Leasing versus car purchase

Leasing versus car purchase

The pleasure of a new car can often be clouded with financial statements. A big decision that car shoppers are plagued with is that of leasing or buying a car. For those who have never leased a car, leasing can seem confusing and complicated. Leases can seem confusing, but most of your perceptions of leasing are probably outdated.

Read the following benefits to leasing a vehicle over buying:

  • Pay lower out-of-pocket costs. Leasing requires little or no down payment and there are no upfront sales tax payments. Leasing essentially means you are renting a car for a fixed number of months, so you are only paying for the car for that period of time. For business owners, leasing a car can offer tax advantages if the vehicle is used to for business purposes.
  • Beat the banks. Leasing is a great alternative when buying a car is not an option. Most banks will not lend you more than $30,000 (£18,750) to buy a car. If you are trying to acquire a car for more than that amount, leasing can make it possible.
  • Drive a new vehicle. A great point about leasing a new vehicle is that you are always driving new. Leasing a car also frees you up from a depreciating asset. Car payments typically take about 5 years to pay off; with a car lease, you aren’t making a long term commitment, about 2-3 years on average.
  • Lower your monthly payment. Monthly payments are comparatively lower when you lease a car. The obvious downside of buying a car is higher monthly payments. When you lease you are only paying for the depreciation of the vehicle for a fixed number of months. The leased car will typically be under factory warranty in pricing as well.

The ultimate decision of leasing or buying a car always falls under personal circumstances. The drawback of both leasing and buying a car is that you will always have a car payment. Most leases restrict your mileage. If you are someone who drives a lot during the year, ask about an open-ended lease so your miles will not be restricted and you won’t face penalties for going over. Feel good about your decision and enjoy your new ride.

For more information on leasing from the experts, contact O’Neil Nissan, the Warminster Nissan Dealer today at 215-674-9300.