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LEASING
Leasing a car is similar to buying one with a few major changes in the agreement. For starters, you might find leasing a car to be much cheaper than buying one. Since car payments on a purchase are based on the total price of the car, leasing tends to offer lower monthly payments. Leasing often also involves a smaller down payment than buying. Most leases last around three years; you are responsible for taking care of the car during this time. Regular maintenance still needs to be executed. Drivers who fail to maintain their leased vehicles may face stiff fees when the lease period ends.
The most important factor in leasing, for most buyers, is the mileage limit. Leases almost always include some sort of mileage restriction that determines how many miles per year you are able to drive. If you go over the agreed mileage restriction, you will be assessed a per-mile fee at the end of the leasing period. These fees can add up quick. It's also worth noting that leasing a car yields no equity; when your lease period ends, you'll have to start over with a new car.
| Pros | Cons |
|---|
| Cheaper Than Buying |
Large Fees if Car is Not Maintained |
| Smaller Down Payment |
Mileage Limits |
| Lower Monthly Payments |
Yields No Equity |
| Drive What You Love |
Must Return Car at End of Lease |
The big benefits to leasing are lower payments and newer cars for those who might not be able to afford purchasing them. The drawbacks are mileage limits and never truly owning the car. Be honest with yourself about how much you drive before considering a lease!
BUYING
When you buy a car, that car is yours. Buying allows you to keep a car as long as you want, drive as much as you want, and do whatever you want with the car when you're ready for something new. Payments are generally higher, as you're paying for the full value of the car. Down payments will also be higher, as a general rule. Once you've completely paid off the car, you own it and the equity it represents. You can sell it, trade it in, give it to someone as a gift, or drive it until the wheels fall off. It's up to you.
The main drawback to buying a car is that loan payments can be high, making it hard to fit the car into your budget. Additionally, it's possible to become "upside-down" on an auto loan, a situation in which the value of the car is less than the amount you still owe. If the car breaks down or loses value due to market perception, you could end up stuck with something worth a lot less than you paid for it. Buying a car on a tight budget may also require longer payment agreements, which cause you to spend more in interest over time.
| Pros | Cons |
|---|
| No Restrictions On Mileage |
High Loan Payments |
| Sell When You Want |
Car Can End Up Worth Less Than What You Owe |
The major advantage to buying a car is that you are not restricted in how you use it and it becomes part of your personal equity once paid off. The downside is a higher cost and the danger of losing money in the long run.
WHICH TO CHOOSE?
There's no one-size-fits-all solution for choosing a car. Your best option is to speak with one of the knowledgeable, friendly staffers here at Daytona Nissan. Our sales team can listen to your needs and help you make the right decision based on those needs. We can't wait to meet you!
386-492-8775
386-492-8775