Should I Buy or Lease My Next Car?

Feb 21, 2020

Decisions, decisions! The answer to this question is going to vary from individual to individual and from circumstance to circumstance. Car financing doesn’t have to be confusing, so we’re here to make this important decision a little clearer for you.

First, a look at the benefits of buying a car:

Eventual ownership
No mileage limits
Modify the car without fear of breaking contract agreements
Once it’s paid off, you can sell it at any time

Sounds great right? Maybe to some, but maybe not to everybody. So, here’s a look at the benefits of leasing a car:

Lower down payment
Lower monthly payments available
Repairs will typically be covered under warranty
No selling involved
An option to get a new car every few years

Generally speaking, there are three factors to consider when deciding whether to lease or buy a vehicle.

Monthly Costs: It is important to remember that this includes more than just monthly payments. You also need to consider car insurance, as collision and comprehensive coverage may be required when you’re financing a car or leasing one. It may also be a good idea to look into adding GAP insurance too, though some lease agreements will include it at no additional cost (always ask if it’s included).
Overall Costs: This includes down payment, repairs, depreciation, and leasing fees. Examples of leasing fees you may have to pay are:

Acquisition fee- covers costs for arranging the lease.
Security deposit- Roughly equal to one month’s payment.
Early termination fee- Charged if you end the contract early. Amount can vary.
Disposition fee- Covers costs for cleaning and selling the car at the end of the lease.

Flexibility: Are you the type of person that cringes at the idea of being locked into one car for a long period of time? If so, then leasing might be your best option. However, it is important to remember that leasing may not be as flexible as it appears. If you break your lease early, you could be liable to pay steep penalties including covering all of the remaining lease payments and additional penalties on top of other fees.

This might be a lot to take in, but here at Scott Clark Nissan we’re here to help! You can take our Buy Vs. Lease Questionnaire on our site, and stop by to talk to any of our knowledgeable sales men and women. We’ll be more than happy to help you figure out which option is best for you!