When it's time for a new vehicle, you have two main options for getting it: leasing or financing. Both have advantages and disadvantages to consider. This blog post from White's Auto Mall Nissan in Hopkinsville, KY will go over the key differences to help you decide if leasing or financing is better for your situation.
Why Should You Choose an Auto Loan?
Getting an auto loan to finance your vehicle purchase may be the better choice if:
- You want to own the vehicle at the end of the term.
- You drive high annual mileage.
- You want to customize or modify the vehicle.
- You want to build equity in the vehicle.
With an auto loan, you take out financing to cover the entire purchase price of the vehicle minus any down payment. The loan gets repaid in monthly installments over the loan term, usually 24 to 72 months. Once it gets paid off, you own the vehicle free and clear.
Auto loans allow you to build equity as you pay down the loan balance. This equity can help with any future trade-ins or sales. You also have the freedom to modify, customize, or add aftermarket parts since you own the vehicle.
Who Benefits from Leasing a New Vehicle?
Leasing may be the better option if:
- You want lower monthly payments.
- You always want to drive a new vehicle around Cadiz.
- You don't drive many miles per year.
- You don't want maintenance responsibilities.
With a lease, you only pay for your car's depreciation during the lease term plus rent charges, taxes, and fees. This scenario usually results in a lower monthly payment compared to financing the full purchase price. Lease terms are commonly 24 to 36 months.
When your lease ends, you simply turn the vehicle back in. This step appeals to Fort Campbell drivers who like driving new vehicles frequently. Since your mileage gets capped per the lease terms, leases work best for low-mileage drivers.
The leasing company handles maintenance, repairs, and other requirements, reducing your responsibilities as the driver. Just be sure you stay within the agreed mileage limits and return the vehicle in good condition to avoid any excess wear and tear fees.
Apply for Your Next Loan or Lease Today
Whether you decide on financing or leasing, the finance experts at White's Auto Mall Nissan near Oak Grove can help. We work with multiple lenders to find competitive rates on auto loans and leases. Clarksville drivers also appreciate our no-pressure environment.
Reach out to us when you're ready to get pre-approved for your next vehicle loan or lease. You can apply online or in person at our dealership. Let us simplify the auto financing process so you can focus on finding the right new Nissan car, truck, or SUV.