I lease a vehicle or purchase?. While we can't answer that question for you directly, the team here at Ron Marhofer Nissan has put together a comprehensive guide on the advantages and disadvantages of leasing VS buying, as well as some reasons certain folks might prefer one over the other. If you find yourself on the fence, check out the guide below, and if you have questions about the financing process at any time, our finance department is on-hand to answer any questions, so you're welcome to reach out to us at (234)-245-6026.

Should I Lease or Should I Buy? A Detailed Examination of the Advantages and Drawbacks of Both Financing Solutions

First things first, there's no wrong way to join the Nissan family, so whether you get your Nissan car, crossover, SUV, or truck from our new Nissan inventory or pre-owned inventory, or whether you purchase with an auto loan or spend a few years with a Nissan lease, we're all family here. Your decision to purchase or lease is a personal one, and it really depends on what you're looking for in your driving and Nissan ownership experience. Each has advantages and each has drawbacks, but only you can decide which one suits your needs the best. But you don't have to go it alone, you can count on our financing experts to help you navigate the process from start to finish, and you can always check out our new Nissan deals and incentives for the occasional special deal or financing offer. So, without further ado….

So, What Is a Lease Exactly?

You may have heard people talk about leasing a car, SUV, or truck, but if you've ever had questions about what that means, we hope this section can lay some pressing questions to rest. When you lease a vehicle, you don't own it, but you take possession of it for an agreed-upon amount of time, with most leases running about 36 months, or three years. At the end of your lease, you have a few options, but the most common option for folks is to return the vehicle to the dealership, whereupon you can choose to move onto your next new Nissan model. This works great for those who want access to the freshest models, freshest faces, and most cutting-edge technology every few years.

One key difference between a lease and purchasing with a loan is what you're actually paying for; when you purchase your vehicle, your monthly payments are based on the full purchase price of the vehicle, minus your down payment, plus any interest. On the other hand, when you lease, your monthly payments are based on the cost of depreciation during the time you're in possession of the vehicle, not the full MSRP of the vehicle. For that reason, the monthly payments for leased vehicles tend to be lower than monthly payments for auto loans, but you don't earn any equity on a leased vehicle, whereas you do build equity with auto loan payments.

Something to bear in mind about leasing is the fact that lease terms are generally on the shorter side, between three and five years, and because leases are almost exclusively on factory-new vehicles, there's a great chance your leased vehicle will remain under the manufacturer's warranty for the entirety of your lease, so any surprise mechanical repairs could end up being covered for you!

Alright, So What Does it Mean to Purchase with an Auto Loan?

Just like leasing, purchasing with a loan presents both advantages and disadvantages that will vary from person to person, situation to situation. One of the biggest differentiating factors between a lease and a loan is the fact that when you purchase a new Nissan with an auto loan, the vehicle belongs to you. While that might seem obvious, this means you can do some things with your vehicle that those who lease cannot. For example, when you own your vehicle, you can make any customizations you'd like, whereas leases forbid customization-if you don't own the vehicle, you can't paint a neon green racing strip along the side; if you do own your vehicle, you can customize to your heart's content, though there's no accounting for taste! Though that racing stripe might put a damper on things if you ever choose to sell your vehicle-something you can do when you purchase with an auto loan, but you cannot do with a lease.

As we mentioned above, purchasing with an auto loan typically means larger monthly payments because you're paying for the entire cost of the vehicle rather than just the depreciation in value, but those payments do build equity in the vehicle, which is not true of leased vehicles. If you'd like to get a head start on applying for financing, you can apply online, but you're also welcome to simply come on into the dealership to get the financing process started with us in person.

As you can see, there's no cut-and-dry answer to the question, "Should I lease or should I buy?" The answer lies with you and what you're looking for in your vehicle ownership experience. Hopefully the above has helped you sort through the advantages and disadvantages to each, leading you to the choice that fits most comfortably with your lifestyle and leads you into the driver's seat of the new Nissan sedan, crossover, SUV, or truck that you've been dreaming about!