Financing Your Nissan: What Are the Options?
Metro Nissan of Dallas knows that paying for your vehicle of choice can be an overwhelming experience. Our team is here to ease your burden so you can enjoy your new car experience with a little less stress along the way.
In this blog, we’ll be walking you through the pros and cons of the two main financial pathways to putting a Nissan in your driveway: leasing vs. buying and financing.
Option 1: Leasing a new Nissan
The easiest way to describe leasing a new Nissan is that you are essentially “borrowing” a vehicle for a set period of time at a set monthly price.
The Nissan isn’t yours to keep when you’re done with payments, as you’ll have to return it or try to buy it then. However, you get to walk away from the vehicle with ease, facing only a few potential end-of-lease costs rather than struggling to find a buyer to take it off your hands.
Leasing does mean you have to make a commitment to a specific vehicle for a few years. If you decide you want a different vehicle before the contract is up, you’ll likely face early termination fees. But remember: that’s only if you decide to change cars too quickly, and with most leasing terms only being two to three years, that shouldn’t be an issue for nearly all drivers.
Leasing is usually cheaper than paying off the loan of a Nissan. While you may need a little more upfront, due to potential fees such as acquisition and security deposits, month-to-month payments are often noticeably lower.
Leasing payments only pay for the vehicle’s depreciation during the lease term, plus interest charges (rent charges), taxes and fees, versus shouldering the full price of the vehicle when financing and buying. Likewise, any depreciation or appreciation in the car’s value doesn’t affect your payments, so you know what you’re getting into at the start.
A few potential pitfalls of leasing are wear and tear, customization and mileage. Since you have to return the vehicle in a salable condition nearly equivalent to how you bought it, you can’t get too crazy with a leased vehicle. Damage to the vehicle, unauthorized parts, and excessive mileage can be costly. However, if you intend to keep your vehicle in good condition, this shouldn’t be an issue.
Option 2: Buying or Financing a new Nissan
Buying or financing is a more long-term investment, but it gives you the power to make decisions about your vehicle.
When you buy or finance, the car is yours to keep for as long as you want. Whether it is three months or three decades later, you get to decide when and where to make a transition. However, when the time comes that you want another vehicle, you’ll have to deal with finding someone to sell or trade it in to, which can be a hassle.
If you’re financing a new Nissan, loan payments are usually higher than lease payments, as you’re factoring in the full cost of the car, not depreciation. However, these payments are higher because the car is YOURS, not the dealer’s, to do with as you please. Want to trade it in early? Go right ahead. Sell it to someone else, and maybe use the sale to pay off the loan? You’re the boss.
You are free to do whatever you want with the car itself. The possibilities are limitless. Go offroading on that beat up path that would have cost you a fee at lease return. Throw on all the after-market parts and accessories you want. Take that trip around the country you’ve been planning, mileage is damned.
With great power comes great responsibility, however. If you intend to sell or trade-in your vehicle in the future, excessive mileage, customization and bumps, and bruises will lower your returns. Depreciation is also a concern, with vehicles that somehow gain value over time being rarer than unicorns.
The Bottom Line: Which Option is Best for You?
Everyone’s situation is different, but a few key ideas should make this an easy decision to make.
If the following describes you, talk to us about leasing today:
I like to change vehicles regularly, such as every two to three years.
I will be keeping my car in good condition by avoiding high mileage, customization and dangerous conditions.
I need lower cost monthly payments.
On the other hand, work out a financing plan or buy outright with us today if these describe you:
I like to keep my vehicle for a long time, frequent changes aren’t my style.
I will be doing whatever I want with my vehicle, where I want, when I want to, such as spoilers, scratches and long summer trips.
I need financial freedom to sell, trade or modify my vehicle on my own terms.
We hope this clears up any confusion you may have about your financial options as you prepare to take home the latest Nissan addition to your family today.