HOW LEASING WORKS
Leasing a vehicle is a great way to be able to drive the latest and greatest vehicle. You may have a down payment required at the beginning of your lease and after that you pay monthly. When you lease you normally use the vehicle for about 12-48 months on average and when your term is up you have to either return it and lease another vehicle or buy the vehicle you have been driving.
With buying or financing a car, you will have that car most likely for a significantly longer amount of time than if you are leasing, such as 48-54 months. This means that leasing is a great option for people who are looking for less commitment to one vehicle and want to be frequently driving the newest models.
Leasing also gives you the option to pay lower monthly payments, meaning you will be able to afford to drive a nicer car than if you were to buy the car. While you could continuously drive the newest model of your favorite vehicle, you could also choose to switch make and model after your lease period.
You may have heard people comparing leasing to renting. The difference between leasing and renting is the time you have access to the vehicle. Leasing is a much more long-term commitment than renting because with leasing you typically have a minimum of 12 months while renting is usually anywhere from one day to one month.
LEASING VS. BUYING
OWNERSHIP – LEASING
At the end of the lease, you will turn in the car and decide if you would like to start a new lease to have the latest and greatest vehicle or you can purchase the vehicle you were leasing. This gives you the option to get a new car every few years if you would like to.
Most people return the vehicle at the end of the lease term. Some people like to purchase it during their lease or at the end; others like to trade it in before their lease is over. Simply ask us about these different options before signing any paperwork and we'll make sure you have your lease set up the way you want it.
OWNERSHIP - BUYING/FINANCING
When you buy or finance a car, you will own that car.
When your payments are complete, you own that car and do not need to continue further payments.
FINANCE – LEASING
When you lease a car, the payments you make monthly will typically be lower than what you pay monthly when financing.
You will also pay for a shorter period of time, such as 3 years.
Down payments are not always required on a lease.
At the end of the lease, you will be able to either purchase the vehicle you were leasing or you can find a new or used vehicle to lease.
A down payment is not always required.
FINANCE - BUYING/FINANCING
When you buy or finance a car, your monthly payments will be higher than if you lease
You may be paying for a longer amount of time than a lease, such as 6 years.
At the end of the payments, you will own that car and no longer need to make payments.
MILEAGE RESTRICTIONS – LEASING
Depending on your lease contract, some mileage restrictions may apply.
Mileage Restrictions - Buying/Financing
Because you own the car, you will not have any mileage restrictions.
REPAIRS – LEASING
Depending on your lease terms, some repairs may be covered by your warranty.
REPAIRS - BUYING/FINANCING
You may be covered for some repairs at the beginning of ownership, but as time goes on, you will want to budget in advance for repairs and maintenance.
The vehicle you choose to lease and its depreciation value plays a big role in what your monthly payment will come to, so always consider these factors. The lease agreement goes over how much you will have to pay to begin your lease, how long you will be leasing for, what the current worth of the vehicle is and what it is expected to be, the ending term fees to be paid, the rent charge, possible termination fees, how many miles you are allowed each year, what happens if you miss a lease payment, and normal wear and tear and the fees that come with possible incidents.
SEARCH OUR INVENTORY
Kunes Nissan of Davenport has a great inventory of new and used cars, trucks, and SUVs available for lease. We can help you find the right lease for your lifestyle and answer any questions you may have. Check our selection of vehicles and stop in for a test drive today!