Is Financing Better Than Leasing?
Purchasing a new car is kind of a big deal. At Bridgewater Nissan, we know that and do everything we can to make the process a little bit easier for you. Making the decision to buy or lease can be a hard one, but we are here to simplify the decision.
What Are the Benefits of Buying a Car?
When you purchase a new car for cash, you own it outright, and you can do with it as you please. If you finance your purchase, its title will be held by your lender until any auto loan is paid off, though you’ll build a bit of equity with each month’s car payment as long as the payments outpace the rate that the car depreciates. Lease customers never have equity in their vehicles.
Leases come with mileage restrictions, but when you own a car, you can drive it as much as you want. If you drive a lot of miles, buying a car makes much more financial sense than leasing one. You can also drive a car as little as you want, preserving its value.
Beyond fuel and maintenance costs, there’s no additional charge to drive your car mile after mile.
Cash For Your Next Car
You can use any equity that you have in a vehicle toward a down payment on your next ride. For example, if your current car is paid off and worth $10,000, you can trade it in and put that $10,000 of value toward the cost of a new car. You can’t do that with a leased car.
You Can Make It Your Own
Want to paint your 2015 Nissan Rogue pink and give it purple wheels? You can’t do that with a leased car unless you want to pay a ton of money at the end of the lease. If you own the vehicle, you can customize to your heart’s content. If your changes add value to the car (which painting your Rogue pink won’t do), you’ll enjoy a return on your investment when you sell the car.
No More Payments When Your Loan Is Paid Off
A significant advantage of car ownership is that your monthly payments end when you pay off your loan. If you have a four-year auto loan and you keep your pickup truck for seven years, you’ll have three years with no monthly car payments.
You Can Sell Your Car Whenever You Want
When you own your car, you can keep it for as long as you want. If you find out that it doesn’t fit your lifestyle after a year, you can sell it. Find a car that’s reliable, and efficient, and perfect for your family, and you can end up keeping it for a decade.
It’s Easier to Finance Than to Lease