Helping You Understand Automotive Financing & Leasing at Nissan Downtown
If you’re in the market for a new or used vehicle, you’re sure to have encountered marketing material, promotions, and pricing options that refer to leasing and financing. Whether you’re looking for a fuel-sipping roundabout vehicle for city use like a Nissan Sentra, a family-friendly SUV like the Nissan Rogue, or a capable work truck like the Nissan Frontier, it pays to understand your options before signing on the dotted line. Continue reading below as our team here at Nissan Downtown explores the key differences between leasing and financing your next vehicle.
Leasing
An automotive lease is a contractual agreement between you, the customer, and a lending company or other financial institution. In this contract, both parties agree to certain terms and conditions such as the duration of the lease, the amount of kilometers that can be driven during the term of the lease, as well as the physical condition of the vehicle when the lease term ends. In a nutshell, you can think of a lease as a sort of long-term vehicle rental option. You agree to drive a vehicle for a set amount of time and kilometers, and you agree to return the vehicle in good condition upon the end of the agreed upon time.
Benefits of Leasing:
Leasing is a great option for some people. Depending on your financial situation, what you do for work, as well as your personal preferences when it comes to the type of vehicle you drive, leasing may be beneficial for you. Some benefits of leasing include:
- Affordable payments: Since you’re only paying to use the vehicle for a set amount of time and kilometres, lease payments are typically more affordable than finance payments.
- Avoid depreciation: Similarly, since you’re only responsible for a portion of the vehicle’s usable life, you avoid any depreciation that the car may have.
- Ability to drive a new vehicle every two to three years: By opting to lease a vehicle, you benefit from the ability to drive a brand new Nissan model every few years.
- Great for business owners and drivers with set routes: If you own your own business, you may be able to benefit from leasing a vehicle for business-use. Additionally, drivers with a set driving routine that they rarely stray away from can benefit from the limited kilometre agreement of a lease.
Financing
As the name suggests, financing a vehicle means borrowing money to purchase a vehicle with the intention of fully owning it once the loan has been paid off. Similar to a lease, an automotive finance agreement is set between two parties, you the customer and a financial institution. Both parties agree to an interest rate, as well as a set time frame as to when the loan is to be paid in full.
Benefits of Financing:
By opting to finance your vehicle, you benefit from the freedom of doing whatever you wish with your car, but you also have to keep in mind that you incur all the responsibilities of vehicle ownership. A few other notable benefits of automotive financing include:
- No kilometer restrictions: Since you own your vehicle, there are no restrictions on how much you can drive.
- Freedom to alter or modify your vehicle: Similarly, since you’ve agreed to fully purchase the vehicle, you can alter its physical appearance and mechanical components as you see fit. However, keep in mind that modifications may void your Nissan’s new vehicle warranty.
- Long term affordability: Although finance payments are typically more expensive than lease payments, financing a vehicle is typically more affordable than leasing a vehicle over time.
- Ideal for drivers who want to keep their vehicles for the long run: If you plan on driving the same vehicle for more than eight to ten years, financing your vehicle is the best option for you.
Shop New & Used Nissan Vehicles at Nissan Downtown
Now that you’re more aware of the differences between automotive leasing and financing, as well as a few benefits of each option, when it comes time to shop for your next vehicle, visit us at Nissan Downtown in Toronto, Ontario. Let us help you find the right vehicle that suits your needs and fits within your budget. Get in touch with one of our Nissan Product Specialists or visit us at 77 E Don Roadway, today!
